Mincon Group CAPEX surged on 197% in 2016 and Revenue increased on 8.4%
21 Mar 2017 • About Mincon Group (
$MCON) • By InTwits
Mincon Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 16.4% in FY2016 vs. 17.6% in FY2015 vs. 22.9% in FY2012
- Mincon Group has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's a lot of higher than industry average of 3.4%.
- CAPEX is quite volatile: 5.2 in FY2016, 1.8 in FY2015, 2.4 in FY2014, 2.2 in FY2013, 5.1 in FY2012
- The company has business model with low profitability: ROIC is at 9.7%
- It operates with high leverage: Net Debt/EBITDA is -2.8x while industry average is -35.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mincon Group ($MCON) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 63.143 | 52.343 | 54.544 | 70.266 | 76.181 | 8.4% |
| Gross Profit | 26.891 | 25.722 | 23.552 | 28.277 | 30.561 | 8.1% |
| SG&A | 13.447 | 11.518 | 12.723 | 17.661 | 19.803 | 12.1% |
| EBITDA | 14.432 | 15.691 | 12.403 | 12.336 | 12.510 | 1.4% |
| Net Income | 9.970 | 9.961 | 9.134 | 7.980 | 9.234 | 15.7% |
Balance Sheet
|
|---|
| Cash | 8.715 | 10.119 | 14.082 | 10.644 | 36.836 | 246.1% |
| Short Term Debt | 0.453 | 0.731 | 0.893 | 0.674 | 0.734 | 8.9% |
| Long Term Debt | 0.866 | 0.788 | 2.065 | 2.141 | 1.142 | -46.7% |
Cash flow
|
|---|
| Capex | 5.050 | 2.170 | 2.365 | 1.768 | 5.246 | 196.7% |
Ratios
|
|---|
| Revenue growth | 53.5% | -17.1% | 4.2% | 28.8% | 8.4% | |
| EBITDA growth | 3.3% | 8.7% | -21.0% | -0.5% | 1.4% | |
| Gross Margin | 42.6% | 49.1% | 43.2% | 40.2% | 40.1% | -0.1% |
| EBITDA Margin | 22.9% | 30.0% | 22.7% | 17.6% | 16.4% | -1.1% |
| Net Income Margin | 15.8% | 19.0% | 16.7% | 11.4% | 12.1% | 0.8% |
| SG&A, % of revenue | 21.3% | 22.0% | 23.3% | 25.1% | 26.0% | 0.9% |
| CAPEX, % of revenue | 8.0% | 4.1% | 4.3% | 2.5% | 6.9% | 4.4% |
| ROIC | 28.8% | 20.1% | 11.0% | 10.0% | 9.7% | -0.3% |
| ROE | 24.2% | 15.1% | 10.1% | 8.3% | 9.1% | 0.8% |
| Net Debt/EBITDA | -0.5x | -0.5x | -0.9x | -0.6x | -2.8x | -2.2x |
Revenue and profitability
Mincon Group's Revenue increased on 8.4% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 6.1 pp from -3.9% to 2.2% in 2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 0.86 pp from 25.1% to 26.0% in FY2016.
Net Income marign increased slightly on 0.76 pp from 11.4% to 12.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Mincon Group's CAPEX/Revenue was 6.9% in FY2016. The company's CAPEX/Revenue increased on 2.7 pp from 4.1% in FY2013 to 6.9% in FY2016. For the last three years the average CAPEX/Revenue was 4.6%.
Return on investment
The company operates at low ROIC (9.66%) and ROE (9.12%). ROIC showed almost no change in FY2016. ROE increased slightly on 0.83 pp from 8.3% to 9.1% in FY2016.
Leverage (Debt)
Debt level is -2.8x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA dropped on 2.2x from -0.6x to -2.8x in FY2016. Debt dropped on 33.4% in FY2016 while cash jumped on 246% in FY2016.
Appendix 1: Peers in Industrial Engineering
Below you can find Mincon Group benchmarking vs. other companies in Industrial Engineering industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Slingsby(H.C.) ($SLNG) | -4.2% | -4.3% | -9.9% | 35.5% | |
| Ab Dynamics ($ABDP) | | 36.8% | 13.8% | 19.3% | 23.9% |
| Flowtech Fluidpower ($FLO) | -5.8% | -5.1% | 17.7% | 18.7% | |
| Somero Enterprise Inc ($SOMA) | | 40.1% | 31.5% | 18.5% | 13.0% |
| Hydro International ($HYD) | 11.7% | -7.2% | -0.1% | 17.7% | |
| |
|---|
| Median (23 companies) | 11.6% | 6.1% | -0.0% | 0.3% | 1.6% |
|---|
| Mincon Group ($MCON) | | -17.1% | 4.2% | 28.8% | 8.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Somero Enterprise Inc ($SOMA) | 48.7% | 52.2% | 54.0% | 55.8% | 56.8% |
| Hydro International ($HYD) | 37.3% | 39.4% | 45.3% | 46.4% | |
| Rotork ($76ID) | 46.8% | 47.4% | 48.0% | 45.7% | 44.3% |
| Northbridge Industrial Services ($NBI) | 57.0% | 54.0% | 48.4% | 43.4% | |
| Amiad Water Systems Ltd ($AFS) | 42.8% | 40.8% | 38.9% | 40.5% | |
| |
|---|
| Median (21 companies) | 31.0% | 29.9% | 30.2% | 32.9% | 30.1% |
|---|
| Mincon Group ($MCON) | 42.6% | 49.1% | 43.2% | 40.2% | 40.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northbridge Industrial Services ($NBI) | 30.3% | 29.2% | 32.4% | 32.5% | |
| Somero Enterprise Inc ($SOMA) | 12.6% | 23.9% | 27.4% | 28.2% | 30.1% |
| Rotork ($76ID) | 27.0% | 27.6% | 28.0% | 25.0% | 22.8% |
| Ab Dynamics ($ABDP) | 21.3% | 18.9% | 20.1% | 24.0% | 22.7% |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 16.5% | 17.0% | 7.5% | 16.0% | |
| |
|---|
| Median (23 companies) | 8.6% | 8.0% | 7.4% | 7.9% | 9.1% |
|---|
| Mincon Group ($MCON) | 22.9% | 30.0% | 22.7% | 17.6% | 16.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pressure Technologies ($PRES) | 2.4% | 2.3% | 3.3% | 11.6% | 2.5% |
| Somero Enterprise Inc ($SOMA) | 1.7% | 1.8% | 2.1% | 5.9% | 5.6% |
| Mitsubishi Electric Corp ($MEL) | 4.4% | 4.2% | 3.7% | 4.6% | 4.1% |
| Ab Dynamics ($ABDP) | 2.2% | 5.6% | 2.5% | 4.2% | 7.9% |
| Braime(T.F.& J.H.)(Hldgs) ($BMTO) | 2.3% | 9.6% | 5.6% | 3.8% | |
| |
|---|
| Median (23 companies) | 2.4% | 2.0% | 2.4% | 2.2% | 4.2% |
|---|
| Mincon Group ($MCON) | 8.0% | 4.1% | 4.3% | 2.5% | 6.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Somero Enterprise Inc ($SOMA) | 6.0% | 34.1% | 51.7% | 54.3% | 51.7% |
| Energy Technique ($ETQ) | 18.9% | 19.3% | 47.5% | 41.6% | |
| Renold ($RNO) | 18.8% | -12.7% | -2.5% | 41.3% | 39.1% |
| Ab Dynamics ($ABDP) | 44.4% | 34.3% | 28.4% | 31.4% | 28.0% |
| Rotork ($76ID) | 50.0% | 45.4% | 38.1% | 21.9% | 17.0% |
| |
|---|
| Median (23 companies) | 13.5% | 11.4% | 10.8% | 8.8% | 4.3% |
|---|
| Mincon Group ($MCON) | 28.8% | 20.1% | 11.0% | 10.0% | 9.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tricorn Group ($TCN) | -0.3x | 0.9x | 5.8x | 4.0x | 7.2x |
| Slingsby(H.C.) ($SLNG) | -3.3x | -4.6x | -3.7x | 3.7x | |
| Avingtrans ($AVG) | 3.1x | 0.7x | 1.2x | 3.6x | -22.4x |
| 600 Group ($SIXH) | | 3.2x | 2.2x | 3.1x | |
| Chamberlin ($CMH) | 0.5x | 0.4x | | 2.2x | 2.2x |
| |
|---|
| Median (23 companies) | 0.5x | 0.6x | 0.6x | 1.1x | -0.4x |
|---|
| Mincon Group ($MCON) | -0.5x | -0.5x | -0.9x | -0.6x | -2.8x |
