Ms International reports 85.4% EBITDA growth in 2018 and 26.5% Revenue growth
06 Jun 2018 • About Ms International (
$MSI) • By InTwits
Ms International reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Ms International has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 4.1%
- CAPEX is quite volatile: £1m in FY2018, £4m in FY2017, £2m in FY2016, £1m in FY2015, £1m in FY2014
- The company has highly profitable business model: ROIC is 13.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 26.5%. Revenue decline was slowing down on average by 9.3 pp per annum in the last 5 years. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.4 pp from 6.5% to 8.9% in FY2018.
Gross Margin decreased slightly on 1.1 pp from 27.8% to 26.7% in FY2018. SG&A as a % of Revenue decreased on 4.0 pp from 24.5% to 20.5% in FY2018.
Net Income margin increased on 2.2 pp from 2.8% to 5.0% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Ms International had CAPEX/Revenue of 1.6%. The company showed almost no change in CAPEX/Revenue from FY2015 to FY2018. It's average level of CAPEX/Revenue for the last three years was 4.7%.
Return on investment
The company operates at good ROIC (13.0%) while ROE is low (10.8%). ROIC increased on 7.7 pp from 5.3% to 13.0% in FY2018. ROE increased on 5.6 pp from 5.2% to 10.8% in FY2018.
Leverage (Debt)
The company has no debt. Cash increased on 4.3%.
Financial and operational results
FY ended 28 Apr 2018
Ms International ($MSI) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 47.130 | 45.503 | 49.282 | 53.823 | 68.085 | 26.5% |
| Gross Profit | 12.864 | 10.740 | 12.869 | 14.948 | 18.182 | 21.6% |
| SG&A | 6.954 | 6.643 | 7.909 | 13.177 | 13.929 | 5.7% |
| EBITDA | 4.746 | 3.137 | 3.672 | 3.171 | 5.879 | 85.4% |
| Net Income | 2.574 | 1.353 | 1.584 | 1.498 | 3.386 | 126.0% |
Balance Sheet
|
|---|
| Cash | 14.286 | 17.148 | 12.758 | 15.210 | 15.866 | 4.3% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.940 | 0.833 | 2.330 | 4.165 | 1.106 | -73.4% |
Ratios
|
|---|
| Revenue growth | -13.5% | -3.5% | 8.3% | 9.2% | 26.5% | |
| EBITDA growth | -30.2% | -33.9% | 17.1% | -13.6% | 85.4% | |
|
|---|
| Gross Margin | 27.3% | 23.6% | 26.1% | 27.8% | 26.7% | -1.1% |
| EBITDA Margin | 10.1% | 6.9% | 7.5% | 5.9% | 8.6% | 2.7% |
| SG&A, % of revenue | 14.8% | 14.6% | 16.0% | 24.5% | 20.5% | -4.0% |
| Net Income Margin | 5.5% | 3.0% | 3.2% | 2.8% | 5.0% | 2.2% |
| CAPEX, % of revenue | 2.0% | 1.8% | 4.7% | 7.7% | 1.6% | -6.1% |
|
|---|
| ROIC | 11.0% | 5.9% | 7.1% | 5.3% | 13.0% | 7.7% |
| ROE | 8.8% | 4.7% | 5.6% | 5.2% | 10.8% | 5.6% |
| Net Debt/EBITDA | -3.0x | -5.5x | -3.5x | -4.8x | -2.7x | 2.1x |
Peers in Industrial Engineering
Below you can find Ms International 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Flowtech Fluidpower ($FLO) | 17.7% | 18.7% | 19.9% | 45.6% | |
| Corac Group ($CRA) | 12.2% | -5.7% | 3.8% | 38.8% | |
| 600 Group ($SIXH) | -0.2% | 5.0% | 3.4% | 29.9% | |
| Molins ($MLIN) | -16.9% | -0.5% | -52.3% | 28.7% | |
| Mincon Group ($MCON) | 4.2% | 28.8% | 8.4% | 27.8% | |
| |
|---|
| Median (20 companies) | 5.0% | 5.0% | 3.8% | 7.9% | 10.9% |
|---|
| Ms International ($MSI) | | -3.5% | 8.3% | 9.2% | 26.5% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Somero Enterprise Inc ($SOMA) | 54.0% | 55.8% | 56.8% | 56.9% | |
| Rotork ($76ID) | 48.0% | 45.7% | 44.3% | 44.2% | |
| Tricorn Group ($TCN) | 36.1% | 36.0% | 40.3% | 40.6% | 38.3% |
| Amiad Water Systems Ltd ($AFS) | 38.9% | 40.5% | 39.3% | 39.5% | |
| Mincon Group ($MCON) | 43.2% | 40.2% | 40.1% | 36.5% | |
| |
|---|
| Median (17 companies) | 33.2% | 34.2% | 32.0% | 33.9% | 31.6% |
|---|
| Ms International ($MSI) | 27.3% | 23.6% | 26.1% | 27.8% | 26.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Somero Enterprise Inc ($SOMA) | 27.4% | 28.2% | 30.1% | 32.2% | |
| Rotork ($76ID) | 28.0% | 25.0% | 22.8% | 19.9% | |
| Ab Dynamics ($ABDP) | 20.1% | 24.0% | 22.7% | 19.0% | |
| Mincon Group ($MCON) | 22.7% | 17.6% | 16.4% | 14.3% | |
| Northbridge Industrial Services ($NBI) | 32.4% | 32.5% | 9.1% | 14.1% | |
| |
|---|
| Median (19 companies) | 7.4% | 8.2% | 8.0% | 10.0% | 6.4% |
|---|
| Ms International ($MSI) | 10.1% | 6.9% | 7.5% | 5.9% | 8.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ab Dynamics ($ABDP) | 2.5% | 4.2% | 7.9% | 32.7% | |
| Chamberlin ($CMH) | 2.6% | 3.1% | 4.2% | 11.6% | 7.9% |
| Mincon Group ($MCON) | 4.3% | 2.5% | 6.9% | 5.8% | |
| Renold ($RNO) | 3.3% | 2.1% | 4.8% | 4.6% | 4.5% |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 3.6% | 3.7% | 3.8% | 4.3% | |
| |
|---|
| Median (19 companies) | 2.4% | 2.2% | 3.4% | 2.5% | 4.4% |
|---|
| Ms International ($MSI) | 2.0% | 1.8% | 4.7% | 7.7% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Somero Enterprise Inc ($SOMA) | 51.7% | 54.3% | 51.7% | 55.2% | |
| Renold ($RNO) | -2.5% | 41.3% | 39.1% | 44.7% | 21.3% |
| Ab Dynamics ($ABDP) | 28.4% | 31.4% | 28.0% | 19.3% | |
| Braime(T.F.& J.H.)(Hldgs) ($BMTO) | 11.9% | 7.5% | 10.9% | 17.2% | |
| Rotork ($76ID) | 38.1% | 21.9% | 17.0% | 15.7% | |
| |
|---|
| Median (20 companies) | 10.8% | 9.5% | 4.5% | 7.6% | 9.1% |
|---|
| Ms International ($MSI) | 11.0% | 5.9% | 7.1% | 5.3% | 13.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tricorn Group ($TCN) | 5.8x | 4.0x | 7.2x | 5.1x | 2.3x |
| Pressure Technologies ($PRES) | -0.7x | 1.3x | 2.3x | 4.8x | |
| Chamberlin ($CMH) | | 2.2x | 2.2x | 4.3x | 5.8x |
| 600 Group ($SIXH) | 2.2x | 3.1x | | 4.0x | |
| Northbridge Industrial Services ($NBI) | 1.2x | 1.5x | 4.9x | 2.7x | |
| |
|---|
| Median (18 companies) | 0.6x | 1.1x | 1.3x | 0.7x | 2.0x |
|---|
| Ms International ($MSI) | -3.0x | -5.5x | -3.5x | -4.8x | -2.7x |
