Volex revenue increased slightly on 0.87% and EBITDA Margin increased on 4.1 pp from -0.39% to 3.7%
18 Jun 2018 • About Volex (
$VLX) • By InTwits
Volex reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 3.7% in FY2018, -0.4% in FY2017, 2.9% in FY2016, 0.6% in FY2015, 0.8% in FY2014
- Volex has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 3.4%
- CAPEX is quite volatile: $2m in FY2018, $2m in FY2017, $6m in FY2016, $4m in FY2015, $8m in FY2014
- The company has highly profitable business model: ROIC is 13.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased slightly on 0.87%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.1 pp from -0.39% to 3.7% in FY2018.
Gross Margin increased on 4.1 pp from 13.3% to 17.3% in FY2018.
Net Income margin increased on 3.4 pp from -2.2% to 1.2% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.76% in FY2018. Volex's CAPEX/Revenue showed almost no change from FY2015 to FY2018. It's average level of CAPEX/Revenue for the last three years was 1.0%.
Return on investment
The company operates at good ROIC (13.7%) while ROE is low (8.3%). ROIC jumped on 22.5 pp from -8.8% to 13.7% in FY2018. ROE surged on 22.7 pp from -14.4% to 8.3% in FY2018. ROE stuck to a growing trend at 9.4 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is -0.8x Net Debt / EBITDA and 1.2x Debt / EBITDA. Debt dropped on 18.4% while cash dropped on 16.0%.
Volex has no short term refinancing risk: cash is higher than short term debt (1,342.9%).
Financial and operational results
FY ended 01 Apr 2018
Volex ($VLX) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 400.2 | 423.4 | 367.5 | 319.6 | 322.4 | 0.9% |
| Gross Profit | 66.0 | 70.6 | 58.5 | 42.3 | 55.8 | 31.9% |
| EBITDA | 3.2 | 2.7 | 10.6 | -1.3 | 12.0 | |
| Net Income | -14.2 | -10.7 | -2.3 | -7.0 | 3.9 | |
Balance Sheet
|
|---|
| Cash | 13.7 | 33.7 | 30.7 | 29.6 | 24.8 | -16.0% |
| Short Term Debt | 0.0 | 7.5 | 5.2 | 0.0 | 1.8 | |
| Long Term Debt | 45.9 | 24.3 | 28.8 | 18.2 | 13.0 | -28.5% |
Cash flow
|
|---|
| Capex | 8.2 | 3.9 | 6.0 | 2.5 | 2.4 | -1.1% |
Ratios
|
|---|
| Revenue growth | -15.4% | 5.8% | -13.2% | -13.0% | 0.9% | |
| EBITDA growth | -68.9% | -15.6% | 299.4% | -111.8% | -1,056.3% | |
|
|---|
| Gross Margin | 16.5% | 16.7% | 15.9% | 13.3% | 17.3% | 4.1% |
| EBITDA Margin | 0.8% | 0.6% | 2.9% | -0.4% | 3.7% | 4.1% |
| Net Income Margin | -3.5% | -2.5% | -0.6% | -2.2% | 1.2% | 3.4% |
| CAPEX, % of revenue | 2.0% | 0.9% | 1.6% | 0.8% | 0.8% | -0.0% |
|
|---|
| ROIC | -5.6% | -5.3% | 3.9% | -8.8% | 13.7% | 22.5% |
| ROE | -34.4% | -23.5% | -4.4% | -14.4% | 8.3% | 22.7% |
| Net Debt/EBITDA | 10.2x | -0.7x | 0.3x | | -0.8x |
Peers in Electronic & Electrical Equipment
Below you can find Volex benchmarking vs. other companies in Electronic & Electrical Equipment 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 |
|---|
| Image Scan Hldgs ($IGE) | -13.5% | -22.2% | 94.1% | 51.9% | |
| Flowgroup ($FLOW) | 141.9% | 21.1% | 144.6% | 39.8% | |
| Gooch & Housego ($GHH) | 10.8% | 12.3% | 9.3% | 30.2% | |
| Walsin Lihwa Corp ($WALS) | | -8.4% | -4.0% | 17.0% | |
| Stadium Group ($SDM) | -1.1% | 29.0% | -1.5% | 15.2% | |
| |
|---|
| Median (16 companies) | -1.1% | -1.4% | 0.9% | 8.9% | 5.4% |
|---|
| Volex ($VLX) | | 5.8% | -13.2% | -13.0% | 0.9% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Prophotonix Ltd ($PPIR) | | | 45.4% | 44.6% | |
| Gooch & Housego ($GHH) | 40.5% | 39.4% | 37.5% | 41.1% | |
| Zytronic ($ZYT) | 36.6% | 41.9% | 42.8% | 41.1% | |
| Elektron Technology ($EKT) | 34.8% | 35.6% | 37.2% | 39.1% | 49.7% |
| Image Scan Hldgs ($IGE) | 30.7% | | 42.3% | 38.3% | |
| |
|---|
| Median (14 companies) | 29.6% | 26.2% | 31.8% | 32.4% | 46.4% |
|---|
| Volex ($VLX) | 16.5% | 16.7% | 15.9% | 13.3% | 17.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Zytronic ($ZYT) | 22.9% | 27.8% | 25.6% | 28.8% | |
| Maruwa Co Ltd ($MAW) | 17.8% | 14.7% | 19.6% | 21.4% | 28.7% |
| Morgan Advanced Materials ($BA29) | 9.8% | 12.8% | 14.6% | 19.2% | |
| Gooch & Housego ($GHH) | 13.4% | 19.8% | 17.3% | 17.3% | |
| Dewhurst ($DWHA) | 13.7% | 14.7% | 13.4% | 13.6% | |
| |
|---|
| Median (15 companies) | 5.7% | 8.5% | 8.9% | 10.4% | 23.2% |
|---|
| Volex ($VLX) | 0.8% | 0.6% | 2.9% | -0.4% | 3.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lpa Group ($LPA) | 14.8% | 1.8% | 6.0% | 7.3% | |
| Maruwa Co Ltd ($MAW) | 7.6% | 6.5% | 4.4% | 6.1% | 6.9% |
| Gooch & Housego ($GHH) | 2.7% | 3.9% | 11.3% | 5.2% | |
| Wintek Corp ($WTKA) | 2.4% | 0.6% | 1.6% | 4.2% | |
| Solid State ($SSP) | 1.3% | 1.4% | 2.0% | 3.7% | |
| |
|---|
| Median (16 companies) | 1.3% | 1.6% | 1.8% | 2.0% | 4.1% |
|---|
| Volex ($VLX) | 2.0% | 0.9% | 1.6% | 0.8% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Image Scan Hldgs ($IGE) | -45.6% | | 16.4% | 39.8% | |
| Morgan Advanced Materials ($BA29) | 10.9% | 18.4% | 21.9% | 31.6% | |
| Prophotonix Ltd ($PPIR) | | | | 25.8% | |
| Dewhurst ($DWHA) | 24.5% | 27.3% | 24.6% | 24.1% | |
| Zytronic ($ZYT) | 17.0% | 22.7% | 18.1% | 20.9% | |
| |
|---|
| Median (16 companies) | 6.8% | 9.9% | 10.3% | 15.3% | 19.0% |
|---|
| Volex ($VLX) | -5.6% | -5.3% | 3.9% | -8.8% | 13.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Apc Technology Group ($APC) | 0.5x | | | 5.2x | |
| Walsin Lihwa Corp ($WALS) | 3.9x | 4.6x | 2.7x | 1.9x | |
| Stadium Group ($SDM) | 1.2x | 0.3x | 0.7x | 1.4x | |
| Lpa Group ($LPA) | 1.5x | 3.8x | 1.3x | 1.1x | |
| Morgan Advanced Materials ($BA29) | 2.3x | 1.8x | 1.7x | 0.9x | |
| |
|---|
| Median (14 companies) | 0.5x | 0.5x | 0.4x | -0.5x | -1.5x |
|---|
