Accsys Technologies CAPEX surged on 360% and Revenue increased on 7.8%
19 Jun 2018 • About Accsys Technologies (
$AXS) • By InTwits
Accsys Technologies reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Accsys Technologies is a fast growth stock: FY2018 revenue growth was 7.8%, 5 year revenue CAGR was 26.5% at FY2018 ROIC -8.0%
- The company operates at negative EBITDA Margin: -7.9%
- Accsys Technologies spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -4.0%
- Accsys Technologies has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.7%. At the same time it's a lot of higher than industry average of 7.6%.
- CAPEX is quite volatile: €30m in FY2018, €6m in FY2017, €3m in FY2016, €1m in FY2015, €1m in FY2014
- The company has unprofitable business model: ROIC is -8.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Accsys Technologies's Revenue increased on 7.8%. Revenue decline was accelerating on average at -17.1 pp per annum in FY2014-FY2018. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from 6.5% to 8.9% in FY2018. During FY2014-FY2018 EBITDA Margin topped in FY2016 at 4.6% and was declining since that time.
Gross Margin decreased on 3.0 pp from 25.4% to 22.4% in FY2018. During the last 5 years Gross Margin topped in FY2016 at 34.4% and was declining since that time. SG&A as a % of Revenue showed almost no change in FY2018.
Net Income margin decreased on 7.8 pp from -8.9% to -16.7% in FY2018. During FY2014-FY2018 Net Income margin topped in FY2016 at -1.6% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2018 Accsys Technologies had CAPEX/Revenue of 48.5%. CAPEX/Revenue jumped on 46.5 pp from 2.0% in FY2015 to 48.5% in FY2018. For the last three years the average CAPEX/Revenue was 21.6%. CAPEX as a % of Revenue followed a growing trend in FY2014-FY2018.
Return on investment
The company operates at negative ROIC (-8.0%) and ROE (-23.3%). ROIC decreased slightly on 1.3 pp from -6.8% to -8.0% in FY2018. ROE dropped on 11.6 pp from -11.7% to -23.3% in FY2018. During the last 5 years ROIC topped in FY2016 at -0.55% and was declining since that time.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2018. Debt jumped on 87.6% while cash decreased on 3.6%.
Accsys Technologies has no short term refinancing risk: cash is higher than short term debt (1,172.8%).
Financial and operational results
FY ended 31 Mar 2018
Accsys Technologies ($AXS) key annual financial indicators| mln. € | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 33.512 | 46.077 | 52.769 | 56.529 | 60.911 | 7.8% |
| Gross Profit | 7.759 | 12.235 | 18.172 | 14.354 | 13.641 | -5.0% |
| SG&A | | 9.910 | 10.371 | 10.606 | 11.602 | 9.4% |
| EBITDA | -4.838 | -1.275 | 2.431 | -1.491 | -4.817 | |
| Net Income | -8.889 | -8.260 | -0.868 | -5.025 | -10.150 | |
Balance Sheet
|
|---|
| Cash | 15.185 | 10.786 | 8.186 | 41.173 | 39.698 | -3.6% |
| Short Term Debt | 0.264 | 0.264 | 0.354 | 0.455 | 3.385 | 644.0% |
| Long Term Debt | 1.871 | 1.799 | 1.947 | 22.718 | 40.084 | 76.4% |
Cash flow
|
|---|
| Capex | 0.572 | 0.907 | 2.565 | 6.416 | 29.530 | 360.3% |
Ratios
|
|---|
| Revenue growth | 78.0% | 37.5% | 14.5% | 7.1% | 7.8% | |
| EBITDA growth | -38.6% | -73.6% | -290.7% | -161.3% | 223.1% | |
|
|---|
| Gross Margin | 23.2% | 26.6% | 34.4% | 25.4% | 22.4% | -3.0% |
| EBITDA Margin | -14.4% | -2.8% | 4.6% | -2.6% | -7.9% | -5.3% |
| SG&A, % of revenue | | 21.5% | 19.7% | 18.8% | 19.0% | 0.3% |
| Net Income Margin | -26.5% | -17.9% | -1.6% | -8.9% | -16.7% | -7.8% |
| CAPEX, % of revenue | 1.7% | 2.0% | 4.9% | 11.3% | 48.5% | 37.1% |
|
|---|
| ROIC | -13.5% | -8.0% | -0.6% | -6.8% | -8.0% | -1.3% |
| ROE | -17.2% | -18.6% | -2.1% | -11.7% | -23.3% | -11.6% |
| Net Debt/EBITDA | | | -2.4x | | |
Peers in Construction & Materials
Below we provide Accsys Technologies benchmarking against other companies in Construction & Materials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 68.0% | -56.5% | 5.3% | 46.2% | |
| Mountfield Group ($MOGP) | -4.1% | 10.4% | -26.1% | 31.7% | |
| LSR Group OJSC ($LSRG) | | -6.0% | 22.1% | 30.0% | |
| Michelmersh Brick Hldgs ($MBH) | 9.8% | 2.1% | 3.4% | 26.0% | |
| Steppe Cement ($STCM) | -8.9% | -19.7% | -44.0% | 25.5% | |
| |
|---|
| Median (23 companies) | 10.3% | 1.6% | 5.3% | 11.6% | 3.6% |
|---|
| Accsys Technologies ($AXS) | | 37.5% | 14.5% | 7.1% | 7.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 21.7% | 51.7% | 64.7% | 58.1% | |
| Heath(Samuel)& Sons ($HSM) | 48.6% | 47.6% | 48.1% | 51.1% | |
| James Halstead ($JHD) | 41.0% | 41.7% | 42.4% | 43.5% | 41.9% |
| Billington Hldgs ($BILN) | 38.8% | 36.3% | 37.7% | 35.6% | |
| Michelmersh Brick Hldgs ($MBH) | 31.1% | 38.2% | 34.4% | 35.4% | |
| |
|---|
| Median (22 companies) | 26.7% | 29.3% | 29.7% | 27.6% | 41.9% |
|---|
| Accsys Technologies ($AXS) | 23.2% | 26.6% | 34.4% | 25.4% | 22.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lucky Cement Ltd ($LKCS) | 24.4% | 26.5% | 30.4% | 29.7% | |
| James Halstead ($JHD) | 20.1% | 20.9% | 21.6% | 20.8% | |
| Asia Cement Corp ($ASCD) | 18.3% | 14.8% | 19.1% | 19.4% | |
| Michelmersh Brick Hldgs ($MBH) | 14.1% | 20.3% | 18.7% | 19.4% | |
| Smart(J.)& Co(Contractors) ($SMJ) | -2.0% | 12.3% | 13.7% | 18.6% | |
| |
|---|
| Median (23 companies) | 9.6% | 9.7% | 11.9% | 9.8% | |
|---|
| Accsys Technologies ($AXS) | -14.4% | -2.8% | 4.6% | -2.6% | -7.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 12.8% | 54.9% | 313.4% | 40.8% | |
| Lucky Cement Ltd ($LKCS) | 6.9% | 12.0% | 9.0% | 13.0% | |
| Low & Bonar ($BD46) | 4.6% | 9.1% | 4.7% | 6.4% | |
| Heath(Samuel)& Sons ($HSM) | 2.0% | 2.0% | 3.1% | 4.9% | |
| Saint-Gobain(Compagnie De) ($COD) | 3.5% | 3.7% | 3.5% | 4.2% | |
| |
|---|
| Median (23 companies) | 2.5% | 2.3% | 2.7% | 2.1% | 1.4% |
|---|
| Accsys Technologies ($AXS) | 1.7% | 2.0% | 4.9% | 11.3% | 48.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Heath(Samuel)& Sons ($HSM) | 19.7% | 32.0% | 89.2% | 54.2% | |
| Alumasc Group ($ALU) | 22.6% | 36.0% | 47.8% | 50.2% | |
| Clarke(T.) ($CTO) | -0.4% | 19.6% | 23.6% | 48.5% | |
| James Halstead ($JHD) | 46.7% | 45.3% | 47.1% | 46.5% | 39.9% |
| Yolo Leisure & Technology ($YOLO) | -49.9% | -26.1% | -51.5% | 24.2% | |
| |
|---|
| Median (25 companies) | 5.4% | 7.8% | 9.1% | 8.8% | 39.9% |
|---|
| Accsys Technologies ($AXS) | -13.5% | -8.0% | -0.6% | -6.8% | -8.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Low & Bonar ($BD46) | 2.1x | 2.4x | 2.1x | 14.3x | |
| Asia Cement Corp ($ASCD) | 6.8x | 8.6x | 6.1x | 5.8x | |
| Michelmersh Brick Hldgs ($MBH) | 0.5x | -0.5x | -0.8x | 2.4x | |
| Crh ($CRH) | 1.6x | 3.1x | 1.8x | 1.9x | |
| LSR Group OJSC ($LSRG) | 0.1x | 0.7x | 1.8x | 1.7x | |
| |
|---|
| Median (21 companies) | 0.5x | -0.1x | -0.7x | -0.6x | |
|---|
