Trending stocks

Ienergizer Ltd Net Income jumped on 36.7% and Revenue increased on 6.4%

25 Jun 2018 • About Ienergizer Ltd ($IBPO) • By InTwits

Ienergizer Ltd reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Ienergizer Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 2.3%.
  • CAPEX is quite volatile: $1m in FY2018, $1m in FY2017, $1m in FY2016, $4m in FY2015, $4m in FY2014
  • The company has highly profitable business model: ROIC is 19.8%
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 on 6.4%. During FY2014-FY2018 Revenue growth bottomed in FY2015 at -9.6% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.6 pp from 22.9% to 24.5% in FY2018.

Gross Margin decreased slightly on 1.5 pp from 71.2% to 69.7% in FY2018. Gross Margin declined at -1.6 pp per annum in FY2014-FY2018.

Net Income margin increased on 2.9 pp from 10.2% to 13.1% in FY2018.

Investments (CAPEX, working capital and M&A)


In FY2018 Ienergizer Ltd had CAPEX/Revenue of 0.90%. The company showed decline in CAPEX/Revenue of 2.0 pp from 2.9% in FY2015 to 0.90% in FY2018. Average CAPEX/Revenue for the last three years was 0.70%.

Return on investment


The company operates at high and attractive ROE (20.5%) while ROIC is a bit lower (19.8%). ROIC increased slightly on 1.7 pp from 18.1% to 19.8% in FY2018. ROE increased on 2.1 pp from 18.4% to 20.5% in FY2018. During the last 5 years ROIC bottomed in FY2015 at 10.4% and was growing since that time.

Leverage (Debt)


Debt level is 0.7x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA dropped on 1.0x from 1.7x to 0.7x in FY2018. Debt dropped on 19.9% while cash surged on 84.2%. Net Debt/EBITDA followed a declining trend at -0.7x per annum in FY2014-FY2018.

Ienergizer Ltd has no short term refinancing risk: cash is higher than short term debt (238.9%).

Financial and operational results


FY ended 31 Mar 2018

Ienergizer Ltd ($IBPO) key annual financial indicators

mln. $201420152016201720182018/2017
P&L
Revenue153.7138.9139.7146.3155.76.4%
Gross Profit118.0101.099.6104.1108.54.2%
EBITDA36.323.832.133.538.113.9%
Net Income19.15.616.915.020.436.7%
Balance Sheet
Cash12.513.410.218.333.884.2%
Short Term Debt15.613.914.514.114.10.5%
Long Term Debt106.995.073.761.146.0-24.6%
Cash flow
Capex4.04.10.71.01.441.4%
Ratios
Revenue growth5.2%-9.6%0.5%4.7%6.4%
EBITDA growth-10.7%-34.3%34.6%4.4%13.9%
Gross Margin76.8%72.7%71.3%71.2%69.7%-1.5%
EBITDA Margin23.6%17.1%22.9%22.9%24.5%1.6%
Net Income Margin12.4%4.0%12.1%10.2%13.1%2.9%
CAPEX, % of revenue2.6%2.9%0.5%0.7%0.9%0.2%
ROIC17.9%10.4%17.4%18.1%19.8%1.7%
ROE45.9%10.9%26.8%18.4%20.5%2.1%
Net Debt/EBITDA3.0x4.0x2.4x1.7x0.7x-1.0x

Peers in Support Services


Below we provide Ienergizer Ltd benchmarking against other companies in Support Services 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
Mortice Ltd ($MORT)11.0%18.9%51.1%36.1%
Rws Hldgs ($RWS)20.9%1.8%28.1%34.5%
Empresaria Group ($EMR)-3.3%-0.3%44.4%32.1%
Norish ($NSH)3.7%16.4%16.7%31.4%
Capital Drilling Ltd ($CAPD)-15.0%-20.4%18.7%28.0%
 
Median (47 companies)4.8%7.2%3.5%7.0%8.2%
Ienergizer Ltd ($IBPO)-9.6%0.5%4.7%6.4%


Top companies by Gross margin, %

Top 5 FY2014 FY2015 FY2016 FY2017 FY2018
Inspired Energy ($INSE)78.7%76.2%80.5%83.1%
Spectra Systems Corp ($SPSY)51.4%47.6%68.3%71.1%
Vianet Group ($VNET)58.8%69.2%70.1%69.7%69.9%
Grafenia ($GRA)56.1%70.8%66.3%63.0%57.0%
Billing Services Group ($BILL)48.0%51.0%53.0%56.6%
 
Median (41 companies)29.2%28.1%27.0%27.9%24.7%
Ienergizer Ltd ($IBPO)76.8%72.7%71.3%71.2%69.7%


Top companies by EBITDA margin, %

Top 5 FY2014 FY2015 FY2016 FY2017 FY2018
Northgate ($67GX)40.6%39.4%38.3%35.9%35.4%
Spectra Systems Corp ($SPSY)12.3%6.0%19.7%34.0%
Inspired Energy ($INSE)1.5%35.4%34.4%32.4%
Vp ($VP.)24.2%26.2%28.4%28.6%27.2%
Rws Hldgs ($RWS)22.8%23.1%26.4%25.5%
 
Median (47 companies)6.7%6.9%4.9%5.7%8.2%
Ienergizer Ltd ($IBPO)23.6%17.1%22.9%22.9%24.5%


Top companies by CAPEX/Revenue, %

Top 5 FY2014 FY2015 FY2016 FY2017 FY2018
Vp ($VP.)21.6%25.7%24.1%26.0%23.6%
Augean ($AUG)12.3%12.3%11.0%10.0%
Petards Group ($PEG)0.5%0.9%1.7%10.0%
Capital Drilling Ltd ($CAPD)13.9%10.1%13.7%9.0%
Billing Services Group ($BILL)2.1%4.1%3.0%4.5%
 
Median (47 companies)1.0%0.9%1.1%0.9%2.2%
Ienergizer Ltd ($IBPO)2.6%2.9%0.5%0.7%0.9%


Top companies by ROIC, %

Top 5 FY2014 FY2015 FY2016 FY2017 FY2018
Sthree ($STHR)38.1%50.2%46.2%43.4%
Mortice Ltd ($MORT)19.6%21.9%14.5%23.2%
Petards Group ($PEG)24.7%23.9%22.7%20.3%
Rws Hldgs ($RWS)24.5%23.3%23.5%20.2%
Latham(James) ($LTHM)17.5%16.8%19.2%19.3%17.4%
 
Median (48 companies)10.0%10.7%7.8%7.6%6.8%
Ienergizer Ltd ($IBPO)17.9%10.4%17.4%18.1%19.8%


Top companies by Net Debt / EBITDA

Top 5 FY2014 FY2015 FY2016 FY2017 FY2018
Nakama Group ($NAK)5.2x1.4x3.1x48.5x
21St Century Technology ($C21)-0.8x-0.2x11.2x
Ceps ($CEPS)6.6x3.8x13.9x5.8x
Ibex Global Solutions ($IBEX)2.7x1.0x1.7x4.5x
Menzies(John) ($68HN)2.0x2.4x1.2x3.0x
 
Median (42 companies)0.1x-0.1x0.1x0.2x1.3x
Ienergizer Ltd ($IBPO)3.0x4.0x2.4x1.7x0.7x


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