Omega Diagnostics Group Net Income dropped on 1,119% and EBITDA Margin dropped on 54.1 pp from 8.6% to -45.5%
06 Aug 2018 • About Omega Diagnostics Group (
$ODX) • By InTwits
Omega Diagnostics Group reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: -45.5% in FY2018 vs. 8.6% in FY2017 vs. 11.2% in FY2014
- Omega Diagnostics Group 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 -1.5%
- Omega Diagnostics Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 16.4%
- CAPEX is quite volatile: $0m in FY2018, $0m in FY2017, $0m in FY2016, $6m in FY2015, $5m in FY2014
- The company has unprofitable business model: ROIC is -33.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 4.9%. During the last 5 years Revenue growth topped in FY2017 at 11.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 54.1 pp from 8.6% to -45.5% in FY2018. During FY2014-FY2018 EBITDA Margin topped in FY2015 at 11.4% and was declining since that time.
Gross Margin decreased on 4.3 pp from 64.7% to 60.5% in FY2018. SG&A as a % of Revenue increased on 7.9 pp from 60.1% to 68.0% in FY2018.
Net Income margin dropped on 58.6 pp from 5.0% to -53.6% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Omega Diagnostics Group had CAPEX/Revenue of 3.5%. CAPEX/Revenue decreased on 2.3 pp from 5.8% in FY2015 to 3.5% in FY2018. It's average level of CAPEX/Revenue for the last three years was 4.2%. During FY2014-FY2018 CAPEX as a % of Revenue topped in FY2015 at 5.8% and was declining since that time.
Return on investment
The company operates at negative ROIC (-33.6%) and ROE (-37.7%). ROIC dropped on 36.6 pp from 2.9% to -33.6% in FY2018. ROE dropped on 41.1 pp from 3.4% to -37.7% in FY2018. ROIC followed a declining trend in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.4x and Debt / EBITDA is . Net Debt / EBITDA jumped on 0.2x from -0.2x to in FY2018. Debt jumped on 105% while cash dropped on 84.3%.
Omega Diagnostics Group has short term refinancing risk: cash is only 75.1% of short term debt.
Financial and operational results
FY ended 31 Mar 2018
Omega Diagnostics Group ($ODX) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 11.594 | 12.105 | 12.744 | 14.247 | 13.553 | -4.9% |
| Gross Profit | 7.371 | 7.674 | 8.136 | 9.222 | 8.193 | -11.2% |
| SG&A | 6.844 | 7.174 | 7.739 | 8.558 | 9.214 | 7.7% |
| EBITDA | 1.293 | 1.386 | 1.295 | 1.228 | -6.170 | -602.3% |
| Net Income | 0.693 | 0.739 | 0.572 | 0.713 | -7.270 | -1,119.2% |
Balance Sheet
|
|---|
| Cash | 3.116 | 1.972 | 1.302 | 0.737 | 0.116 | -84.3% |
| Short Term Debt | 0.428 | 0.238 | 0.128 | 0.155 | 0.154 | -0.9% |
| Long Term Debt | 0.319 | 0.315 | 0.283 | 0.276 | 0.729 | 164.2% |
Cash flow
|
|---|
| Capex | 0.479 | 0.702 | 0.621 | 0.591 | 0.472 | -20.2% |
Ratios
|
|---|
| Revenue growth | 2.9% | 4.4% | 5.3% | 11.8% | -4.9% | |
| EBITDA growth | 32.4% | 7.1% | -6.5% | -5.1% | -602.3% | |
|
|---|
| Gross Margin | 63.6% | 63.4% | 63.8% | 64.7% | 60.5% | -4.3% |
| EBITDA Margin | 11.2% | 11.4% | 10.2% | 8.6% | -45.5% | -54.1% |
| SG&A, % of revenue | 59.0% | 59.3% | 60.7% | 60.1% | 68.0% | 7.9% |
| Net Income Margin | 6.0% | 6.1% | 4.5% | 5.0% | -53.6% | -58.6% |
| CAPEX, % of revenue | 4.1% | 5.8% | 4.9% | 4.2% | 3.5% | -0.7% |
|
|---|
| ROIC | 3.6% | 3.6% | 3.3% | 2.9% | -33.6% | -36.6% |
| ROE | 4.3% | 4.0% | 2.9% | 3.4% | -37.7% | -41.1% |
| Net Debt/EBITDA | -1.8x | -1.0x | -0.7x | -0.2x | |
Peers in Health Care Equipment & Services
Below you can find Omega Diagnostics Group benchmarking vs. other companies in Health Care Equipment & Services 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 |
|---|
| Abbott Laboratories ($ABT) | 3.0% | 0.8% | 2.2% | 31.3% | |
| Puricore ($PURI) | -45.5% | 36.5% | -96.3% | 29.3% | |
| Tristel ($TSTL) | 27.6% | 13.8% | 11.5% | 18.5% | |
| Md Medical Group Invest ($MDMG) | 26.9% | 32.0% | 28.1% | 12.9% | |
| Caretech Hldgs ($CTH) | 7.9% | 0.8% | 19.9% | 11.4% | |
| |
|---|
| Median (10 companies) | 7.9% | 4.1% | 6.9% | 10.8% | -5.2% |
|---|
| Omega Diagnostics Group ($ODX) | | 4.4% | 5.3% | 11.8% | -4.9% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tristel ($TSTL) | 69.8% | 69.5% | 73.4% | 77.3% | |
| Smith & Nephew ($SN.) | 74.8% | 75.3% | 72.8% | 73.8% | |
| Immunodiagnostic Systems Hldgs ($IDH) | 68.1% | 62.5% | 58.6% | 57.4% | 47.5% |
| Ekf Diagnostics Holdings ($EKF) | 51.9% | 48.8% | 47.5% | 55.0% | |
| Abbott Laboratories ($ABT) | 54.5% | 57.1% | 56.7% | 55.0% | |
| |
|---|
| Median (8 companies) | 51.9% | 48.8% | 56.7% | 55.0% | 47.5% |
|---|
| Omega Diagnostics Group ($ODX) | 63.6% | 63.4% | 63.8% | 64.7% | 60.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Md Medical Group Invest ($MDMG) | 28.9% | 27.9% | 30.1% | 31.0% | |
| Smith & Nephew ($SN.) | 25.2% | 23.1% | 26.0% | 28.8% | |
| Tristel ($TSTL) | 20.1% | 22.9% | 20.7% | 25.4% | |
| Ekf Diagnostics Holdings ($EKF) | 18.1% | -0.5% | 12.0% | 22.5% | |
| Caretech Hldgs ($CTH) | 24.8% | 26.1% | 27.7% | 21.3% | |
| |
|---|
| Median (10 companies) | 20.3% | 22.1% | 16.3% | 21.0% | 14.7% |
|---|
| Omega Diagnostics Group ($ODX) | 11.2% | 11.4% | 10.2% | 8.6% | -45.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Md Medical Group Invest ($MDMG) | 43.4% | 8.2% | 14.1% | 25.0% | |
| Puricore ($PURI) | 15.4% | 7.3% | 97.5% | 18.5% | |
| Caretech Hldgs ($CTH) | 5.7% | 4.8% | 7.2% | 9.6% | |
| Smith & Nephew ($SN.) | 8.1% | 7.7% | 8.4% | 7.9% | |
| Abbott Laboratories ($ABT) | 5.3% | 5.4% | 5.4% | 4.1% | |
| |
|---|
| Median (10 companies) | 5.5% | 6.3% | 5.4% | 3.9% | 4.6% |
|---|
| Omega Diagnostics Group ($ODX) | 4.1% | 5.8% | 4.9% | 4.2% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tristel ($TSTL) | 15.9% | 20.1% | 17.5% | 24.9% | |
| Md Medical Group Invest ($MDMG) | 11.0% | 11.8% | 17.6% | 18.4% | |
| Smith & Nephew ($SN.) | 14.7% | 11.1% | 14.4% | 15.8% | |
| Bioquell ($BQE) | -1.8% | 1.6% | 0.7% | 12.2% | |
| Ekf Diagnostics Holdings ($EKF) | 2.3% | -9.4% | -0.5% | 7.0% | |
| |
|---|
| Median (11 companies) | 8.7% | 8.4% | 4.7% | 6.7% | 1.7% |
|---|
| Omega Diagnostics Group ($ODX) | 3.6% | 3.6% | 3.3% | 2.9% | -33.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Caretech Hldgs ($CTH) | 5.4x | 4.9x | 3.8x | 4.2x | |
| Abbott Laboratories ($ABT) | 0.9x | 0.9x | 0.7x | 3.3x | |
| Smith & Nephew ($SN.) | 1.4x | 1.3x | 1.3x | 0.9x | |
| Md Medical Group Invest ($MDMG) | 2.0x | 0.6x | 0.4x | 0.5x | |
| Ekf Diagnostics Holdings ($EKF) | -0.3x | | -0.5x | -0.7x | |
| |
|---|
| Median (9 companies) | 0.3x | -0.2x | -0.0x | -0.7x | -4.9x |
|---|
| Omega Diagnostics Group ($ODX) | -1.8x | -1.0x | -0.7x | -0.2x | |
