Filtronic Net Income dropped on 60.5% while EBITDA Margin increased on 3.3 pp from 7.0% to 10.2%
16 Aug 2018 • About Filtronic (
$FTC) • By InTwits
Filtronic reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Filtronic is a company in decline: FY2018 revenue growth was -32.2%, 5 years revenue CAGR was -9.7%
- Filtronic 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 -6.2%
- Filtronic has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: £1m in FY2018, £1m in FY2017, £0m in FY2016, £0m in FY2015, £1m in FY2014
- The company has highly profitable business model: ROIC is 16.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Filtronic's Revenue dropped on 32.2%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.3 pp from 7.0% to 10.2% in FY2018. During the last 5 years EBITDA Margin bottomed in FY2016 at -46.5% and was growing since that time.
Net Income margin decreased on 3.7 pp from 8.8% to 5.1% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 2.5%. Filtronic showed small growth in CAPEX/Revenue of 1.4 pp from 1.1% in FY2015 to 2.5% in FY2018. It's average level of CAPEX/Revenue for the last three years was 2.0%. During FY2014-FY2018 CAPEX as a % of Revenue bottomed in FY2015 at 1.1% and was growing since that time.
Return on investment
The company operates at good ROIC (16.5%) while ROE is low (10.8%). ROIC decreased on 2.1 pp from 18.6% to 16.5% in FY2018. ROE dropped on 22.3 pp from 33.1% to 10.8% in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.3x and Debt / EBITDA is 0.2x. Debt surged while cash jumped on 46.0%.
Filtronic has no short term refinancing risk: cash is higher than short term debt (1,841.7%).
Financial and operational results
FY ended 30 Nov -0001
Filtronic ($FTC) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 32.900 | 17.524 | 13.580 | 35.373 | 23.995 | -32.2% |
| EBITDA | 0.641 | -6.949 | -6.310 | 2.470 | 2.456 | -0.6% |
| Net Income | -2.815 | -10.508 | -5.117 | 3.117 | 1.231 | -60.5% |
Balance Sheet
|
|---|
| Cash | 2.531 | 1.087 | 0.990 | 2.598 | 3.794 | 46.0% |
| Short Term Debt | 0.000 | 0.320 | 1.270 | 0.000 | 0.206 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.312 | |
Cash flow
|
|---|
| Capex | 1.058 | 0.201 | 0.172 | 0.811 | 0.604 | -25.5% |
Ratios
|
|---|
| Revenue growth | -17.7% | -46.7% | -22.5% | 160.5% | -32.2% | |
| EBITDA growth | -85.2% | -1,184.1% | -9.2% | -139.1% | -0.6% | |
|
|---|
| EBITDA Margin | 1.9% | -39.7% | -46.5% | 7.0% | 10.2% | 3.3% |
| Net Income Margin | -8.6% | -60.0% | -37.7% | 8.8% | 5.1% | -3.7% |
| CAPEX, % of revenue | 3.2% | 1.1% | 1.3% | 2.3% | 2.5% | 0.2% |
|
|---|
| ROIC | -14.9% | -80.4% | -79.3% | 18.6% | 16.5% | -2.1% |
| ROE | -15.2% | -82.0% | -60.7% | 33.1% | 10.8% | -22.3% |
| Net Debt/EBITDA | -3.9x | | | -1.1x | -1.3x | -0.3x |
Peers in Technology Hardware & Equipment
Below you can find Filtronic benchmarking vs. other companies in Technology Hardware & 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 |
|---|
| Toumaz Ld ($TMZ) | 19.5% | 22.1% | 0.3% | 27.7% | |
| Cml Microsystems ($CML) | | -10.6% | 4.7% | 21.5% | 14.2% |
| Samsung Electronics Co ($SMSN) | -9.8% | -2.7% | 0.6% | 18.7% | |
| Batm Advanced Communications ($BVC) | -4.3% | -11.1% | -6.9% | 18.5% | |
| Compal Electronics Inc ($CEIR) | 22.1% | 0.2% | -9.5% | 15.8% | |
| |
|---|
| Median (18 companies) | 5.0% | 1.1% | -3.3% | 0.4% | 13.3% |
|---|
| Filtronic ($FTC) | | -46.7% | -22.5% | 160.5% | -32.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cml Microsystems ($CML) | 73.3% | 70.9% | 71.2% | 71.4% | 70.2% |
| Vislink ($VLK) | 45.9% | 45.0% | 73.1% | 62.9% | |
| Concurrent Technologies ($CNC) | 51.2% | 50.6% | 54.2% | 55.4% | |
| Trakm8 Holdings ($TRAK) | 57.2% | 45.2% | 48.3% | 49.4% | 49.4% |
| Samsung Electronics Co ($SMSN) | 37.8% | 38.5% | 40.4% | 46.0% | |
| |
|---|
| Median (18 companies) | 36.2% | 38.5% | 34.0% | 26.3% | 59.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Samsung Electronics Co ($SMSN) | 20.9% | 23.6% | 24.7% | 31.6% | |
| Cml Microsystems ($CML) | 35.1% | 29.9% | 30.0% | 31.4% | 30.7% |
| Concurrent Technologies ($CNC) | 27.1% | 28.6% | 24.8% | 28.4% | |
| Tatung Co ($TAT) | 9.2% | 2.1% | 9.1% | 12.5% | |
| Trakm8 Holdings ($TRAK) | 12.9% | 14.0% | 15.8% | 8.7% | 10.2% |
| |
|---|
| Median (18 companies) | 6.4% | 5.6% | 7.5% | 5.4% | 20.4% |
|---|
| Filtronic ($FTC) | 1.9% | -39.7% | -46.5% | 7.0% | 10.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tatung Co ($TAT) | 4.3% | 6.7% | 16.1% | 45.1% | |
| Samsung Electronics Co ($SMSN) | 10.7% | 12.9% | 12.0% | 17.9% | |
| Seeing Machines ($SEE) | 1.0% | 3.9% | 1.6% | 5.6% | |
| Batm Advanced Communications ($BVC) | 1.6% | 2.5% | 4.1% | 3.0% | |
| Lite-On Technology Corp ($LTTD) | 3.7% | 2.4% | 1.6% | 2.0% | |
| |
|---|
| Median (18 companies) | 1.9% | 1.8% | 1.6% | 1.6% | 0.9% |
|---|
| Filtronic ($FTC) | 3.2% | 1.1% | 1.3% | 2.3% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Samsung Electronics Co ($SMSN) | 14.4% | 14.0% | 14.3% | 23.2% | |
| Concurrent Technologies ($CNC) | 14.1% | 20.9% | 14.7% | 16.1% | |
| Cml Microsystems ($CML) | 23.0% | 10.3% | 10.1% | 11.2% | 10.4% |
| Lite-On Technology Corp ($LTTD) | 5.7% | 7.0% | 10.6% | 7.5% | |
| Mti Wireless Edge ($MWE) | 1.7% | 8.7% | 7.0% | 7.5% | |
| |
|---|
| Median (18 companies) | 6.7% | 4.3% | 2.9% | 4.8% | 7.5% |
|---|
| Filtronic ($FTC) | -14.9% | -80.4% | -79.3% | 18.6% | 16.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vislink ($VLK) | -0.0x | 1.8x | 0.4x | 54.5x | |
| Tatung Co ($TAT) | 6.7x | 40.1x | 9.2x | 7.7x | |
| Trakm8 Holdings ($TRAK) | -0.5x | -0.2x | 0.3x | 1.7x | 1.1x |
| Compal Electronics Inc ($CEIR) | -0.2x | -0.3x | 0.1x | 1.0x | |
| Global Invacom Group Ltd ($GINV) | -2.8x | -1.4x | -0.9x | 0.1x | |
| |
|---|
| Median (15 companies) | -1.3x | -1.2x | -0.9x | -0.4x | -0.2x |
|---|
| Filtronic ($FTC) | -3.9x | | | -1.1x | -1.3x |
