Mortice Ltd revenue surged on 21.1% and EBITDA Margin decreased slightly on 0.86 pp from 5.7% to 4.9%
23 Aug 2018 • About Mortice Ltd (
$MORT) • By InTwits
Mortice Ltd reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mortice Ltd is a fast growth stock: FY2018 revenue growth was 21.1%, 5 year revenue CAGR was 26.9% at FY2018 ROIC 18.4%
- Mortice Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has highly profitable business model: ROIC is 18.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.7x while industry average is 1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 21.1%. During FY2014-FY2018 Revenue growth topped in FY2016 at 51.1% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 10.4 pp from 2.2% to 12.6% in FY2018.
Net Income margin showed almost no change in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Mortice Ltd had CAPEX/Revenue of 0.23%. The company showed small CAPEX/Revenue decline of 0.79 pp from 1.0% in FY2015 to 0.23% in FY2018. For the last three years the average CAPEX/Revenue was 0.45%. CAPEX as a % of Revenue declined at -0.19 pp per annum in the last 5 years.
Return on investment
The company operates at good ROIC (18.4%) and ROE (14.7%). ROIC decreased on 4.8 pp from 23.2% to 18.4% in FY2018. ROE decreased slightly on 0.83 pp from 15.6% to 14.7% in FY2018.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 2.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.4x from 1.3x to 1.7x in FY2018. Debt jumped on 32.8% while cash jumped on 17.8%.
Mortice Ltd has short term refinancing risk: cash is only 27.7% of short term debt.
Financial and operational results
FY ended 31 Mar 2018
Mortice Ltd ($MORT) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 74.1 | 88.1 | 133.0 | 181.0 | 219.3 | 21.1% |
| EBITDA | 3.4 | 4.1 | 4.8 | 10.3 | 10.6 | 2.8% |
| Net Income | 1.1 | 1.4 | 0.7 | 2.6 | 2.8 | 8.0% |
Balance Sheet
|
|---|
| Cash | 1.1 | 0.5 | 1.6 | 3.6 | 4.2 | 17.8% |
| Short Term Debt | 8.1 | 7.1 | 10.3 | 13.3 | 15.2 | 13.6% |
| Long Term Debt | 0.4 | 0.4 | 5.9 | 3.7 | 7.5 | 102.5% |
Cash flow
|
|---|
| Capex | 0.7 | 0.9 | 0.9 | 0.9 | 0.5 | -41.8% |
Ratios
|
|---|
| Revenue growth | 11.0% | 18.9% | 51.1% | 36.1% | 21.1% | |
| EBITDA growth | -19.1% | 19.9% | 16.9% | 113.9% | 2.8% | |
|
|---|
| EBITDA Margin | 4.7% | 4.7% | 3.6% | 5.7% | 4.9% | -0.9% |
| Net Income Margin | 1.5% | 1.5% | 0.5% | 1.5% | 1.3% | -0.2% |
| CAPEX, % of revenue | 0.9% | 1.0% | 0.6% | 0.5% | 0.2% | -0.2% |
|
|---|
| ROIC | 19.6% | 21.9% | 14.5% | 23.2% | 18.4% | -4.8% |
| ROE | 11.8% | 13.5% | 5.7% | 15.6% | 14.7% | -0.8% |
| Net Debt/EBITDA | 2.2x | 1.7x | 3.0x | 1.3x | 1.7x | 0.4x |
Peers in Support Services
Below you can find Mortice Ltd benchmarking vs. other companies in Support 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 |
|---|
| Mobilityone Ltd ($MBO) | 3.7% | 23.0% | -5.3% | 37.9% | |
| Rws Hldgs ($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 ($CAPD) | -15.0% | -20.4% | 18.7% | 28.0% | |
| |
|---|
| Median (49 companies) | 5.0% | 6.9% | 2.2% | 6.9% | 8.2% |
|---|
| Mortice Ltd ($MORT) | | 18.9% | 51.1% | 36.1% | 21.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inspired Energy ($INSE) | 78.7% | 76.2% | 80.5% | 83.1% | |
| Ienergizer Ltd ($IBPO) | 76.8% | 72.7% | 71.3% | 71.2% | 69.7% |
| 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% |
| |
|---|
| Median (44 companies) | 29.2% | 28.3% | 27.1% | 28.0% | 24.9% |
|---|
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 ($RWS) | 22.8% | 23.1% | 26.4% | 25.5% | |
| |
|---|
| Median (49 companies) | 6.8% | 7.6% | 5.7% | 4.9% | 8.9% |
|---|
| Mortice Ltd ($MORT) | 4.7% | 4.7% | 3.6% | 5.7% | 4.9% |
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 ($BILL) | 2.1% | 4.1% | 3.0% | 4.5% | |
| |
|---|
| Median (49 companies) | 1.0% | 0.9% | 1.1% | 0.9% | 1.3% |
|---|
| Mortice Ltd ($MORT) | 0.9% | 1.0% | 0.6% | 0.5% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Sthree ($STHR) | 38.1% | 50.2% | 46.2% | 43.4% | |
| Petards Group ($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% |
| Ienergizer Ltd ($IBPO) | 17.9% | 10.4% | 17.4% | 18.1% | 19.8% |
| |
|---|
| Median (50 companies) | 10.0% | 10.4% | 7.8% | 7.4% | 6.9% |
|---|
| Mortice Ltd ($MORT) | 19.6% | 21.9% | 14.5% | 23.2% | 18.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Nakama Group ($NAK) | 5.2x | 1.4x | 3.1x | 48.5x | |
| 21St Century Technology ($C21) | -0.8x | -0.2x | | 11.2x | |
| Ceps ($CEPS) | 6.6x | 3.8x | 13.9x | 5.8x | |
| Ibex Global Solutions ($IBEX) | 2.7x | 1.0x | 1.7x | 4.5x | |
| Menzies(John) ($68HN) | 2.0x | 2.4x | 1.2x | 3.0x | |
| |
|---|
| Median (42 companies) | 0.1x | -0.1x | 0.1x | 0.2x | 0.9x |
|---|
| Mortice Ltd ($MORT) | 2.2x | 1.7x | 3.0x | 1.3x | 1.7x |
