Dx reports 2.6% revenue growth in FY2018 and 21.6 pp EBITDA Margin growth from -25.2% to -3.6%
02 Oct 2018 • About Dx (
$DX.) • By InTwits
Dx reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -3.6%
- Dx spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -6.1%
- Dx has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has unprofitable business model: ROIC is -56.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Dx's Revenue increased on 2.6%. During FY2014-FY2018 Revenue growth bottomed in FY2015 at -4.6% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 23.8 pp from -6.7% to 17.0% in FY2018.
Net Income margin jumped on 21.3 pp from -27.8% to -6.5% in FY2018.
Investments (CAPEX, working capital and M&A)
Dx's CAPEX/Revenue was 0.53% in FY2018. The company showed small CAPEX/Revenue decline of 0.58 pp from 1.1% in FY2015 to 0.53% in FY2018. For the last three years the average CAPEX/Revenue was 0.65%. CAPEX as a % of Revenue stuck to a declining trend at -0.26 pp per annum in the last 5 years.
Return on investment
The company operates at negative ROIC (-56.4%) and ROE (-95.4%). ROIC surged on 53.3 pp from -110% to -56.4% in FY2018. ROE surged on 44.4 pp from -140% to -95.4% in FY2018. During the last 5 years ROIC bottomed in FY2017 at -110%.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2018. Debt dropped on 85.5% while cash didn't change in FY2018.
Dx has short term refinancing risk: cash is only 66.7% of short term debt.
Financial and operational results
FY ended 30 Jun 2018
Dx ($DX.) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 312.0 | 297.5 | 287.9 | 291.9 | 299.5 | 2.6% |
| EBITDA | 34.3 | 33.7 | -74.1 | -73.5 | -10.8 | |
| Net Income | -55.0 | 19.9 | -84.4 | -81.1 | -19.5 | |
Balance Sheet
|
|---|
| Cash | 1.1 | 7.0 | 4.3 | 2.0 | 2.0 | 0.0% |
| Short Term Debt | 4.5 | 1.2 | 7.7 | 15.9 | 3.0 | -81.1% |
| Long Term Debt | 8.4 | 7.3 | 6.2 | 4.8 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 5.0 | 3.3 | 2.3 | 1.8 | 1.6 | -11.1% |
Ratios
|
|---|
| Revenue growth | 2.1% | -4.6% | -3.2% | 1.4% | 2.6% | |
| EBITDA growth | -0.3% | -1.7% | -319.9% | -0.8% | -85.3% | |
|
|---|
| EBITDA Margin | 11.0% | 11.3% | -25.7% | -25.2% | -3.6% | 21.6% |
| Net Income Margin | -17.6% | 6.7% | -29.3% | -27.8% | -6.5% | 21.3% |
| CAPEX, % of revenue | 1.6% | 1.1% | 0.8% | 0.6% | 0.5% | -0.1% |
|
|---|
| ROIC | 14.5% | 12.8% | -52.4% | -109.7% | -56.4% | 53.3% |
| ROE | | 10.6% | -57.4% | -139.7% | -95.4% | 44.4% |
| Net Debt/EBITDA | 0.3x | 0.0x | | | |
Peers in Industrial Transportation
Below we provide Dx benchmarking against other companies in Industrial Transportation 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 |
|---|
| Yujin Intl Ltd ($YUJ) | -32.3% | -6.9% | -100.0% | 11,498.8% | |
| Global Ports Investments ($GLPR) | 69.3% | -27.9% | -98.7% | 6,158.4% | |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | | 16.2% | 21.1% | 27.4% | |
| Evergreen Marine Corp(Taiwan) ($EGMD) | | -7.3% | -7.0% | 21.0% | |
| Yangming Marine Transport Corp ($YMTD) | 13.4% | -5.4% | -9.5% | 13.6% | |
| |
|---|
| Median (12 companies) | 8.8% | -6.9% | -2.2% | 12.1% | |
|---|
| Dx ($DX.) | | -4.6% | -3.2% | 1.4% | 2.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Yujin Intl Ltd ($YUJ) | 37.3% | | 50.0% | 73.4% | |
| Global Ports Investments ($GLPR) | 58.8% | 68.0% | | 55.1% | |
| Zhejiang Expressway Co ($ZHEH) | 37.7% | 43.6% | 52.8% | 51.6% | |
| Dp World Ltd ($0P5M) | 41.9% | 48.4% | 50.9% | 49.8% | |
| Globaltrans Investment ($GLTR) | 23.2% | 20.2% | 21.0% | 30.1% | |
| |
|---|
| Median (9 companies) | 23.2% | 22.1% | 23.0% | 30.1% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Zhejiang Expressway Co ($ZHEH) | 53.5% | 58.0% | 69.9% | 75.0% | |
| Novorossiysk Commercial Sea Port ($NCSP) | 58.3% | 39.3% | 75.5% | 68.1% | |
| Wisdom Marine Lines Co Limited ($WML) | 52.8% | 55.2% | 52.1% | 52.9% | |
| Dp World Ltd ($0P5M) | 42.4% | 45.7% | 48.8% | 49.4% | |
| Global Ports Investments ($GLPR) | 69.6% | 71.2% | -5,597.2% | 36.3% | |
| |
|---|
| Median (12 companies) | 17.1% | 30.2% | 19.7% | 25.3% | |
|---|
| Dx ($DX.) | 11.0% | 11.3% | -25.7% | -25.2% | -3.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Frontline Ltd ($FRO) | 83.6% | 171.4% | 82.5% | 110.4% | |
| Dp World Ltd ($0P5M) | 20.7% | 28.9% | 25.4% | 20.0% | |
| Novorossiysk Commercial Sea Port ($NCSP) | 9.9% | 7.3% | 11.4% | 16.5% | |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 11.5% | 5.7% | 4.4% | 10.5% | |
| Global Ports Investments ($GLPR) | 4.2% | 2.9% | | 8.5% | |
| |
|---|
| Median (12 companies) | 4.2% | 3.4% | 4.7% | 7.1% | |
|---|
| Dx ($DX.) | 1.6% | 1.1% | 0.8% | 0.6% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Globaltrans Investment ($GLTR) | 6.4% | 10.3% | 13.8% | 27.1% | |
| Novorossiysk Commercial Sea Port ($NCSP) | 17.1% | 16.1% | 33.7% | 26.4% | |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 8.8% | 6.6% | 8.1% | 15.8% | |
| Zhejiang Expressway Co ($ZHEH) | 13.2% | 15.3% | 11.9% | 11.2% | |
| Dp World Ltd ($0P5M) | 6.8% | 8.2% | 8.5% | 8.9% | |
| |
|---|
| Median (12 companies) | 6.6% | 6.7% | 5.5% | 6.7% | |
|---|
| Dx ($DX.) | 14.5% | 12.8% | -52.4% | -109.7% | -56.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Yangming Marine Transport Corp ($YMTD) | 9.8x | | | 9.3x | |
| Wisdom Marine Lines Co Limited ($WML) | 9.1x | 8.4x | 9.0x | 9.1x | |
| Global Ports Investments ($GLPR) | 2.8x | 3.6x | | 7.9x | |
| Evergreen Marine Corp(Taiwan) ($EGMD) | 6.7x | 18.3x | 280.7x | 5.0x | |
| Bba Aviation ($BBA) | 2.8x | -2.2x | 4.1x | 2.8x | |
| |
|---|
| Median (10 companies) | 2.8x | 3.3x | 3.1x | 2.7x | |
|---|
