Avingtrans EBITDA dropped on 623% and EBITDA Margin decreased slightly on 2.0 pp from 0.79% to -1.2%
03 Oct 2018 • About Avingtrans (
$AVG) • By InTwits
Avingtrans reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Avingtrans is a growth stock: FY2018 revenue growth was 247%, 5 year revenue CAGR was 11.7% at FY2018 ROIC -5.9%
- EBITDA Margin is quite volatile: -1.2% in FY2018, 0.8% in FY2017, 10.7% in FY2016, 7.4% in FY2015, 4.9% in FY2014
- Avingtrans has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's in pair with industry average of 4.1%
- CAPEX is quite volatile: £3m in FY2018, £0m in FY2017, £1m in FY2016, £1m in FY2015, £3m in FY2014
- The company has unprofitable business model: ROIC is -5.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Avingtrans's Revenue surged on 247%. During the last 5 years Revenue growth bottomed in FY2015 at -62.6% and was accelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.1 pp from 5.2% to 6.3% in FY2018. During FY2014-FY2018 EBITDA Margin topped in FY2016 at 10.7% and was declining since that time.
Gross Margin increased on 7.6 pp from 17.9% to 25.5% in FY2018. During FY2014-FY2018 Gross Margin bottomed in FY2015 at 10.7% and was growing since that time. SG&A as a % of Revenue jumped on 10.4 pp from 19.9% to 30.3% in FY2018. During FY2014-FY2018 SG&A as a % of Revenue bottomed in FY2015 at 13.2% and was growing since that time.
Net Income margin decreased on 4.4 pp from -1.3% to -5.7% in FY2018. During the last 5 years Net Income margin topped in FY2016 at 147% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Avingtrans's CAPEX/Revenue was 3.4% in FY2018. CAPEX/Revenue showed almost no change from FY2015 to FY2018. It's average level of CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at negative ROIC (-5.9%) and ROE (-7.9%). ROIC decreased on 5.1 pp from -0.80% to -5.9% in FY2018. ROE decreased on 7.3 pp from -0.54% to -7.9% in FY2018.
Leverage (Debt)
Debt level is -4.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA jumped on 147.8x from -147.8x to in FY2018. Debt jumped on 993% while cash dropped on 76.3%.
Avingtrans has short term refinancing risk: cash is only 83.2% of short term debt.
Financial and operational results
FY ended 31 May 2018
Avingtrans ($AVG) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 60.265 | 22.557 | 21.177 | 22.714 | 78.864 | 247.2% |
| Gross Profit | 14.457 | 2.423 | 3.149 | 4.055 | 20.077 | 395.1% |
| SG&A | 14.388 | 2.984 | 3.376 | 4.521 | 23.919 | 429.1% |
| EBITDA | 2.947 | 1.665 | 2.276 | 0.179 | -0.936 | -622.9% |
| Net Income | 2.914 | 1.771 | 31.136 | -0.296 | -4.486 | |
Balance Sheet
|
|---|
| Cash | 7.204 | 6.337 | 56.503 | 27.703 | 6.574 | -76.3% |
| Short Term Debt | 7.209 | 9.052 | 4.206 | 0.321 | 7.898 | 2,360.4% |
| Long Term Debt | 3.581 | 3.199 | 1.251 | 0.933 | 5.810 | 522.7% |
Cash flow
|
|---|
| Capex | 2.992 | 0.832 | 1.062 | 0.484 | 2.654 | 448.3% |
Ratios
|
|---|
| Revenue growth | 33.1% | -62.6% | -6.1% | 7.3% | 247.2% | |
| EBITDA growth | -20.4% | -43.5% | 36.7% | -92.1% | -622.9% | |
|
|---|
| Gross Margin | 24.0% | 10.7% | 14.9% | 17.9% | 25.5% | 7.6% |
| EBITDA Margin | 4.9% | 7.4% | 10.7% | 0.8% | -1.2% | -2.0% |
| SG&A, % of revenue | 23.9% | 13.2% | 15.9% | 19.9% | 30.3% | 10.4% |
| Net Income Margin | 4.8% | 7.9% | 147.0% | -1.3% | -5.7% | -4.4% |
| CAPEX, % of revenue | 5.0% | 3.7% | 5.0% | 2.1% | 3.4% | 1.2% |
|
|---|
| ROIC | 1.9% | -1.3% | -0.4% | -0.8% | -5.9% | -5.1% |
| ROE | 9.2% | 5.3% | 62.9% | -0.5% | -7.9% | -7.3% |
| Net Debt/EBITDA | 1.2x | 3.6x | -22.4x | -147.8x | |
Peers in Industrial Engineering
Below you can find Avingtrans benchmarking vs. other companies in Industrial Engineering 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 |
|---|
| Flowtech Fluidpower ($FLO) | 17.7% | 18.7% | 19.9% | 45.6% | |
| Corac Group ($CRA) | 12.2% | -5.7% | 3.8% | 38.8% | |
| 600 Group ($SIXH) | | 5.0% | 3.4% | 29.9% | 12.3% |
| Molins ($MLIN) | -16.9% | -0.5% | -52.3% | 28.7% | |
| Mincon Group ($MCON) | 4.2% | 28.8% | 8.4% | 27.8% | |
| |
|---|
| Median (20 companies) | 5.0% | 5.0% | 4.0% | 8.4% | 14.8% |
|---|
| Avingtrans ($AVG) | | -62.6% | -6.1% | 7.3% | 247.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Somero Enterprise Inc ($SOMA) | 54.0% | 55.8% | 56.8% | 56.9% | |
| Rotork ($76ID) | 48.0% | 45.7% | 44.3% | 44.2% | |
| Tricorn Group ($TCN) | 36.1% | 36.0% | 40.3% | 40.6% | 38.3% |
| Amiad Water Systems Ltd ($AFS) | 38.9% | 40.5% | 39.3% | 39.5% | |
| Mincon Group ($MCON) | 43.2% | 40.2% | 40.1% | 36.5% | |
| |
|---|
| Median (17 companies) | 33.2% | 34.2% | 32.0% | 33.9% | 31.6% |
|---|
| Avingtrans ($AVG) | 24.0% | 10.7% | 14.9% | 17.9% | 25.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Somero Enterprise Inc ($SOMA) | 27.4% | 28.2% | 30.1% | 32.2% | |
| Rotork ($76ID) | 28.0% | 25.0% | 22.8% | 19.9% | |
| Ab Dynamics ($ABDP) | 20.1% | 24.0% | 22.7% | 19.0% | |
| Mincon Group ($MCON) | 22.7% | 17.6% | 16.4% | 14.3% | |
| Northbridge Industrial Services ($NBI) | 32.4% | 32.5% | 9.1% | 14.1% | |
| |
|---|
| Median (19 companies) | 7.5% | 8.2% | 7.7% | 10.0% | 6.4% |
|---|
| Avingtrans ($AVG) | 4.9% | 7.4% | 10.7% | 0.8% | -1.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ab Dynamics ($ABDP) | 2.5% | 4.2% | 7.9% | 32.7% | |
| Chamberlin ($CMH) | 2.6% | 3.1% | 4.2% | 11.6% | 7.9% |
| Ms International ($MSI) | 2.0% | 1.8% | 4.7% | 7.7% | 1.6% |
| Mincon Group ($MCON) | 4.3% | 2.5% | 6.9% | 5.8% | |
| Renold ($RNO) | 3.3% | 2.1% | 4.8% | 4.6% | 4.5% |
| |
|---|
| Median (19 companies) | 2.4% | 2.2% | 3.4% | 3.0% | 3.7% |
|---|
| Avingtrans ($AVG) | 5.0% | 3.7% | 5.0% | 2.1% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Somero Enterprise Inc ($SOMA) | 51.7% | 54.3% | 51.7% | 55.2% | |
| Renold ($RNO) | -2.5% | 41.3% | 39.1% | 44.7% | 21.3% |
| Ab Dynamics ($ABDP) | 28.4% | 31.4% | 28.0% | 19.3% | |
| Braime(T.F.& J.H.)(Hldgs) ($BMTO) | 11.9% | 7.5% | 10.9% | 17.2% | |
| Rotork ($76ID) | 38.1% | 21.9% | 17.0% | 15.7% | |
| |
|---|
| Median (20 companies) | 11.0% | 9.5% | 7.1% | 7.6% | 9.1% |
|---|
| Avingtrans ($AVG) | 1.9% | -1.3% | -0.4% | -0.8% | -5.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Tricorn Group ($TCN) | 5.8x | 4.0x | 7.2x | 5.1x | 2.3x |
| Pressure Technologies ($PRES) | -0.7x | 1.3x | 2.3x | 4.8x | |
| Chamberlin ($CMH) | | 2.2x | 2.2x | 4.3x | 5.8x |
| 600 Group ($SIXH) | 2.2x | 3.1x | | 4.0x | 5.2x |
| Northbridge Industrial Services ($NBI) | 1.2x | 1.5x | 4.9x | 2.7x | |
| |
|---|
| Median (18 companies) | 0.1x | 0.7x | 1.3x | 0.7x | 2.0x |
|---|
| Avingtrans ($AVG) | 1.2x | 3.6x | -22.4x | -147.8x | |
