Tristel revenue growth decelerated to 9.6% in FY2018 vs. 18.5% a year earliner
17 Oct 2018 • About Tristel (
$TSTL) • By InTwits
Tristel reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Tristel is a fast growth stock: FY2018 revenue growth was 9.6%, 5 year revenue CAGR was 16.0% at FY2018 ROIC 23.1%
- Tristel has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 4.2%
- CAPEX is quite volatile: £0m in FY2018, £0m in FY2017, £0m in FY2016, £0m in FY2015, £1m in FY2014
- The company has highly profitable business model: ROIC is 23.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tristel's Revenue increased on 9.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.00 pp from 12.4% to 11.4% in FY2018.
Gross Margin showed almost no change in FY2018. Gross Margin followed a growing trend at 2.3 pp per annum in FY2014-FY2018. SG&A as a % of Revenue decreased slightly on 1.6 pp from 51.0% to 49.4% in FY2018.
Net Income margin decreased on 2.1 pp from 16.9% to 14.7% in FY2018.
Investments (CAPEX, working capital and M&A)
Tristel's CAPEX/Revenue was 2.3% in FY2018. The company's CAPEX/Revenue decreased slightly on 0.91 pp from 3.2% in FY2015 to 2.3% in FY2018. For the last three years the average CAPEX/Revenue was 2.7%. CAPEX as a % of Revenue followed a declining trend at -0.58 pp per annum in FY2014-FY2018.
Return on investment
The company operates at high and attractive ROIC (23.1%) while ROE is a bit lower (19.0%). ROIC decreased slightly on 1.8 pp from 24.9% to 23.1% in FY2018. ROE decreased on 3.1 pp from 22.0% to 19.0% in FY2018.
Leverage (Debt)
The company has no debt. Cash jumped on 30.9%.
Financial and operational results
FY ended 30 Jun 2018
Tristel ($TSTL) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 13.470 | 15.334 | 17.104 | 20.273 | 22.220 | 9.6% |
| Gross Profit | 9.404 | 10.661 | 12.555 | 15.675 | 17.180 | 9.6% |
| SG&A | 6.685 | 7.241 | 8.242 | 10.342 | 10.971 | 6.1% |
| EBITDA | 2.704 | 3.507 | 3.534 | 5.145 | 5.478 | 6.5% |
| Net Income | 1.298 | 2.215 | 2.102 | 3.417 | 3.272 | -4.2% |
Balance Sheet
|
|---|
| Cash | 2.664 | 4.045 | 5.715 | 5.088 | 6.661 | 30.9% |
| Short Term Debt | 0.042 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.008 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.677 | 0.496 | 0.499 | 0.585 | 0.516 | -11.8% |
Ratios
|
|---|
| Revenue growth | 27.6% | 13.8% | 11.5% | 18.5% | 9.6% | |
| EBITDA growth | 87.1% | 29.7% | 0.8% | 45.6% | 6.5% | |
|
|---|
| Gross Margin | 69.8% | 69.5% | 73.4% | 77.3% | 77.3% | -0.0% |
| EBITDA Margin | 20.1% | 22.9% | 20.7% | 25.4% | 24.7% | -0.7% |
| SG&A, % of revenue | 49.6% | 47.2% | 48.2% | 51.0% | 49.4% | -1.6% |
| Net Income Margin | 9.6% | 14.4% | 12.3% | 16.9% | 14.7% | -2.1% |
| CAPEX, % of revenue | 5.0% | 3.2% | 2.9% | 2.9% | 2.3% | -0.6% |
|
|---|
| ROIC | 15.9% | 20.1% | 17.5% | 24.9% | 23.1% | -1.8% |
| ROE | 11.2% | 16.8% | 14.4% | 22.0% | 19.0% | -3.1% |
| Net Debt/EBITDA | -1.0x | -1.2x | -1.6x | -1.0x | -1.2x | -0.2x |
Peers in Health Care Equipment & Services
Below we provide Tristel benchmarking against other companies in Health Care Equipment & Services 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 |
|---|
| Abbott Laboratories ($ABT) | 3.0% | 0.8% | 2.2% | 31.3% | |
| Puricore ($PURI) | -45.5% | 36.5% | -96.3% | 29.3% | |
| Md Medical Group Invest ($MDMG) | 26.9% | 32.0% | 28.1% | 12.9% | |
| Omega Diagnostics Group ($ODX) | | 4.4% | 5.3% | 11.8% | -4.9% |
| Caretech Hldgs ($CTH) | 7.9% | 0.8% | 19.9% | 11.4% | |
| |
|---|
| Median (10 companies) | 6.6% | 2.6% | 3.7% | 10.8% | -5.0% |
|---|
| Tristel ($TSTL) | | 13.8% | 11.5% | 18.5% | 9.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Smith & Nephew ($SN.) | 74.8% | 75.3% | 72.8% | 73.8% | |
| Omega Diagnostics Group ($ODX) | 63.6% | 63.4% | 63.8% | 64.7% | 60.5% |
| 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 ($ABT) | 54.5% | 57.1% | 56.7% | 55.0% | |
| |
|---|
| Median (8 companies) | 51.9% | 48.8% | 56.7% | 55.0% | 54.0% |
|---|
| Tristel ($TSTL) | 69.8% | 69.5% | 73.4% | 77.3% | 77.3% |
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% | |
| Ekf Diagnostics Holdings ($EKF) | 18.1% | -0.5% | 12.0% | 22.5% | |
| Caretech Hldgs ($CTH) | 24.8% | 26.1% | 27.7% | 21.3% | |
| Abbott Laboratories ($ABT) | 20.5% | 21.3% | 22.6% | 20.7% | |
| |
|---|
| Median (10 companies) | 19.3% | 19.5% | 11.5% | 19.8% | -15.4% |
|---|
| Tristel ($TSTL) | 20.1% | 22.9% | 20.7% | 25.4% | 24.7% |
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% | |
| Omega Diagnostics Group ($ODX) | 4.1% | 5.8% | 4.9% | 4.2% | 3.5% |
| |
|---|
| Median (10 companies) | 5.5% | 6.3% | 5.4% | 4.1% | 4.0% |
|---|
| Tristel ($TSTL) | 5.0% | 3.2% | 2.9% | 2.9% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| 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% | |
| Caretech Hldgs ($CTH) | 7.7% | 7.6% | 9.4% | 6.4% | |
| |
|---|
| Median (11 companies) | 8.0% | 5.9% | 2.0% | 5.0% | -15.9% |
|---|
| Tristel ($TSTL) | 15.9% | 20.1% | 17.5% | 24.9% | 23.1% |
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 | |
| Omega Diagnostics Group ($ODX) | -1.8x | -1.0x | -0.7x | -0.2x | |
| |
|---|
| Median (9 companies) | 0.3x | -0.2x | -0.0x | -0.2x | -4.9x |
|---|
| Tristel ($TSTL) | -1.0x | -1.2x | -1.6x | -1.0x | -1.2x |
