Ab Dynamics reports 79.7% Net Income growth in 2018

14 Nov 2018 • About Ab Dynamics ($ABDP) • By InTwits

Ab Dynamics reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:

Ab Dynamics is a fast growth stock: FY2018 revenue growth was 50.8%, 5 year revenue CAGR was 24.9% at FY2018 ROIC
EBITDA Margin is declining: in FY2018 vs. 19.0% in FY2017 vs. 20.1% in FY2014

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Ab Dynamics's Revenue surged on 50.8%.

Net Income margin increased on 3.0 pp from 15.9% to 18.9% in FY2018.

Financial and operational results

FY ended 30 Nov -0001

Ab Dynamics ($ABDP) key annual financial indicators

mln. £	2014	2015	2016	2017	2018	2018/2017
P&L
Revenue	13.847	16.523	20.472	24.570	37.051	50.8%
Gross Profit	4.030	5.350	6.176	7.916
SG&A	1.379	1.643	1.636	1.985
EBITDA	2.787	3.958	4.656	4.674
Net Income	2.152	3.246	3.874	3.903	7.015	79.7%
Balance Sheet
Cash	4.896	7.968	10.405	9.619
Short Term Debt	0.000	0.000	0.000	0.000
Long Term Debt	0.000	0.000	0.000	0.000
Cash flow
Capex	0.345	0.691	1.609	8.041
Ratios
Revenue growth	13.8%	19.3%	23.9%	20.0%	50.8%
EBITDA growth	21.2%	42.0%	17.6%	0.4%

Gross Margin	29.1%	32.4%	30.2%	32.2%
EBITDA Margin	20.1%	24.0%	22.7%	19.0%
SG&A, % of revenue	10.0%	9.9%	8.0%	8.1%
Net Income Margin	15.5%	19.6%	18.9%	15.9%	18.9%	3.0%
CAPEX, % of revenue	2.5%	4.2%	7.9%	32.7%

ROIC	28.4%	31.4%	28.0%	19.3%
ROE	23.2%	27.1%	24.9%	17.1%
Net Debt/EBITDA	-1.8x	-2.0x	-2.2x	-2.1x

Peers in Industrial Engineering

Below we provide Ab Dynamics benchmarking against other companies in Industrial Engineering 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
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 ($MCON)	4.2%	28.8%	8.4%	27.8%
Median (20 companies)	4.2%	0.3%	3.8%	7.9%	17.3%
Ab Dynamics ($ABDP)		19.3%	23.9%	20.0%	50.8%

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%	29.2%
Ab Dynamics ($ABDP)	29.1%	32.4%	30.2%	32.2%

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 ($76ID)	28.0%	25.0%	22.8%	19.9%
Mincon Group ($MCON)	22.7%	17.6%	16.4%	14.3%
Northbridge Industrial Services ($NBI)	32.4%	32.5%	9.1%	14.1%
Hms Hydraulic Mach & Sys Grp ($HMSG)	7.5%	16.0%	12.5%	13.7%
Median (19 companies)	7.4%	7.9%	7.7%	9.7%	6.0%
Ab Dynamics ($ABDP)	20.1%	24.0%	22.7%	19.0%

Top companies by CAPEX/Revenue, %


Top 5	FY2014	FY2015	FY2016	FY2017	FY2018
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%
Hms Hydraulic Mach & Sys Grp ($HMSG)	3.6%	3.7%	3.8%	4.3%
Median (19 companies)	2.4%	2.2%	3.4%	2.5%	3.4%
Ab Dynamics ($ABDP)	2.5%	4.2%	7.9%	32.7%

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%
Braime(T.F.& J.H.)(Hldgs) ($BMTO)	11.9%	7.5%	10.9%	17.2%
Rotork ($76ID)	38.1%	21.9%	17.0%	15.7%
Hms Hydraulic Mach & Sys Grp ($HMSG)	3.2%	14.7%	12.0%	15.1%
Median (20 companies)	10.8%	8.8%	4.5%	5.5%	6.1%
Ab Dynamics ($ABDP)	28.4%	31.4%	28.0%	19.3%

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 ($NBI)	1.2x	1.5x	4.9x	2.7x
Median (18 companies)	0.6x	1.1x	1.3x	0.7x	2.0x
Ab Dynamics ($ABDP)	-1.8x	-2.0x	-2.2x	-2.1x

Ab Dynamics stock price chart

Ab Dynamics financials

mln.	FY2011	FY2012	FY2013

Revenue	6.500	8.900	12.171
EBITDA	0.800	1.900	2.300
Net income	0.500	1.400	1.423
CAPEX	0.100	0.200	0.678
Debt	0.000	0.000	0.000
Cash	2.400	2.500	5.990

About Ab Dynamics

AB Dynamics plc, through its subsidiary, Anthony Best Dynamics Limited, designs, manufactures, and supplies testing systems for research and development, and production quality control in the motor industry. It offers kinematics and compliance test machines, such as moving body suspension parameter measurement machines, and centre of gravity and inertial measurement systems; and driving robot systems, including steering, brake, accelerator, and gearchange and clutch robot systems, as well as vehicle guidance systems and rigid mounting systems for in-vehicle transducers. The company also provides driverless test systems, such as standalone safety braking systems and radio telemetry for driverless vehicles; advanced driver assist systems (ADAS) soft targets comprising vehicle and pedestrian soft crash targets; and steering system test machines for applying force and displacement inputs to a vehicle's steering system in the laboratory. In addition, AB Dynamics offers noise/vibration measurement and analysis system solutions; and analysis, design, prototype manufacture, testing, and development services. The company