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Dewhurst Net Income decreased on 9.1% and EBITDA Margin increased slightly on 0.59 pp from 13.6% to 14.2%

06 Dec 2018 • About Dewhurst ($DWHA) • By InTwits

Dewhurst reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is relatively stable: 14.2% in FY2018 vs. 13.6% in FY2017 vs. 13.7% in FY2014
  • Dewhurst has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 2.3%
  • CAPEX is quite volatile: £1m in FY2018, £4m in FY2017, £1m in FY2016, £1m in FY2015, £2m in FY2014
  • The company has highly profitable business model: ROIC is 18.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability


Dewhurst's Revenue increased on 3.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 11.9 pp from -3.7% to 8.2% in FY2018.

Net Income margin decreased slightly on 0.99 pp from 8.4% to 7.4% in FY2018. The efficient tax rate was 29.9% in FY2018.

Investments (CAPEX, working capital and M&A)


The company's CAPEX/Revenue was 2.1% in FY2018. The company showed almost no change in CAPEX/Revenue from FY2015 to FY2018. It's average level of CAPEX/Revenue for the last three years was 2.0%.

Return on investment


The company operates at good ROIC (18.9%) and ROE (12.2%). ROIC decreased on 5.2 pp from 24.1% to 18.9% in FY2018. ROE decreased on 4.2 pp from 16.4% to 12.2% in FY2018. During FY2014-FY2018 ROIC topped in FY2015 at 27.3% and was declining since that time.

Leverage (Debt)


The company has no debt. Cash dropped on 47.8%.

Valuation and dividends


The company's trades at EV/EBITDA 2.1x and P/E 6.3x.

The company paid 24.8% of Net Income as dividends in FY2018.

Management team


Insider ownership is 3.8%.

Financial and operational results


FY ended 30 Nov -0001

Dewhurst ($DWHA) key annual financial indicators

mln. £201420152016201720182018/2017
P&L
Revenue46.61645.94647.15952.89054.5103.1%
EBITDA6.3736.7536.3177.2197.7607.5%
EBIT6.188
Tax1.723
Net Income3.9304.4063.4534.4454.039-9.1%
Balance Sheet
Cash12.92814.95816.67418.0879.440-47.8%
Inventory6.279
Short Term Debt0.0000.0000.0000.0000.000
Long Term Debt0.0000.0000.0000.0000.000
Cash flow
Capex0.4080.8930.9010.9781.16118.7%
Dividends1.000
Ratios
Revenue growth6.7%-1.4%2.6%12.2%3.1%
EBITDA growth16.0%6.0%-6.5%14.3%7.5%
EBITDA Margin13.7%14.7%13.4%13.6%14.2%0.6%
EBIT Margin11.4%
Net Income Margin8.4%9.6%7.3%8.4%7.4%-1.0%
CAPEX, % of revenue0.9%1.9%1.9%1.8%2.1%0.3%
ROIC24.5%27.3%24.6%24.1%18.9%-5.2%
ROE18.2%19.3%14.4%16.4%12.2%-4.2%
Net Debt/EBITDA-2.0x-2.2x-2.6x-2.5x-1.2x1.3x
People
Insider ownership3.8%

Peers in Electronic & Electrical Equipment


Below we provide Dewhurst benchmarking against other companies in Electronic & Electrical Equipment 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
Image Scan Hldgs ($IGE)-22.2%94.1%51.9%-31.2%
Flowgroup ($FLOW)141.9%21.1%144.6%39.8%
Gooch & Housego ($GHH)12.3%9.3%30.2%11.5%
Walsin Lihwa Corp ($WALS)-8.4%-4.0%17.0%
Stadium Group ($SDM)-1.1%29.0%-1.5%15.2%
 
Median (16 companies)-4.5%-1.1%-1.2%6.9%6.2%
Dewhurst ($DWHA)-1.4%2.6%12.2%3.1%


Top companies by Gross margin, %

Top 5 FY2014 FY2015 FY2016 FY2017 FY2018
Prophotonix Ltd ($PPIR)45.4%44.6%
Gooch & Housego ($GHH)40.5%39.4%37.5%41.1%40.1%
Zytronic ($ZYT)36.6%41.9%42.8%41.1%
Elektron Technology ($EKT)34.8%35.6%37.2%39.1%49.7%
Image Scan Hldgs ($IGE)30.7%42.3%38.3%47.5%
 
Median (15 companies)29.4%25.0%31.7%30.1%41.6%


Top companies by EBITDA margin, %

Top 5 FY2014 FY2015 FY2016 FY2017 FY2018
Zytronic ($ZYT)22.9%27.8%25.6%28.8%
Maruwa Co Ltd ($MAW)17.8%14.7%19.6%21.4%28.7%
Morgan Advanced Materials ($BA29)9.8%12.8%14.6%19.2%
Gooch & Housego ($GHH)13.4%19.8%17.3%17.3%14.1%
Lpa Group ($LPA)5.7%4.4%9.3%11.6%
 
Median (15 companies)4.5%5.8%8.3%8.9%10.9%
Dewhurst ($DWHA)13.7%14.7%13.4%13.6%14.2%


Top companies by CAPEX/Revenue, %

Top 5 FY2014 FY2015 FY2016 FY2017 FY2018
Lpa Group ($LPA)14.8%1.8%6.0%7.3%
Maruwa Co Ltd ($MAW)7.6%6.5%4.4%6.1%6.9%
Gooch & Housego ($GHH)2.7%3.9%11.3%5.2%4.7%
Wintek Corp ($WTKA)2.4%0.6%1.6%4.2%
Solid State ($SSP)1.3%1.4%2.0%3.7%0.9%
 
Median (16 companies)1.4%1.4%1.7%1.7%1.1%
Dewhurst ($DWHA)0.9%1.9%1.9%1.8%2.1%


Top companies by ROIC, %

Top 5 FY2014 FY2015 FY2016 FY2017 FY2018
Image Scan Hldgs ($IGE)-45.6%16.4%39.8%-8.5%
Morgan Advanced Materials ($BA29)10.9%18.4%21.9%31.6%
Prophotonix Ltd ($PPIR)25.8%
Zytronic ($ZYT)17.0%22.7%18.1%20.9%
Lpa Group ($LPA)7.0%2.1%13.4%15.9%
 
Median (16 companies)4.7%5.7%9.4%13.4%14.5%
Dewhurst ($DWHA)24.5%27.3%24.6%24.1%18.9%


Top companies by Net Debt / EBITDA

Top 5 FY2014 FY2015 FY2016 FY2017 FY2018
Apc Technology Group ($APC)0.5x5.2x
Walsin Lihwa Corp ($WALS)3.9x4.6x2.7x1.9x
Stadium Group ($SDM)1.2x0.3x0.7x1.4x
Lpa Group ($LPA)1.5x3.8x1.3x1.1x
Morgan Advanced Materials ($BA29)2.3x1.8x1.7x0.9x
 
Median (13 companies)1.2x0.5x0.4x-0.5x-0.8x
Dewhurst ($DWHA)-2.0x-2.2x-2.6x-2.5x-1.2x


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