Hardide CAPEX surged on 484% and Revenue surged on 42.3%
10 Dec 2018 • About Hardide (
$HDD) • By InTwits
Hardide reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hardide is a growth stock: FY2018 revenue growth was 42.3%, 5 year revenue CAGR was 14.4% at FY2018 ROIC -21.6%
- The company operates at negative EBITDA Margin: -11.9%
- Hardide spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -13.8%
- The company has unprofitable business model: ROIC is -21.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Hardide's Revenue surged on 42.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.9 pp from 6.0% to 4.2% in FY2018.
Gross Margin increased on 3.2 pp from 49.1% to 52.3% in FY2018. SG&A as a % of Revenue dropped on 13.0 pp from 71.7% to 58.8% in FY2018.
Net Income margin jumped on 15.1 pp from -33.8% to -18.8% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 19.2% in FY2018. CAPEX/Revenue surged on 19.2 pp from in FY2015 to 19.2% in FY2018. It's average level of CAPEX/Revenue for the last three years was 16.7%.
Return on investment
The company operates at negative ROIC (-21.6%) and ROE (-20.7%). ROIC jumped on 10.6 pp from -32.1% to -21.6% in FY2018. ROE increased on 7.9 pp from -28.6% to -20.7% in FY2018.
Leverage (Debt)
Debt level is -1.3x Net Debt / EBITDA and Debt / EBITDA. Debt jumped on 300% while cash surged on 172%.
Hardide has no short term refinancing risk: cash is higher than short term debt (33,020.0%).
Financial and operational results
FY ended 30 Sep 2018
Hardide ($HDD) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 3.030 | 3.003 | 2.142 | 3.241 | 4.613 | 42.3% |
| Gross Profit | 2.086 | | 0.685 | 1.590 | 2.412 | 51.7% |
| SG&A | | | 1.989 | 2.325 | 2.711 | 16.6% |
| EBITDA | 0.121 | | -1.051 | -0.735 | -0.547 | |
| Net Income | 0.161 | | -1.341 | -1.096 | -0.865 | |
Balance Sheet
|
|---|
| Cash | 3.467 | | 1.967 | 1.212 | 3.302 | 172.4% |
| Short Term Debt | 0.016 | | 0.017 | 0.005 | 0.010 | 100.0% |
| Long Term Debt | 0.037 | | 0.003 | 0.012 | 0.058 | 383.3% |
Cash flow
|
|---|
| Capex | 0.189 | | 0.561 | 0.152 | 0.887 | 483.6% |
Ratios
|
|---|
| Revenue growth | 28.4% | -0.9% | -28.7% | 51.3% | 42.3% | |
| EBITDA growth | -153.8% | | | -30.1% | -25.6% | |
|
|---|
| Gross Margin | 68.8% | | 32.0% | 49.1% | 52.3% | 3.2% |
| EBITDA Margin | 4.0% | | -49.1% | -22.7% | -11.9% | 10.8% |
| SG&A, % of revenue | | | 92.9% | 71.7% | 58.8% | -13.0% |
| Net Income Margin | 5.3% | | -62.6% | -33.8% | -18.8% | 15.1% |
| CAPEX, % of revenue | 6.2% | | 26.2% | 4.7% | 19.2% | 14.5% |
|
|---|
| ROIC | 0.0% | | -35.4% | -32.1% | -21.6% | 10.6% |
| ROE | 7.0% | | -32.6% | -28.6% | -20.7% | 7.9% |
| Net Debt/EBITDA | -28.2x | | | | |
Peers in Chemicals
Below we provide Hardide benchmarking against other companies in Chemicals 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 |
|---|
| Plastics Capital ($PLA) | | 21.9% | 28.4% | 29.5% | 16.6% |
| Lg Chem ($LGCD) | -2.4% | -10.5% | 2.2% | 24.4% | |
| Uralkali PJSC ($URKA) | | -12.2% | -27.1% | 21.2% | |
| Frutarom Industries ($FRUT) | 21.6% | 6.5% | 31.4% | 18.8% | |
| Victrex ($VCT) | | 4.3% | -4.3% | 15.0% | 12.3% |
| |
|---|
| Median (10 companies) | 9.9% | 3.4% | -4.3% | 14.8% | 14.5% |
|---|
| Hardide ($HDD) | | -0.9% | -28.7% | 51.3% | 42.3% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Uralkali PJSC ($URKA) | 74.3% | 81.8% | 75.9% | 73.2% | |
| Victrex ($VCT) | 64.6% | 63.8% | 62.9% | 63.3% | 63.8% |
| Acron JSC ($AKRN) | 42.8% | 52.7% | 49.3% | 45.0% | |
| Phosagro OJSC ($PHOR) | 45.2% | 56.2% | 54.0% | 44.1% | |
| Frutarom Industries ($FRUT) | 39.1% | 38.7% | 38.1% | 38.5% | |
| |
|---|
| Median (10 companies) | 39.1% | 40.2% | 35.8% | 38.1% | 47.6% |
|---|
| Hardide ($HDD) | 68.8% | | 32.0% | 49.1% | 52.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Uralkali PJSC ($URKA) | 48.6% | 62.3% | 51.9% | 48.6% | |
| Victrex ($VCT) | 44.4% | 45.2% | 45.9% | 44.3% | 44.4% |
| Acron JSC ($AKRN) | 27.2% | 36.2% | 33.2% | 31.5% | |
| Arab Potash Co ($APOD) | 27.7% | 39.6% | 19.0% | 29.9% | |
| Phosagro OJSC ($PHOR) | 30.5% | 43.5% | 38.5% | 28.3% | |
| |
|---|
| Median (10 companies) | 26.7% | 27.7% | 19.0% | 27.9% | 26.5% |
|---|
| Hardide ($HDD) | 4.0% | | -49.1% | -22.7% | -11.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Phosagro OJSC ($PHOR) | 16.7% | 22.4% | 21.4% | 19.8% | |
| Acron JSC ($AKRN) | 15.4% | 14.2% | 13.6% | 12.0% | |
| Croda International ($50GP) | 6.0% | 8.6% | 8.3% | 11.3% | |
| Uralkali PJSC ($URKA) | 9.8% | 10.9% | 13.9% | 9.8% | |
| Lg Chem ($LGCD) | 6.3% | 8.1% | 6.8% | 8.8% | |
| |
|---|
| Median (10 companies) | 6.3% | 8.2% | 7.8% | 7.5% | 3.9% |
|---|
| Hardide ($HDD) | 6.2% | | 26.2% | 4.7% | 19.2% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Croda International ($50GP) | 35.3% | 30.5% | 27.7% | 27.5% | |
| Victrex ($VCT) | 29.7% | 28.9% | 26.0% | 24.9% | 25.3% |
| Phosagro OJSC ($PHOR) | 21.6% | 41.2% | 31.1% | 17.0% | |
| Lg Chem ($LGCD) | 8.6% | 11.6% | 12.0% | 16.0% | |
| Basf Se ($BFA) | 16.6% | 13.5% | 13.0% | 15.5% | |
| |
|---|
| Median (11 companies) | 13.2% | 16.7% | 12.8% | 15.2% | 16.0% |
|---|
| Hardide ($HDD) | 0.0% | | -35.4% | -32.1% | -21.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Uralkali PJSC ($URKA) | 1.8x | 2.8x | 4.7x | 4.0x | |
| Plastics Capital ($PLA) | 1.4x | 2.2x | 2.3x | 2.8x | 2.3x |
| Phosagro OJSC ($PHOR) | 2.5x | 1.3x | 1.5x | 2.3x | |
| Acron JSC ($AKRN) | 2.8x | 1.4x | 1.8x | 2.0x | |
| Frutarom Industries ($FRUT) | 1.1x | 2.6x | 2.2x | 2.0x | |
| |
|---|
| Median (10 companies) | 1.2x | 1.2x | 1.4x | 1.5x | 0.9x |
|---|
