Lightwaverf revenue decreased on 7.2% and EBITDA Margin dropped on 50.6 pp from -15.2% to -65.8%
11 Dec 2018 • About Lightwaverf (
$LWRF) • By InTwits
Lightwaverf reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -65.8%
- Lightwaverf spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -25.5%
- The company has unprofitable business model: ROIC is -85.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 7.2%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 50.6 pp from -15.2% to -65.8% in FY2018.
Gross Margin decreased on 6.2 pp from 35.5% to 29.3% in FY2018. SG&A as a % of Revenue surged on 62.8 pp from 70.0% to 133% in FY2018.
Net Income margin dropped on 62.6 pp from -27.9% to -90.4% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 2.1%. Lightwaverf showed CAPEX/Revenue growth of 2.1 pp from in FY2015 to 2.1% in FY2018. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-85.2%) and ROE (-105.6%). ROIC dropped on 22.0 pp from -63.2% to -85.2% in FY2018.
Leverage (Debt)
Debt level is -1.3x Net Debt / EBITDA and Debt / EBITDA. Debt dropped on 22.2% while cash surged on 112%.
Lightwaverf has no short term refinancing risk: cash is higher than short term debt (110.8%).
Financial and operational results
FY ended 30 Nov -0001
Lightwaverf ($LWRF) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 3.040 | 2.101 | 1.443 | 3.032 | 2.814 | -7.2% |
| Gross Profit | 1.030 | | 0.469 | 1.077 | 0.826 | -23.4% |
| SG&A | 1.282 | | 1.489 | 2.122 | 3.736 | 76.1% |
| EBITDA | -0.227 | | -0.632 | -0.462 | -1.852 | |
| Net Income | -0.145 | | -0.841 | -0.845 | -2.545 | |
Balance Sheet
|
|---|
| Cash | 0.223 | | 0.002 | 0.222 | 0.470 | 111.6% |
| Short Term Debt | 0.574 | | 0.642 | 0.588 | 0.424 | -27.9% |
| Long Term Debt | 0.620 | | 0.206 | 0.000 | 0.034 | |
Cash flow
|
|---|
| Capex | 0.062 | | 0.004 | 0.029 | 0.060 | 109.9% |
Ratios
|
|---|
| Revenue growth | 188.5% | -30.9% | -31.3% | 110.1% | -7.2% | |
| EBITDA growth | -70.4% | | | -26.9% | 300.8% | |
|
|---|
| Gross Margin | 33.9% | | 32.5% | 35.5% | 29.3% | -6.2% |
| EBITDA Margin | -7.5% | | -43.8% | -15.2% | -65.8% | -50.6% |
| SG&A, % of revenue | 42.2% | | 103.2% | 70.0% | 132.8% | 62.8% |
| Net Income Margin | -4.8% | | -58.3% | -27.9% | -90.4% | -62.6% |
| CAPEX, % of revenue | 2.0% | | 0.3% | 0.9% | 2.1% | 1.2% |
|
|---|
| ROIC | -58.8% | | -71.4% | -63.2% | -85.2% | -22.0% |
| ROE | | | | | -105.6% | |
Peers in Leisure Goods
Below we provide Lightwaverf benchmarking against other companies in Leisure Goods 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 |
|---|
| Lg Electronics Inc ($39IB) | 1.5% | -4.3% | -2.0% | 10.9% | |
| Tandem Group ($TND) | 10.5% | 9.8% | 11.7% | -4.1% | |
| Character Group ($CCT) | | 1.2% | 22.1% | -4.7% | -7.9% |
| Konami Corp ($KNM) | | 0.3% | 14.6% | -8.0% | 4.2% |
| Vmoto Ltd ($VMT) | 70.6% | 10.9% | -63.7% | -12.7% | |
| |
|---|
| Median (6 companies) | 10.5% | 5.5% | 4.8% | -6.3% | -7.9% |
|---|
| Lightwaverf ($LWRF) | | -30.9% | -31.3% | 110.1% | -7.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Konami Corp ($KNM) | 31.3% | 32.8% | 35.0% | 38.6% | 40.6% |
| Hornby ($HRN) | 45.2% | 46.7% | 39.0% | 38.3% | 38.6% |
| Character Group ($CCT) | 29.8% | 37.0% | 31.6% | 32.6% | 34.2% |
| Tandem Group ($TND) | 30.5% | 29.4% | 26.0% | 29.6% | |
| Lg Electronics Inc ($39IB) | 23.3% | 22.8% | 24.8% | 23.9% | |
| |
|---|
| Median (6 companies) | 30.2% | 31.1% | 28.8% | 31.1% | 38.6% |
|---|
| Lightwaverf ($LWRF) | 33.9% | | 32.5% | 35.5% | 29.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Konami Corp ($KNM) | 13.3% | 16.5% | 21.5% | 22.9% | 24.1% |
| Character Group ($CCT) | 10.0% | 14.1% | 13.1% | 13.9% | 12.8% |
| Tandem Group ($TND) | 5.3% | 4.7% | 4.2% | 7.0% | |
| Lg Electronics Inc ($39IB) | 6.4% | 5.5% | 5.6% | 6.9% | |
| Hornby ($HRN) | 1.8% | 7.4% | -17.3% | -11.9% | -16.4% |
| |
|---|
| Median (6 companies) | 5.9% | 10.8% | 4.9% | 7.0% | 12.8% |
|---|
| Lightwaverf ($LWRF) | -7.5% | | -43.8% | -15.2% | -65.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Konami Corp ($KNM) | 21.7% | 11.8% | 7.6% | 6.5% | 7.4% |
| Lg Electronics Inc ($39IB) | 3.7% | 3.1% | 3.6% | 4.2% | |
| Vmoto Ltd ($VMT) | 2.6% | 1.8% | 3.0% | 3.9% | |
| Hornby ($HRN) | 7.9% | 7.0% | 5.8% | 3.7% | 4.6% |
| Character Group ($CCT) | 0.4% | 0.4% | 0.2% | 0.2% | 0.3% |
| |
|---|
| Median (6 companies) | 3.1% | 2.4% | 3.3% | 3.8% | 4.6% |
|---|
| Lightwaverf ($LWRF) | 2.0% | | 0.3% | 0.9% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Character Group ($CCT) | 26.8% | 37.3% | 33.7% | 29.9% | 23.5% |
| Tandem Group ($TND) | 37.6% | 16.6% | 13.2% | 24.9% | |
| Konami Corp ($KNM) | 3.2% | 6.6% | 10.4% | 15.0% | 17.5% |
| Lg Electronics Inc ($39IB) | 8.9% | 5.8% | 6.5% | 11.3% | |
| Hornby ($HRN) | -7.7% | 0.5% | -36.6% | -28.0% | -32.5% |
| |
|---|
| Median (6 companies) | 6.0% | 11.6% | 8.4% | 13.2% | 17.5% |
|---|
| Lightwaverf ($LWRF) | -58.8% | | -71.4% | -63.2% | -85.2% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lg Electronics Inc ($39IB) | 1.8x | 2.0x | 1.8x | 1.4x | |
| Character Group ($CCT) | 0.5x | -0.3x | -0.4x | -0.7x | -1.1x |
| Tandem Group ($TND) | -1.1x | 3.5x | 0.6x | -0.9x | |
| Konami Corp ($KNM) | -0.2x | -0.6x | -1.4x | -2.0x | -2.2x |
| |
|---|
| Median (4 companies) | 0.7x | 0.7x | 0.1x | -0.8x | -1.7x |
|---|
