Porvair Net Income jumped on 13.4% and Revenue surged on 10.7%
28 Jan 2019 • About Porvair (
$PRV) • By InTwits
Porvair reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Porvair has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: £0m in FY2018, £0m in FY2017, £0m in FY2016, £0m in FY2015, £0m in FY2014
- The company has highly profitable business model: ROIC is 14.9%
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 surged on 10.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.4 pp from 19.8% to 28.1% in 2018.
Gross Margin increased slightly on 1.5 pp from 32.9% to 34.4% in FY2018. SG&A as a % of Revenue increased on 2.1 pp from 22.3% to 24.5% in FY2018.
Net Income margin showed almost no change in FY2018. Net Income margin stuck to a growing trend at 0.38 pp per annum in FY2014-FY2018.
Investments (CAPEX, working capital and M&A)
Porvair's CAPEX/Revenue was 2.9% in FY2018. CAPEX/Revenue decreased slightly on 1.0 pp from 4.0% in FY2015 to 2.9% in FY2018. It's average CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at good ROIC (14.9%) and ROE (12.2%). ROIC decreased slightly on 1.9 pp from 16.8% to 14.9% in FY2018. ROE showed almost no change in FY2018. During FY2014-FY2018 ROE bottomed in FY2016 at 11.9% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.4x and Debt / EBITDA is 0.3x. Debt surged on 79.5% while cash decreased on 8.0%.
The company has no short term refinancing risk: short term debt is zero.
Valuation and dividends
The company's trades at EV/EBITDA 12.1x and P/E 20.5x.
Management team
Porvair's CEO is Ben D W Stocks. Ben D W Stocks is a founder and has 22 years tenure with the company. The company's CFO Christopher P Tyler "Chris" has spent 15 years with the company.
Financial and operational results
FY ended 30 Nov 2018
Porvair ($PRV) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 104.0 | 95.8 | 109.4 | 116.4 | 128.8 | 10.7% |
| Gross Profit | 29.8 | 32.4 | 36.0 | 38.3 | 44.4 | 15.8% |
| SG&A | 20.6 | 22.6 | 23.9 | 26.0 | 31.5 | 21.2% |
| EBITDA | 10.7 | 12.1 | 13.2 | 15.6 | 16.5 | 5.8% |
| Net Income | 6.3 | 7.0 | 7.7 | 8.9 | 10.0 | 13.4% |
Balance Sheet
|
|---|
| Cash | 7.9 | 10.7 | 13.6 | 12.5 | 11.5 | -8.0% |
| Short Term Debt | 0.7 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 1.9 | 0.0 | 0.0 | 2.7 | 4.9 | 79.5% |
Cash flow
|
|---|
| Capex | 4.9 | 3.8 | 4.4 | 5.2 | 3.8 | -27.7% |
Ratios
|
|---|
| Revenue growth | 23.4% | -7.9% | 14.1% | 6.5% | 10.7% | |
| EBITDA growth | 7.0% | 12.4% | 9.7% | 17.7% | 5.8% | |
|
|---|
| Gross Margin | 28.7% | 33.8% | 32.9% | 32.9% | 34.4% | 1.5% |
| EBITDA Margin | 10.3% | 12.6% | 12.1% | 13.4% | 12.8% | -0.6% |
| SG&A, % of revenue | 19.8% | 23.5% | 21.9% | 22.3% | 24.5% | 2.1% |
| Net Income Margin | 6.1% | 7.3% | 7.1% | 7.6% | 7.8% | 0.2% |
| CAPEX, % of revenue | 4.7% | 4.0% | 4.0% | 4.5% | 2.9% | -1.6% |
|
|---|
| ROIC | 16.2% | 17.7% | 16.7% | 16.8% | 14.9% | -1.9% |
| ROE | 12.7% | 12.5% | 11.9% | 12.1% | 12.2% | 0.1% |
| Net Debt/EBITDA | -0.5x | -0.9x | -1.0x | -0.6x | -0.4x | 0.2x |
Peers in Alternative Energy
Below you can find Porvair benchmarking vs. other companies in Alternative Energy industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| China New Energy Ltd ($CNEL) | 30.8% | 7.6% | 27.4% | 221.2% | |
| Hydrodec Group ($HYR) | 16.4% | -8.4% | -60.2% | 6.1% | |
| Pv Crystalox Solar ($PVCS) | | 20.9% | -12.0% | -53.5% | |
| |
|---|
| Median (3 companies) | 30.8% | 14.2% | -26.8% | 6.1% | |
|---|
| Porvair ($PRV) | | -7.9% | 14.1% | 6.5% | 10.7% |
Top companies by Gross margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| China New Energy Ltd ($CNEL) | 7.5% | 12.4% | 34.4% | 29.2% | |
| Hydrodec Group ($HYR) | 12.4% | -0.9% | 5.2% | 14.5% | |
| Pv Crystalox Solar ($PVCS) | -23.2% | 0.3% | 14.3% | 6.4% | |
| |
|---|
| Median (3 companies) | 9.6% | 4.2% | 14.6% | 14.5% | |
|---|
| Porvair ($PRV) | 28.7% | 33.8% | 32.9% | 32.9% | 34.4% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Pv Crystalox Solar ($PVCS) | -20.6% | -19.3% | -3.5% | 47.8% | |
| China New Energy Ltd ($CNEL) | -16.3% | -22.1% | 13.5% | 14.9% | |
| Hydrodec Group ($HYR) | -2.8% | -8.1% | -5.6% | -0.0% | |
| |
|---|
| Median (3 companies) | -10.4% | -16.2% | -1.4% | 14.9% | |
|---|
| Porvair ($PRV) | 10.3% | 12.6% | 12.1% | 13.4% | 12.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hydrodec Group ($HYR) | 41.2% | 35.3% | 3.2% | 1.9% | |
| Pv Crystalox Solar ($PVCS) | 0.5% | 0.0% | 0.2% | 0.5% | |
| China New Energy Ltd ($CNEL) | 0.1% | 0.3% | 2.5% | 0.2% | |
| |
|---|
| Median (3 companies) | 1.8% | 4.6% | 2.0% | 0.5% | |
|---|
| Porvair ($PRV) | 4.7% | 4.0% | 4.0% | 4.5% | 2.9% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| China New Energy Ltd ($CNEL) | -39.3% | -31.6% | 10.3% | 53.1% | |
| Pv Crystalox Solar ($PVCS) | -19.7% | -25.5% | -5.1% | 25.5% | |
| Hydrodec Group ($HYR) | -12.4% | -28.0% | -11.9% | -7.6% | |
| Active Energy Group ($AEG) | -16.2% | -41.4% | -1.6% | -40.0% | |
| |
|---|
| Median (4 companies) | -18.0% | -29.8% | -3.3% | 9.0% | |
|---|
| Porvair ($PRV) | 16.2% | 17.7% | 16.7% | 16.8% | 14.9% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| China New Energy Ltd ($CNEL) | | | -1.3x | -0.0x | |
| Pv Crystalox Solar ($PVCS) | | | | -2.1x | |
| |
|---|
| Median (2 companies) | | | 19.2x | -1.1x | |
|---|
| Porvair ($PRV) | -0.5x | -0.9x | -1.0x | -0.6x | -0.4x |
