Dewhurst reports 351% CAPEX growth in 2019 and 3.6% Revenue growth
10 Dec 2019 • About Dewhurst (
$DWHA) • By InTwits
Dewhurst reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 14.6% in FY2019 vs. 14.2% in FY2018 vs. 14.7% in FY2015
- Dewhurst has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 2.5%.
- CAPEX is quite volatile: £5m in FY2019, £1m in FY2018, £1m in FY2017, £1m in FY2016, £1m in FY2015
- The company has highly profitable business model: ROIC is 14.1%
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 3.6%. EBITDA Margin showed almost no change in FY2019. During FY2015-FY2019 EBITDA Margin bottomed in FY2016 at 13.4% and was growing since that time.
Net Income margin increased on 9.9 pp from 7.4% to 17.3% in FY2019. The efficient tax rate was 18.0% in FY2019.
Investments (CAPEX, working capital and M&A)
In FY2019 the company had CAPEX/Revenue of 9.3%. Dewhurst showed CAPEX/Revenue growth of 7.4 pp from 1.9% in FY2016 to 9.3% in FY2019. Average CAPEX/Revenue for the last three years was 4.4%. The company invested a large share of EBITDA (63.4%) to CAPEX. During FY2015-FY2019 CAPEX as a % of Revenue bottomed in FY2017 at 1.8% and was growing since that time.
Inventories as a % of Revenue decreased slightly on 0.87 pp from 11.5% to 10.6% in FY2019.
Return on investment
The company operates at high and attractive ROE (25.3%) while ROIC is a bit lower (14.1%). ROIC decreased on 4.8 pp from 18.9% to 14.1% in FY2019. ROE surged on 13.1 pp from 12.2% to 25.3% in FY2019. ROIC declined at -3.2 pp per annum in FY2015-FY2019.
Leverage (Debt)
The company has no debt. Cash jumped on 79.9%.
Valuation and dividends
The company's trades at EV/EBITDA 2.5x and P/E 3.8x.
The company paid 10.2% of Net Income as dividends in FY2019.
Management team
3.8% of the company is owned by insiders. Insider ownership didn't change in 2019.
Financial and operational results
FY ended 30 Nov -0001
Dewhurst ($DWHA) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 45.946 | 47.159 | 52.890 | 54.510 | 56.446 | 3.6% |
| EBITDA | 6.753 | 6.317 | 7.219 | 7.760 | 8.251 | 6.3% |
| EBIT | | | | 6.188 | 5.394 | -12.8% |
| Tax | | | | 1.723 | 2.149 | 24.7% |
| Net Income | 4.406 | 3.453 | 4.445 | 4.039 | 9.780 | 142.1% |
Balance Sheet
|
|---|
| Cash | 14.958 | 16.674 | 18.087 | 9.440 | 16.980 | 79.9% |
| Inventory | | | | 6.279 | 6.010 | -4.3% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.893 | 0.901 | 0.978 | 1.161 | 5.233 | 350.7% |
| Dividends | | | | 1.000 | 1.000 | 0.0% |
Ratios
|
|---|
| Revenue growth | -1.4% | 2.6% | 12.2% | 3.1% | 3.6% | |
| EBITDA growth | 6.0% | -6.5% | 14.3% | 7.5% | 6.3% | |
|
|---|
| EBITDA Margin | 14.7% | 13.4% | 13.6% | 14.2% | 14.6% | 0.4% |
| EBIT Margin | | | | 11.4% | 9.6% | -1.8% |
| Net Income Margin | 9.6% | 7.3% | 8.4% | 7.4% | 17.3% | 9.9% |
| CAPEX, % of revenue | 1.9% | 1.9% | 1.8% | 2.1% | 9.3% | 7.1% |
|
|---|
| ROIC | 27.3% | 24.6% | 24.1% | 18.9% | 14.1% | -4.8% |
| ROE | 19.3% | 14.4% | 16.4% | 12.2% | 25.3% | 13.1% |
| Net Debt/EBITDA | -2.2x | -2.6x | -2.5x | -1.2x | -2.1x | -0.8x |
People
|
|---|
| Insider ownership | | | | 3.8% | 3.8% | 0.0% |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Lpa Group ($LPA) | -3.4% | 31.7% | 4.9% | 24.5% | |
| Maruwa Co Ltd ($MAW) | -2.0% | -6.8% | 5.3% | 19.7% | |
| Solid State ($SSP) | 13.9% | 20.6% | -9.2% | 15.6% | |
| Gooch & Housego ($GHH) | | 9.3% | 30.2% | 11.5% | 3.4% |
| Volex ($VLX) | 5.8% | -13.2% | -13.0% | 0.9% | |
| |
|---|
| Median (9 companies) | -1.5% | -1.2% | 6.9% | 0.9% | -9.8% |
|---|
| Dewhurst ($DWHA) | | 2.6% | 12.2% | 3.1% | 3.6% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Elektron Technology ($EKT) | 35.6% | 37.2% | 39.1% | 49.7% | |
| Image Scan Hldgs ($IGE) | | 42.3% | 38.3% | 47.5% | 54.1% |
| Maruwa Co Ltd ($MAW) | 30.0% | 35.9% | 36.9% | 43.1% | |
| Gooch & Housego ($GHH) | 39.4% | 37.5% | 41.1% | 40.1% | 34.8% |
| Zytronic ($ZYT) | 41.9% | 42.8% | 41.1% | 37.0% | 33.8% |
| |
|---|
| Median (8 companies) | 25.0% | 31.7% | 30.1% | 38.5% | 34.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Maruwa Co Ltd ($MAW) | 14.7% | 19.6% | 21.4% | 28.7% | |
| Zytronic ($ZYT) | 27.8% | 25.6% | 28.8% | 23.7% | 20.6% |
| Elektron Technology ($EKT) | 7.2% | 8.1% | 5.8% | 17.8% | |
| Gooch & Housego ($GHH) | 19.8% | 17.3% | 17.3% | 14.1% | 13.4% |
| Lpa Group ($LPA) | 4.4% | 9.3% | 11.6% | 9.9% | |
| |
|---|
| Median (8 companies) | 5.8% | 8.3% | 8.9% | 12.0% | 13.4% |
|---|
| Dewhurst ($DWHA) | 14.7% | 13.4% | 13.6% | 14.2% | 14.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Maruwa Co Ltd ($MAW) | 6.5% | 4.4% | 6.1% | 6.9% | |
| Gooch & Housego ($GHH) | 3.9% | 11.3% | 5.2% | 4.7% | 4.5% |
| Lpa Group ($LPA) | 1.8% | 6.0% | 7.3% | 1.8% | |
| Elektron Technology ($EKT) | 1.1% | 1.8% | 0.9% | 1.3% | |
| Zytronic ($ZYT) | 4.7% | 1.8% | 2.1% | 1.2% | 2.5% |
| |
|---|
| Median (8 companies) | 1.4% | 1.7% | 1.7% | 1.3% | 2.5% |
|---|
| Dewhurst ($DWHA) | 1.9% | 1.9% | 1.8% | 2.1% | 9.3% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Maruwa Co Ltd ($MAW) | 5.7% | 9.0% | 11.4% | 19.2% | |
| Elektron Technology ($EKT) | 9.9% | 7.0% | -9.0% | 18.8% | |
| Solid State ($SSP) | 20.0% | 23.0% | 14.6% | 15.2% | |
| Zytronic ($ZYT) | 22.7% | 18.1% | 20.9% | 15.1% | 11.1% |
| Lpa Group ($LPA) | 2.1% | 13.4% | 15.9% | 13.8% | |
| |
|---|
| Median (11 companies) | 5.7% | 9.4% | 13.4% | 14.4% | 5.7% |
|---|
| Dewhurst ($DWHA) | 27.3% | 24.6% | 24.1% | 18.9% | 14.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Lpa Group ($LPA) | 3.8x | 1.3x | 1.1x | 0.7x | |
| Gooch & Housego ($GHH) | -1.1x | -0.8x | -0.8x | 0.6x | 0.8x |
| Solid State ($SSP) | 0.7x | 0.7x | -0.3x | -0.2x | |
| Volex ($VLX) | -0.7x | 0.3x | | -0.8x | |
| Elektron Technology ($EKT) | 0.8x | 0.5x | -0.5x | -1.0x | |
| |
|---|
| Median (7 companies) | 0.5x | 0.4x | -0.5x | -0.8x | -1.2x |
|---|
| Dewhurst ($DWHA) | -2.2x | -2.6x | -2.5x | -1.2x | -2.1x |
