Pressure Technologies revenue dropped on 12.3%

17 Dec 2019 • About Pressure Technologies ($PRES) • By InTwits

Pressure Technologies reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:

Pressure Technologies is a company in decline: FY2019 revenue growth was -12.3%, 5 years revenue CAGR was -12.1%
EBITDA Margin is declining: in FY2019 vs. 4.2% in FY2018 vs. 10.0% in FY2015

Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability

Pressure Technologies's Revenue dropped on 12.3%.

Net Income margin surged on 10.2 pp from -15.8% to -5.6% in FY2019. During the last 5 years Net Income margin bottomed in FY2018 at -15.8%.

Financial and operational results

FY ended 30 Nov -0001

Pressure Technologies ($PRES) key annual financial indicators

mln. £	2015	2016	2017	2018	2019	2019/2018
P&L
Revenue	53.816	35.753	38.418	32.245	28.291	-12.3%
Gross Profit	15.760	9.542	10.708	9.640
SG&A	11.942	9.923	9.611	9.093
EBITDA	5.380	2.876	2.308	1.339
Net Income	0.699	-0.688	-1.147	-5.088	-1.592
Balance Sheet
Cash	3.459	6.073	4.791	6.140
Short Term Debt	0.337	0.242	0.219	0.241
Long Term Debt	10.236	12.411	15.642	12.636
Cash flow
Capex	6.250	0.883	0.961	1.009
Ratios
Revenue growth	-0.4%	-33.6%	7.5%	-16.1%	-12.3%
EBITDA growth	-31.1%	-46.5%	-19.7%	-42.0%

Gross Margin	29.3%	26.7%	27.9%	29.9%
EBITDA Margin	10.0%	8.0%	6.0%	4.2%
SG&A, % of revenue	22.2%	27.8%	25.0%	28.2%
Net Income Margin	1.3%	-1.9%	-3.0%	-15.8%	-5.6%	10.2%
CAPEX, % of revenue	11.6%	2.5%	2.5%	3.1%

ROIC	3.9%	-1.6%	-3.1%	-5.3%
ROE	1.9%	-1.9%	-3.3%	-15.1%
Net Debt/EBITDA	1.3x	2.3x	4.8x	5.0x

Peers in Industrial Engineering

Below we provide Pressure Technologies benchmarking against other companies in Industrial Engineering 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
Avingtrans ($AVG)	-62.6%	-6.1%	7.3%	247.2%
Ab Dynamics ($ABDP)	19.3%	23.9%	20.0%	50.8%
Ms International ($MSI)	-3.5%	8.3%	9.2%	26.5%
Tricorn Group ($TCN)	-0.2%	-15.0%	2.8%	19.8%
Chamberlin ($CMH)	5.9%	-14.3%	-8.2%	17.3%
Median (8 companies)	5.0%	4.0%	8.4%	18.5%
Pressure Technologies ($PRES)		-33.6%	7.5%	-16.1%	-12.3%

Top companies by Gross margin, %


Top 5	FY2015	FY2016	FY2017	FY2018	FY2019
Tricorn Group ($TCN)	36.0%	40.3%	40.6%	38.3%
600 Group ($SIXH)	32.9%	32.0%	34.7%	33.7%
Mitsubishi Electric Corp ($MEL)	29.9%	30.1%	30.4%	31.6%
Ms International ($MSI)	23.6%	26.1%	27.8%	26.7%
Avingtrans ($AVG)	10.7%	14.9%	17.9%	25.5%
Median (6 companies)	34.2%	32.0%	33.9%	29.2%
Pressure Technologies ($PRES)	29.3%	26.7%	27.9%	29.9%

Top companies by EBITDA margin, %


Top 5	FY2015	FY2016	FY2017	FY2018	FY2019
Mitsubishi Electric Corp ($MEL)	11.0%	10.2%	9.7%	10.7%
Ms International ($MSI)	6.9%	7.5%	5.9%	8.6%
Renold ($RNO)	9.5%	10.4%	10.6%	6.9%
Tricorn Group ($TCN)	3.7%	2.3%	3.7%	6.0%
600 Group ($SIXH)	7.9%	-1.1%	7.2%	4.6%
Median (7 companies)	7.9%	7.7%	10.0%	6.0%
Pressure Technologies ($PRES)	10.0%	8.0%	6.0%	4.2%

Top companies by CAPEX/Revenue, %


Top 5	FY2015	FY2016	FY2017	FY2018	FY2019
Chamberlin ($CMH)	3.1%	4.2%	11.6%	7.9%
Renold ($RNO)	2.1%	4.8%	4.6%	4.5%
Mitsubishi Electric Corp ($MEL)	4.6%	4.1%	3.9%	4.2%
Avingtrans ($AVG)	3.7%	5.0%	2.1%	3.4%
Tricorn Group ($TCN)	1.5%	3.5%	3.0%	3.1%
Median (7 companies)	2.2%	3.5%	3.0%	3.4%
Pressure Technologies ($PRES)	11.6%	2.5%	2.5%	3.1%

Top companies by ROIC, %


Top 5	FY2015	FY2016	FY2017	FY2018	FY2019
Renold ($RNO)	41.3%	39.1%	44.7%	21.3%
Ms International ($MSI)	5.9%	7.1%	5.3%	13.0%
Mitsubishi Electric Corp ($MEL)	14.5%	12.8%	11.1%	12.1%
Tricorn Group ($TCN)	0.4%	-4.4%	-0.2%	6.1%
600 Group ($SIXH)	6.6%	-1.9%	4.3%	2.4%
Median (9 companies)	9.5%	7.1%	7.6%	6.1%
Pressure Technologies ($PRES)	3.9%	-1.6%	-3.1%	-5.3%

Top companies by Net Debt / EBITDA


Top 5	FY2015	FY2016	FY2017	FY2018	FY2019
Chamberlin ($CMH)	2.2x	2.2x	4.3x	5.8x
600 Group ($SIXH)	3.1x		4.0x	5.2x
Tricorn Group ($TCN)	4.0x	7.2x	5.1x	2.3x
Renold ($RNO)	1.1x	1.3x	0.9x	1.8x
Mitsubishi Electric Corp ($MEL)	-0.3x	-0.4x	-0.8x	-0.6x
Median (6 companies)	0.7x	1.1x	0.3x	2.0x
Pressure Technologies ($PRES)	1.3x	2.3x	4.8x	5.0x

Pressure Technologies stock price chart

Pressure Technologies financials

mln.	FY2010	FY2011	FY2012

Revenue	21.714	23.129	30.442
EBITDA	3.908	1.937	3.016
Net income	2.528	0.401	1.271
CAPEX	0.643	1.147	0.727
Debt	0.138	0.042	0.006
Cash	6.613	2.939	2.693

About Pressure Technologies

Pressure Technologies plc, through its subsidiaries, designs and manufactures high pressure engineering systems for the energy, defense, and industrial gases markets. The company operates in three segments: Cylinders, Engineered Products, and Alternative Energy. The Cylinders segment designs, manufactures, and reconditions seamless high pressure gas cylinders. The Engineered Products segment manufactures precision engineered products, air operated high pressure hydraulic pumps, gas boosters, power packs, hydraulic control panels, and test rigs. It also produces wear-resistant components in a range of high alloy steels and tungsten carbides for use in high-pressure choke and flow control valves, designed to regulate flow volumes in various applications in the subsea and surface oil and gas industries. In addition, this segment offers various components for oil and gas pressure systems and downhole tools. The Alternative Energy segment manufactures, markets, and sells biogas upgrading equipment to produce high purity biomethane. The company has operations in the United Kingdom, Europe, and internationally. Pressure Technologies plc was founded in 1897 and is based in Sheffield, the United Kingdom.