Porvair reports 12.5% revenue growth in FY2019 and almost no change in EBITDA Margin of 12.8%
03 Feb 2020 • About Porvair (
$PRV) • By InTwits
Porvair reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 12.8% in FY2019 vs. 12.8% in FY2018 vs. 12.6% in FY2015
- Porvair has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: £1m in FY2019, £1m in FY2018, £0m in FY2017, £0m in FY2016, £0m in FY2015
- The company has highly profitable business model: ROIC is 14.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Porvair's Revenue jumped on 12.5%. EBITDA Margin showed almost no change in FY2019.
Gross Margin decreased slightly on 1.7 pp from 34.4% to 32.7% in FY2019. SG&A as a % of Revenue decreased slightly on 1.9 pp from 24.5% to 22.5% in FY2019.
Net Income margin showed almost no change in FY2019.
Investments (CAPEX, working capital and M&A)
Porvair's CAPEX/Revenue was 2.7% in FY2019. CAPEX/Revenue decreased slightly on 1.3 pp from 4.0% in FY2016 to 2.7% in FY2019. Average CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at good ROIC (14.6%) while ROE is low (11.7%). ROIC showed almost no change in FY2019. ROE decreased slightly on 0.57 pp from 12.2% to 11.7% in FY2019. ROIC stuck to a declining trend at -0.80 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 0.5x. Debt jumped on 82.4% while cash jumped on 12.2%.
The company has no short term refinancing risk: short term debt is zero.
Valuation and dividends
The company's trades at EV/EBITDA 18.8x and P/E 32.7x.
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. Christopher P Tyler "Chris" is a Porvair's CFO. Christopher P Tyler "Chris" has spent 15 years at the company.
Financial and operational results
FY ended 30 Nov -0001
Porvair ($PRV) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 95.8 | 109.4 | 116.4 | 128.8 | 144.9 | 12.5% |
| Gross Profit | 32.4 | 36.0 | 38.3 | 44.4 | 47.4 | 6.9% |
| SG&A | 22.6 | 23.9 | 26.0 | 31.5 | 32.6 | 3.6% |
| EBITDA | 12.1 | 13.2 | 15.6 | 16.5 | 18.5 | 12.5% |
| Net Income | 7.0 | 7.7 | 8.9 | 10.0 | 10.8 | 7.2% |
Balance Sheet
|
|---|
| Cash | 10.7 | 13.6 | 12.5 | 11.5 | 12.9 | 12.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 2.7 | 4.9 | 8.9 | 82.4% |
Cash flow
|
|---|
| Capex | 3.8 | 4.4 | 5.2 | 3.8 | 3.9 | 3.9% |
Ratios
|
|---|
| Revenue growth | -7.9% | 14.1% | 6.5% | 10.7% | 12.5% | |
| EBITDA growth | 12.4% | 9.7% | 17.7% | 5.8% | 12.5% | |
|
|---|
| Gross Margin | 33.8% | 32.9% | 32.9% | 34.4% | 32.7% | -1.7% |
| EBITDA Margin | 12.6% | 12.1% | 13.4% | 12.8% | 12.8% | -0.0% |
| SG&A, % of revenue | 23.5% | 21.9% | 22.3% | 24.5% | 22.5% | -1.9% |
| Net Income Margin | 7.3% | 7.1% | 7.6% | 7.8% | 7.4% | -0.4% |
| CAPEX, % of revenue | 4.0% | 4.0% | 4.5% | 2.9% | 2.7% | -0.2% |
|
|---|
| ROIC | 17.7% | 16.7% | 16.8% | 14.9% | 14.6% | -0.2% |
| ROE | 12.5% | 11.9% | 12.1% | 12.2% | 11.7% | -0.6% |
| Net Debt/EBITDA | -0.9x | -1.0x | -0.6x | -0.4x | -0.2x | 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 ROIC, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Pv Crystalox Solar ($PVCS) | -25.5% | -5.1% | 25.5% | | |
| |
|---|
| Median (1 company) | -29.8% | -3.3% | 9.0% | | |
|---|
| Porvair ($PRV) | 17.7% | 16.7% | 16.8% | 14.9% | 14.6% |
