Tungsten Corp revenue growth decelerated from 7.1% in FY2019 to 2.1% in FY2020
07 Sep 2020 • About Tungsten Corp (
$TUNG) • By InTwits
Tungsten Corp reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -57.3%
- Tungsten Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -35.2%
- Tungsten Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has unprofitable business model: ROIC is -24.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.7x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tungsten Corp's Revenue increased on 2.1%. During the last 5 years Revenue growth topped in FY2017 at 20.7% and was decelerating since that time. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 54.2 pp from -3.1% to -57.3% in FY2020. During the last 5 years EBITDA Margin topped in FY2019 at -3.1%.
Net Income margin dropped on 59.7 pp from -10.9% to -70.6% in FY2020. During the last 5 years Net Income margin topped in FY2019 at -10.9%.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 0.54%. The company showed almost no change in CAPEX/Revenue from FY2017 to FY2020. Average CAPEX/Revenue for the last three years was 0.80%.
Return on investment
The company operates at negative ROIC (-24.1%) and ROE (-25.9%). ROIC dropped on 19.8 pp from -4.3% to -24.1% in FY2020. ROE dropped on 22.6 pp from -3.3% to -25.9% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2020. Debt surged on 648% while cash surged on 36.7%.
Tungsten Corp has no short term refinancing risk: cash is higher than short term debt (259.6%).
Financial and operational results
FY ended 30 Apr 2020
Tungsten Corp ($TUNG) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 25.903 | 31.269 | 33.663 | 36.045 | 36.812 | 2.1% |
| EBITDA | -16.351 | -9.847 | -9.270 | -1.108 | -21.093 | |
| Net Income | -27.238 | -12.491 | -11.919 | -3.927 | -26.002 | |
Balance Sheet
|
|---|
| Cash | 9.268 | 17.498 | 6.418 | 3.810 | 5.208 | 36.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 1.000 | 2.006 | 100.6% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 5.471 | |
Cash flow
|
|---|
| Capex | 0.255 | 0.266 | 0.330 | 0.322 | 0.199 | -38.2% |
Ratios
|
|---|
| Revenue growth | 14.9% | 20.7% | 7.7% | 7.1% | 2.1% | |
| EBITDA growth | -35.7% | -39.8% | -5.9% | -88.0% | 1,803.7% | |
|
|---|
| EBITDA Margin | -63.1% | -31.5% | -27.5% | -3.1% | -57.3% | -54.2% |
| Net Income Margin | -105.2% | -39.9% | -35.4% | -10.9% | -70.6% | -59.7% |
| CAPEX, % of revenue | 1.0% | 0.9% | 1.0% | 0.9% | 0.5% | -0.4% |
|
|---|
| ROIC | -12.1% | -8.9% | -9.3% | -4.3% | -24.1% | -19.8% |
| ROE | -18.0% | -9.0% | -9.4% | -3.3% | -25.9% | -22.6% |
Peers in Financial Services
Below we provide Tungsten Corp benchmarking against other companies in Financial Services 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mxc Capital ($MXCP) | 118.4% | -3.5% | -76.6% | 214.9% | - |
| Afh Financial Group ($AFHP) | 15.0% | 39.4% | 50.6% | 46.7% | - |
| Private & Commercial Finance Group ($PCF) | 13.2% | -60.1% | 22.4% | 36.2% | - |
| Commercial Bank Of Qatar(The) ($CBQS) | 1.7% | 6.1% | 17.8% | 12.4% | - |
| Impax Asset Management Group ($IPX) | 6.8% | 55.2% | 100.9% | 12.2% | - |
| |
|---|
| Median (16 companies) | 4.4% | 12.9% | 16.1% | 5.0% | 1.6% |
|---|
| Tungsten Corp ($TUNG) | - | 20.7% | 7.7% | 7.1% | 2.1% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| 1Pm ($OPM) | 64.3% | 64.0% | 66.3% | 67.7% | - |
| Afh Financial Group ($AFHP) | 55.4% | 53.4% | 54.4% | 53.4% | - |
| Starvest ($SVE) | 38.4% | 49.4% | - | 18.5% | - |
| |
|---|
| Median (3 companies) | 59.3% | 51.4% | 54.1% | 53.4% | - |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mxc Capital ($MXCP) | 105.4% | -263.1% | -755.1% | 299.5% | - |
| Starvest ($SVE) | 63.4% | 56.4% | - | 134.5% | - |
| Ashmore Group ($ASHM) | 57.1% | 65.0% | 63.6% | 62.1% | - |
| Plus500 Ltd ($PLUS) | 46.0% | 59.3% | 70.2% | 54.2% | - |
| City Of London Investment Group ($CLIG) | 32.5% | 37.5% | 37.8% | 33.9% | - |
| |
|---|
| Median (11 companies) | 20.8% | 23.5% | 26.7% | 29.5% | 30.7% |
|---|
| Tungsten Corp ($TUNG) | -63.1% | -31.5% | -27.5% | -3.1% | -57.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mattioli Woods ($MTW) | 2.6% | 16.3% | 13.2% | 2.9% | 1.4% |
| 1Pm ($OPM) | 4.4% | 6.4% | 3.4% | 2.4% | - |
| Commercial Bank Of Qatar(The) ($CBQS) | 3.3% | 1.8% | 3.8% | 1.9% | - |
| City Of London Investment Group ($CLIG) | 0.6% | 1.6% | 0.4% | 1.3% | - |
| Afh Financial Group ($AFHP) | 1.8% | 0.8% | 0.5% | 1.1% | - |
| |
|---|
| Median (14 companies) | 0.9% | 1.0% | 1.2% | 0.5% | 1.4% |
|---|
| Tungsten Corp ($TUNG) | 1.0% | 0.9% | 1.0% | 0.9% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Plus500 Ltd ($PLUS) | 118.9% | 143.2% | 196.2% | 65.4% | - |
| City Of London Investment Group ($CLIG) | 55.3% | 71.6% | 63.7% | 47.5% | - |
| Impax Asset Management Group ($IPX) | 15.0% | 19.7% | 30.7% | 28.8% | - |
| Ashmore Group ($ASHM) | 17.6% | 23.5% | 24.3% | 23.9% | - |
| Starvest ($SVE) | 5.9% | 18.5% | -18.6% | 21.4% | - |
| |
|---|
| Median (19 companies) | 9.1% | 10.0% | 7.8% | 9.9% | 13.5% |
|---|
| Tungsten Corp ($TUNG) | -12.1% | -8.9% | -9.3% | -4.3% | -24.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Redde ($REDD) | 1.3x | 1.3x | 1.8x | 1.6x | - |
| Afh Financial Group ($AFHP) | -1.0x | -1.1x | -1.8x | 0.2x | - |
| 1Pm ($OPM) | 0.2x | -0.2x | 0.3x | 0.2x | - |
| Starvest ($SVE) | -0.1x | -1.5x | - | -0.2x | - |
| Impax Asset Management Group ($IPX) | -0.6x | -2.0x | -0.3x | -0.5x | - |
| |
|---|
| Median (12 companies) | -1.1x | -1.5x | -1.0x | -1.4x | -1.3x |
|---|
