Univision Engineering reports 73.9% Net Income decline in 2020 and 5.9 pp EBITDA Margin decline from 12.9% to 7.1%
07 Sep 2020 • About Univision Engineering (
$UVEL) • By InTwits
Univision Engineering reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 7.1% in FY2020, 12.9% in FY2019, 13.5% in FY2018, 9.8% in FY2017, 3.7% in FY2016
- Univision Engineering has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is 5.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Univision Engineering's Revenue dropped on 24.6%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 5.9 pp from 12.9% to 7.1% in FY2020. During FY2016-FY2020 EBITDA Margin topped in FY2018 at 13.5% and was declining since that time.
Gross Margin decreased on 3.1 pp from 22.5% to 19.4% in FY2020. Gross Margin declined at -3.8 pp per annum in FY2016-FY2020. SG&A as a % of Revenue increased on 5.0 pp from 9.5% to 14.5% in FY2020. SG&A as a % of Revenue declined at -4.2 pp per annum in the last 5 years.
Net Income margin decreased on 7.9 pp from 12.2% to 4.2% in FY2020. During FY2016-FY2020 Net Income margin topped in FY2018 at 13.1% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2020 Univision Engineering had CAPEX/Revenue of 0.37%. CAPEX/Revenue showed almost no change from FY2017 to FY2020. It's average CAPEX/Revenue for the last three years was 0.67%.
Return on investment
The company operates at low ROIC (5.9%) and ROE (5.4%). ROIC dropped on 19.9 pp from 25.7% to 5.9% in FY2020. ROE dropped on 19.6 pp from 25.1% to 5.4% in FY2020. During FY2016-FY2020 ROIC topped in FY2019 at 25.7%. During the last 5 years ROE topped in FY2019 at 25.1%.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and 1.3x Debt / EBITDA. Debt surged while cash dropped on 44.0%.
Univision Engineering has no short term refinancing risk: cash is higher than short term debt (109.4%).
Valuation and dividends
Univision Engineering's trades at EV/EBITDA 6.6x and P/E 11.0x.
Financial and operational results
FY ended 31 Mar 2020
Univision Engineering ($UVEL) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 3.867 | 4.796 | 5.593 | 14.221 | 10.729 | -24.6% |
| Gross Profit | 1.251 | 1.645 | 1.817 | 3.203 | 2.081 | -35.0% |
| SG&A | 1.084 | 1.186 | 1.111 | 1.352 | 1.560 | 15.4% |
| EBITDA | 0.145 | 0.472 | 0.756 | 1.838 | 0.758 | -58.8% |
| Net Income | -0.112 | 0.430 | 0.735 | 1.729 | 0.452 | -73.9% |
Balance Sheet
|
|---|
| Cash | 1.102 | 1.188 | 0.973 | 1.750 | 0.980 | -44.0% |
| Short Term Debt | 0.001 | 0.000 | 0.000 | 0.000 | 0.896 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.071 | |
Cash flow
|
|---|
| Capex | 0.026 | 0.024 | 0.040 | 0.132 | 0.039 | -70.0% |
Ratios
|
|---|
| Revenue growth | 5.2% | 24.0% | 16.6% | 154.3% | -24.6% | |
| EBITDA growth | 235.9% | 225.4% | 60.3% | 143.2% | -58.8% | |
|
|---|
| Gross Margin | 32.3% | 34.3% | 32.5% | 22.5% | 19.4% | -3.1% |
| EBITDA Margin | 3.7% | 9.8% | 13.5% | 12.9% | 7.1% | -5.9% |
| SG&A, % of revenue | 28.0% | 24.7% | 19.9% | 9.5% | 14.5% | 5.0% |
| Net Income Margin | -2.9% | 9.0% | 13.1% | 12.2% | 4.2% | -7.9% |
| CAPEX, % of revenue | 0.7% | 0.5% | 0.7% | 0.9% | 0.4% | -0.6% |
|
|---|
| ROIC | 2.1% | 7.8% | 12.0% | 25.7% | 5.9% | -19.9% |
| ROE | -2.2% | 7.7% | 12.3% | 25.1% | 5.4% | -19.6% |
| Net Debt/EBITDA | -7.6x | -2.5x | -1.3x | -1.0x | -0.0x | 0.9x |
Peers in Electronic & Electrical Equipment
Below we provide Univision Engineering 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dewhurst ($DWHA) | 2.6% | 12.2% | 3.1% | 3.6% | - |
| Gooch & Housego ($GHH) | 9.3% | 30.2% | 11.5% | 3.4% | - |
| Thorpe(F.W.) ($TFW) | 20.9% | 18.6% | 4.0% | 0.9% | - |
| Zytronic ($ZYT) | -0.8% | 8.6% | -2.6% | -9.8% | - |
| Lpa Group ($LPA) | 31.7% | 4.9% | 24.5% | -30.2% | - |
| |
|---|
| Median (6 companies) | 0.9% | 8.9% | 3.1% | -4.4% | - |
|---|
| Univision Engineering ($UVEL) | - | 24.0% | 16.6% | 154.3% | -24.6% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Image Scan Hldgs ($IGE) | 42.3% | 38.3% | 47.5% | 54.1% | - |
| Thorpe(F.W.) ($TFW) | 43.8% | 44.0% | 46.8% | 45.5% | - |
| Gooch & Housego ($GHH) | 37.5% | 41.1% | 40.1% | 34.8% | - |
| Zytronic ($ZYT) | 42.8% | 41.1% | 37.0% | 33.8% | - |
| Lpa Group ($LPA) | 29.3% | 28.2% | 25.4% | 22.3% | - |
| |
|---|
| Median (5 companies) | 31.8% | 32.4% | 40.1% | 34.8% | - |
|---|
| Univision Engineering ($UVEL) | 32.3% | 34.3% | 32.5% | 22.5% | 19.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Thorpe(F.W.) ($TFW) | 22.5% | 21.3% | 22.0% | 22.2% | - |
| Zytronic ($ZYT) | 25.6% | 28.8% | 23.7% | 20.6% | - |
| Dewhurst ($DWHA) | 13.4% | 13.6% | 14.2% | 14.6% | - |
| Gooch & Housego ($GHH) | 17.3% | 17.3% | 14.1% | 13.4% | - |
| Lpa Group ($LPA) | 9.3% | 11.6% | 9.9% | 2.8% | - |
| |
|---|
| Median (6 companies) | 8.9% | 10.4% | 14.2% | 14.0% | - |
|---|
| Univision Engineering ($UVEL) | 3.7% | 9.8% | 13.5% | 12.9% | 7.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dewhurst ($DWHA) | 1.9% | 1.8% | 2.1% | 9.3% | - |
| Thorpe(F.W.) ($TFW) | 2.9% | 5.1% | 5.5% | 6.2% | - |
| Gooch & Housego ($GHH) | 11.3% | 5.2% | 4.7% | 4.5% | - |
| Zytronic ($ZYT) | 1.8% | 2.1% | 1.2% | 2.5% | - |
| Lpa Group ($LPA) | 6.0% | 7.3% | 1.8% | 2.0% | - |
| |
|---|
| Median (6 companies) | 1.8% | 2.0% | 1.6% | 3.5% | - |
|---|
| Univision Engineering ($UVEL) | 0.7% | 0.5% | 0.7% | 0.9% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Thorpe(F.W.) ($TFW) | 18.5% | 19.0% | 18.1% | 16.3% | - |
| Dewhurst ($DWHA) | 24.6% | 24.1% | 18.9% | 14.1% | - |
| Zytronic ($ZYT) | 18.1% | 20.9% | 15.1% | 11.1% | - |
| Gooch & Housego ($GHH) | 10.8% | 12.1% | 8.3% | 5.7% | - |
| Lpa Group ($LPA) | 13.4% | 15.9% | 13.8% | -1.2% | - |
| |
|---|
| Median (6 companies) | 10.3% | 15.3% | 15.1% | 8.4% | - |
|---|
| Univision Engineering ($UVEL) | 2.1% | 7.8% | 12.0% | 25.7% | 5.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Lpa Group ($LPA) | 1.3x | 1.1x | 0.7x | 4.5x | - |
| Gooch & Housego ($GHH) | -0.8x | -0.8x | 0.6x | 0.8x | - |
| Thorpe(F.W.) ($TFW) | -0.9x | -1.1x | -1.2x | -1.3x | - |
| Dewhurst ($DWHA) | -2.6x | -2.5x | -1.2x | -2.1x | - |
| Zytronic ($ZYT) | -2.2x | -2.1x | -2.8x | -3.2x | - |
| |
|---|
| Median (5 companies) | 0.4x | -0.5x | -1.0x | -1.3x | - |
|---|
| Univision Engineering ($UVEL) | -7.6x | -2.5x | -1.3x | -1.0x | -0.0x |
