Alumasc Group reports 51.4% EBITDA growth in 2020 and 3.1 pp EBITDA Margin growth from 3.9% to 6.9%
08 Sep 2020 • About Alumasc Group (
$ALU) • By InTwits
Alumasc Group reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alumasc Group is a company in decline: FY2020 revenue growth was -15.7%, 5 years revenue CAGR was -3.4%
- Alumasc Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 2.2%
- CAPEX is quite volatile: £1m in FY2020, £2m in FY2019, £3m in FY2018, £1m in FY2017, £1m in FY2016
- The company has business model with low profitability: ROIC is 7.8%
- It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 15.7%. During the last 5 years Revenue growth topped in FY2017 at 13.6% and was decelerating since that time. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.1 pp from 3.9% to 6.9% in FY2020.
Gross Margin showed almost no change in FY2020. Gross Margin stuck to a declining trend at -0.88 pp per annum in the last 5 years.
Net Income margin decreased slightly on 1.1 pp from 4.0% to 3.0% in FY2020. Net Income margin followed a declining trend at -1.0 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 1.8%. Alumasc Group's CAPEX/Revenue increased slightly on 0.90 pp from 0.87% in FY2017 to 1.8% in FY2020. For the last three years the average CAPEX/Revenue was 2.5%.
Return on investment
The company operates at low ROIC (7.8%) and ROE (10.0%). ROIC increased on 3.0 pp from 4.8% to 7.8% in FY2020. ROE decreased on 4.6 pp from 14.6% to 10.0% in FY2020. ROIC stuck to a declining trend at -12.5 pp per annum in the last 5 years. ROE declined at -8.1 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 5.0x. Net Debt / EBITDA surged on 0.5x from 1.5x to 1.9x in FY2020. Debt jumped on 236% while cash surged on 484%. Net Debt/EBITDA followed a growing trend at 0.8x per annum in FY2016-FY2020.
Alumasc Group has no short term refinancing risk: cash is higher than short term debt (1,294.5%).
Valuation and dividends
Alumasc Group's trades at EV/EBITDA 7.7x and P/E 13.4x.
Financial and operational results
FY ended 30 Jun 2020
Alumasc Group ($ALU) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 92.2 | 104.8 | 98.4 | 90.1 | 76.0 | -15.7% |
| Gross Profit | 30.8 | 32.7 | 30.1 | 26.8 | 22.6 | -15.9% |
| EBITDA | 8.9 | 10.3 | 7.7 | 3.5 | 5.3 | 51.4% |
| Net Income | 6.5 | 6.5 | 4.3 | 3.6 | 2.3 | -38.0% |
Balance Sheet
|
|---|
| Cash | 10.5 | 9.0 | 4.7 | 2.8 | 16.1 | 484.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 1.2 | |
| Long Term Debt | 1.9 | 2.9 | 9.5 | 7.9 | 25.2 | 220.1% |
Cash flow
|
|---|
| Capex | 1.0 | 0.9 | 3.0 | 2.3 | 1.3 | -41.9% |
Ratios
|
|---|
| Revenue growth | 2.1% | 13.6% | -6.1% | -8.4% | -15.7% | |
| EBITDA growth | 2.2% | 14.7% | -24.8% | -54.8% | 51.4% | |
|
|---|
| Gross Margin | 33.4% | 31.3% | 30.6% | 29.8% | 29.7% | -0.1% |
| EBITDA Margin | 9.7% | 9.8% | 7.8% | 3.9% | 6.9% | 3.1% |
| Net Income Margin | 7.0% | 6.2% | 4.4% | 4.0% | 3.0% | -1.1% |
| CAPEX, % of revenue | 1.1% | 0.9% | 3.1% | 2.6% | 1.8% | -0.8% |
|
|---|
| ROIC | 47.8% | 50.2% | 23.1% | 4.8% | 7.8% | 3.0% |
| ROE | 39.9% | 35.3% | 19.2% | 14.6% | 10.0% | -4.6% |
| Net Debt/EBITDA | -1.0x | -0.6x | 0.6x | 1.5x | 1.9x | 0.5x |
Peers in Construction & Materials
Below you can find Alumasc Group benchmarking vs. other companies in Construction & Materials 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 Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Volution Group ($FAN) | 18.7% | 19.8% | 11.1% | 14.6% | - |
| Aukett Swanke Group ($AUK) | 9.0% | -12.7% | -18.5% | 4.7% | - |
| James Halstead ($JHD) | -0.5% | 6.5% | 3.6% | 1.4% | - |
| Kier Group ($KIE) | 21.8% | 3.4% | 2.7% | -6.8% | - |
| Titon Hldgs ($TON) | 6.6% | 18.1% | 6.3% | -8.8% | - |
| |
|---|
| Median (6 companies) | 7.7% | 6.9% | 7.0% | -2.7% | - |
|---|
| Alumasc Group ($ALU) | - | 13.6% | -6.1% | -8.4% | -15.7% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Volution Group ($FAN) | 48.8% | 49.2% | 47.0% | 47.1% | - |
| James Halstead ($JHD) | 42.4% | 43.5% | 41.9% | 43.0% | - |
| Titon Hldgs ($TON) | 29.7% | 25.9% | 28.9% | 30.2% | - |
| Kier Group ($KIE) | 8.9% | 7.0% | 9.5% | 7.4% | - |
| Galliford Try ($GFRD) | 10.9% | 7.9% | 9.7% | 0.7% | - |
| |
|---|
| Median (5 companies) | 29.7% | 25.9% | 26.2% | 30.2% | - |
|---|
| Alumasc Group ($ALU) | 33.4% | 31.3% | 30.6% | 29.8% | 29.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| James Halstead ($JHD) | 21.6% | 20.8% | - | 20.3% | - |
| Volution Group ($FAN) | 22.2% | 20.6% | 17.6% | 18.9% | - |
| Titon Hldgs ($TON) | 9.8% | 8.8% | 9.0% | 8.8% | - |
| Aukett Swanke Group ($AUK) | 6.6% | -0.9% | -18.2% | 1.3% | - |
| Kier Group ($KIE) | 0.7% | 0.8% | 3.5% | -4.0% | - |
| |
|---|
| Median (7 companies) | 10.9% | 8.9% | 9.0% | 1.3% | - |
|---|
| Alumasc Group ($ALU) | 9.7% | 9.8% | 7.8% | 3.9% | 6.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Titon Hldgs ($TON) | 3.0% | 1.9% | 1.9% | 2.6% | - |
| Volution Group ($FAN) | 1.9% | 1.3% | 2.3% | 1.8% | - |
| James Halstead ($JHD) | 2.1% | 1.8% | 1.4% | 1.7% | - |
| Aukett Swanke Group ($AUK) | 0.8% | 0.2% | 0.6% | 0.7% | - |
| Kier Group ($KIE) | 0.4% | 0.4% | 0.5% | 0.3% | - |
| |
|---|
| Median (7 companies) | 2.4% | 2.0% | 1.7% | 0.7% | - |
|---|
| Alumasc Group ($ALU) | 1.1% | 0.9% | 3.1% | 2.6% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| James Halstead ($JHD) | 47.1% | 46.5% | 39.9% | 36.7% | - |
| Titon Hldgs ($TON) | 13.3% | 12.0% | 12.2% | 9.5% | - |
| Volution Group ($FAN) | 9.0% | 9.2% | 6.9% | 8.8% | - |
| Aukett Swanke Group ($AUK) | 9.6% | -6.9% | -41.3% | -0.9% | - |
| Galliford Try ($GFRD) | 12.7% | 4.5% | 8.9% | -4.5% | - |
| |
|---|
| Median (8 companies) | 8.6% | 8.0% | 7.3% | -2.7% | - |
|---|
| Alumasc Group ($ALU) | 47.8% | 50.2% | 23.1% | 4.8% | 7.8% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Volution Group ($FAN) | 1.0x | 1.0x | 2.1x | 1.7x | - |
| James Halstead ($JHD) | -0.9x | -1.0x | - | -1.3x | - |
| Titon Hldgs ($TON) | -1.0x | -1.3x | -1.3x | -1.9x | - |
| Aukett Swanke Group ($AUK) | -0.6x | - | - | -3.0x | - |
| |
|---|
| Median (4 companies) | -0.6x | -0.1x | -0.7x | -1.6x | - |
|---|
| Alumasc Group ($ALU) | -1.0x | -0.6x | 0.6x | 1.5x | 1.9x |
