Thorpe(F.W.) Net Income dropped on 17.5% and EBITDA Margin decreased on 3.1 pp from 22.2% to 19.1%
01 Oct 2020 • About Thorpe(F.W.) (
$TFW) • By InTwits
Thorpe(F.W.) reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Thorpe(F.W.) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's a lot of higher than industry average of 2.6%.
- CAPEX is quite volatile: £118m in FY2020, £100m in FY2019, £90m in FY2018, £38m in FY2017, £35m in FY2016
- The company has highly profitable business model: ROIC is 12.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Thorpe(F.W.)'s Revenue increased on 2.4%. Revenue decline was accelerating on average at -5.5 pp per annum in the last 5 years. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.2 pp from -4.0% to -2.9% in FY2020.
Gross Margin decreased slightly on 1.4 pp from 45.5% to 44.1% in FY2020. During FY2016-FY2020 Gross Margin topped in FY2018 at 46.8% and was declining since that time. SG&A as a % of Revenue showed almost no change in FY2020. SG&A as a % of Revenue followed a growing trend at 1.1 pp per annum in FY2016-FY2020.
Net Income margin decreased on 2.8 pp from 14.6% to 11.7% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 Thorpe(F.W.) had CAPEX/Revenue of 6.2%. Thorpe(F.W.) showed small growth in CAPEX/Revenue of 1.0 pp from 5.1% in FY2017 to 6.2% in FY2020. It's average CAPEX/Revenue for the last three years was 6.0%. CAPEX as a % of Revenue followed a growing trend at 0.77 pp per annum in the last 5 years.
Return on investment
The company operates at good ROIC (12.2%) while ROE is low (10.6%). ROIC decreased on 4.1 pp from 16.3% to 12.2% in FY2020. ROE decreased on 3.1 pp from 13.8% to 10.6% in FY2020. ROIC stuck to a declining trend at -1.5 pp per annum in FY2016-FY2020. During the last 5 years ROE topped in FY2017 at 15.1% and was declining since that time.
Leverage (Debt)
Debt level is -2.0x Net Debt / EBITDA and 0.0x Debt / EBITDA. Debt surged while cash surged on 44.2%.
Thorpe(F.W.) has no short term refinancing risk: cash is higher than short term debt (20,191.8%).
Valuation and dividends
Thorpe(F.W.)'s trades at EV/EBITDA 13.6x and P/E 25.4x.
Financial and operational results
FY ended 30 Jun 2020
Thorpe(F.W.) ($TFW) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 88.9 | 105.4 | 109.6 | 110.6 | 113.3 | 2.4% |
| Gross Profit | 38.9 | 46.4 | 51.3 | 50.4 | 50.0 | -0.8% |
| SG&A | 23.0 | 28.2 | 32.1 | 33.0 | 33.9 | 2.7% |
| EBITDA | 20.0 | 22.4 | 24.1 | 24.6 | 21.7 | -11.8% |
| Net Income | 13.0 | 14.5 | 16.1 | 16.1 | 13.3 | -17.5% |
Balance Sheet
|
|---|
| Cash | 18.3 | 24.7 | 28.7 | 30.8 | 44.4 | 44.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.2 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.4 | |
Cash flow
|
|---|
| Capex | 2.5 | 5.4 | 6.0 | 6.9 | 7.0 | 2.0% |
Ratios
|
|---|
| Revenue growth | 20.9% | 18.6% | 4.0% | 0.9% | 2.4% | |
| EBITDA growth | 20.3% | 12.1% | 7.3% | 2.2% | -11.8% | |
|
|---|
| Gross Margin | 43.8% | 44.0% | 46.8% | 45.5% | 44.1% | -1.4% |
| EBITDA Margin | 22.5% | 21.3% | 22.0% | 22.2% | 19.1% | -3.1% |
| SG&A, % of revenue | 25.8% | 26.8% | 29.3% | 29.8% | 29.9% | 0.1% |
| Net Income Margin | 14.6% | 13.8% | 14.7% | 14.6% | 11.7% | -2.8% |
| CAPEX, % of revenue | 2.9% | 5.1% | 5.5% | 6.2% | 6.2% | -0.0% |
|
|---|
| ROIC | 18.5% | 19.0% | 18.1% | 16.3% | 12.2% | -4.1% |
| ROE | 15.0% | 15.1% | 15.1% | 13.8% | 10.6% | -3.1% |
| Net Debt/EBITDA | -0.9x | -1.1x | -1.2x | -1.3x | -2.0x | -0.8x |
Peers in Electronic & Electrical Equipment
Below you can find Thorpe(F.W.) benchmarking vs. other companies in Electronic & Electrical Equipment 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 |
|---|
| Univision Engineering ($UVEL) | - | 24.0% | 16.6% | 154.3% | -24.6% |
| Dewhurst ($DWHA) | 2.6% | 12.2% | 3.1% | 3.6% | - |
| Gooch & Housego ($GHH) | 9.3% | 30.2% | 11.5% | 3.4% | - |
| Zytronic ($ZYT) | -0.8% | 8.6% | -2.6% | -9.8% | - |
| Lpa Group ($LPA) | 31.7% | 4.9% | 24.5% | -30.2% | - |
| |
|---|
| Median (6 companies) | -0.8% | 8.9% | 3.1% | -3.2% | -24.6% |
|---|
| Thorpe(F.W.) ($TFW) | - | 18.6% | 4.0% | 0.9% | 2.4% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Image Scan Hldgs ($IGE) | 42.3% | 38.3% | 47.5% | 54.1% | - |
| Gooch & Housego ($GHH) | 37.5% | 41.1% | 40.1% | 34.8% | - |
| Zytronic ($ZYT) | 42.8% | 41.1% | 37.0% | 33.8% | - |
| Univision Engineering ($UVEL) | 32.3% | 34.3% | 32.5% | 22.5% | 19.4% |
| Lpa Group ($LPA) | 29.3% | 28.2% | 25.4% | 22.3% | - |
| |
|---|
| Median (5 companies) | 31.8% | 32.2% | 37.0% | 33.8% | 19.4% |
|---|
| Thorpe(F.W.) ($TFW) | 43.8% | 44.0% | 46.8% | 45.5% | 44.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Zytronic ($ZYT) | 25.6% | 28.8% | 23.7% | 20.6% | - |
| Dewhurst ($DWHA) | 13.4% | 13.6% | 14.2% | 14.6% | - |
| Gooch & Housego ($GHH) | 17.3% | 17.3% | 14.1% | 13.4% | - |
| Univision Engineering ($UVEL) | 3.7% | 9.8% | 13.5% | 12.9% | 7.1% |
| Lpa Group ($LPA) | 9.3% | 11.6% | 9.9% | 2.8% | - |
| |
|---|
| Median (6 companies) | 8.3% | 9.8% | 13.8% | 13.2% | 7.1% |
|---|
| Thorpe(F.W.) ($TFW) | 22.5% | 21.3% | 22.0% | 22.2% | 19.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dewhurst ($DWHA) | 1.9% | 1.8% | 2.1% | 9.3% | - |
| Gooch & Housego ($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% | - |
| Univision Engineering ($UVEL) | 0.7% | 0.5% | 0.7% | 0.9% | 0.4% |
| |
|---|
| Median (6 companies) | 1.7% | 1.6% | 1.3% | 2.3% | 0.4% |
|---|
| Thorpe(F.W.) ($TFW) | 2.9% | 5.1% | 5.5% | 6.2% | 6.2% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Univision Engineering ($UVEL) | 2.1% | 7.8% | 12.0% | 25.7% | 5.9% |
| Dewhurst ($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 ($LPA) | 13.4% | 15.9% | 13.8% | -1.2% | - |
| |
|---|
| Median (6 companies) | 9.4% | 13.4% | 14.4% | 8.4% | 5.9% |
|---|
| Thorpe(F.W.) ($TFW) | 18.5% | 19.0% | 18.1% | 16.3% | 12.2% |
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 | - |
| Univision Engineering ($UVEL) | -7.6x | -2.5x | -1.3x | -1.0x | -0.0x |
| Dewhurst ($DWHA) | -2.6x | -2.5x | -1.2x | -2.1x | - |
| Zytronic ($ZYT) | -2.2x | -2.1x | -2.8x | -3.2x | - |
| |
|---|
| Median (5 companies) | 0.4x | -0.5x | -1.0x | -1.0x | -0.0x |
|---|
| Thorpe(F.W.) ($TFW) | -0.9x | -1.1x | -1.2x | -1.3x | -2.0x |
