Image Scan Hldgs revenue surged on 47.3% and EBITDA Margin surged on 21.0 pp from -16.0% to 5.0%
04 Dec 2020 • About Image Scan Hldgs (
$IGE) • By InTwits
Image Scan Hldgs reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Image Scan Hldgs is a fast growth stock: FY2020 revenue growth was 47.3%, 5 year revenue CAGR was 15.3% at FY2020 ROIC 7.9%
- Image Scan Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has business model with low profitability: ROIC is 7.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 47.3%. During the last 5 years Revenue growth bottomed in FY2019 at -31.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.1 pp from 32.3% to 41.4% in FY2020.
Gross Margin decreased on 4.6 pp from 54.1% to 49.5% in FY2020.
Net Income margin jumped on 19.5 pp from -15.6% to 4.0% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 0.14%. CAPEX/Revenue showed almost no change from FY2017 to FY2020. For the last three years the average CAPEX/Revenue was 0.41%.
Return on investment
The company operates at low ROIC (7.9%) and ROE (10.3%). ROIC jumped on 35.6 pp from -27.7% to 7.9% in FY2020. ROE jumped on 35.7 pp from -25.4% to 10.3% in FY2020.
Leverage (Debt)
Debt level is -7.7x Net Debt / EBITDA and 0.5x Debt / EBITDA. Debt surged while cash jumped on 120%.
Image Scan Hldgs has no short term refinancing risk: cash is higher than short term debt (3,382.6%).
Valuation and dividends
Image Scan Hldgs's trades at EV/EBITDA 18.5x and P/E 32.7x.
Financial and operational results
FY ended 30 Sep 2020
Image Scan Hldgs ($IGE) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 3.315 | 5.034 | 3.465 | 2.365 | 3.484 | 47.3% |
| Gross Profit | 1.404 | 1.930 | 1.645 | 1.279 | 1.724 | 34.8% |
| EBITDA | 0.117 | 0.522 | -0.130 | -0.379 | 0.173 | |
| Net Income | 0.105 | 0.580 | -0.220 | -0.368 | 0.138 | |
Balance Sheet
|
|---|
| Cash | 1.055 | 1.253 | 0.782 | 0.640 | 1.409 | 120.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.042 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.047 | |
Cash flow
|
|---|
| Capex | 0.019 | 0.023 | 0.023 | 0.010 | 0.005 | -49.6% |
Ratios
|
|---|
| Revenue growth | 94.1% | 51.9% | -31.2% | -31.7% | 47.3% | |
| EBITDA growth | | 344.9% | -125.0% | 190.4% | -145.6% | |
|
|---|
| Gross Margin | 42.3% | 38.3% | 47.5% | 54.1% | 49.5% | -4.6% |
| EBITDA Margin | 3.5% | 10.4% | -3.8% | -16.0% | 5.0% | 21.0% |
| Net Income Margin | 3.2% | 11.5% | -6.3% | -15.6% | 4.0% | 19.5% |
| CAPEX, % of revenue | 0.6% | 0.5% | 0.7% | 0.4% | 0.1% | -0.3% |
|
|---|
| ROIC | 16.4% | 39.8% | -8.5% | -27.7% | 7.9% | 35.6% |
| ROE | 15.5% | 45.3% | -12.7% | -25.4% | 10.3% | 35.7% |
| Net Debt/EBITDA | -9.0x | -2.4x | | | -7.7x |
Peers in Electronic & Electrical Equipment
Below we provide Image Scan Hldgs 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 |
|---|
| Univision Engineering ($UVEL) | - | 24.0% | 16.6% | 154.3% | -24.6% |
| Dewhurst ($DWHA) | 2.6% | 12.2% | 3.1% | 3.6% | - |
| Gooch & Housego ($GHH) | - | 30.2% | 11.5% | 3.4% | -5.5% |
| Thorpe(F.W.) ($TFW) | - | 18.6% | 4.0% | 0.9% | 2.4% |
| Zytronic ($ZYT) | -0.8% | 8.6% | -2.6% | -9.8% | - |
| |
|---|
| Median (6 companies) | -1.5% | 8.9% | 4.0% | 2.2% | -5.5% |
|---|
| Image Scan Hldgs ($IGE) | - | 51.9% | -31.2% | -31.7% | 47.3% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Thorpe(F.W.) ($TFW) | 43.8% | 44.0% | 46.8% | 45.5% | 44.1% |
| Gooch & Housego ($GHH) | 37.5% | 41.1% | 40.1% | 34.8% | 32.1% |
| 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 ($LPA) | 29.3% | 28.2% | 25.4% | 22.3% | - |
| |
|---|
| Median (5 companies) | 31.8% | 32.2% | 37.0% | 33.8% | 32.1% |
|---|
| Image Scan Hldgs ($IGE) | 42.3% | 38.3% | 47.5% | 54.1% | 49.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Thorpe(F.W.) ($TFW) | 22.5% | 21.3% | 22.0% | 22.2% | 19.1% |
| Zytronic ($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% | 13.8% |
| Univision Engineering ($UVEL) | 3.7% | 9.8% | 13.5% | 12.9% | 7.1% |
| |
|---|
| Median (6 companies) | 8.9% | 9.8% | 14.2% | 14.0% | 13.8% |
|---|
| Image Scan Hldgs ($IGE) | 3.5% | 10.4% | -3.8% | -16.0% | 5.0% |
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% | 6.2% |
| Gooch & Housego ($GHH) | 11.3% | 5.2% | 4.7% | 4.5% | 4.5% |
| Zytronic ($ZYT) | 1.8% | 2.1% | 1.2% | 2.5% | - |
| Lpa Group ($LPA) | 6.0% | 7.3% | 1.8% | 2.0% | - |
| |
|---|
| Median (6 companies) | 1.8% | 2.0% | 1.6% | 3.5% | 4.5% |
|---|
| Image Scan Hldgs ($IGE) | 0.6% | 0.5% | 0.7% | 0.4% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Univision Engineering ($UVEL) | 2.1% | 7.8% | 12.0% | 25.7% | 5.9% |
| Thorpe(F.W.) ($TFW) | 18.5% | 19.0% | 18.1% | 16.3% | 12.2% |
| Dewhurst ($DWHA) | 24.6% | 24.1% | 18.9% | 14.1% | - |
| Zytronic ($ZYT) | 18.1% | 20.9% | 15.1% | 11.1% | - |
| Gooch & Housego ($GHH) | 10.8% | 12.1% | 8.3% | 5.7% | 4.1% |
| |
|---|
| Median (6 companies) | 9.4% | 13.4% | 15.1% | 12.6% | 5.9% |
|---|
| Image Scan Hldgs ($IGE) | 16.4% | 39.8% | -8.5% | -27.7% | 7.9% |
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 | 0.9x |
| Univision Engineering ($UVEL) | -7.6x | -2.5x | -1.3x | -1.0x | -0.0x |
| Thorpe(F.W.) ($TFW) | -0.9x | -1.1x | -1.2x | -1.3x | -2.0x |
| Dewhurst ($DWHA) | -2.6x | -2.5x | -1.2x | -2.1x | - |
| |
|---|
| Median (6 companies) | 0.4x | -0.5x | -1.1x | -1.1x | -0.0x |
|---|
