Zytronic Net Income dropped on 111% and EBITDA Margin dropped on 15.0 pp from 20.6% to 5.6%
08 Dec 2020 • About Zytronic (
$ZYT) • By InTwits
Zytronic reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zytronic is a company in decline: FY2020 revenue growth was -36.9%, 5 years revenue CAGR was -9.8%
- EBITDA Margin is declining: 5.6% in FY2020 vs. 20.6% in FY2019 vs. 25.6% in FY2016
- EBITDA Margin is quite volatile: 5.6% in FY2020, 20.6% in FY2019, 23.7% in FY2018, 28.8% in FY2017, 25.6% in FY2016
- Zytronic has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 0.2%.
- CAPEX is quite volatile: £0m in FY2020, £1m in FY2019, £0m in FY2018, £0m in FY2017, £0m in FY2016
- In the last 5 years the company invested considerably less than D&A: £2m vs. £2m
- The company has unprofitable business model: ROIC is -1.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Zytronic's Revenue dropped on 36.9%. During FY2016-FY2020 Revenue growth topped in FY2017 at 8.6% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 15.0 pp from 20.6% to 5.6% in FY2020. During FY2016-FY2020 EBITDA Margin topped in FY2017 at 28.8% and was declining since that time.
Gross Margin dropped on 13.7 pp from 33.8% to 20.1% in FY2020. Gross Margin followed a declining trend at -5.3 pp per annum in the last 5 years. SG&A as a % of Revenue increased on 8.8 pp from 19.0% to 27.7% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue bottomed in FY2017 at 17.4% and was growing since that time.
Net Income margin dropped on 15.7 pp from 13.4% to -2.3% in FY2020. During FY2016-FY2020 Net Income margin topped in FY2017 at 20.0% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 1.2%. CAPEX/Revenue decreased slightly on 0.86 pp from 2.1% in FY2017 to 1.2% in FY2020. It's average level of CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at negative ROIC (-1.9%) and ROE (-1.2%). ROIC dropped on 12.9 pp from 11.1% to -1.9% in FY2020. ROE dropped on 11.4 pp from 10.2% to -1.2% in FY2020. ROIC declined at -5.0 pp per annum in the last 5 years. ROE declined at -4.8 pp per annum in FY2016-FY2020.
Leverage (Debt)
The company has no debt. Cash increased on 6.8%.
Financial and operational results
FY ended 30 Sep 2020
Zytronic ($ZYT) key annual financial indicatorsmln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
---|
P&L
|
---|
Revenue | 21.087 | 22.892 | 22.288 | 20.104 | 12.680 | -36.9% |
Gross Profit | 9.016 | 9.411 | 8.241 | 6.793 | 2.550 | -62.5% |
SG&A | 4.365 | 3.984 | 4.100 | 3.812 | 3.514 | -7.8% |
EBITDA | 5.394 | 6.600 | 5.288 | 4.137 | 0.711 | -82.8% |
EBIT | | | 4.141 | 2.981 | | |
Interest expence | | | 0.021 | | | |
Tax | | | 0.541 | 0.366 | | |
Net Income | 4.087 | 4.588 | 3.647 | 2.691 | -0.294 | -110.9% |
Balance Sheet
|
---|
Cash | 12.763 | 14.099 | 14.626 | 13.143 | 14.038 | 6.8% |
Accounts Receivable | | | 3.738 | | | |
Inventory | | | 3.021 | 3.034 | | |
Short Term Debt | 1.148 | 0.000 | 0.000 | 0.000 | 0.000 | |
Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
---|
Capex | 0.387 | 0.472 | 0.273 | 0.506 | 0.153 | -69.8% |
Dividends | | | 4.000 | 4.000 | | |
Ratios
|
---|
Revenue growth | -0.8% | 8.6% | -2.6% | -9.8% | -36.9% | |
EBITDA growth | -8.8% | 22.4% | -19.9% | -21.8% | -82.8% | |
|
---|
Gross Margin | 42.8% | 41.1% | 37.0% | 33.8% | 20.1% | -13.7% |
EBITDA Margin | 25.6% | 28.8% | 23.7% | 20.6% | 5.6% | -15.0% |
EBIT Margin | | | 18.6% | 14.8% | |
SG&A, % of revenue | 20.7% | 17.4% | 18.4% | 19.0% | 27.7% | 8.8% |
Net Income Margin | 19.4% | 20.0% | 16.4% | 13.4% | -2.3% | -15.7% |
CAPEX, % of revenue | 1.8% | 2.1% | 1.2% | 2.5% | 1.2% | -1.3% |
|
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ROIC | 18.1% | 20.9% | 15.1% | 11.1% | -1.9% | -12.9% |
ROE | 18.6% | 18.3% | 13.6% | 10.2% | -1.2% | -11.4% |
Net Debt/EBITDA | -2.2x | -2.1x | -2.8x | -3.2x | -19.7x | -16.6x |
People
|
---|
Insider ownership | | | 1.7% | 1.7% | | |
Employees | | | 195 | 186 | | |
Revenue/Employee, th. £ | | | 114 | 108 | | |
Peers in Electronic & Electrical Equipment
Below we provide Zytronic 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% |
Lpa Group ($LPA) | 31.7% | 4.9% | 24.5% | -30.2% | - |
|
---|
Median (6 companies) | -2.0% | 10.7% | 4.0% | 2.2% | -1.5% |
---|
Zytronic ($ZYT) | - | 8.6% | -2.6% | -9.8% | -36.9% |
Top companies by Gross margin, %
Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
Image Scan Hldgs ($IGE) | 42.3% | 38.3% | 47.5% | 54.1% | 49.5% |
Thorpe(F.W.) ($TFW) | 43.8% | 44.0% | 46.8% | 45.5% | 44.1% |
Gooch & Housego ($GHH) | 37.5% | 41.1% | 40.1% | 34.8% | 32.1% |
Univision Engineering ($UVEL) | 32.3% | 34.3% | 32.5% | 22.5% | 19.4% |
|
---|
Median (4 companies) | 31.8% | 32.2% | 40.1% | 34.8% | 38.1% |
---|
Zytronic ($ZYT) | 42.8% | 41.1% | 37.0% | 33.8% | 20.1% |
Top companies by EBITDA margin, %
Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
Thorpe(F.W.) ($TFW) | 22.5% | 21.3% | 22.0% | 22.2% | 19.1% |
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 ($UVEL) | 3.7% | 9.8% | 13.5% | 12.9% | 7.1% |
Lpa Group ($LPA) | 9.3% | 11.6% | 9.9% | 2.8% | - |
|
---|
Median (6 companies) | 8.3% | 9.8% | 13.8% | 13.2% | 10.5% |
---|
Zytronic ($ZYT) | 25.6% | 28.8% | 23.7% | 20.6% | 5.6% |
Top companies by CAPEX/Revenue, %
Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
Dewhurst ($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% |
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% | 1.6% | 3.3% | 2.4% |
---|
Zytronic ($ZYT) | 1.8% | 2.1% | 1.2% | 2.5% | 1.2% |
Top companies by ROIC, %
Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
Univision Engineering ($UVEL) | 2.1% | 7.8% | 12.0% | 25.7% | 5.9% |
Thorpe(F.W.) ($TFW) | 18.5% | 19.0% | 18.1% | 16.3% | 12.2% |
Dewhurst ($DWHA) | 24.6% | 24.1% | 18.9% | 14.1% | - |
Gooch & Housego ($GHH) | 10.8% | 12.1% | 8.3% | 5.7% | 4.1% |
Lpa Group ($LPA) | 13.4% | 15.9% | 13.8% | -1.2% | - |
|
---|
Median (6 companies) | 9.4% | 13.4% | 14.5% | 9.9% | 6.9% |
---|
Zytronic ($ZYT) | 18.1% | 20.9% | 15.1% | 11.1% | -1.9% |
Top companies by Net Debt / EBITDA
Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
---|
Gooch & Housego ($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 |
Image Scan Hldgs ($IGE) | -9.0x | -2.4x | - | - | -7.7x |
|
---|
Median (4 companies) | 0.4x | -0.5x | -1.0x | -1.0x | -1.0x |
---|
Zytronic ($ZYT) | -2.2x | -2.1x | -2.8x | -3.2x | -19.7x |