AstroNova, Inc. revenue growth accelerated from 4.0% in FY2017 to 15.2% in FY2018
03/14/2018 • About AstroNova, Inc. (
$ALOT) • By InTwits
AstroNova, Inc. reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AstroNova, Inc. is a growth stock: FY2018 revenue growth was 15.2%, 5 year revenue CAGR was 13.1% at FY2018 ROIC 6.9%
- AstroNova, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 2.5%
- CAPEX is quite volatile: $2m in FY2018, $1m in FY2017, $3m in FY2016, $2m in FY2015, $1m in FY2014
- The company has potentially unprofitable business model: ROIC is 6.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is -2.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
AstroNova, Inc.'s Revenue jumped on 15.2%. Revenue growth showed acceleration in FY18Q4 - it increased 27.5% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 9.6 pp from 2.1% to -7.5% in FY2018.
Gross Margin decreased slightly on 1.3 pp from 40.1% to 38.8% in FY2018. During FY2014-FY2018 Gross Margin topped in FY2015 at 41.9% and was declining since that time. SG&A as a % of Revenue showed almost no change in FY2018. During FY2014-FY2018 SG&A as a % of Revenue bottomed in FY2016 at 26.7% and was growing since that time.
Net Income margin decreased slightly on 1.4 pp from 4.3% to 2.9% in FY2018. During the last 5 years Net Income margin topped in FY2015 at 5.3% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.9% in FY2018. CAPEX/Revenue decreased slightly on 0.60 pp from 2.5% in FY2015 to 1.9% in FY2018. It's average CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at low ROIC (6.9%) and ROE (4.9%). ROIC decreased on 2.4 pp from 9.3% to 6.9% in FY2018. ROE decreased slightly on 1.2 pp from 6.1% to 4.9% in FY2018. During the last 5 years ROIC topped in FY2015 at 11.2% and was declining since that time. During the last 5 years ROE topped in FY2015 at 7.2% and was declining since that time.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA surged on 3.5x from -2.1x to 1.4x in FY2018. Debt jumped while cash dropped on 43.8%.
AstroNova, Inc. has no short term refinancing risk: cash is higher than short term debt (185.1%).
Valuation and dividends
The company's trades at EV/EBITDA 11.3x and P/E 28.3x.
Management team
Gregory A Woods "Greg" is a the company's CEO. Gregory A Woods "Greg" is a founder and has spent 3 years with the company. The company's CFO is David S Smith. David S Smith has 1 year tenure at the company.
Financial and operational results
FY ended 01/31/2018
AstroNova, Inc. ($ALOT) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 68.6 | 88.3 | 94.7 | 98.4 | 113.4 | 15.2% |
| Gross Profit | 27.0 | 37.0 | 38.2 | 39.5 | 44.0 | 11.4% |
| SG&A | 20.4 | 23.9 | 25.3 | 26.9 | 31.1 | 15.8% |
| EBITDA | 2.8 | 9.3 | 8.0 | 8.7 | 9.4 | 8.0% |
| Net Income | 3.2 | 4.7 | 4.5 | 4.2 | 3.3 | -22.3% |
Balance Sheet
|
|---|
| Cash | 8.3 | 8.0 | 10.0 | 18.1 | 10.2 | -43.8% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 5.5 | |
| Long Term Debt | 0.3 | 0.0 | 0.0 | 0.0 | 17.6 | |
Cash flow
|
|---|
| Capex | 1.1 | 2.2 | 3.1 | 1.2 | 2.2 | 78.0% |
Ratios
|
|---|
| Revenue growth | 12.0% | 28.8% | 7.1% | 4.0% | 15.2% | |
| EBITDA growth | -33.9% | 230.5% | -13.9% | 8.9% | 8.0% | |
|
|---|
| Gross Margin | 39.3% | 41.9% | 40.3% | 40.1% | 38.8% | -1.3% |
| EBITDA Margin | 4.1% | 10.5% | 8.5% | 8.8% | 8.3% | -0.6% |
| SG&A, % of revenue | 29.7% | 27.1% | 26.7% | 27.3% | 27.5% | 0.1% |
| Net Income Margin | 4.7% | 5.3% | 4.8% | 4.3% | 2.9% | -1.4% |
| CAPEX, % of revenue | 1.6% | 2.5% | 3.2% | 1.3% | 1.9% | 0.7% |
|
|---|
| ROIC | 2.3% | 11.2% | 9.4% | 9.3% | 6.9% | -2.4% |
| ROE | 4.9% | 7.2% | 6.9% | 6.1% | 4.9% | -1.2% |
| Net Debt/EBITDA | -2.9x | -0.9x | -1.3x | -2.1x | 1.4x | 3.5x |
AstroNova, Inc. ($ALOT) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 24 | 27 | 29 | 33 | | 1.4% | 8.5% | 23.2% | 27.5% |
| EBITDA | 1 | 2 | 3 | 4 | | -34.5% | -29.0% | 6.5% | 112.7% |
| Net Income | 1 | 1 | 1 | 1 | | -49.8% | -43.7% | 23.3% | -18.0% |
Balance Sheet
|
|---|
| Cash | 19 | 9 | 8 | 10 | | 28.2% | -40.7% | -53.3% | -43.8% |
| Short Term Debt | 1 | 2 | 4 | 5 | | | | | |
| Long Term Debt | 8 | 7 | 27 | 18 | | | | | |
Ratios
|
|---|
| Gross Margin | 38.0% | 37.3% | 41.0% | 38.7% | | -1.2% | -3.3% | -0.3% | -0.6% |
| EBITDA Margin | 5.8% | 6.1% | 8.9% | 11.4% | | -3.2% | -3.2% | -1.4% | 4.6% |
| Net Income Margin | 2.1% | 2.6% | 4.9% | 1.9% | | -2.1% | -2.5% | 0.0% | -1.1% |
Peers in Technology Hardware, Storage &
Below you can find AstroNova, Inc. benchmarking vs. other companies in Technology Hardware, Storage & 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Crossroads Systems Inc ($CRSS) | | -90.6% | -35.5% | -89.5% | 39,959.5% |
| Immersion Corporation ($IMMR) | | 19.8% | -9.9% | -38.7% | 217.0% |
| Veritec Inc ($VRTC) | | -42.2% | -28.0% | -52.2% | 53.1% |
| Boxlight Corporation ($BOXL) | | -88.5% | 503.2% | 26.4% | 47.0% |
| Pure Storage, Inc. ($PSTG) | | 308.2% | 152.4% | 67.9% | 38.6% |
| |
|---|
| Median (30 companies) | -16.9% | -3.3% | -5.0% | 1.8% | 4.3% |
|---|
| AstroNova, Inc. ($ALOT) | | 28.8% | 7.1% | 4.0% | 15.2% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Immersion Corporation ($IMMR) | 99.1% | 99.3% | 99.7% | 99.4% | 99.8% |
| Pure Storage, Inc. ($PSTG) | 43.5% | 55.5% | 61.9% | 65.9% | 65.5% |
| NetApp, Inc. ($NTAP) | 62.0% | 62.6% | 60.8% | 61.3% | 62.7% |
| Avid Technology, Inc. ($AVID) | 61.4% | 60.9% | 65.0% | 57.8% | 57.9% |
| Datasea Inc ($DTSS) | | | | 39.3% | 54.4% |
| |
|---|
| Median (29 companies) | 35.6% | 35.0% | 38.5% | 39.3% | 38.3% |
|---|
| AstroNova, Inc. ($ALOT) | 39.3% | 41.9% | 40.3% | 40.1% | 38.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Immersion Corporation ($IMMR) | 12.3% | 9.0% | -25.1% | -127.0% | 48.6% |
| Apple Inc. ($AAPL) | 33.1% | 35.3% | 32.7% | 31.2% | 30.8% |
| Western Digital Corporation ($WDC) | 20.1% | 18.7% | 12.5% | 21.4% | 27.5% |
| NetApp, Inc. ($NTAP) | 16.9% | 16.7% | 11.3% | 15.4% | 22.9% |
| Seagate Technology PLC ($STX) | 19.3% | 21.1% | 11.3% | 16.7% | 20.0% |
| |
|---|
| Median (29 companies) | 8.6% | 6.2% | 3.8% | 4.0% | 7.9% |
|---|
| AstroNova, Inc. ($ALOT) | 4.1% | 10.5% | 8.5% | 8.8% | 8.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hewlett Packard Enterprise Company ($HPE) | 6.6% | 6.4% | 10.8% | 10.9% | 9.6% |
| Pure Storage, Inc. ($PSTG) | 28.7% | 24.2% | 8.9% | 10.4% | 6.3% |
| 3D Systems Corporation ($DDD) | 3.5% | 3.4% | 2.6% | 4.8% | 5.9% |
| Apple Inc. ($AAPL) | 5.2% | 4.8% | 5.9% | 5.4% | 5.0% |
| Western Digital Corporation ($WDC) | 4.2% | 4.2% | 4.5% | 3.0% | 4.0% |
| |
|---|
| Median (29 companies) | 2.7% | 3.0% | 1.7% | 1.9% | 2.4% |
|---|
| AstroNova, Inc. ($ALOT) | 1.6% | 2.5% | 3.2% | 1.3% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Avid Technology, Inc. ($AVID) | | | | | 252.4% |
| Ionix Technology Inc ($IINX) | | | | 23.9% | 204.5% |
| Immersion Corporation ($IMMR) | 7.6% | 5.8% | -21.5% | -138.9% | 96.8% |
| HP Inc. ($HPQ) | 8.0% | 8.7% | 15.8% | 60.8% | 72.9% |
| NetApp, Inc. ($NTAP) | 12.5% | 14.8% | 7.3% | 14.0% | 28.1% |
| |
|---|
| Median (37 companies) | 6.0% | 5.0% | -2.6% | 0.9% | 2.2% |
|---|
| AstroNova, Inc. ($ALOT) | 2.3% | 11.2% | 9.4% | 9.3% | 6.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CPI Card Group Inc. ($PMTS) | 3.4x | 3.5x | 5.8x | | 12.4x |
| NCR Corporation ($NCR) | 4.9x | 6.6x | 2.7x | 2.3x | 5.2x |
| Avid Technology, Inc. ($AVID) | -0.7x | 3.1x | 1.7x | 5.6x | 4.8x |
| Xerox Corporation ($XRX) | 3.5x | 3.5x | 3.1x | 3.0x | 3.0x |
| Electronics for Imaging, Inc. ($EFII) | -0.2x | 1.4x | 1.3x | 1.6x | 1.7x |
| |
|---|
| Median (19 companies) | -0.2x | 0.6x | 0.4x | 0.5x | 0.2x |
|---|
| AstroNova, Inc. ($ALOT) | -2.9x | -0.9x | -1.3x | -2.1x | 1.4x |
