Dynasil Corporation of America reports 146% CAPEX growth in 2018 and 9.1% Revenue growth
12/21/2018 • About Dynasil Corporation of America (
$DYSL) • By InTwits
Dynasil Corporation of America reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 3.5% in FY2018, 1.8% in FY2017, 4.5% in FY2016, 3.3% in FY2015, 6.0% in FY2014
- Dynasil Corporation of America has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: $2m in 2018, $0m in 2017, $1m in 2016, $1m in 2015, $7m in 2014
- The company has potentially unprofitable business model: ROIC is 0.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.8x while industry average is -0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Dynasil Corporation of America's Revenue increased on 9.1%. Revenue growth showed acceleration in FY18Q4 - it increased 16.0% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.7 pp from 1.8% to 3.5% in FY2018.
Gross Margin showed almost no change in FY2018. During FY2014-FY2018 Gross Margin bottomed in FY2016 at 35.9% and was growing since that time. SG&A as a % of Revenue decreased slightly on 1.7 pp from 36.3% to 34.6% in FY2018.
Net Income margin decreased slightly on 1.6 pp from 5.9% to 4.3% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 5.5%. CAPEX/Revenue increased on 2.3 pp from 3.2% in FY2015 to 5.5% in FY2018. For the last three years the average CAPEX/Revenue was 3.9%. Dynasil Corporation of America investments to CAPEX were large: 158% of EBITDA.
Return on investment
The company operates at low ROIC (0.7%) and ROE (8.8%). ROIC increased on 3.5 pp from -2.7% to 0.75% in FY2018. ROE decreased on 4.1 pp from 12.9% to 8.8% in FY2018.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 2.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 1.2x to 0.8x in FY2018. Debt increased on 5.9% while cash decreased on 3.6%. During the last 5 years Net Debt/EBITDA topped in FY2015 at 2.9x and was declining since that time.
Dynasil Corporation of America has no short term refinancing risk: cash is higher than short term debt (180.9%).
Valuation and dividends
Dynasil Corporation of America's trades at EV/EBITDA 11.2x and P/E 8.4x.
Financial and operational results
FY ended 09/30/2018
Dynasil Corporation of America ($DYSL) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 42.309 | 40.536 | 43.442 | 37.284 | 40.681 | 9.1% |
| Gross Profit | 16.730 | 14.994 | 15.603 | 13.898 | 15.236 | 9.6% |
| SG&A | 13.989 | 13.794 | 13.930 | 13.517 | 14.069 | 4.1% |
| EBITDA | 2.521 | 1.330 | 1.946 | 0.656 | 1.419 | 116.3% |
| Net Income | 2.072 | -0.234 | 0.688 | 2.193 | 1.760 | -19.7% |
Balance Sheet
|
|---|
| Cash | 3.842 | 1.295 | 2.607 | 2.415 | 2.327 | -3.6% |
| Short Term Debt | 3.896 | 3.767 | 5.667 | 2.098 | 1.286 | -38.7% |
| Long Term Debt | 3.377 | 1.330 | 0.909 | 1.126 | 2.127 | 88.9% |
Cash flow
|
|---|
| Capex | 1.448 | 1.310 | 1.616 | 0.913 | 2.244 | 145.8% |
Ratios
|
|---|
| Revenue growth | -1.0% | -4.2% | 7.2% | -14.2% | 9.1% | |
| EBITDA growth | 884.8% | -47.2% | 46.3% | -66.3% | 116.3% | |
|
|---|
| Gross Margin | 39.5% | 37.0% | 35.9% | 37.3% | 37.5% | 0.2% |
| EBITDA Margin | 6.0% | 3.3% | 4.5% | 1.8% | 3.5% | 1.7% |
| SG&A, % of revenue | 33.1% | 34.0% | 32.1% | 36.3% | 34.6% | -1.7% |
| Net Income Margin | 4.9% | -0.6% | 1.6% | 5.9% | 4.3% | -1.6% |
| CAPEX, % of revenue | 3.4% | 3.2% | 3.7% | 2.4% | 5.5% | 3.1% |
|
|---|
| ROIC | 6.5% | 0.6% | 3.3% | -2.7% | 0.7% | 3.5% |
| ROE | 16.6% | -1.6% | 4.7% | 12.9% | 8.8% | -4.1% |
| Net Debt/EBITDA | 1.4x | 2.9x | 2.0x | 1.2x | 0.8x | -0.5x |
Dynasil Corporation of America ($DYSL) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 9 | 10 | 11 | 11 | | 0.5% | 1.7% | 19.3% | 16.0% |
| EBITDA | 0 | 0 | 1 | -0 | | -66.4% | 26.1% | 2,990.0% | |
| Net Income | -1 | 1 | 0 | 1 | | -128.4% | | | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 2 | 2 | | -40.8% | -50.8% | -15.6% | -3.6% |
| Short Term Debt | 2 | 2 | 2 | 1 | | -6.6% | -5.8% | -18.5% | -38.7% |
| Long Term Debt | 1 | 1 | 1 | 2 | | -15.7% | -18.2% | -10.3% | 88.9% |
Ratios
|
|---|
| Gross Margin | 38.9% | 38.5% | 39.6% | 33.1% | | 0.4% | 0.9% | 1.5% | -1.8% |
| EBITDA Margin | 1.4% | 3.8% | 8.8% | -0.3% | | -2.8% | 0.7% | 8.5% | 0.5% |
| Net Income Margin | -8.7% | 12.9% | 3.7% | 7.9% | | -39.4% | 13.4% | 5.4% | 12.3% |
Peers in Electronic Equipment & Instrum
Below you can find Dynasil Corporation of America benchmarking vs. other companies in Electronic Equipment & Instrum 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 |
|---|
| Hickok Inc ($HICKA) | | -7.2% | 13.5% | 258.4% | 178.7% |
| Electro Scientific Industries, Inc. ($ESIO) | | -12.2% | 15.9% | -12.7% | 128.5% |
| Microvision, Inc. ($MVIS) | | 163.6% | 60.7% | -34.7% | 82.8% |
| Ipsidy Inc ($IDTY) | | | | | 66.2% |
| Magal Security Systems Ltd. ($MAGS) | | -17.8% | 6.4% | -5.2% | 44.0% |
| |
|---|
| Median (61 companies) | -78.5% | 4.5% | 0.3% | 4.6% | 10.4% |
|---|
| Dynasil Corporation of America ($DYSL) | | -4.2% | 7.2% | -14.2% | 9.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intellicheck, Inc. ($IDN) | 58.2% | 57.1% | 80.0% | 85.5% | 91.3% |
| Image Sensing Systems, Inc. ($ISNS) | 74.7% | 77.1% | 71.0% | 79.9% | 80.9% |
| National Instruments Corporation ($NATI) | 74.4% | 74.1% | 74.5% | 74.5% | 75.4% |
| Cognex Corporation ($CGNX) | 77.9% | 77.2% | 75.2% | 75.6% | 74.4% |
| Applied DNA Sciences Inc ($APDN) | | | 82.2% | 77.3% | 69.1% |
| |
|---|
| Median (60 companies) | 42.7% | 42.3% | 41.2% | 41.8% | 42.0% |
|---|
| Dynasil Corporation of America ($DYSL) | 39.5% | 37.0% | 35.9% | 37.3% | 37.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cognex Corporation ($CGNX) | 32.9% | 30.1% | 31.9% | 36.0% | 30.1% |
| Coherent, Inc. ($COHR) | 14.2% | 16.7% | 18.9% | 24.9% | 26.6% |
| Hollysys Automation Technologies, Ltd. ($HOLI) | 21.3% | 26.9% | 23.5% | 16.1% | 23.9% |
| Electro Scientific Industries, Inc. ($ESIO) | -10.1% | -19.1% | -2.0% | -17.8% | 23.1% |
| FLIR Systems, Inc. ($FLIR) | 20.7% | 22.8% | 21.3% | 20.0% | 21.7% |
| |
|---|
| Median (60 companies) | 5.3% | 5.2% | 3.0% | 5.1% | 4.0% |
|---|
| Dynasil Corporation of America ($DYSL) | 6.0% | 3.3% | 4.5% | 1.8% | 3.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Wrap Technologies Inc ($WRTC) | | | | | 61.4% |
| ClearSign Combustion Corporation ($CLIR) | | 80.3% | 22.1% | 17.4% | 17.7% |
| LightPath Technologies, Inc. ($LPTH) | 16.8% | 5.0% | 6.5% | 7.8% | 7.7% |
| Giga-tronics Inc ($GIGA) | 1.7% | 0.1% | 1.3% | 0.3% | 7.0% |
| Applied DNA Sciences Inc ($APDN) | 8.4% | 3.9% | 16.1% | 3.1% | 6.8% |
| |
|---|
| Median (60 companies) | 1.8% | 1.9% | 2.1% | 1.6% | 2.2% |
|---|
| Dynasil Corporation of America ($DYSL) | 3.4% | 3.2% | 3.7% | 2.4% | 5.5% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Evans & Sutherland Computer Corp ($ESCC) | | | 83.3% | 39.6% | 55.3% |
| Electro Scientific Industries, Inc. ($ESIO) | -11.7% | -19.7% | -7.1% | -22.9% | 31.5% |
| Coherent, Inc. ($COHR) | 9.9% | 13.1% | 15.6% | 24.0% | 21.5% |
| Zebra Technologies Corporation ($ZBRA) | 3.3% | 0.9% | 2.2% | 10.2% | 20.8% |
| Cognex Corporation ($CGNX) | 18.3% | 15.6% | 17.7% | 25.6% | 20.1% |
| |
|---|
| Median (72 companies) | 3.3% | 2.3% | 1.8% | 3.3% | 1.3% |
|---|
| Dynasil Corporation of America ($DYSL) | 6.5% | 0.6% | 3.3% | -2.7% | 0.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Itron, Inc. ($ITRI) | 2.1x | 1.9x | 1.0x | 2.0x | 12.3x |
| Track Group Inc ($TRCK) | | | | | 12.2x |
| Mesa Laboratories, Inc. ($MLAB) | 0.7x | 1.1x | 1.7x | 2.0x | 3.5x |
| Trimble Inc. ($TRMB) | 1.3x | 1.7x | 1.1x | 1.3x | 3.4x |
| MTS Systems Corporation ($MTSC) | -0.0x | -0.4x | 5.8x | 3.9x | 3.2x |
| |
|---|
| Median (35 companies) | -0.8x | -0.9x | -0.9x | -0.8x | -0.9x |
|---|
| Dynasil Corporation of America ($DYSL) | 1.4x | 2.9x | 2.0x | 1.2x | 0.8x |
