Triumph Group, Inc. Debt jumped on 26.5% while Revenue dropped on 13.8%
05/28/2020 • About Triumph Group, Inc. (
$TGI) • By InTwits
Triumph Group, Inc. reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Triumph Group, Inc. is a company in decline: FY2020 revenue growth was -13.8%, 5 years revenue CAGR was -5.7%
- Triumph Group, Inc. motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -5.3% for the sames years
- Triumph Group, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 1.9%
- CAPEX is quite volatile: $3m in 2020, $4m in 2019, $13m in 2018, $35m in 2017, $7m in 2016
- The company has potentially unprofitable business model: ROIC is 6.1%
- It operates with high leverage: Net Debt/EBITDA is 6.3x while industry average is 20.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 13.8%. Revenue decline showed acceleration in FY20Q4 - it was 20.2% YoY. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 11.3 pp from -3.7% to 7.6% in FY2020.
Gross Margin increased on 7.4 pp from 13.1% to 20.4% in FY2020. SG&A as a % of Revenue increased slightly on 1.5 pp from 7.4% to 8.9% in FY2020. During the last 5 years SG&A as a % of Revenue bottomed in FY2017 at 4.8% and was growing since that time.
Net Income margin increased on 8.6 pp from -9.6% to -0.97% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.4% in FY2020. The company's CAPEX/Revenue showed almost no change from FY2017 to FY2020. It's average CAPEX/Revenue for the last three years was 1.4%.
Leverage (Debt)
Debt level is 6.3x Net Debt / EBITDA and 8.5x Debt / EBITDA. Net Debt / EBITDA surged6.3x from to 6.3x in FY2020. Debt surged on 26.5% while cash surged on 423%.
Triumph Group, Inc. has no short term refinancing risk: cash is higher than short term debt (1,745.6%).
Management team
The company's CEO Daniel J Crowley "Dan" has spent 5 years with the company. James F Mccabe Jr "Jim" is a the company's CFO. James F Mccabe Jr "Jim" has spent 4 years at the company.
Financial and operational results
FY ended 03/31/2020
Triumph Group, Inc. ($TGI) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 3,886 | 3,533 | 3,199 | 3,365 | 2,900 | -13.8% |
| Gross Profit | 289 | 843 | 591 | 440 | 593 | 34.7% |
| SG&A | 287 | 169 | 220 | 248 | 258 | 3.6% |
| EBITDA | -913 | 234 | -307 | -125 | 221 | |
| Net Income | -1,048 | -43 | -425 | -322 | -28 | |
Balance Sheet
|
|---|
| Cash | 21 | 70 | 36 | 93 | 485 | 423.1% |
| Short Term Debt | 42 | 161 | 17 | 8 | 28 | 239.1% |
| Long Term Debt | 1,375 | 1,036 | 1,422 | 1,481 | 1,855 | 25.3% |
Cash flow
|
|---|
| Capex | 80 | 52 | 42 | 47 | 40 | -15.4% |
Ratios
|
|---|
| Revenue growth | -0.1% | -9.1% | -9.4% | 5.2% | -13.8% | |
| EBITDA growth | -254.0% | -125.6% | -231.4% | -59.4% | -276.8% | |
|
|---|
| Gross Margin | 7.4% | 23.9% | 18.5% | 13.1% | 20.4% | 7.4% |
| EBITDA Margin | -23.5% | 6.6% | -9.6% | -3.7% | 7.6% | 11.3% |
| SG&A, % of revenue | 7.4% | 4.8% | 6.9% | 7.4% | 8.9% | 1.5% |
| Net Income Margin | -27.0% | -1.2% | -13.3% | -9.6% | -1.0% | 8.6% |
| CAPEX, % of revenue | 2.1% | 1.5% | 1.3% | 1.4% | 1.4% | -0.0% |
|
|---|
| ROIC | -37.2% | 2.6% | -23.6% | -19.5% | 6.1% | 25.7% |
| ROE | -68.3% | -4.8% | -65.6% | | | |
| Net Debt/EBITDA | | 4.8x | | | 6.3x |
Triumph Group, Inc. ($TGI) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 730 | 772 | 705 | 693 | | -12.3% | -9.7% | -12.8% | -20.2% |
| EBITDA | 86 | 98 | 37 | 0 | | - | 169.9% | 78.7% | - |
| Net Income | 18 | 42 | -13 | -75 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 29 | 25 | 54 | 485 | | -12.5% | -25.2% | 87.0% | 423.1% |
| Short Term Debt | 24 | 25 | 22 | 28 | | 42.8% | 63.8% | 50.9% | 239.1% |
| Long Term Debt | 1,495 | 1,525 | 1,459 | 1,855 | | -0.6% | -5.5% | -9.9% | 25.3% |
Ratios
|
|---|
| Gross Margin | 20.3% | 19.4% | 22.5% | 19.7% | | 12.7% | 4.1% | 10.8% | 2.2% |
| EBITDA Margin | 11.8% | 12.6% | 5.2% | 0.1% | | 15.1% | 8.4% | 2.7% | 17.7% |
| Net Income Margin | 2.5% | 5.5% | -1.9% | -10.8% | | 11.7% | 7.2% | 2.0% | 12.1% |
Peers in Aerospace & Defense
Below you can find Triumph Group, Inc. benchmarking vs. other companies in Aerospace & Defense 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Boeing Co ($BA) | -1.6% | -1.2% | 8.3% | -24.3% | - |
| |
|---|
| Median (1 company) | -1.6% | -1.2% | 8.3% | -24.3% | - |
|---|
| Triumph Group, Inc. ($TGI) | - | -9.1% | -9.4% | 5.2% | -13.8% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Boeing Co ($BA) | 14.6% | 18.6% | 19.4% | 5.8% | - |
| |
|---|
| Median (1 company) | 14.6% | 18.6% | 19.4% | 5.8% | - |
|---|
| Triumph Group, Inc. ($TGI) | 7.4% | 23.9% | 18.5% | 13.1% | 20.4% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Boeing Co ($BA) | 8.2% | 13.2% | 13.9% | 0.7% | - |
| |
|---|
| Median (1 company) | 8.2% | 13.2% | 13.9% | 0.7% | - |
|---|
| Triumph Group, Inc. ($TGI) | -23.5% | 6.6% | -9.6% | -3.7% | 7.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Boeing Co ($BA) | 2.8% | 1.9% | 1.7% | 2.4% | - |
| |
|---|
| Median (1 company) | 2.8% | 1.9% | 1.7% | 2.4% | - |
|---|
| Triumph Group, Inc. ($TGI) | 2.1% | 1.5% | 1.3% | 1.4% | 1.4% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Boeing Co ($BA) | 38.5% | 82.7% | 78.8% | -10.8% | - |
| |
|---|
| Median (1 company) | 38.5% | 82.7% | 78.8% | -10.8% | - |
|---|
| Triumph Group, Inc. ($TGI) | -37.2% | 2.6% | -23.6% | -19.5% | 6.1% |
