McRae Industries Inc revenue dropped on 15.6%
09/23/2020 • About McRae Industries Inc (
$MCRAA) • By InTwits
McRae Industries Inc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- McRae Industries Inc is a company in decline: FY2020 revenue growth was -15.6%, 5 years revenue CAGR was -8.6%
- EBITDA Margin is declining: in FY2020 vs. 4.2% in FY2019 vs. 7.4% in FY2016
- McRae Industries Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 0.8%.
- CAPEX is quite volatile: $1m in FY2020, $0m in FY2019, $1m in FY2018, $0m in FY2017, $3m in FY2016
- The company has unprofitable business model: ROIC is -0.6%
- It operates with high leverage: Net Debt/EBITDA is 30.2x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 15.6%. Revenue decline showed acceleration in FY20Q4 - it was 45.9% YoY.
Gross Margin decreased slightly on 1.1 pp from 23.5% to 22.4% in FY2020. SG&A as a % of Revenue increased on 2.3 pp from 20.7% to 23.0% in FY2020.
Net Income margin decreased on 2.7 pp from 2.6% to -0.16% in FY2020. Net Income margin stuck to a declining trend at -1.1 pp per annum in FY2016-FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 0.76%. The company showed almost no change in CAPEX/Revenue from FY2017 to FY2020. For the last three years the average CAPEX/Revenue was 1.0%.
Return on investment
The company operates at negative ROIC (-0.6%) and ROE (-0.2%). ROIC decreased on 3.7 pp from 3.1% to -0.58% in FY2020. ROE decreased on 3.0 pp from 2.9% to -0.16% in FY2020. ROIC declined at -2.8 pp per annum in FY2016-FY2020. ROE stuck to a declining trend at -1.8 pp per annum in the last 5 years.
Leverage (Debt)
The company has no debt. Cash surged on 63.8%.
Financial and operational results
McRae Industries Inc ($MCRAA) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 108.8 | 104.3 | 73.9 | 82.2 | 69.3 | -15.6% |
| Gross Profit | 26.9 | 25.6 | 18.7 | 19.3 | 15.5 | -19.5% |
| SG&A | 19.8 | 17.8 | 16.4 | 17.0 | 16.0 | -6.1% |
| EBITDA | 8.0 | 9.0 | 3.5 | 3.5 | | |
| Net Income | 4.7 | 5.1 | 2.2 | 2.1 | -0.1 | -105.4% |
Balance Sheet
|
|---|
| Cash | 15.7 | 28.1 | 27.6 | 12.8 | 21.0 | 63.8% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 3.3 | 0.5 | 1.4 | 0.4 | 0.5 | 32.6% |
Ratios
|
|---|
| Revenue growth | 0.1% | -4.1% | -29.2% | 11.2% | -15.6% | |
| EBITDA growth | -27.4% | 12.3% | -61.1% | -1.6% | | |
|
|---|
| Gross Margin | 24.8% | 24.5% | 25.3% | 23.5% | 22.4% | -1.1% |
| EBITDA Margin | 7.4% | 8.7% | 4.8% | 4.2% | |
| SG&A, % of revenue | 18.2% | 17.0% | 22.2% | 20.7% | 23.0% | 2.3% |
| Net Income Margin | 4.3% | 4.9% | 3.0% | 2.6% | -0.2% | -2.7% |
| CAPEX, % of revenue | 3.0% | 0.4% | 1.9% | 0.5% | 0.8% | 0.3% |
|
|---|
| ROIC | 9.8% | 10.6% | 3.0% | 3.1% | -0.6% | -3.7% |
| ROE | 6.8% | 7.0% | 2.9% | 2.9% | -0.2% | -3.0% |
| Net Debt/EBITDA | -1.9x | -3.1x | -7.9x | -3.7x | |
McRae Industries Inc ($MCRAA) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 23 | 20 | 14 | 12 | | 10.1% | -2.0% | -23.2% | -45.9% |
| Net Income | 1 | 1 | -1 | -1 | | 15.9% | 747.1% | -230.6% | -245.8% |
Balance Sheet
|
|---|
| Cash | 14 | 17 | 23 | 21 | | -29.3% | -18.4% | 13.8% | 63.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
| Long Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
Ratios
|
|---|
| Gross Margin | 25.0% | 24.9% | 18.9% | 17.7% | | -0.8% | 2.8% | -3.6% | -5.8% |
| Net Income Margin | 4.4% | 2.8% | -3.5% | -9.8% | | 0.2% | 2.5% | -5.6% | -13.4% |
Peers in Footwear
Below we provide McRae Industries Inc benchmarking against other companies in Footwear 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.
