Flux Power Holdings Inc revenue surged on 80.8% and EBITDA Margin jumped on 46.2 pp from -120% to -73.7%
09/28/2020 • About Flux Power Holdings Inc (
$FLUX) • By InTwits
Flux Power Holdings Inc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Flux Power Holdings Inc is a fast growth stock: FY2020 revenue growth was 80.8%, 5 year revenue CAGR was 88.1% at FY2020 ROIC -553%
- The company operates at negative EBITDA Margin: -73.7%
- Flux Power Holdings Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -119.6% for the sames years
- Flux Power Holdings Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 1.4%.
- CAPEX is quite volatile: $0m in FY2020, $0m in FY2019, $0m in FY2018, $0m in FY2017, $0m in FY2016
- The company has unprofitable business model: ROIC is -553.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.1x while industry average is -1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Flux Power Holdings Inc's Revenue jumped on 80.8%. Revenue growth showed acceleration in FY20Q4 - it increased 107.2% YoY. During FY2016-FY2020 Revenue growth topped in FY2018 at 357% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.3 pp from 10.7% to 9.4% in FY2020. EBITDA Margin followed a growing trend at 166 pp per annum in FY2016-FY2020.
Gross Margin increased on 7.1 pp from 5.9% to 13.0% in FY2020. Gross Margin grew at 30.5 pp per annum in the last 5 years. SG&A as a % of Revenue dropped on 24.8 pp from 82.8% to 58.0% in FY2020. SG&A as a % of Revenue stuck to a declining trend at -87.1 pp per annum in the last 5 years.
Net Income margin surged on 48.1 pp from -133% to -85.1% in FY2020. Net Income margin stuck to a growing trend at 183 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Flux Power Holdings Inc's CAPEX/Revenue was 1.9% in FY2020. Flux Power Holdings Inc showed decline in CAPEX/Revenue of 4.0 pp from 5.9% in FY2017 to 1.9% in FY2020. For the last three years the average CAPEX/Revenue was 2.3%.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2020. Debt jumped on 18.6% while cash jumped on 612%.
Flux Power Holdings Inc has short term refinancing risk: cash is only 9.5% of short term debt.
Management team
Flux Power Holdings Inc's CEO Ronald F Dutt "Ron" has spent 2 years with the company. Charles A Scheiwe "Chuck" is a the company's CFO. Charles A Scheiwe "Chuck" has spent 2 years at the company.
Financial and operational results
FY ended 06/30/2020
Flux Power Holdings Inc ($FLUX) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 0.558 | 0.902 | 4.118 | 9.317 | 16.842 | 80.8% |
| Gross Profit | -0.540 | -0.720 | -0.795 | 0.549 | 2.186 | 298.2% |
| SG&A | 2.240 | 2.404 | 3.462 | 7.712 | 9.761 | 26.6% |
| EBITDA | -4.085 | -4.136 | -6.156 | -11.170 | -12.407 | |
| Net Income | -4.571 | -4.435 | -6.965 | -12.414 | -14.336 | |
Balance Sheet
|
|---|
| Cash | 0.127 | 0.121 | 2.706 | 0.102 | 0.726 | 611.8% |
| Short Term Debt | 0.196 | 0.000 | 10.880 | 6.434 | 7.663 | 19.1% |
| Long Term Debt | 1.200 | 5.685 | 0.000 | 0.029 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.005 | 0.053 | 0.085 | 0.275 | 0.323 | 17.5% |
Ratios
|
|---|
| Revenue growth | -22.0% | 61.6% | 356.5% | 126.3% | 80.8% | |
| EBITDA growth | 45.5% | 1.2% | 48.8% | 81.4% | 11.1% | |
|
|---|
| Gross Margin | -96.8% | -79.8% | -19.3% | 5.9% | 13.0% | 7.1% |
| EBITDA Margin | -732.1% | -458.5% | -149.5% | -119.9% | -73.7% | 46.2% |
| SG&A, % of revenue | 401.4% | 266.5% | 84.1% | 82.8% | 58.0% | -24.8% |
| Net Income Margin | -819.2% | -491.7% | -169.1% | -133.2% | -85.1% | 48.1% |
| CAPEX, % of revenue | 0.9% | 5.9% | 2.1% | 3.0% | 1.9% | -1.0% |
|
|---|
| ROIC | | -1,762.0% | -283.6% | -333.9% | -553.1% | -219.2% |
Flux Power Holdings Inc ($FLUX) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 4 | 5 | 6 | | 4.6% | 33.3% | 188.5% | 107.2% |
| EBITDA | -3 | -3 | -3 | -3 | | - | - | - | - |
| Net Income | -4 | -3 | -4 | -3 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 1 | | -67.7% | -87.0% | -88.2% | 611.8% |
| Short Term Debt | 8 | 12 | 14 | 8 | | -24.7% | 397.8% | 301.0% | 19.1% |
| Long Term Debt | 3 | 3 | 2 | 0 | | - | - | 6,441.7% | -100.0% |
Ratios
|
|---|
| Gross Margin | 6.1% | 9.0% | 12.8% | 17.5% | | 5.1% | -0.4% | 9.4% | 10.2% |
| EBITDA Margin | -171.1% | -76.5% | -64.7% | -42.0% | | -55.8% | 5.0% | 146.6% | 62.1% |
| Net Income Margin | -198.7% | -91.5% | -78.5% | -51.9% | | -67.9% | 16.4% | 139.3% | 56.5% |
Peers in Electrical Components & Equipment
Below you can find Flux Power Holdings Inc benchmarking vs. other companies in Electrical Components & Equipment 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 |
|---|
| Acuity Brands Inc ($AYI) | - | 6.5% | 5.0% | -0.2% | -9.4% |
| Espey Mfg. & Electronics Corp. ($ESP) | - | -18.0% | 44.4% | 12.2% | -13.6% |
| |
|---|
| Median (2 companies) | - | -5.8% | 24.7% | 6.0% | -11.5% |
|---|
| Flux Power Holdings Inc ($FLUX) | - | 61.6% | 356.5% | 126.3% | 80.8% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Acuity Brands Inc ($AYI) | 43.6% | 42.3% | 40.4% | 40.3% | 42.2% |
| Espey Mfg. & Electronics Corp. ($ESP) | 26.8% | 20.9% | 23.6% | 19.4% | 17.6% |
| |
|---|
| Median (2 companies) | 35.2% | 31.6% | 32.0% | 29.8% | 29.9% |
|---|
| Flux Power Holdings Inc ($FLUX) | -96.8% | -79.8% | -19.3% | 5.9% | 13.0% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Acuity Brands Inc ($AYI) | 16.3% | 17.2% | 14.7% | 15.0% | 13.7% |
| Espey Mfg. & Electronics Corp. ($ESP) | 17.4% | 8.7% | 13.2% | 8.8% | 5.5% |
| |
|---|
| Median (2 companies) | 16.9% | 12.9% | 13.9% | 11.9% | 9.6% |
|---|
| Flux Power Holdings Inc ($FLUX) | -732.1% | -458.5% | -149.5% | -119.9% | -73.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Acuity Brands Inc ($AYI) | 2.5% | 1.9% | 1.2% | 1.4% | 1.7% |
| Espey Mfg. & Electronics Corp. ($ESP) | 1.0% | 1.6% | 5.9% | 1.7% | 0.7% |
| |
|---|
| Median (2 companies) | 1.8% | 1.7% | 3.5% | 1.6% | 1.2% |
|---|
| Flux Power Holdings Inc ($FLUX) | 0.9% | 5.9% | 2.1% | 3.0% | 1.9% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Acuity Brands Inc ($AYI) | 24.8% | 25.0% | 21.5% | 20.4% | 14.5% |
| Espey Mfg. & Electronics Corp. ($ESP) | 13.7% | 4.7% | 11.8% | 8.1% | 3.7% |
| |
|---|
| Median (2 companies) | 19.2% | 14.9% | 16.6% | 14.3% | 9.1% |
|---|
| Flux Power Holdings Inc ($FLUX) | - | -1,762.0% | -283.6% | -333.9% | -553.1% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Acuity Brands Inc ($AYI) | -0.1x | 0.1x | 0.4x | -0.2x | -0.4x |
| Espey Mfg. & Electronics Corp. ($ESP) | -2.1x | -5.1x | -1.0x | -0.5x | -3.1x |
| |
|---|
| Median (2 companies) | -1.1x | -2.5x | -0.3x | -0.3x | -1.7x |
|---|
