Babcock revenue dropped on 34.1%
02/09/2021 • About Babcock (
$BW) • By InTwits
Babcock reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Babcock is a company in decline: FY2020 revenue growth was -34.1%, 5 years revenue CAGR was -20.3%
- Babcock motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -11.8% for the sames years
- It operates with high leverage: Net Debt/EBITDA is 104.1x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 34.1%. Annual revenue decline showed slowdown in FY20Q4 - revenue dropped on 16.9%. Revenue decline was accelerating on average at -5.2 pp per annum in the last 5 years.
Net Income margin surged on 12.0 pp from -14.2% to -2.2% in FY2020. During FY2016-FY2020 Net Income margin bottomed in FY2018 at -68.3% and was growing since that time.
Management team
The company's CEO is Kenneth M Young "Kenny". Kenneth M Young "Kenny" has 2 years tenure with the company. Babcock's CFO is Louis Salamone Jr "Lou". Louis Salamone Jr "Lou" has 2 years tenure at the company.
Financial and operational results
Babcock ($BW) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 1,578 | 1,341 | 1,062 | 859 | 566 | -34.1% |
| Gross Profit | 179 | 24 | -130 | 160 | | |
| SG&A | 247 | 221 | 223 | 151 | | |
| EBITDA | -63 | -270 | -369 | 62 | | |
| Net Income | -116 | -380 | -725 | -122 | -13 | |
Balance Sheet
|
|---|
| Cash | 96 | 44 | 43 | 44 | | |
| Short Term Debt | 14 | 169 | 176 | 287 | | |
| Long Term Debt | 0 | 94 | 0 | 39 | | |
Cash flow
|
|---|
| Capex | 22 | 14 | 5 | 4 | | |
Ratios
|
|---|
| Revenue growth | -10.2% | -15.0% | -20.8% | -19.1% | -34.1% | |
| EBITDA growth | -211.3% | 327.0% | 36.7% | -116.8% | | |
|
|---|
| Gross Margin | 11.3% | 1.8% | -12.2% | 18.7% | | |
| EBITDA Margin | -4.0% | -20.1% | -34.7% | 7.2% | |
| SG&A, % of revenue | 15.7% | 16.5% | 21.0% | 17.6% | | |
| Net Income Margin | -7.3% | -28.3% | -68.3% | -14.2% | -2.2% | 12.0% |
| CAPEX, % of revenue | 1.4% | 1.1% | 0.5% | 0.4% | | |
|
|---|
| ROIC | -15.5% | -61.5% | -241.6% | | | |
| ROE | -17.8% | -103.5% | | | | |
| Net Debt/EBITDA | | | | 4.6x | |
Babcock ($BW) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 149 | 135 | 133 | 150 | | -36.0% | -45.4% | -33.3% | -16.9% |
| Net Income | -32 | -18 | 35 | 2 | | - | - | - | -80.6% |
Balance Sheet
|
|---|
Ratios
|
|---|
| Net Income Margin | -21.2% | -13.4% | 26.2% | 1.6% | | 0.2% | -2.2% | 54.9% | -5.3% |
Peers in Heavy Electrical Equipment
Below you can find Babcock benchmarking vs. other companies in Heavy Electrical 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.
