Magal Security Systems Ltd. Income Statement 2020-2011 | MAGS

Brief overview of income trends at Magal Security Systems Ltd.

The figures are compared over a five-year interval. According to figures from Magal Security Systems Ltd., revenue changed from $63.7 million to $81.5 million over five years. Overall revenue changed by +27.8%, equal to an annualized rate of about 5%. The company expanded at a measured pace.

Gross profit was 31 million dollars at the start and 34.4 million dollars at the end of the period (+11%). The gross margin was 48.7% at the start and 42.3% at the end. A lower margin indicates deterioration in the economics of the core business.

EBITDA was $5.9 million at the beginning and $7.1 million at the end of the period (+21.2%). EBITDA moved broadly in line with revenue. The EBITDA share of revenue changed from 9.2% to 8.8%. Operating efficiency did not change materially.

The net result moved from 3.1 million dollars to 360 thousand dollars, or −88.5%. The decline reduces the quality of the financial trajectory.

The market value of the business moved from $69.3 million to $99.5 million, or +43.7%. Capitalization rose despite deteriorating fundamentals.

What the figures show

The figures do not all move in the same direction. The financial profile benefits from sales growth and a steady EBITDA margin. Caution is warranted because of a lower gross margin and a weaker final result. The next reporting periods will show whether revenue, margins, and final profitability can strengthen.