Trending stocks
$RFX  
$HSW  
$BGO  

Eye on Taylor Wimpey with its long history of healthy growth

08 Mar 2016 • About Taylor Wimpey ($TW.) • By InTwits

Taylor Wimpey is an attractive growth stock in Household Goods & Home Construction industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.

Growth story


Taylor Wimpey showed fast growth in the last financial year. The company's revenue surged on 16.9% in FY2015. EBITDA also increased considerably: 27.0% for the same period.

In the last 3 years the company showed fast revenue growth of 15.9% from 2012 to 2015 annually. EBITDA surged on 41.2% from 2012 to 2015 annually.

Taylor Wimpey ($TW.) financials for the last 5 years

mln. £ 2011 2012 2013 2014 2015
Revenue1,8082,0192,2962,6863,140
Revenue growth, %11.7%13.7%17.0%16.9%
Gross margin, %15.9%17.6%21.6%23.8%25.1%
SG&A, %7.54%7.04%6.61%5.90%5.48%
EBITDA154226358500635
EBITDA growth, %46.4%58.7%39.5%27.0%
EBITDA margin, %8.53%11.2%15.6%18.6%20.2%
Net Income99229271374490
Net Income margin, % 5.48%11.3%11.8%13.9%15.6%
 
CAPEX243106
CAPEX/Revenue, %0.0940%0.173%0.109%0.361%0.178%
Debt265249100100100
Cash148190105213323
Net Debt/EBITDA0.8x0.3x-0.0x-0.2x-0.4x
 
ROIC, %7.5%12.2%17.7%21.7%24.1%
ROE, %5.4%12.0%12.8%15.6%18.6%

Profitability and return on investment


EBITDA growth was partly attributed to margin expansion. Taylor Wimpey showed EBITDA margin growth of 1.60 pp from 18.6% to 20.2% in 2015. If we look for the longer period the company showed fast EBITDA margin growth of 9 pp from 11.2% in 2012 to 20.2% in 2015.

Taylor Wimpey shows attractive ROIC at 24.1% for the last 12 months which assumes stable development model. During the last three years it surged - it was 12.2% in FY2012. It's average ROIC for the last three years was 21.1%.

Taylor Wimpey showed fast Net Income margin growth of 1.70 pp from 13.9% to 15.6% in 2015. In the longer period the company's Net Income margin surged on 4.30 pp from 11.3% in 2012 to 15.6% in 2015.

Taylor Wimpey operates at ROE of 18.6%. For the last three years the average ROE was 15.7%.

Capital expenditures (CAPEX)


In FY2015 Taylor Wimpey had CAPEX/Revenue of 0.178%. The company's CAPEX/Revenue increased slightly on 0 pp from 0.173% in 2012 to 0.178% in 2015. It's average level of CAPEX/Revenue for the last three years was 0.216%.

Leverage (Debt)


Having such a fast growth profile Taylor Wimpey keeps negative net debt at -0.4x Net Debt/EBITDA. If we look for the longer period Taylor Wimpey's leverage dropped on 0.61x from 0.26x in 2012 to -0.35x in 2015.

Valuation vs. comparable companies


At the end of trading day today Taylor Wimpey traded at 0.2x P/E which is 95.5% lower than 3.6x Household Goods & Home Construction peer group avearge calculated on the basis of 4 companies.

Peers in Household Goods & Home Construction


Below you can find Taylor Wimpey benchmarking vs. other companies in Household Goods & Home Construction 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, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Abbey ($ABBY)5.6%40.0%15.9%51.0%
Colefax Group ($CFX)-9.4%0.3%10.5%-1.6%
Reckitt Benckiser Group ($RB.)0.9%-3.1%-4.6%0.4%
Teco Electric & Machinery Co Ltd ($TECD)3.9%4.1%16.2%-5.1%
Havelock Europa ($HVE)0.3%1.3%-11.1%-6.9%
 
Median (7 companies)0.3%1.3%0.3%-5.1%5.9%
Taylor Wimpey ($TW.)11.7%13.7%17.0%16.9%


Top companies by Gross margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Reckitt Benckiser Group ($RB.)57.4%57.9%56.7%57.7%59.1%
Colefax Group ($CFX)55.1%55.1%55.4%53.3%54.7%
Abbey ($ABBY)24.5%23.6%17.3%25.8%30.6%
Teco Electric & Machinery Co Ltd ($TECD)22.9%23.5%23.8%24.9%
Depa Ltd ($DEPS)16.6%8.1%8.1%13.4%
 
Median (6 companies)23.7%23.5%20.6%25.4%54.7%
Taylor Wimpey ($TW.)15.9%17.6%21.6%23.8%25.1%


Top companies by EBITDA margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Reckitt Benckiser Group ($RB.)26.9%27.1%22.0%26.3%27.2%
Abbey ($ABBY)20.7%19.4%13.3%22.6%31.2%
Teco Electric & Machinery Co Ltd ($TECD)9.7%10.8%10.7%10.7%
Colefax Group ($CFX)10.9%6.6%7.6%9.1%8.7%
Airea ($AIEA)6.9%5.9%7.4%7.0%8.0%
 
Median (7 companies)9.7%6.6%7.6%9.1%18.0%
Taylor Wimpey ($TW.)8.5%11.2%15.6%18.6%20.2%


Top companies by CAPEX/Revenue, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Abbey ($ABBY)9.4%12.2%6.5%8.0%8.0%
Teco Electric & Machinery Co Ltd ($TECD)2.7%1.4%1.4%3.6%
Colefax Group ($CFX)3.7%4.9%3.1%2.0%2.9%
Reckitt Benckiser Group ($RB.)1.7%1.7%2.1%1.8%1.7%
Depa Ltd ($DEPS)4.1%2.4%1.1%1.1%
 
Median (7 companies)2.7%2.4%1.4%1.8%2.3%
Taylor Wimpey ($TW.)0.1%0.2%0.1%0.4%0.2%


Top companies by ROIC, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Colefax Group ($CFX)27.6%10.7%13.5%22.0%20.6%
Reckitt Benckiser Group ($RB.)24.8%23.3%17.3%19.7%20.3%
Abbey ($ABBY)5.8%5.4%4.7%11.2%21.1%
Teco Electric & Machinery Co Ltd ($TECD)6.3%7.1%8.3%7.3%
Airea ($AIEA)6.0%3.3%7.2%6.4%11.7%
 
Median (7 companies)6.0%5.4%7.2%7.3%20.4%
Taylor Wimpey ($TW.)7.5%12.2%17.7%21.7%24.1%


Top companies by Net Debt / EBITDA

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Reckitt Benckiser Group ($RB.)0.7x0.9x1.0x0.7x0.7x
Havelock Europa ($HVE)3.7x1.4x0.1x-0.2x
Colefax Group ($CFX)-0.7x-1.8x-1.4x-0.6x-1.0x
Abbey ($ABBY)-1.8x-1.5x-2.6x-1.2x-1.3x
Airea ($AIEA)-1.5x-0.9x-1.5x-1.2x-0.9x
 
Median (7 companies)-0.4x-0.4x-1.2x-1.2x-1.0x
Taylor Wimpey ($TW.)0.8x0.3x-0.0x-0.2x-0.4x