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The growth of Taylor Wimpey is hard to miss

07 Mar 2017 • About Taylor Wimpey ($TW.) • By InTwits

Pay attention to Taylor Wimpey as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story


Taylor Wimpey showed fast growth in the last financial year. The company's revenue surged on 17.1% in FY2016. In addition to revenue Taylor Wimpey also keeps delivering EBITDA growth. It was 20.7% in FY2016

In the last 3 years the company showed fast revenue growth of 17.0% from FY2013 to FY2016 annually. EBITDA surged on 28.8% from FY2013 to FY2016 annually.

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

mln. £ FY2012 FY2013 FY2014 FY2015 FY2016
Revenue2,0192,2962,6863,1403,676
Revenue growth, %13.7%17.0%16.9%17.1%
Gross margin, %17.6%21.6%23.8%25.1%25.6%
SG&A, %7.04%6.61%5.90%5.48%5.15%
EBITDA226358500635766
EBITDA growth, %58.7%39.5%27.0%20.7%
EBITDA margin, %11.2%15.6%18.6%20.2%20.8%
Net Income229271374490589
Net Income margin, % 11.3%11.8%13.9%15.6%16.0%
 
CAPEX431063
CAPEX/Revenue, %0.173%0.109%0.361%0.178%0.0843%
Debt24910010010086
Cash190105213323450
Net Debt/EBITDA0.3x-0.0x-0.2x-0.4x-0.5x
 
ROIC, %12.2%17.7%21.7%24.1%26.8%
ROE, %12.0%12.8%15.6%18.6%21.0%

Profitability and return on investment


Margin expansion supported EBITDA growth. The company showed small growth in EBITDA margin of 0.600 pp from 20.2% to 20.8% in FY2016. In the last 3 years the company's EBITDA margin surged on 5.20 pp from 15.6% in FY2013 to 20.8% in FY2016.

Taylor Wimpey shows attractive ROIC at 26.8% for the last 12 months which assumes stable development model. During the last three years it surged - it was 17.7% in FY2013. For the last three years the average ROIC was 24.2%.

Taylor Wimpey showed small growth in Net Income margin of 0.400 pp from 15.6% to 16% in FY2016. If we look for the longer period Net Income margin surged on 4.20 pp from 11.8% in FY2013 to 16% in FY2016.

Taylor Wimpey operates at ROE of 21.0%. It's average level of ROE for the last three years was 18.4%.

Capital expenditures (CAPEX)


Taylor Wimpey's CAPEX/Revenue was 0.0843% in FY2016. Taylor Wimpey's CAPEX/Revenue dropped on 0.0246 pp from 0.109% in FY2013 to 0.0843% in FY2016. For the last three years the average CAPEX/Revenue was 0.208%.

Leverage (Debt)


Having such a fast growth profile Taylor Wimpey keeps negative net debt at -0.5x Net Debt/EBITDA. In the last 3 years the company's leverage surged on 0.46x from -0.02x in FY2013 to -0.48x in FY2016.

Peers in Household Goods & Home Construction


Below we provide Taylor Wimpey benchmarking against other companies in Household Goods & Home Construction 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.

Top companies by Revenue growth, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Abbey ($ABBY)40.0%15.9%51.0%27.9%
Airea ($AIEA)-4.7%-8.4%11.3%-3.8%
Reckitt Benckiser Group ($RB.)-3.1%-4.6%0.4%11.5%
Colefax Group ($CFX)0.3%10.5%-1.6%0.1%
Teco Electric & Machinery Co Ltd ($TECD)4.1%16.2%-5.1%-9.6%
 
Median (7 companies)4.1%0.3%-5.1%-1.6%5.8%
Taylor Wimpey ($TW.)13.7%17.0%16.9%17.1%


Top companies by Gross margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Reckitt Benckiser Group ($RB.)57.9%56.7%57.7%59.1%60.9%
Colefax Group ($CFX)55.1%55.4%53.3%54.7%56.3%
Abbey ($ABBY)23.6%17.3%25.8%30.6%33.1%
Teco Electric & Machinery Co Ltd ($TECD)23.5%23.8%24.9%25.5%
Havelock Europa ($HVE)13.2%12.5%13.3%11.0%
 
Median (6 companies)23.5%20.6%25.4%28.1%56.3%
Taylor Wimpey ($TW.)17.6%21.6%23.8%25.1%25.6%


Top companies by EBITDA margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Abbey ($ABBY)19.4%13.3%22.6%31.2%31.7%
Reckitt Benckiser Group ($RB.)27.1%22.0%26.3%27.2%26.2%
Teco Electric & Machinery Co Ltd ($TECD)10.8%10.7%10.7%10.5%
Colefax Group ($CFX)6.6%7.6%9.1%8.7%9.4%
Airea ($AIEA)5.9%7.4%7.0%8.0%11.7%
 
Median (7 companies)6.6%7.6%9.1%8.7%19.0%
Taylor Wimpey ($TW.)11.2%15.6%18.6%20.2%20.8%


Top companies by CAPEX/Revenue, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Abbey ($ABBY)12.2%6.5%8.0%8.0%5.3%
Teco Electric & Machinery Co Ltd ($TECD)1.4%1.4%3.6%3.5%
Colefax Group ($CFX)4.9%3.1%2.0%2.9%3.0%
Airea ($AIEA)2.7%1.0%0.7%1.8%2.9%
Reckitt Benckiser Group ($RB.)1.7%2.1%1.8%1.7%1.8%
 
Median (7 companies)2.4%1.4%1.8%1.8%2.9%
Taylor Wimpey ($TW.)0.2%0.1%0.4%0.2%0.1%


Top companies by ROIC, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Abbey ($ABBY)5.4%4.7%11.2%21.1%22.9%
Colefax Group ($CFX)10.7%13.5%22.0%20.6%20.2%
Reckitt Benckiser Group ($RB.)23.3%17.3%19.7%20.3%20.3%
Airea ($AIEA)3.3%7.2%6.4%11.7%18.2%
Teco Electric & Machinery Co Ltd ($TECD)7.1%8.3%7.3%5.8%
 
Median (7 companies)5.4%7.2%7.3%11.7%20.2%
Taylor Wimpey ($TW.)12.2%17.7%21.7%24.1%26.8%


Top companies by Net Debt / EBITDA

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Reckitt Benckiser Group ($RB.)0.9x1.0x0.7x0.7x0.6x
Teco Electric & Machinery Co Ltd ($TECD)0.1x-0.9x-1.3x-0.3x
Airea ($AIEA)-0.9x-1.5x-1.2x-0.9x-1.1x
Colefax Group ($CFX)-1.8x-1.4x-0.6x-1.0x-1.4x
Abbey ($ABBY)-1.5x-2.6x-1.2x-1.3x-1.3x
 
Median (6 companies)-0.4x-1.2x-1.2x-1.0x-1.2x
Taylor Wimpey ($TW.)0.3x-0.0x-0.2x-0.4x-0.5x