Trending stocks
$HSBA  
$QPP  
$TSCO  
$SKY  
$BRBY  

Looking for growth stocks? Pay attention to X5 Retail Group N.V

03 Apr 2017 • About X5 Retail Group N.V ($89VS) • By InTwits

X5 Retail Group N.V is an attractive growth stock in Food & Drug Retailers industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story


X5 Retail Group N.V showed fast growth in the last financial year. The company's revenue surged on 27.8% in FY2016. Together with revenue growth X5 Retail Group N.V also managed to keep EBITDA growth. EBITDA grew 31.3% for the same period.

In the longer period X5 Retail Group N.V showed fast revenue growth of 24.6% from 2013 to 2016 annually. EBITDA surged on 26.2% from 2013 to 2016 annually.

X5 Retail Group N.V ($89VS) financials for the last 5 years

mln. RUB 2012 2013 2014 2015 2016
Revenue490,655534,836633,873808,8181,033,667
Revenue growth, %9.0%18.5%27.6%27.8%
Gross margin, %23.6%24.4%24.5%24.5%24.2%
SG&A, %20.7%21.1%21.0%20.4%
EBITDA33,90837,97148,52058,06576,267
EBITDA growth, %12.0%27.8%19.7%31.3%
EBITDA margin, %6.91%7.10%7.65%7.18%7.38%
Net Income-3,92910,99012,69114,17422,291
Net Income margin, % -0.801%2.05%2.00%1.75%2.16%
 
CAPEX22,51120,33328,26051,60568,694
CAPEX/Revenue, %4.59%3.80%4.46%6.38%6.65%
Debt123,108111,084130,986144,215156,033
Cash12,4647,65025,6238,95818,190
Net Debt/EBITDA3.3x2.7x2.2x2.3x1.8x
 
ROIC, %3.1%13.0%14.9%15.7%17.0%
ROE, %-5.8%15.1%15.0%14.5%19.2%

Profitability and return on investment


EBITDA growth was partly attributed to margin expansion. EBITDA margin increased slightly on 0.200 pp from 7.20% to 7.40% in 2016. In the last 3 years EBITDA margin increased slightly on 0.300 pp from 7.10% in 2013 to 7.40% in 2016.

We call X5 Retail Group N.V an attractive growth stock as together with the growth it delivers high ROIC at 17.0%. During the last three years it surged - it was 13.0% in FY2013. Average ROIC for the last three years was 15.8%.

Net Income margin surged on 0.400 pp from 1.80% to 2.20% in 2016. If we look for the longer period Net Income margin increased slightly on 0.1000 pp from 2.10% in 2013 to 2.20% in 2016.

X5 Retail Group N.V operates at ROE of 19.2%. Average ROE for the last three years was 16.3%.

Capital expenditures (CAPEX)


To this fast growth the company had to invest in CAPEX.In FY2016 the company had CAPEX/Revenue of 6.65%. X5 Retail Group N.V showed fast CAPEX/Revenue growth of 2.84 pp from 3.80% in 2013 to 6.65% in 2016. It's average level of CAPEX/Revenue for the last three years was 5.83%.

Leverage (Debt)


Having such a fast growth profile X5 Retail Group N.V keeps medium debt level at 1.8x Net Debt/EBITDA. In the longer period leverage dropped on 0.92x from 2.72x in 2013 to 1.81x in 2016.

Peers in Food & Drug Retailers


Below we provide X5 Retail Group N.V benchmarking against other companies in Food & Drug Retailers 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
Crawshaw Group ($CRAW)-0.6%11.9%17.1%50.5%
Lenta Ltd ($LNTA)31.3%34.5%30.3%21.2%
Magnit PJSC ($MGNT)29.4%32.3%24.4%12.5%
Total Produce ($TOT)8.5%1.1%7.8%8.0%
Dairy Farm International Hldgs ($DFIB)5.7%6.3%1.2%0.6%
 
Median (7 companies)26.0%7.1%7.6%7.4%8.0%
X5 Retail Group N.V ($89VS)9.0%18.5%27.6%27.8%


Top companies by Gross margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Snacktime ($SNAK)56.6%51.8%55.1%53.9%54.0%
Crawshaw Group ($CRAW)43.3%43.7%43.8%44.4%45.1%
Dairy Farm International Hldgs ($DFIB)28.9%29.8%29.9%29.5%30.2%
Magnit PJSC ($MGNT)26.5%28.5%28.9%28.5%27.5%
Jardine Matheson Hldgs ($J36)22.4%22.3%23.4%23.3%23.8%
 
Median (7 companies)25.0%26.2%26.7%26.0%27.5%
X5 Retail Group N.V ($89VS)23.6%24.4%24.5%24.5%24.2%


Top companies by EBITDA margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Jardine Matheson Hldgs ($J36)13.1%11.6%11.8%12.8%18.2%
Lenta Ltd ($LNTA)10.7%11.2%11.0%11.1%10.2%
Magnit PJSC ($MGNT)10.3%11.0%11.3%10.9%9.6%
Dairy Farm International Hldgs ($DFIB)6.6%6.9%6.6%5.8%6.0%
Total Produce ($TOT)2.4%2.6%2.4%2.2%2.3%
 
Median (7 companies)7.3%7.1%6.9%6.2%6.0%
X5 Retail Group N.V ($89VS)6.9%7.1%7.7%7.2%7.4%


Top companies by CAPEX/Revenue, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Lenta Ltd ($LNTA)13.4%16.2%17.9%12.3%13.8%
Crawshaw Group ($CRAW)1.1%1.0%1.2%6.3%6.1%
Magnit PJSC ($MGNT)10.5%8.6%7.3%5.7%4.6%
Snacktime ($SNAK)5.3%4.3%3.4%2.5%3.9%
Jardine Matheson Hldgs ($J36)4.9%4.4%3.5%3.6%3.5%
 
Median (7 companies)5.1%4.3%3.4%4.4%3.9%
X5 Retail Group N.V ($89VS)4.6%3.8%4.5%6.4%6.6%


Top companies by ROIC, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Magnit PJSC ($MGNT)23.1%26.0%33.2%32.6%25.1%
Dairy Farm International Hldgs ($DFIB)32.8%34.6%31.1%21.6%18.5%
Lenta Ltd ($LNTA)42.9%34.0%24.5%20.3%16.0%
Jardine Matheson Hldgs ($J36)7.9%6.4%6.6%6.6%9.8%
Total Produce ($TOT)9.0%11.9%10.3%9.5%9.2%
 
Median (7 companies)16.1%16.8%13.7%10.0%9.8%
X5 Retail Group N.V ($89VS)3.1%13.0%14.9%15.7%17.0%


Top companies by Net Debt / EBITDA

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Lenta Ltd ($LNTA)2.2x2.5x2.8x1.9x2.8x
Magnit PJSC ($MGNT)1.1x1.1x0.9x0.9x1.1x
Dairy Farm International Hldgs ($DFIB)-0.8x-0.9x-0.7x0.7x1.0x
Jardine Matheson Hldgs ($J36)1.4x1.3x1.3x1.3x0.8x
Total Produce ($TOT)1.0x0.2x0.3x0.3x0.7x
 
Median (6 companies)1.0x1.2x1.1x0.9x0.9x
X5 Retail Group N.V ($89VS)3.3x2.7x2.2x2.3x1.8x