Jubilant Foodworks's growth is outstanding: revenue grew 27.1% and EBITDA 10.4% annually over the last three years
21-05-2015 • About Jubilant Foodworks (
$JUBLFOOD) • By InTwits
Jubilant Foodworks is a growth stock in Restaurants industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Jubilant Foodworks showed fast growth in the last financial year. Jubilant Foodworks's revenue surged on 20.5% in FY2015. EBITDA also increased: 2.61% for the same period.
In the last 3 years the company showed fast revenue growth of 27.1% from FY2012 to FY2015 annually. EBITDA surged on 10.4% from FY2012 to FY2015 annually.
Jubilant Foodworks ($JUBLFOOD) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 6,783 | 10,189 | 14,141 | 17,360 | 20,924 |
|---|
| Revenue growth, % | | 50.2% | 38.8% | 22.8% | 20.5% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 1,205 | 1,904 | 2,433 | 2,499 | 2,565 |
|---|
| EBITDA growth, % | | 58.0% | 27.8% | 2.7% | 2.6% |
|---|
| EBITDA margin, % | 17.8% | 18.7% | 17.2% | 14.4% | 12.3% |
|---|
| Net Income | 717 | 1,033 | 1,311 | 1,182 | 1,111 |
|---|
| Net Income margin, % | 10.6% | 10.1% | 9.27% | 6.81% | 5.31% |
|---|
| |
| CAPEX | 718 | 1,307 | 1,916 | 2,487 | 2,872 |
|---|
| CAPEX/Revenue, % | 10.6% | 12.8% | 13.6% | 14.3% | 13.7% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 89 | 109 | 305 | 242 | 379 |
|---|
| Net Debt/EBITDA | -0.1x | -0.1x | -0.1x | -0.1x | -0.1x |
|---|
| |
| ROIC, % | 58.0% | 62.1% | 49.8% | 33.0% | 24.0% |
|---|
| ROE, % | 46.5% | 42.4% | 36.1% | 24.1% | 18.6% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 14.4% in FY2014 to 12.3% in FY2015. In the last 3 years Jubilant Foodworks's EBITDA margin dropped on 6.40 pp from 18.7% in FY2012 to 12.3% in FY2015.
Jubilant Foodworks shows attractive ROIC at 24.0% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 62.1% in FY2012. It's average ROIC for the last three years was 35.6%.
The company showed big decline in Net Income margin of 1.50 pp from 6.80% to 5.30% in FY2015. In the longer period the company's Net Income margin dropped on 4.80 pp from 10.1% in FY2012 to 5.30% in FY2015.
Jubilant Foodworks operates at ROE of 18.6%. It's average ROE for the last three years was 26.3%.
Capital expenditures (CAPEX)
To this fast growth Jubilant Foodworks had to invest in CAPEX.In FY2015 the company had CAPEX/Revenue of 13.7%. Jubilant Foodworks's CAPEX/Revenue increased on 0.896 pp from 12.8% in FY2012 to 13.7% in FY2015. For the last three years the average CAPEX/Revenue was 13.9%.
Leverage (Debt)
Having such a fast growth profile Jubilant Foodworks keeps negative net debt at -0.1x Net Debt/EBITDA. In the last 3 years leverage surged on 0.09x from -0.06x in FY2012 to -0.15x in FY2015.
Valuation vs. comparable companies
The company trades at 44.6x EV/EBITDA which is not surprisingly 221% higher than 13.9x Restaurants industry avearge calculated based on 3 companies. The company trades at 103.3x P/E which is the same as 103.3x Restaurants industry avearge calculated based on 1 company.
