Jubilant Foodworks CAPEX dropped on 20.9% while Revenue jumped on 16.5%
28-05-2016 • About Jubilant Foodworks (
$JUBLFOOD) • By InTwits
Jubilant Foodworks reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Jubilant Foodworks is a fast growth stock: FY2016 revenue growth was 16.5%, 5 year revenue CAGR was 29.2% at FY2016 ROIC 20.0%
- Jubilant Foodworks has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.8%. At the same time it's a lot of higher than industry average of 9.3%.
- CAPEX is quite volatile: ₹9,030m in FY2016, ₹7,518m in FY2015, ₹1,258m in FY2014, ₹1,935m in FY2013, ₹2,884m in FY2012
- The company has highly profitable business model: ROIC is 20.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 16.5%. Revenue decline was accelerating on average at -8.6 pp per annum in the last 5 years. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 18.8 pp from 8.3% to -10.5% in FY2016. EBITDA Margin stuck to a declining trend at -1.9 pp per annum in the last 5 years.
Net Income margin decreased slightly on 1.0 pp from 5.3% to 4.3% in FY2016. Net Income margin stuck to a declining trend at -1.6 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 9.3% in FY2016. CAPEX/Revenue decreased on 4.2 pp from 13.6% in FY2013 to 9.3% in FY2016. Average CAPEX/Revenue for the last three years was 12.5%. The company invested a big chunk of EBITDA (81.4%) to CAPEX to secure its growth. During FY2012-FY2016 CAPEX as a % of Revenue topped in FY2014 at 14.3% and was declining since that time.
Return on investment
The company operates at high and attractive ROIC (20.0%) while ROE is a bit lower (15.2%). ROIC decreased on 4.0 pp from 24.0% to 20.0% in FY2016. ROE decreased on 3.4 pp from 18.6% to 15.2% in FY2016. ROIC followed a declining trend at -11.0 pp per annum in FY2012-FY2016. ROE stuck to a declining trend at -7.2 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 0.0x. Debt surged while cash dropped on 12.4%.
Jubilant Foodworks has no short term refinancing risk: cash is higher than short term debt (1,910.6%).
Financial and operational results
Jubilant Foodworks ($JUBLFOOD) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10,189 | 14,141 | 17,360 | 20,924 | 24,372 | 16.5% |
| SG&A | | | | | 1,296 | |
| EBITDA | 1,904 | 2,433 | 2,499 | 2,565 | 2,792 | 8.9% |
| Net Income | 1,033 | 1,311 | 1,182 | 1,111 | 1,048 | -5.7% |
Balance Sheet
|
|---|
| Cash | 109 | 305 | 242 | 379 | 332 | -12.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | 17 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 1,307 | 1,916 | 2,487 | 2,872 | 2,273 | -20.9% |
Ratios
|
|---|
| Revenue growth | 50.2% | 38.8% | 22.8% | 20.5% | 16.5% | |
| EBITDA growth | 58.0% | 27.8% | 2.7% | 2.6% | 8.9% | |
|
|---|
| EBITDA Margin | 18.7% | 17.2% | 14.4% | 12.3% | 11.5% | -0.8% |
| SG&A, % of revenue | | | | | 5.3% | |
| Net Income Margin | 10.1% | 9.3% | 6.8% | 5.3% | 4.3% | -1.0% |
| CAPEX, % of revenue | 12.8% | 13.6% | 14.3% | 13.7% | 9.3% | -4.4% |
|
|---|
| ROIC | 62.1% | 49.8% | 33.0% | 24.0% | 20.0% | -4.0% |
| ROE | 42.4% | 36.1% | 24.1% | 18.6% | 15.2% | -3.4% |
| Net Debt/EBITDA | -0.1x | -0.1x | -0.1x | -0.1x | -0.1x | 0.0x |
Peers in Restaurants
Below we provide Jubilant Foodworks benchmarking against other companies in Restaurants 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, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westlife Development ($WESTLIFE) | - | 24.0% | 94.8% | 3.2% | 9.0% |
| |
|---|
| Median (1 company) | - | 24.0% | 94.8% | 3.2% | 9.0% |
|---|
| Jubilant Foodworks ($JUBLFOOD) | - | 38.8% | 22.8% | 20.5% | 16.5% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westlife Development ($WESTLIFE) | 22.7% | 17.2% | 6.5% | 2.5% | 5.8% |
| |
|---|
| Median (1 company) | 22.7% | 17.2% | 6.5% | 2.5% | 5.8% |
|---|
| Jubilant Foodworks ($JUBLFOOD) | 18.7% | 17.2% | 14.4% | 12.3% | 11.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westlife Development ($WESTLIFE) | 25.1% | 35.5% | 13.9% | 13.8% | 9.2% |
| |
|---|
| Median (1 company) | 25.1% | 35.5% | 13.9% | 13.8% | 9.2% |
|---|
| Jubilant Foodworks ($JUBLFOOD) | 12.8% | 13.6% | 14.3% | 13.7% | 9.3% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westlife Development ($WESTLIFE) | - | 9.6% | 0.9% | -5.1% | -1.4% |
| |
|---|
| Median (1 company) | - | 9.6% | 0.9% | -5.1% | -1.4% |
|---|
| Jubilant Foodworks ($JUBLFOOD) | 62.1% | 49.8% | 33.0% | 24.0% | 20.0% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westlife Development ($WESTLIFE) | -0.3x | -0.1x | 1.0x | 3.4x | 2.5x |
| |
|---|
| Median (1 company) | -0.3x | -0.1x | 1.0x | 3.4x | 2.5x |
|---|
| Jubilant Foodworks ($JUBLFOOD) | -0.1x | -0.1x | -0.1x | -0.1x | -0.1x |
