Eye on Jubilant Foodworks with its long history of healthy growth
04-06-2016 • About Jubilant Foodworks (
$JUBLFOOD) • By InTwits
Jubilant Foodworks is a fast-growing stock in Restaurants industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Jubilant Foodworks showed fast growth in the last financial year. Jubilant Foodworks's revenue surged on 16.5% in FY2016. EBITDA also increased: 8.87% for the same period.
If we look for the longer period Jubilant Foodworks showed fast revenue growth of 19.9% from FY2013 to FY2016 annually. EBITDA surged on 4.70% from FY2013 to FY2016 annually.
Jubilant Foodworks ($JUBLFOOD) financials for the last 5 years
| mln. INR | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 10,189 | 14,141 | 17,360 | 20,924 | 24,372 |
|---|
| Revenue growth, % | | 38.8% | 22.8% | 20.5% | 16.5% |
|---|
| SG&A, % | | | | | 5.32% |
|---|
| EBITDA | 1,904 | 2,433 | 2,499 | 2,565 | 2,792 |
|---|
| EBITDA growth, % | | 27.8% | 2.7% | 2.6% | 8.9% |
|---|
| EBITDA margin, % | 18.7% | 17.2% | 14.4% | 12.3% | 11.5% |
|---|
| Net Income | 1,033 | 1,311 | 1,182 | 1,111 | 1,048 |
|---|
| Net Income margin, % | 10.1% | 9.27% | 6.81% | 5.31% | 4.30% |
|---|
| |
| CAPEX | 1,307 | 1,916 | 2,487 | 2,872 | 2,273 |
|---|
| CAPEX/Revenue, % | 12.8% | 13.6% | 14.3% | 13.7% | 9.32% |
|---|
| Debt | 0 | 0 | 0 | 0 | 17 |
|---|
| Cash | 109 | 305 | 242 | 379 | 332 |
|---|
| Net Debt/EBITDA | -0.1x | -0.1x | -0.1x | -0.1x | -0.1x |
|---|
| |
| ROIC, % | 62.1% | 49.8% | 33.0% | 24.0% | 20.0% |
|---|
| ROE, % | 42.4% | 36.1% | 24.1% | 18.6% | 15.2% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the longer period the company showed big decline in EBITDA margin of 5.70 pp from 17.2% in FY2013 to 11.5% in FY2016.
Jubilant Foodworks shows attractive ROIC at 20.0% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 49.8% in FY2013. It's average level of ROIC for the last three years was 25.7%.
Net Income margin dropped on 1 pp from 5.30% to 4.30% in FY2016. In the longer period the company showed big decline in Net Income margin of 5 pp from 9.30% in FY2013 to 4.30% in FY2016.
Jubilant Foodworks operates at ROE of 15.2%. It's average level of ROE for the last three years was 19.3%.
Capital expenditures (CAPEX)
To fuel this fast growth Jubilant Foodworks had to invest in CAPEX.Jubilant Foodworks's CAPEX/Revenue was 9.32% in FY2016. CAPEX/Revenue dropped on 4.23 pp from 13.6% in FY2013 to 9.32% in FY2016. Average CAPEX/Revenue for the last three years was 12.5%.
Leverage (Debt)
The company has negative net debt at -0.1x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage surged on 0.01x from -0.13x in FY2013 to -0.11x in FY2016.
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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top |
|---|
| 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
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top |
|---|
| 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 |
