Eye on Etalon Group Ltd with its long history of healthy growth
31 Mar 2015 • About Etalon Group Ltd (
$ETLN) • By InTwits
Etalon Group Ltd is a fast-growing stock in Real Estate Investment & Services industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Etalon Group Ltd showed fast growth in the last financial year. Etalon Group Ltd's revenue surged on 29.0% in FY2014. At the same time Etalon Group Ltd well managed its profitability and also showed EBITDA growth of 12.3% for the same period.
If we look for the longer period the company showed fast revenue growth of 31.3% from 2011 to 2014 annually. EBITDA surged on 12.8% from 2011 to 2014 annually.
Etalon Group Ltd ($ETLN) financials for the last 5 years
| mln. RUB | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 20,316 | 22,741 | 26,894 | 39,921 | 51,481 |
|---|
| Revenue growth, % | | 11.9% | 18.3% | 48.4% | 29.0% |
|---|
| Gross margin, % | 45.5% | 47.7% | 35.0% | 31.0% | 30.7% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 6,711 | 6,626 | 6,305 | 8,476 | 9,520 |
|---|
| EBITDA growth, % | | -1.3% | -4.8% | 34.4% | 12.3% |
|---|
| EBITDA margin, % | 33.0% | 29.1% | 23.4% | 21.2% | 18.5% |
|---|
| Net Income | 4,628 | 7,332 | 4,979 | 6,629 | 8,345 |
|---|
| Net Income margin, % | 22.8% | 32.2% | 18.5% | 16.6% | 16.2% |
|---|
| |
| CAPEX | 329 | 726 | 844 | 431 | 653 |
|---|
| CAPEX/Revenue, % | 1.62% | 3.19% | 3.14% | 1.08% | 1.27% |
|---|
| Debt | 8,126 | 10,406 | 16,807 | 13,441 | 16,458 |
|---|
| Cash | 3,636 | 14,484 | 10,716 | 8,139 | 14,631 |
|---|
| Net Debt/EBITDA | 0.7x | -0.6x | 1.0x | 0.6x | 0.2x |
|---|
| |
| ROIC, % | 37.7% | 20.1% | 12.1% | 14.4% | 14.3% |
|---|
| ROE, % | 47.7% | 32.7% | 14.2% | 16.2% | 17.4% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 21.2% in FY2013 to 18.5% in FY2014. In the last 3 years the company showed big decline in EBITDA margin of 10.6 pp from 29.1% in 2011 to 18.5% in 2014.
Etalon Group Ltd shows attractive ROIC at 14.3% for the last 12 months which assumes stable development model. Three years ago it was higher at 20.1%. For the last three years the average ROIC was 13.6%.
The company's Net Income margin decreased slightly on 0.400 pp from 16.6% to 16.2% in 2014. In the longer period Net Income margin dropped on 16 pp from 32.2% in 2011 to 16.2% in 2014.
Etalon Group Ltd operates at ROE of 17.4%. It's average level of ROE for the last three years was 15.9%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 1.27% in FY2014. CAPEX/Revenue dropped on 1.92 pp from 3.19% in 2011 to 1.27% in 2014. It's average CAPEX/Revenue for the last three years was 1.83%.
Leverage (Debt)
The company has low debt level at 0.2x Net Debt/EBITDA - at the same time with high growth. In the last 3 years Etalon Group Ltd's leverage surged on 0.81x from -0.62x in 2011 to 0.19x in 2014.
Valuation vs. comparable companies
At the end of trading day today Etalon Group Ltd traded at 0.2x EV/EBITDA which is 98.8% lower than 16.2x Real Estate Investment & Services peer group avearge calculated on the basis of 87 companies. The market closed today at 0.0x P/E for Etalon Group Ltd which is 100% lower than 2.6x Real Estate Investment & Services peer group avearge calculated on the basis of 6 companies.
Peers in Real Estate Investment & Services
Below you can find Etalon Group Ltd benchmarking vs. other companies in Real Estate Investment & Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Plaza Centers Nv ($PLAZ) | | -37.7% | 28.0% | -10.0% | 131.0% |
| Formation Group ($FRM) | | 168.0% | -60.8% | 147.9% | 35.8% |
| Safeland ($SAF) | | -13.1% | 38.2% | -40.1% | 21.2% |
| Hml Hldgs ($HMLH) | | 4.0% | 12.9% | 20.8% | 15.3% |
| Hagl JSC ($HAG) | | -20.6% | 39.5% | -36.9% | 10.2% |
| |
|---|
| Median (9 companies) | | -13.1% | 12.9% | 20.8% | 10.2% |
|---|
| Etalon Group Ltd ($ETLN) | | 11.9% | 18.3% | 48.4% | 29.0% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Taliesin Property Fund Ltd ($TPFZ) | | | 75.2% | 76.6% | 74.9% |
| Damac Real Estate Development Ltd ($DMC) | 10.8% | 37.5% | 40.7% | 64.4% | 59.6% |
| Hagl JSC ($HAG) | 50.6% | 45.2% | 27.3% | 43.2% | 40.2% |
| Plaza Centers Nv ($PLAZ) | 44.6% | 36.7% | 41.2% | 50.3% | 21.1% |
| Safeland ($SAF) | 24.2% | 4.9% | 9.9% | 17.2% | 20.6% |
| |
|---|
| Median (6 companies) | 44.6% | 36.7% | 34.0% | 46.7% | 30.6% |
|---|
| Etalon Group Ltd ($ETLN) | 45.5% | 47.7% | 35.0% | 31.0% | 30.7% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Damac Real Estate Development Ltd ($DMC) | -3.1% | 31.2% | 32.9% | 54.5% | 46.4% |
| Quintain Estates & Development ($QED) | 17.2% | -101.5% | -81.5% | -70.4% | 43.6% |
| Hagl JSC ($HAG) | 45.3% | 37.0% | 23.1% | 40.5% | 39.6% |
| Plaza Centers Nv ($PLAZ) | 98.2% | -244.3% | 32.8% | -24.1% | 10.7% |
| Hml Hldgs ($HMLH) | 5.4% | 6.8% | 8.5% | 9.3% | 10.1% |
| |
|---|
| Median (8 companies) | 5.4% | -2.3% | 15.8% | 3.8% | 10.4% |
|---|
| Etalon Group Ltd ($ETLN) | 33.0% | 29.1% | 23.4% | 21.2% | 18.5% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Quintain Estates & Development ($QED) | 25.5% | 136.2% | 210.6% | 162.3% | 217.2% |
| Hagl JSC ($HAG) | 58.0% | 152.8% | 134.2% | 171.2% | 145.6% |
| Taliesin Property Fund Ltd ($TPFZ) | | | 14.1% | 21.3% | 45.2% |
| Raven Russia Ltd ($RUS) | | | 19.8% | 27.5% | 41.0% |
| Hml Hldgs ($HMLH) | 0.3% | 1.9% | 1.1% | 1.3% | 1.6% |
| |
|---|
| Median (9 companies) | 1.3% | 1.6% | 1.5% | 1.3% | 1.6% |
|---|
| Etalon Group Ltd ($ETLN) | 1.6% | 3.2% | 3.1% | 1.1% | 1.3% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Damac Real Estate Development Ltd ($DMC) | | | 163.1% | 127.1% | 31.3% |
| Hml Hldgs ($HMLH) | 3.3% | 5.6% | 8.2% | 9.9% | 12.5% |
| Safeland ($SAF) | -2.1% | -1.4% | -1.3% | -1.1% | 3.7% |
| Hagl JSC ($HAG) | 13.0% | 5.4% | 3.2% | 2.9% | 2.8% |
| Quintain Estates & Development ($QED) | 0.9% | -4.6% | -3.4% | -2.6% | 1.4% |
| |
|---|
| Median (9 companies) | 1.6% | -3.0% | 2.8% | 1.2% | 1.4% |
|---|
| Etalon Group Ltd ($ETLN) | 37.7% | 20.1% | 12.1% | 14.4% | 14.3% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Raven Russia Ltd ($RUS) | | | 6.4x | 4.1x | 75.5x |
| Plaza Centers Nv ($PLAZ) | 16.4x | | 17.9x | | 41.9x |
| Quintain Estates & Development ($QED) | 36.9x | | | | 15.3x |
| Hagl JSC ($HAG) | 1.3x | 7.5x | 13.4x | 10.5x | 14.2x |
| Safeland ($SAF) | | | | | 10.1x |
| |
|---|
| Median (7 companies) | 8.9x | 0.2x | 6.4x | 2.2x | 14.2x |
|---|
| Etalon Group Ltd ($ETLN) | 0.7x | -0.6x | 1.0x | 0.6x | 0.2x |
