Young & Co'S Brewery reports 41.9% CAPEX growth and 7.7% Revenue growth
21 May 2015 • About Young & Co'S Brewery (
$YNGN) • By InTwits
Young & Co'S Brewery reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 22.9% in FY2015 vs. 21.7% in FY2014 vs. 22.3% in FY2011
- Young & Co'S Brewery has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.2%. At the same time it's in pair with industry average of 12.0%.
- CAPEX is quite volatile: 3.9 in FY2015, 2.9 in FY2014, 3.7 in FY2013, 2.9 in FY2012, 9.7 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.6%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Young & Co'S Brewery ($YNGN) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 142.6 | 179.0 | 193.7 | 210.8 | 227.0 | 7.7% |
| EBITDA | 31.8 | 38.0 | 42.1 | 45.8 | 52.0 | 13.6% |
| Net Income | 17.8 | -6.5 | 16.3 | 22.1 | 26.7 | 21.1% |
Balance Sheet
|
|---|
| Cash | 2.3 | 3.9 | 6.1 | 2.4 | 0.2 | -91.8% |
| Short Term Debt | 2.7 | 0.0 | 10.0 | 0.0 | 5.0 | 83,233.3% |
| Long Term Debt | 122.3 | 122.0 | 108.7 | 114.4 | 124.2 | 8.5% |
Cash flow
|
|---|
| Capex | 18.6 | 25.6 | 16.8 | 22.8 | 32.4 | 41.9% |
Ratios
|
|---|
| Revenue growth | 11.8% | 25.5% | 8.2% | 8.8% | 7.7% | |
| EBITDA growth | 9.6% | 19.6% | 10.9% | 8.6% | 13.6% | |
| EBITDA Margin | 22.3% | 21.2% | 21.8% | 21.7% | 22.9% | 1.2% |
| Net Income Margin | 12.5% | -3.6% | 8.4% | 10.5% | 11.8% | 1.3% |
| CAPEX, % of revenue | 13.1% | 14.3% | 8.7% | 10.8% | 14.3% | 3.4% |
| ROIC | 7.6% | 6.4% | 6.1% | 6.3% | 6.6% | 0.2% |
| ROE | 10.2% | -2.6% | 5.0% | 6.2% | 6.8% | 0.6% |
| Net Debt/EBITDA | 3.9x | 3.1x | 2.7x | 2.4x | 2.5x | 0.0x |
Revenue and profitability
The company's Revenue increased on 7.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 10.4% to 12.0% in FY2015.
Net Income marign increased slightly on 1.3 pp from 10.5% to 11.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 14.3% in FY2015. The company showed almost no change in CAPEX/Revenue from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 11.3%.The company maintained rich investment policy and has spent a big chunk of EBITDA (62.3%) to CAPEX.
Return on investment
The company operates at low ROIC (6.57%) and ROE (6.79%). ROIC showed almost no change in FY2015. ROE increased slightly on 0.61 pp from 6.2% to 6.8% in FY2015.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA increased on 0.034x from 2.4x to 2.5x in FY2015. Debt surged on 12.9% in FY2015 while cash dropped on 91.8% in FY2015.
Valuation
Young & Co'S Brewery's trades at EV/EBITDA 8.6x and P/E 11.9x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 22.9x with the industry average at 4.7x.
Appendix 1: Peers in Travel & Leisure
Below we provide Young & Co'S Brewery benchmarking against other companies in Travel & Leisure 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 19.5% | 12.3% | 5.4% | 26.2% | |
| Everyman Media Group ($EMAN) | 23.0% | 23.4% | 26.5% | 22.4% | |
| Paddy Power ($PAP) | 17.0% | 30.9% | 14.0% | 18.3% | |
| Richoux Group ($RIC) | 54.2% | 9.4% | 16.5% | 10.4% | |
| Irish Continental Group ($ICGC) | -4.0% | 1.7% | 3.4% | 9.6% | |
| |
|---|
| Median (20 companies) | 19.2% | 8.7% | 8.0% | 5.1% | 7.0% |
|---|
| Young & Co'S Brewery ($YNGN) | | 25.5% | 8.2% | 8.8% | 7.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 91.2% | 84.7% | 82.8% | 81.0% | |
| Action Hotels ($AHCG) | 73.2% | 75.1% | 75.0% | 73.3% | |
| Everyman Media Group ($EMAN) | 59.9% | 57.6% | 59.2% | 58.9% | |
| Mandarin Oriental International ($MDOB) | 38.6% | 36.0% | 38.9% | 39.7% | |
| Ana Hldgs Inc ($ANA) | 21.1% | 23.0% | 22.6% | 20.7% | 22.1% |
| |
|---|
| Median (10 companies) | 19.6% | 19.7% | 19.8% | 19.2% | 19.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 24.0% | 31.0% | 27.9% | 28.6% | |
| Irish Continental Group ($ICGC) | 18.9% | 17.1% | 18.6% | 27.3% | |
| Paddy Power ($PAP) | 33.8% | 25.7% | 23.7% | 24.0% | |
| Mandarin Oriental International ($MDOB) | 20.9% | 19.5% | 22.4% | 24.0% | |
| Ryanair Hldgs ($RYA) | 21.1% | 22.6% | 21.5% | 20.1% | |
| |
|---|
| Median (20 companies) | 13.4% | 13.0% | 15.7% | 12.7% | 15.0% |
|---|
| Young & Co'S Brewery ($YNGN) | 22.3% | 21.2% | 21.8% | 21.7% | 22.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 47.8% | 21.0% | 25.6% | 90.0% | |
| Everyman Media Group ($EMAN) | 0.0% | 0.0% | 36.4% | 25.9% | |
| Air China ($AIRC) | 23.9% | 16.8% | 19.1% | 18.7% | |
| Marston'S ($MARS) | | 18.0% | 19.3% | 17.5% | 16.2% |
| Richoux Group ($RIC) | 38.6% | 7.0% | 17.3% | 14.3% | |
| |
|---|
| Median (20 companies) | 3.4% | 3.9% | 5.1% | 4.4% | 9.7% |
|---|
| Young & Co'S Brewery ($YNGN) | 13.1% | 14.3% | 8.7% | 10.8% | 14.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 58.5% | 53.4% | 47.2% | 47.6% | |
| Irish Continental Group ($ICGC) | 14.3% | 14.6% | 18.9% | 40.0% | |
| Air Partner ($AIP) | 51.1% | 34.8% | 27.5% | 21.2% | 20.0% |
| Hanatour Service Inc ($TOUR) | 17.4% | 22.5% | 19.9% | 19.6% | |
| Netplay Tv ($NPT) | | | 26.3% | 10.2% | |
| |
|---|
| Median (21 companies) | 7.5% | 6.8% | 7.8% | 4.2% | 5.8% |
|---|
| Young & Co'S Brewery ($YNGN) | 7.6% | 6.4% | 6.1% | 6.3% | 6.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Marston'S ($MARS) | | | 6.5x | 14.0x | 8.2x |
| Action Hotels ($AHCG) | 14.1x | 11.2x | 7.8x | 9.6x | |
| Peel Hotels ($PHO) | 5.8x | 8.2x | 7.3x | 5.9x | 4.4x |
| Air China ($AIRC) | 4.7x | 4.7x | 6.4x | 5.6x | |
| Ana Hldgs Inc ($ANA) | 4.8x | 4.3x | 3.6x | 4.0x | 3.5x |
| |
|---|
| Median (18 companies) | 0.5x | 1.0x | 2.0x | 1.1x | 3.5x |
|---|
| Young & Co'S Brewery ($YNGN) | 3.9x | 3.1x | 2.7x | 2.4x | 2.5x |
