Abbey Net Income surged on 111% in 2015 and EBITDA Margin increased on 8.6 pp from 22.6% to 31.2%
08 Jul 2015 • About Abbey (
$ABBY) • By InTwits
Abbey reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Abbey is a growth stock: FY2015 revenue growth was 51.0%, 5 year revenue CAGR was 12.2% at FY2015 ROIC 21.1%
- Abbey has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.8%. At the same time it's a lot of higher than industry average of 2.2%.
- CAPEX is quite volatile: 13.9 in FY2015, 9.2 in FY2014, 6.4 in FY2013, 8.6 in FY2012, 6.2 in FY2011
- The company has highly profitable business model: ROIC is at 21.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Abbey ($ABBY) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 66.6 | 70.4 | 98.5 | 114.2 | 172.5 | 51.0% |
| Gross Profit | 16.3 | 16.6 | 17.1 | 29.5 | 52.8 | 79.3% |
| SG&A | 6.3 | 7.6 | 8.8 | 9.1 | 6.5 | -28.3% |
| EBITDA | 13.8 | 13.7 | 13.1 | 25.8 | 53.8 | 108.7% |
| Net Income | 8.3 | 8.9 | 7.7 | 18.7 | 39.6 | 111.4% |
Balance Sheet
|
|---|
| Cash | 24.8 | 19.9 | 33.5 | 30.5 | 67.4 | 121.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 6.2 | 8.6 | 6.4 | 9.2 | 13.9 | 51.1% |
Ratios
|
|---|
| Revenue growth | -31.4% | 5.6% | 40.0% | 15.9% | 51.0% | |
| EBITDA growth | -19.8% | -0.9% | -4.4% | 97.3% | 108.7% | |
| Gross Margin | 24.5% | 23.6% | 17.3% | 25.8% | 30.6% | 4.8% |
| EBITDA Margin | 20.7% | 19.4% | 13.3% | 22.6% | 31.2% | 8.6% |
| Net Income Margin | 12.4% | 12.6% | 7.8% | 16.4% | 23.0% | 6.6% |
| SG&A, % of revenue | 9.4% | 10.8% | 8.9% | 7.9% | 3.8% | -4.2% |
| CAPEX, % of revenue | 9.4% | 12.2% | 6.5% | 8.0% | 8.0% | 0.0% |
| ROIC | 5.8% | 5.4% | 4.7% | 11.2% | 21.1% | 9.9% |
| ROE | 5.2% | 5.3% | 4.4% | 10.3% | 18.1% | 7.8% |
| Net Debt/EBITDA | -1.8x | -1.5x | -2.6x | -1.2x | -1.3x | -0.1x |
Revenue and profitability
The company's Revenue jumped on 51.0% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.1 pp from -1.7% to 0.39% in FY2015.
Gross Margin increased on 4.8 pp from 25.8% to 30.6% in FY2015. SG&A as a % of Revenue decreased on 4.2 pp from 7.9% to 3.8% in FY2015.
Net Income marign increased on 6.6 pp from 16.4% to 23.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.0% in FY2015. Abbey showed decline in CAPEX/Revenue of 4.1 pp from 12.2% in FY2012 to 8.0% in FY2015. For the last three years the average CAPEX/Revenue was 7.5%.
Return on investment
The company operates at high and attractive ROIC (21.10%) while ROE is a bit lower (18.14%). ROIC increased on 9.9 pp from 11.2% to 21.1% in FY2015. ROE increased on 7.8 pp from 10.3% to 18.1% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 121% in FY2015.
Appendix 1: Peers in Household Goods & Home Construction
Below you can find Abbey benchmarking vs. other companies in Household Goods & Home Construction 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Taylor Wimpey ($TW.) | 2.3% | 11.7% | 13.7% | 17.0% | |
| Colefax Group ($CFX) | 12.3% | -9.4% | 0.3% | 10.5% | |
| Reckitt Benckiser Group ($RB.) | 12.2% | 0.9% | -3.1% | -4.6% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 3.9% | 4.1% | 16.2% | -5.1% | |
| Havelock Europa ($HVE) | 0.3% | 1.3% | -11.1% | -6.9% | |
| |
|---|
| Median (7 companies) | 2.3% | 1.3% | 0.3% | -5.1% | |
|---|
| Abbey ($ABBY) | | 5.6% | 40.0% | 15.9% | 51.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Reckitt Benckiser Group ($RB.) | 57.4% | 57.9% | 56.7% | 57.7% | |
| Colefax Group ($CFX) | 55.1% | 55.1% | 55.4% | 53.3% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 22.9% | 23.5% | 23.8% | 24.9% | |
| Taylor Wimpey ($TW.) | 15.9% | 17.6% | 21.6% | 23.8% | |
| Depa Ltd ($DEPS) | 16.6% | 8.1% | 8.1% | 13.4% | |
| |
|---|
| Median (6 companies) | 19.8% | 20.6% | 22.7% | 24.4% | |
|---|
| Abbey ($ABBY) | 24.5% | 23.6% | 17.3% | 25.8% | 30.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Reckitt Benckiser Group ($RB.) | 26.9% | 27.1% | 22.0% | 26.3% | |
| Taylor Wimpey ($TW.) | 8.5% | 11.2% | 15.6% | 18.6% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 9.7% | 10.8% | 10.7% | 10.7% | |
| Colefax Group ($CFX) | 10.9% | 6.6% | 7.6% | 9.1% | |
| Airea ($AIEA) | 6.9% | 5.9% | 7.4% | 7.0% | |
| |
|---|
| Median (7 companies) | 9.3% | 6.6% | 7.6% | 9.1% | |
|---|
| Abbey ($ABBY) | 20.7% | 19.4% | 13.3% | 22.6% | 31.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Teco Electric & Machinery Co Ltd ($TECD) | 2.7% | 1.4% | 1.4% | 3.6% | |
| Colefax Group ($CFX) | 3.7% | 4.9% | 3.1% | 2.0% | |
| Reckitt Benckiser Group ($RB.) | 1.7% | 1.7% | 2.1% | 1.8% | |
| Depa Ltd ($DEPS) | 4.1% | 2.4% | 1.1% | 1.1% | |
| Airea ($AIEA) | 2.1% | 2.7% | 1.0% | 0.7% | |
| |
|---|
| Median (7 companies) | 2.1% | 1.7% | 1.3% | 1.1% | |
|---|
| Abbey ($ABBY) | 9.4% | 12.2% | 6.5% | 8.0% | 8.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Colefax Group ($CFX) | 27.6% | 10.7% | 13.5% | 22.0% | |
| Taylor Wimpey ($TW.) | 7.5% | 12.2% | 17.7% | 21.7% | |
| Reckitt Benckiser Group ($RB.) | 24.8% | 23.3% | 17.3% | 19.7% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 6.3% | 7.1% | 8.3% | 7.3% | |
| Airea ($AIEA) | 6.0% | 3.3% | 7.2% | 6.4% | |
| |
|---|
| Median (7 companies) | 6.3% | 7.1% | 8.3% | 7.3% | |
|---|
| Abbey ($ABBY) | 5.8% | 5.4% | 4.7% | 11.2% | 21.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Reckitt Benckiser Group ($RB.) | 0.7x | 0.9x | 1.0x | 0.7x | |
| Havelock Europa ($HVE) | 3.7x | 1.4x | 0.1x | -0.2x | |
| Taylor Wimpey ($TW.) | 0.8x | 0.3x | -0.0x | -0.2x | |
| Colefax Group ($CFX) | -0.7x | -1.8x | -1.4x | -0.6x | |
| Airea ($AIEA) | -1.5x | -0.9x | -1.5x | -1.2x | |
| |
|---|
| Median (7 companies) | 0.6x | 0.2x | -0.5x | -0.6x | |
|---|
| Abbey ($ABBY) | -1.8x | -1.5x | -2.6x | -1.2x | -1.3x |
