Barloworld reports 4.8% EBITDA growth and 1.00% Revenue growth
16 Nov 2015 • About Barloworld (
$BWO) • By InTwits
Barloworld reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Barloworld has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 6.0%.
- CAPEX is quite volatile: 3,480 in 2015, 4,167 in 2014, 8,523 in 2013, 3,821 in 2012, 2,721 in 2011
- The company has highly profitable business model: ROIC is at 12.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Barloworld ($BWO) key annual financial indicators
| mln. ZAR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 49,823 | 58,554 | 59,498 | 62,101 | 62,720 | 1.0% |
| Gross Profit | 10,190 | 11,877 | 12,174 | 13,326 | 13,666 | 2.6% |
| SG&A | 5,773 | 6,467 | 5,941 | 6,231 | | -100.0% |
| EBITDA | 3,993 | 4,905 | 5,409 | 6,180 | 6,479 | 4.8% |
| Net Income | 1,017 | 1,559 | 1,609 | 2,143 | 1,713 | -20.1% |
Balance Sheet
|
|---|
| Cash | 2,754 | 2,624 | 2,695 | 4,162 | 2,372 | -43.0% |
| Short Term Debt | 1,721 | 3,040 | 2,968 | 4,395 | 4,050 | -7.8% |
| Long Term Debt | 5,522 | 7,048 | 7,285 | 6,921 | 9,074 | 31.1% |
Cash flow
|
|---|
| Capex | 880 | 824 | 818 | 1,323 | 1,363 | 3.0% |
Ratios
|
|---|
| Revenue growth | 22.0% | 17.5% | 1.6% | 4.4% | 1.0% | |
| EBITDA growth | 18.5% | 22.8% | 10.3% | 14.3% | 4.8% | |
| Gross Margin | 20.5% | 20.3% | 20.5% | 21.5% | 21.8% | 0.3% |
| EBITDA Margin | 8.0% | 8.4% | 9.1% | 10.0% | 10.3% | 0.4% |
| Net Income Margin | 2.0% | 2.7% | 2.7% | 3.5% | 2.7% | -0.7% |
| SG&A, % of revenue | 11.6% | 11.0% | 10.0% | 10.0% | | -10.0% |
| CAPEX, % of revenue | 1.8% | 1.4% | 1.4% | 2.1% | 2.2% | 0.0% |
| ROIC | 12.4% | 14.0% | 13.5% | 14.1% | 12.9% | -1.2% |
| ROE | 8.9% | 12.3% | 11.4% | 13.3% | 9.4% | -3.8% |
| Net Debt/EBITDA | 1.1x | 1.5x | 1.4x | 1.2x | 1.7x | 0.5x |
Revenue and profitability
The company's Revenue increased slightly on 1.00% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.5 pp from 18.3% to 14.8% in 2015.
Gross Margin showed almost no change in FY2015.
Net Income marign decreased slightly on 0.72 pp from 3.5% to 2.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Barloworld had CAPEX/Revenue of 2.2%. The company's CAPEX/Revenue increased slightly on 0.77 pp from 1.4% in FY2012 to 2.2% in FY2015. For the last three years the average CAPEX/Revenue was 1.9%.
Return on investment
The company operates at good ROIC (12.87%) while ROE is low (9.44%). ROIC decreased slightly on 1.2 pp from 14.1% to 12.9% in FY2015. ROE decreased on 3.8 pp from 13.3% to 9.4% in FY2015.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA surged on 0.5x from 1.2x to 1.7x in FY2015. Debt surged on 16.0% in FY2015 while cash dropped on 43.0% in FY2015.
Appendix 1: Peers in General Industrials
Below we provide Barloworld benchmarking against other companies in General Industrials 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 |
|---|
| Robinson ($RBN) | 10.3% | -1.6% | 10.2% | 20.3% | |
| Press Corp ($PESD) | -40.5% | 111.1% | 52.6% | 20.3% | |
| Thyssenkrupp Ag ($0O1C) | 13.3% | -2.8% | -7.2% | 6.9% | |
| Macfarlane Group ($MACF) | 6.7% | -1.9% | 1.4% | 6.9% | |
| Honeywell International Inc ($HON) | 12.9% | 3.1% | 3.7% | 3.2% | |
| |
|---|
| Median (9 companies) | 10.2% | 1.3% | 1.4% | 3.2% | 1.2% |
|---|
| Barloworld ($BWO) | | 17.5% | 1.6% | 4.4% | 1.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Press Corp ($PESD) | 75.4% | 58.9% | 54.4% | 56.0% | |
| Macfarlane Group ($MACF) | 30.2% | 32.0% | 31.2% | 30.9% | |
| Smurfit Kappa Group ($SKG) | 27.9% | 28.6% | 28.9% | 29.5% | |
| Honeywell International Inc ($HON) | 21.8% | 24.9% | 27.4% | 28.2% | |
| Jardine Strategic Hldgs ($88EI) | 24.7% | 24.0% | 24.0% | 25.4% | |
| |
|---|
| Median (9 companies) | 24.7% | 24.9% | 27.4% | 25.4% | 29.6% |
|---|
| Barloworld ($BWO) | 20.5% | 20.3% | 20.5% | 21.5% | 21.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Press Corp ($PESD) | 37.1% | 29.5% | 29.6% | 29.2% | |
| Honeywell International Inc ($HON) | 9.7% | 13.5% | 16.6% | 16.8% | |
| Robinson ($RBN) | 14.4% | 16.0% | 14.1% | 15.1% | |
| Jardine Strategic Hldgs ($88EI) | 28.8% | 15.0% | 13.3% | 13.5% | |
| General Electric Co. ($GEC) | 17.6% | 17.2% | 16.5% | 13.3% | |
| |
|---|
| Median (9 companies) | 13.1% | 13.5% | 13.3% | 13.3% | 8.5% |
|---|
| Barloworld ($BWO) | 8.0% | 8.4% | 9.1% | 10.0% | 10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Press Corp ($PESD) | 22.7% | 21.3% | 8.5% | 12.1% | |
| General Electric Co. ($GEC) | 8.9% | 10.5% | 9.4% | 6.1% | |
| Smurfit Kappa Group ($SKG) | 3.8% | 4.3% | 4.4% | 5.3% | |
| Jardine Strategic Hldgs ($88EI) | 4.4% | 5.8% | 5.2% | 4.1% | |
| Robinson ($RBN) | 4.9% | 4.3% | 6.0% | 3.5% | |
| |
|---|
| Median (9 companies) | 4.4% | 4.3% | 5.2% | 3.5% | 2.5% |
|---|
| Barloworld ($BWO) | 1.8% | 1.4% | 1.4% | 2.1% | 2.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Press Corp ($PESD) | 12.1% | 21.6% | 27.1% | 24.7% | |
| Honeywell International Inc ($HON) | 14.4% | 21.8% | 23.0% | 21.3% | |
| Macfarlane Group ($MACF) | 15.1% | 17.9% | 22.2% | 19.0% | |
| Smurfit Kappa Group ($SKG) | 10.2% | 10.8% | 11.2% | 11.8% | |
| Thyssenkrupp Ag ($0O1C) | 15.7% | -27.3% | -6.5% | 10.8% | |
| |
|---|
| Median (9 companies) | 12.1% | 10.3% | 9.6% | 10.8% | 6.7% |
|---|
| Barloworld ($BWO) | 12.4% | 14.0% | 13.5% | 14.1% | 12.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| General Electric Co. ($GEC) | 11.8x | 10.5x | 8.9x | 12.0x | |
| Coral Products ($CRU) | 1.5x | 1.5x | 2.9x | 3.4x | 2.7x |
| Smurfit Kappa Group ($SKG) | 2.9x | 2.9x | 2.6x | 2.7x | |
| Thyssenkrupp Ag ($0O1C) | 1.1x | 3.4x | 4.5x | 2.0x | |
| Jardine Strategic Hldgs ($88EI) | 0.6x | 1.4x | 1.3x | 1.3x | |
| |
|---|
| Median (9 companies) | 1.1x | 1.4x | 1.3x | 1.3x | 2.7x |
|---|
| Barloworld ($BWO) | 1.1x | 1.5x | 1.4x | 1.2x | 1.7x |
