Palm Hills Developments Sae reports 159% Net Income growth and 72.9% Revenue growth
15 Feb 2016 • About Palm Hills Developments Sae (
$PHDC) • By InTwits
Palm Hills Developments Sae reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Palm Hills Developments Sae is a fast growth stock: 2015 revenue growth was 72.9%, 5 year revenue CAGR was 15.7% at 2015 ROIC 12.2%
- EBITDA Margin is expanding: 29.8% in 2015 vs. 20.2% in 2014 vs. -69.8% in 2011
- Palm Hills Developments Sae has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 12.4%.
- CAPEX is quite volatile: 44.2 in 2015, 12.5 in 2014, 6.4 in 2013, 5.3 in 2012, 22.9 in 2011
- The company has highly profitable business model: ROIC is at 12.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Palm Hills Developments Sae ($PHDC) key annual financial indicators
| mln. EGP | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 560 | 392 | 1,209 | 2,106 | 3,642 | 72.9% |
| Gross Profit | -38 | -20 | 270 | 705 | 1,150 | 63.0% |
| SG&A | | | 110 | 280 | 596 | 112.6% |
| EBITDA | -391 | -154 | 162 | 425 | 1,086 | 155.5% |
| Net Income | -327 | -135 | 239 | 353 | 916 | 159.2% |
Balance Sheet
|
|---|
| Cash | 60 | 56 | 111 | 195 | 966 | 395.3% |
| Short Term Debt | 748 | 1,479 | 1,225 | 1,019 | 666 | -34.7% |
| Long Term Debt | 2,077 | 1,167 | 1,580 | 1,998 | 3,067 | 53.5% |
Cash flow
|
|---|
| Capex | 23 | 5 | 6 | 13 | 44 | 253.1% |
Ratios
|
|---|
| Revenue growth | -68.1% | -30.0% | 208.5% | 74.2% | 72.9% | |
| EBITDA growth | -146.2% | -60.6% | -205.3% | 162.5% | 155.5% | |
| Gross Margin | -6.8% | -5.2% | 22.3% | 33.5% | 31.6% | -1.9% |
| EBITDA Margin | -69.8% | -39.2% | 13.4% | 20.2% | 29.8% | 9.6% |
| Net Income Margin | -58.4% | -34.3% | 19.8% | 16.8% | 25.1% | 8.4% |
| SG&A, % of revenue | | | 9.1% | 13.3% | 16.4% | 3.1% |
| CAPEX, % of revenue | 4.1% | 1.4% | 0.5% | 0.6% | 1.2% | 0.6% |
| ROIC | -6.4% | -2.9% | 2.0% | 5.6% | 12.2% | 6.6% |
| ROE | -8.1% | -3.9% | 7.3% | 10.0% | 18.3% | 8.3% |
| Net Debt/EBITDA | | | 16.6x | 6.6x | 2.5x | -4.1x |
Revenue and profitability
The company's Revenue jumped on 72.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.1 pp from 35.4% to 31.3% in 2015.
Gross Margin decreased slightly on 1.9 pp from 33.5% to 31.6% in 2015. SG&A as a % of Revenue increased on 3.1 pp from 13.3% to 16.4% in 2015.
Net Income marign increased on 8.4 pp from 16.8% to 25.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.2%. CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 0.78%.
Return on investment
The company operates at good ROIC (12.17%) and ROE (18.26%). ROIC increased on 6.6 pp from 5.6% to 12.2% in 2015. ROE increased on 8.3 pp from 10.0% to 18.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.5x and Debt / EBITDA is 3.4x. Net Debt / EBITDA dropped on 4.1x from 6.6x to 2.5x in 2015. Debt surged on 23.7% in 2015 while cash jumped on 395% in 2015.
Appendix 1: Peers in
Below you can find Palm Hills Developments Sae benchmarking vs. other companies in 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 |
|---|
| Development Securities(Investments) ($36JS) | | | | -20.4% | 156.8% |
| Wereldhave Property Corp ($93IA) | | | -9.0% | 13.5% | 65.7% |
| Bld Property Hldgs ($09GE) | | | -1.1% | 16.0% | 39.3% |
| Grosvenor Uk Finance ($62QE) | | | 0.8% | 15.1% | 14.3% |
| Bbva International ($80LJ) | | | -1.5% | -3.5% | 14.0% |
| |
|---|
| Median (44 companies) | 31.9% | -6.3% | 1.5% | 2.9% | 1.0% |
|---|
| Palm Hills Developments Sae ($PHDC) | | -30.0% | 208.5% | 74.2% | 72.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sanctuary Housing ($BB21) | | | 98.2% | 97.0% | 97.6% |
| Glh Hotels Ltd ($97KI) | | | | 57.8% | 57.6% |
| Aseana Properties Ltd ($ASPL) | 15.8% | 9.6% | 22.2% | 44.7% | |
| Lewis(John) ($BC32) | | 33.4% | 33.4% | 33.4% | 33.8% |
| Lewis(John)Partnership ($BD32) | | 33.4% | 33.4% | 33.4% | 33.8% |
| |
|---|
| Median (8 companies) | 10.4% | 30.9% | 31.8% | 33.4% | 34.6% |
|---|
| Palm Hills Developments Sae ($PHDC) | -6.8% | -5.2% | 22.3% | 33.5% | 31.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bld Property Hldgs ($09GE) | | 108.3% | 91.0% | 218.5% | 215.1% |
| Intu Debenture ($69ZM) | | 70.3% | 79.8% | 163.8% | 107.2% |
| Housing Finance Corp ($68HB) | | 0.7% | 1.0% | 2.4% | 97.9% |
| T.H.F.C.(Indexed 2) ($90IL) | | 0.7% | 1.0% | 2.4% | 97.9% |
| T.H.F.C.(Indexed) ($96JS) | | 0.7% | 1.0% | 2.4% | 97.9% |
| |
|---|
| Median (26 companies) | 19.3% | 26.1% | 32.4% | 37.3% | 48.9% |
|---|
| Palm Hills Developments Sae ($PHDC) | -69.8% | -39.2% | 13.4% | 20.2% | 29.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wereldhave Property Corp ($93IA) | | 145.6% | 147.1% | 848.7% | 379.0% |
| Sanctuary Housing ($BB21) | | | 0.0% | 0.0% | 60.0% |
| Bld Property Hldgs ($09GE) | | 146.6% | 195.3% | 186.5% | 59.2% |
| Mid Kent Water ($48HO) | | 46.7% | 43.9% | 47.1% | 37.7% |
| Development Securities(Investments) ($36JS) | | | 2.9% | 13.5% | 24.6% |
| |
|---|
| Median (35 companies) | 2.8% | 3.8% | 3.0% | 3.3% | 4.4% |
|---|
| Palm Hills Developments Sae ($PHDC) | 4.1% | 1.4% | 0.5% | 0.6% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lewis(John) ($BC32) | | 12.5% | 15.6% | 16.4% | 18.6% |
| Lewis(John)Partnership ($BD32) | | 12.5% | 15.6% | 16.4% | 18.6% |
| Canadian Pacific Railways ($BC87) | | 8.2% | 10.5% | 16.0% | 17.0% |
| Calgary & Edmonton Railway Co ($05GM) | | 8.2% | 10.5% | 16.0% | 17.0% |
| Aeci ($87FZ) | | 12.9% | 14.5% | 16.8% | 15.0% |
| |
|---|
| Median (44 companies) | 9.1% | 1.7% | 3.4% | 3.3% | 3.2% |
|---|
| Palm Hills Developments Sae ($PHDC) | -6.4% | -2.9% | 2.0% | 5.6% | 12.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Skipton Building Society ($SBSA) | | 29.7x | 30.3x | 30.2x | 34.7x |
| Housing Finance Corp ($68HB) | | 2,312.9x | 1,673.5x | 718.9x | 20.3x |
| T.H.F.C.(Indexed) ($96JS) | | 2,312.9x | 1,673.5x | 718.9x | 20.3x |
| T.H.F.C.(Indexed 2) ($90IL) | | 2,312.9x | 1,673.5x | 718.9x | 20.3x |
| T.H.F.C.(Social Housing Finance) ($96JP) | | 2,312.9x | 1,673.5x | 718.9x | 20.3x |
| |
|---|
| Median (25 companies) | 1.9x | 3.2x | 3.5x | 3.4x | 3.2x |
|---|
| Palm Hills Developments Sae ($PHDC) | | | 16.6x | 6.6x | 2.5x |
