Macfarlane Group reports 20.0% EBITDA growth and 10.0% Revenue growth
25 Feb 2016 • About Macfarlane Group (
$MACF) • By InTwits
Macfarlane Group reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 5.7% in 2015 vs. 5.3% in 2014 vs. 4.2% in 2011
- Macfarlane Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has highly profitable business model: ROIC is at 17.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Macfarlane Group ($MACF) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 144.6 | 141.8 | 143.9 | 153.8 | 169.1 | 10.0% |
| Gross Profit | 43.7 | 45.3 | 44.9 | 47.5 | 53.2 | 12.1% |
| SG&A | | | | 40.8 | 37.9 | -7.1% |
| EBITDA | 6.1 | 7.2 | 7.6 | 8.1 | 9.7 | 20.0% |
| Net Income | 3.4 | 3.9 | 3.5 | 4.4 | 5.5 | 22.7% |
Balance Sheet
|
|---|
| Cash | 0.2 | 0.3 | 0.5 | 1.3 | 1.4 | 12.6% |
| Short Term Debt | 7.7 | 7.1 | 6.4 | 11.5 | 13.4 | 16.7% |
| Long Term Debt | 0.2 | 0.0 | 0.0 | 0.5 | 0.7 | 54.4% |
Cash flow
|
|---|
| Capex | 1.2 | 0.8 | 0.8 | 0.6 | 0.8 | 29.6% |
Ratios
|
|---|
| Revenue growth | 6.7% | -1.9% | 1.4% | 6.9% | 10.0% | |
| EBITDA growth | 4.3% | 17.8% | 5.9% | 6.8% | 20.0% | |
| Gross Margin | 30.2% | 32.0% | 31.2% | 30.9% | 31.5% | 0.6% |
| EBITDA Margin | 4.2% | 5.0% | 5.3% | 5.3% | 5.7% | 0.5% |
| Net Income Margin | 2.4% | 2.7% | 2.4% | 2.9% | 3.2% | 0.3% |
| SG&A, % of revenue | | | | 26.5% | 22.4% | -4.1% |
| CAPEX, % of revenue | 0.8% | 0.6% | 0.5% | 0.4% | 0.5% | 0.1% |
| ROIC | 15.1% | 17.9% | 22.2% | 19.0% | 17.8% | -1.2% |
| ROE | 13.4% | 16.2% | 13.7% | 15.7% | 17.1% | 1.4% |
| Net Debt/EBITDA | 1.3x | 1.0x | 0.8x | 1.3x | 1.3x | -0.0x |
Revenue and profitability
Macfarlane Group's Revenue increased on 10.0% in 2015. 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 slightly on 0.60 pp from 30.9% to 31.5% in 2015. SG&A as a % of Revenue decreased on 4.1 pp from 26.5% to 22.4% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.48%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.47%.
Return on investment
The company operates at good ROIC (17.81%) and ROE (17.11%). ROIC decreased slightly on 1.2 pp from 19.0% to 17.8% in 2015. ROE increased slightly on 1.4 pp from 15.7% to 17.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.5x. Net Debt / EBITDA decreased slightly on 0.012x from 1.3x to 1.3x in 2015. Debt jumped on 18.2% in 2015 while cash surged on 12.6% in 2015.
Appendix 1: Peers in General Industrials
Below you can find Macfarlane Group benchmarking vs. other companies in General Industrials 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 |
|---|
| Robinson ($RBN) | 10.3% | -1.6% | 10.2% | 20.3% | |
| Press Corp ($PESD) | -40.5% | 111.1% | 52.6% | 20.3% | |
| Thyssenkrupp Ag ($0O1C) | | -2.8% | -7.2% | 6.9% | 3.8% |
| Barloworld ($BWO) | | 17.5% | 1.6% | 4.4% | 1.0% |
| Honeywell International Inc ($HON) | | 3.1% | 3.7% | 3.2% | -4.3% |
| |
|---|
| Median (9 companies) | 10.3% | 3.1% | 1.6% | 3.2% | 0.7% |
|---|
| Macfarlane Group ($MACF) | | -1.9% | 1.4% | 6.9% | 10.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Press Corp ($PESD) | 75.4% | 58.9% | 54.4% | 56.0% | |
| Smurfit Kappa Group ($SKG) | 27.9% | 28.6% | 28.9% | 29.5% | 30.0% |
| Honeywell International Inc ($HON) | 21.8% | 24.9% | 27.4% | 28.2% | 30.7% |
| Jardine Strategic Hldgs ($88EI) | 24.7% | 24.0% | 24.0% | 25.4% | |
| General Electric Co. ($GEC) | 40.2% | 38.4% | 37.7% | 24.5% | 23.9% |
| |
|---|
| Median (9 companies) | 22.2% | 24.0% | 24.6% | 24.5% | 26.8% |
|---|
| Macfarlane Group ($MACF) | 30.2% | 32.0% | 31.2% | 30.9% | 31.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Press Corp ($PESD) | 37.1% | 29.5% | 29.6% | 29.2% | |
| Honeywell International Inc ($HON) | 9.7% | 13.5% | 16.6% | 16.8% | 20.0% |
| Robinson ($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% | 10.4% |
| |
|---|
| Median (9 companies) | 13.1% | 13.5% | 13.3% | 13.3% | 10.4% |
|---|
| Macfarlane Group ($MACF) | 4.2% | 5.0% | 5.3% | 5.3% | 5.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Press Corp ($PESD) | 22.7% | 21.3% | 8.5% | 12.1% | |
| General Electric Co. ($GEC) | 8.9% | 10.5% | 9.4% | 6.1% | 6.3% |
| Smurfit Kappa Group ($SKG) | 3.8% | 4.3% | 4.4% | 5.3% | 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% | 2.7% |
|---|
| Macfarlane Group ($MACF) | 0.8% | 0.6% | 0.5% | 0.4% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Press Corp ($PESD) | 12.1% | 21.6% | 27.1% | 24.7% | |
| Honeywell International Inc ($HON) | 14.4% | 21.8% | 23.0% | 21.3% | 23.2% |
| Barloworld ($BWO) | 12.4% | 14.0% | 13.5% | 14.1% | 12.9% |
| Smurfit Kappa Group ($SKG) | 10.2% | 10.8% | 11.2% | 11.8% | 13.9% |
| Thyssenkrupp Ag ($0O1C) | 15.7% | -27.3% | -6.5% | 10.8% | 9.5% |
| |
|---|
| Median (9 companies) | 12.1% | 10.3% | 9.6% | 10.8% | 11.2% |
|---|
| Macfarlane Group ($MACF) | 15.1% | 17.9% | 22.2% | 19.0% | 17.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| General Electric Co. ($GEC) | 11.8x | 10.5x | 8.9x | 12.0x | 10.6x |
| Coral Products ($CRU) | 1.5x | 1.5x | 2.9x | 3.4x | 2.7x |
| Smurfit Kappa Group ($SKG) | 2.9x | 2.9x | 2.6x | 2.7x | 2.6x |
| Thyssenkrupp Ag ($0O1C) | 1.1x | 3.4x | 4.5x | 2.0x | 1.8x |
| Jardine Strategic Hldgs ($88EI) | 0.6x | 1.4x | 1.3x | 1.3x | |
| |
|---|
| Median (9 companies) | 1.1x | 1.5x | 1.4x | 1.3x | 2.2x |
|---|
| Macfarlane Group ($MACF) | 1.3x | 1.0x | 0.8x | 1.3x | 1.3x |
