Taylor Wimpey Net Income surged on 30.9% in 2015 and Revenue jumped on 16.9%
01 Mar 2016 • About Taylor Wimpey (
$TW.) • By InTwits
Taylor Wimpey reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Taylor Wimpey is a growth stock: 2015 revenue growth was 16.9%, 5 year revenue CAGR was 12.2% at 2015 ROIC 24.1%
- EBITDA Margin is expanding: 20.2% in 2015 vs. 18.6% in 2014 vs. 8.5% in 2011
- Taylor Wimpey has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has highly profitable business model: ROIC is at 24.1%
- It operates with high leverage: Net Debt/EBITDA is -0.4x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Taylor Wimpey ($TW.) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,808 | 2,019 | 2,296 | 2,686 | 3,140 | 16.9% |
| Gross Profit | 288 | 356 | 495 | 640 | 787 | 23.1% |
| SG&A | 136 | 142 | 152 | 159 | 172 | 8.5% |
| EBITDA | 154 | 226 | 358 | 500 | 635 | 27.0% |
| Net Income | 99 | 229 | 271 | 374 | 490 | 30.9% |
Balance Sheet
|
|---|
| Cash | 148 | 190 | 105 | 213 | 323 | 51.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 265 | 249 | 100 | 100 | 100 | 0.0% |
Cash flow
|
|---|
| Capex | 2 | 4 | 3 | 10 | 6 | -42.3% |
Ratios
|
|---|
| Revenue growth | 2.3% | 11.7% | 13.7% | 17.0% | 16.9% | |
| EBITDA growth | 212.1% | 46.4% | 58.7% | 39.5% | 27.0% | |
| Gross Margin | 15.9% | 17.6% | 21.6% | 23.8% | 25.1% | 1.3% |
| EBITDA Margin | 8.5% | 11.2% | 15.6% | 18.6% | 20.2% | 1.6% |
| Net Income Margin | 5.5% | 11.3% | 11.8% | 13.9% | 15.6% | 1.7% |
| SG&A, % of revenue | 7.5% | 7.0% | 6.6% | 5.9% | 5.5% | -0.4% |
| CAPEX, % of revenue | 0.1% | 0.2% | 0.1% | 0.4% | 0.2% | -0.2% |
| ROIC | 7.5% | 12.2% | 17.7% | 21.7% | 24.1% | 2.4% |
| ROE | 5.4% | 12.0% | 12.8% | 15.6% | 18.6% | 3.0% |
| Net Debt/EBITDA | 0.8x | 0.3x | -0.0x | -0.2x | -0.4x | -0.1x |
Revenue and profitability
The company's Revenue surged on 16.9% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.6 pp from 18.6% to 20.2% in 2015.
Gross Margin increased slightly on 1.3 pp from 23.8% to 25.1% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.7 pp from 13.9% to 15.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.18% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 0.22%.
Return on investment
The company operates at high and attractive ROIC (24.08%) while ROE is a bit lower (18.65%). ROIC increased on 2.4 pp from 21.7% to 24.1% in 2015. ROE increased on 3.0 pp from 15.6% to 18.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.4x and Debt / EBITDA is 0.2x. Net Debt / EBITDA dropped on 0.1x from -0.2x to -0.4x in 2015. Debt didn't change in 2015 while cash jumped on 51.9% in 2015.
Appendix 1: Peers in Household Goods & Home Construction
Below we provide Taylor Wimpey benchmarking against other companies in Household Goods & Home Construction 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 |
|---|
| Abbey ($ABBY) | | 5.6% | 40.0% | 15.9% | 51.0% |
| Colefax Group ($CFX) | | -9.4% | 0.3% | 10.5% | -1.6% |
| Reckitt Benckiser Group ($RB.) | | 0.9% | -3.1% | -4.6% | 0.4% |
| Teco Electric & Machinery Co Ltd ($TECD) | 3.9% | 4.1% | 16.2% | -5.1% | |
| Havelock Europa ($HVE) | 0.3% | 1.3% | -11.1% | -6.9% | |
| |
|---|
| Median (7 companies) | 0.3% | 1.3% | 0.3% | -5.1% | 5.9% |
|---|
| Taylor Wimpey ($TW.) | | 11.7% | 13.7% | 17.0% | 16.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Reckitt Benckiser Group ($RB.) | 57.4% | 57.9% | 56.7% | 57.7% | 59.1% |
| Colefax Group ($CFX) | 55.1% | 55.1% | 55.4% | 53.3% | 54.7% |
| Abbey ($ABBY) | 24.5% | 23.6% | 17.3% | 25.8% | 30.6% |
| Teco Electric & Machinery Co Ltd ($TECD) | 22.9% | 23.5% | 23.8% | 24.9% | |
| Depa Ltd ($DEPS) | 16.6% | 8.1% | 8.1% | 13.4% | |
| |
|---|
| Median (6 companies) | 23.7% | 23.5% | 20.6% | 25.4% | 54.7% |
|---|
| Taylor Wimpey ($TW.) | 15.9% | 17.6% | 21.6% | 23.8% | 25.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Reckitt Benckiser Group ($RB.) | 26.9% | 27.1% | 22.0% | 26.3% | 27.2% |
| Abbey ($ABBY) | 20.7% | 19.4% | 13.3% | 22.6% | 31.2% |
| 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% | 8.7% |
| Airea ($AIEA) | 6.9% | 5.9% | 7.4% | 7.0% | 8.0% |
| |
|---|
| Median (7 companies) | 9.7% | 6.6% | 7.6% | 9.1% | 18.0% |
|---|
| Taylor Wimpey ($TW.) | 8.5% | 11.2% | 15.6% | 18.6% | 20.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Abbey ($ABBY) | 9.4% | 12.2% | 6.5% | 8.0% | 8.0% |
| Teco Electric & Machinery Co Ltd ($TECD) | 2.7% | 1.4% | 1.4% | 3.6% | |
| Colefax Group ($CFX) | 3.7% | 4.9% | 3.1% | 2.0% | 2.9% |
| Reckitt Benckiser Group ($RB.) | 1.7% | 1.7% | 2.1% | 1.8% | 1.7% |
| Depa Ltd ($DEPS) | 4.1% | 2.4% | 1.1% | 1.1% | |
| |
|---|
| Median (7 companies) | 2.7% | 2.4% | 1.4% | 1.8% | 2.3% |
|---|
| Taylor Wimpey ($TW.) | 0.1% | 0.2% | 0.1% | 0.4% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Colefax Group ($CFX) | 27.6% | 10.7% | 13.5% | 22.0% | 20.6% |
| Reckitt Benckiser Group ($RB.) | 24.8% | 23.3% | 17.3% | 19.7% | 20.3% |
| Abbey ($ABBY) | 5.8% | 5.4% | 4.7% | 11.2% | 21.1% |
| Teco Electric & Machinery Co Ltd ($TECD) | 6.3% | 7.1% | 8.3% | 7.3% | |
| Airea ($AIEA) | 6.0% | 3.3% | 7.2% | 6.4% | 11.7% |
| |
|---|
| Median (7 companies) | 6.0% | 5.4% | 7.2% | 7.3% | 20.4% |
|---|
| Taylor Wimpey ($TW.) | 7.5% | 12.2% | 17.7% | 21.7% | 24.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Reckitt Benckiser Group ($RB.) | 0.7x | 0.9x | 1.0x | 0.7x | 0.7x |
| Havelock Europa ($HVE) | 3.7x | 1.4x | 0.1x | -0.2x | |
| Colefax Group ($CFX) | -0.7x | -1.8x | -1.4x | -0.6x | -1.0x |
| Abbey ($ABBY) | -1.8x | -1.5x | -2.6x | -1.2x | -1.3x |
| Airea ($AIEA) | -1.5x | -0.9x | -1.5x | -1.2x | -0.9x |
| |
|---|
| Median (7 companies) | -0.4x | -0.4x | -1.2x | -1.2x | -1.0x |
|---|
| Taylor Wimpey ($TW.) | 0.8x | 0.3x | -0.0x | -0.2x | -0.4x |
