Jardine Matheson Hldgs revenue decline accelerated from 3.2% in 2014 to 5.3% in 2015
03 Mar 2016 • About Jardine Matheson Hldgs (
$J36) • By InTwits
Jardine Matheson Hldgs reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 12.8% in 2015, 11.8% in 2014, 11.6% in 2013, 13.1% in 2012, 24.4% in 2011
- Jardine Matheson Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 5.5%.
- CAPEX is quite volatile: 1,701 in 2015, 2,727 in 2014, 5,584 in 2013, 5,671 in 2012, 6,094 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.6%
- It operates with high leverage: Net Debt/EBITDA is 1.3x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jardine Matheson Hldgs ($J36) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 37,967 | 39,593 | 39,465 | 39,921 | 37,007 | -7.3% |
| Gross Profit | 8,599 | 8,864 | 8,802 | 9,346 | 8,632 | -7.6% |
| SG&A | 5,073 | 5,474 | 5,586 | 5,973 | 5,941 | -0.5% |
| EBITDA | 9,277 | 5,183 | 4,565 | 4,691 | 4,726 | 0.7% |
| Net Income | 3,449 | 1,671 | 1,566 | 1,710 | 1,797 | 5.1% |
Balance Sheet
|
|---|
| Cash | 4,185 | 4,298 | 5,214 | 5,315 | 4,782 | -10.0% |
| Short Term Debt | 3,017 | 3,619 | 4,811 | 4,068 | 3,991 | -1.9% |
| Long Term Debt | 7,050 | 7,896 | 6,473 | 7,416 | 6,995 | -5.7% |
Cash flow
|
|---|
| Capex | 1,367 | 1,936 | 1,735 | 1,390 | 1,326 | -4.6% |
Ratios
|
|---|
| Revenue growth | 26.3% | 4.3% | -0.3% | 1.2% | -7.3% | |
| EBITDA growth | 18.8% | -44.1% | -11.9% | 2.8% | 0.7% | |
| Gross Margin | 22.6% | 22.4% | 22.3% | 23.4% | 23.3% | -0.1% |
| EBITDA Margin | 24.4% | 13.1% | 11.6% | 11.8% | 12.8% | 1.0% |
| Net Income Margin | 9.1% | 4.2% | 4.0% | 4.3% | 4.9% | 0.6% |
| SG&A, % of revenue | 13.4% | 13.8% | 14.2% | 15.0% | 16.1% | 1.1% |
| CAPEX, % of revenue | 3.6% | 4.9% | 4.4% | 3.5% | 3.6% | 0.1% |
| ROIC | 18.2% | 7.9% | 6.4% | 6.6% | 6.6% | 0.0% |
| ROE | 22.9% | 9.8% | 8.7% | 9.1% | 9.2% | 0.1% |
| Net Debt/EBITDA | 0.6x | 1.4x | 1.3x | 1.3x | 1.3x | -0.0x |
Revenue and profitability
Jardine Matheson Hldgs's Revenue decreased on 7.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.0 pp from 11.8% to 12.8% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 15.0% to 16.1% in 2015.
Net Income marign increased slightly on 0.57 pp from 4.3% to 4.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.6% in 2015. CAPEX/Revenue decreased slightly on 1.3 pp from 4.9% in 2012 to 3.6% in 2015. It's average CAPEX/Revenue for the last three years was 3.8%.
Return on investment
The company operates at low ROIC (6.61%) and ROE (9.16%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 2.3x. Net Debt / EBITDA showed almost no change in 2015. Debt decreased on 4.3% in 2015 while cash dropped on 10.0% in 2015.
Valuation
The company's trades at EV/EBITDA 1.4x and P/E 0.2x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 1.9x with the industry average at 4.7x.
Appendix 1: Peers in Food & Drug Retailers
Below we provide Jardine Matheson Hldgs benchmarking against other companies in Food & Drug Retailers 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 |
|---|
| Lenta Ltd ($LNTA) | | 22.4% | 31.3% | 34.5% | 30.3% |
| Magnit PJSC ($MGNT) | | 33.5% | 29.4% | 32.3% | 24.4% |
| X5 Retail Group N.V ($89VS) | 32.6% | 8.0% | 9.0% | 18.5% | |
| Crawshaw Group ($CRAW) | | -0.9% | -0.6% | 11.9% | 17.1% |
| O'Key Group Sa ($OKEY) | 12.7% | 26.0% | 18.9% | 9.0% | |
| |
|---|
| Median (8 companies) | 32.6% | 15.2% | 8.7% | 10.5% | 17.1% |
|---|
| Jardine Matheson Hldgs ($J36) | | 4.3% | -0.3% | 1.2% | -7.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Snacktime ($SNAK) | 55.0% | 56.6% | 51.8% | 55.1% | |
| Crawshaw Group ($CRAW) | 43.6% | 43.3% | 43.7% | 43.8% | 44.4% |
| Dairy Farm International Hldgs ($DFIB) | 29.4% | 28.9% | 29.8% | 29.9% | 29.5% |
| Magnit PJSC ($MGNT) | 24.3% | 26.5% | 28.5% | 28.9% | 28.5% |
| O'Key Group Sa ($OKEY) | 22.8% | 23.5% | 23.9% | 24.5% | |
| |
|---|
| Median (8 companies) | 24.1% | 25.1% | 26.4% | 26.7% | 28.5% |
|---|
| Jardine Matheson Hldgs ($J36) | 22.6% | 22.4% | 22.3% | 23.4% | 23.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Magnit PJSC ($MGNT) | 7.8% | 10.3% | 11.0% | 11.3% | 10.9% |
| Lenta Ltd ($LNTA) | 9.3% | 10.7% | 11.2% | 11.0% | 11.1% |
| X5 Retail Group N.V ($89VS) | 7.3% | 6.9% | 7.1% | 7.7% | |
| O'Key Group Sa ($OKEY) | 7.9% | 8.1% | 7.3% | 7.3% | |
| Dairy Farm International Hldgs ($DFIB) | 7.6% | 6.6% | 6.9% | 6.6% | 5.8% |
| |
|---|
| Median (8 companies) | 7.7% | 6.7% | 7.0% | 6.9% | 6.4% |
|---|
| Jardine Matheson Hldgs ($J36) | 24.4% | 13.1% | 11.6% | 11.8% | 12.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenta Ltd ($LNTA) | 4.4% | 13.4% | 16.2% | 17.9% | 12.3% |
| O'Key Group Sa ($OKEY) | 9.3% | 7.1% | 8.7% | 10.6% | |
| Magnit PJSC ($MGNT) | 14.5% | 10.5% | 8.6% | 7.3% | 5.7% |
| X5 Retail Group N.V ($89VS) | 5.1% | 4.6% | 3.8% | 4.5% | |
| Snacktime ($SNAK) | 2.6% | 5.3% | 4.3% | 3.4% | |
| |
|---|
| Median (8 companies) | 4.0% | 4.9% | 4.1% | 3.9% | 5.7% |
|---|
| Jardine Matheson Hldgs ($J36) | 3.6% | 4.9% | 4.4% | 3.5% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Magnit PJSC ($MGNT) | 17.9% | 23.1% | 26.0% | 33.2% | 32.6% |
| Dairy Farm International Hldgs ($DFIB) | 39.6% | 32.8% | 34.6% | 31.1% | 21.6% |
| Lenta Ltd ($LNTA) | 44.1% | 42.9% | 34.0% | 24.5% | 20.3% |
| O'Key Group Sa ($OKEY) | 21.7% | 25.0% | 21.8% | 17.1% | |
| X5 Retail Group N.V ($89VS) | 11.9% | 3.1% | 13.0% | 14.9% | |
| |
|---|
| Median (8 companies) | 14.9% | 16.1% | 17.4% | 16.0% | 20.3% |
|---|
| Jardine Matheson Hldgs ($J36) | 18.2% | 7.9% | 6.4% | 6.6% | 6.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Snacktime ($SNAK) | 0.8x | 2.0x | 6.0x | 4.4x | |
| Lenta Ltd ($LNTA) | 2.4x | 2.2x | 2.5x | 2.8x | 1.9x |
| O'Key Group Sa ($OKEY) | 1.2x | 1.0x | 1.3x | 2.4x | |
| X5 Retail Group N.V ($89VS) | 3.1x | 3.3x | 2.7x | 2.2x | |
| Magnit PJSC ($MGNT) | 1.3x | 1.1x | 1.1x | 0.9x | 0.9x |
| |
|---|
| Median (8 companies) | 1.3x | 1.0x | 1.2x | 1.6x | 0.7x |
|---|
| Jardine Matheson Hldgs ($J36) | 0.6x | 1.4x | 1.3x | 1.3x | 1.3x |
