Jardine Strategic Hldgs revenue decline accelerated to 8.8% in 2015 vs. 1.3% a year earliner
03 Mar 2016 • About Jardine Strategic Hldgs (
$88EI) • By InTwits
Jardine Strategic 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: 15.1% in 2015, 13.5% in 2014, 13.3% in 2013, 15.0% in 2012, 28.8% in 2011
- Jardine Strategic Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's in pair with industry average of 4.1%.
- CAPEX is quite volatile: 985 in 2015, 587 in 2014, 632 in 2013, 408 in 2012, 308 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jardine Strategic Hldgs ($88EI) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 31,049 | 33,098 | 32,666 | 32,236 | 29,391 | -8.8% |
| Gross Profit | 7,656 | 7,960 | 7,852 | 8,176 | 7,506 | -8.2% |
| SG&A | 4,249 | 4,581 | 4,680 | 4,906 | 4,892 | -0.3% |
| EBITDA | 8,942 | 4,965 | 4,343 | 4,365 | 4,441 | 1.7% |
| Net Income | 3,943 | 1,827 | 1,700 | 1,832 | 1,953 | 6.6% |
Balance Sheet
|
|---|
| Cash | 3,921 | 3,947 | 4,901 | 5,074 | 4,575 | -9.8% |
| Short Term Debt | 2,617 | 3,228 | 4,464 | 3,672 | 3,558 | -3.1% |
| Long Term Debt | 6,622 | 7,661 | 6,226 | 7,260 | 6,684 | -7.9% |
Cash flow
|
|---|
| Capex | 1,364 | 1,930 | 1,685 | 1,322 | 859 | -35.0% |
Ratios
|
|---|
| Revenue growth | 21.8% | 6.6% | -1.3% | -1.3% | -8.8% | |
| EBITDA growth | 19.1% | -44.5% | -12.5% | 0.5% | 1.7% | |
| Gross Margin | 24.7% | 24.0% | 24.0% | 25.4% | 25.5% | 0.2% |
| EBITDA Margin | 28.8% | 15.0% | 13.3% | 13.5% | 15.1% | 1.6% |
| Net Income Margin | 12.7% | 5.5% | 5.2% | 5.7% | 6.6% | 1.0% |
| SG&A, % of revenue | 13.7% | 13.8% | 14.3% | 15.2% | 16.6% | 1.4% |
| CAPEX, % of revenue | 4.4% | 5.8% | 5.2% | 4.1% | 2.9% | -1.2% |
| ROIC | 17.9% | 7.7% | 6.2% | 6.2% | 6.3% | 0.1% |
| ROE | 21.9% | 8.9% | 7.8% | 8.1% | 8.3% | 0.2% |
| Net Debt/EBITDA | 0.6x | 1.4x | 1.3x | 1.3x | 1.3x | -0.1x |
Revenue and profitability
The company's Revenue decreased on 8.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 13.5% to 15.1% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 1.4 pp from 15.2% to 16.6% in 2015.
Net Income marign increased slightly on 0.96 pp from 5.7% to 6.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.9%. Jardine Strategic Hldgs showed decline in CAPEX/Revenue of 2.9 pp from 5.8% in 2012 to 2.9% in 2015. It's average level of CAPEX/Revenue for the last three years was 4.1%.
Return on investment
The company operates at low ROIC (6.26%) and ROE (8.28%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from 1.3x to 1.3x in 2015. Debt decreased on 6.3% in 2015 while cash decreased on 9.8% 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 1.7x with the industry average at 4.7x.
Appendix 1: Peers in General Industrials
Below you can find Jardine Strategic Hldgs 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 |
|---|
| Macfarlane Group ($MACF) | | -1.9% | 1.4% | 6.9% | 10.0% |
| Thyssenkrupp Ag ($0O1C) | | -2.8% | -7.2% | 6.9% | 3.8% |
| Coral Products ($CRU) | | 31.2% | -0.2% | -0.3% | 1.2% |
| Barloworld ($BWO) | | 17.5% | 1.6% | 4.4% | 1.0% |
| Smurfit Kappa Group ($SKG) | | -0.3% | 8.5% | 1.6% | 0.3% |
| |
|---|
| Median (7 companies) | -15.1% | 1.3% | 1.6% | 4.4% | 1.0% |
|---|
| Jardine Strategic Hldgs ($88EI) | | 6.6% | -1.3% | -1.3% | -8.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Macfarlane Group ($MACF) | 30.2% | 32.0% | 31.2% | 30.9% | 31.5% |
| Honeywell International Inc ($HON) | 21.8% | 24.9% | 27.4% | 28.2% | 30.7% |
| Smurfit Kappa Group ($SKG) | 27.9% | 28.6% | 28.9% | 29.5% | 30.0% |
| Coral Products ($CRU) | 18.5% | 22.1% | 24.6% | 23.7% | 29.6% |
| General Electric Co. ($GEC) | 40.2% | 38.4% | 37.7% | 24.5% | 23.9% |
| |
|---|
| Median (7 companies) | 22.2% | 24.9% | 27.4% | 24.5% | 29.6% |
|---|
| Jardine Strategic Hldgs ($88EI) | 24.7% | 24.0% | 24.0% | 25.4% | 25.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honeywell International Inc ($HON) | 9.7% | 13.5% | 16.6% | 16.8% | 20.0% |
| Smurfit Kappa Group ($SKG) | 13.1% | 13.4% | 12.8% | 12.7% | 14.3% |
| General Electric Co. ($GEC) | 17.6% | 17.2% | 16.5% | 13.3% | 10.4% |
| Barloworld ($BWO) | 8.0% | 8.4% | 9.1% | 10.0% | 10.3% |
| Coral Products ($CRU) | 4.7% | 7.1% | 7.8% | 6.8% | 8.5% |
| |
|---|
| Median (7 companies) | 9.7% | 13.4% | 12.8% | 12.7% | 10.3% |
|---|
| Jardine Strategic Hldgs ($88EI) | 28.8% | 15.0% | 13.3% | 13.5% | 15.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| General Electric Co. ($GEC) | 8.9% | 10.5% | 9.4% | 6.1% | 6.3% |
| Smurfit Kappa Group ($SKG) | 3.8% | 4.3% | 4.4% | 5.3% | 5.3% |
| Honeywell International Inc ($HON) | 2.2% | 2.3% | 2.4% | 2.7% | 2.8% |
| Thyssenkrupp Ag ($0O1C) | 2.2% | 3.8% | 2.9% | 2.9% | 2.7% |
| Coral Products ($CRU) | 4.7% | 9.1% | 15.3% | 2.2% | 2.5% |
| |
|---|
| Median (7 companies) | 3.8% | 4.3% | 4.4% | 2.9% | 2.7% |
|---|
| Jardine Strategic Hldgs ($88EI) | 4.4% | 5.8% | 5.2% | 4.1% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honeywell International Inc ($HON) | 14.4% | 21.8% | 23.0% | 21.3% | 23.2% |
| Macfarlane Group ($MACF) | 15.1% | 17.9% | 22.2% | 19.0% | 17.8% |
| Smurfit Kappa Group ($SKG) | 10.2% | 10.8% | 11.2% | 11.8% | 13.9% |
| Barloworld ($BWO) | 12.4% | 14.0% | 13.5% | 14.1% | 12.9% |
| Thyssenkrupp Ag ($0O1C) | 15.7% | -27.3% | -6.5% | 10.8% | 9.5% |
| |
|---|
| Median (7 companies) | 12.1% | 10.8% | 11.2% | 11.8% | 12.9% |
|---|
| Jardine Strategic Hldgs ($88EI) | 17.9% | 7.7% | 6.2% | 6.2% | 6.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| General Electric Co. ($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 ($0O1C) | 1.1x | 3.4x | 4.5x | 2.0x | 1.8x |
| Barloworld ($BWO) | 1.1x | 1.5x | 1.4x | 1.2x | 1.7x |
| |
|---|
| Median (7 companies) | 1.1x | 1.5x | 1.4x | 1.3x | 1.8x |
|---|
| Jardine Strategic Hldgs ($88EI) | 0.6x | 1.4x | 1.3x | 1.3x | 1.3x |
