Irish Continental Group reports 347% CAPEX growth and 10.5% Revenue growth
07 Mar 2016 • About Irish Continental Group (
$ICGC) • By InTwits
Irish Continental Group reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Irish Continental Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.4%. At the same time it's a lot of higher than industry average of 1.3%.
- CAPEX is quite volatile: 34.4 in 2015, 7.7 in 2014, 8.4 in 2013, 8.1 in 2012, 5.9 in 2011
- The company has highly profitable business model: ROIC is at 33.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Irish Continental Group ($ICGC) key annual financial indicators
| mln. € | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 251.7 | 256.1 | 264.7 | 290.1 | 320.6 | 10.5% |
| EBITDA | 47.5 | 43.8 | 49.3 | 79.3 | 75.6 | -4.7% |
| Net Income | 27.7 | 42.4 | 26.8 | 56.0 | 53.7 | -4.1% |
Balance Sheet
|
|---|
| Cash | 9.8 | 22.3 | 18.5 | 22.7 | 25.0 | 10.1% |
| Short Term Debt | 0.9 | 15.1 | 16.7 | 17.3 | 14.0 | -19.1% |
| Long Term Debt | 16.7 | 123.2 | 95.2 | 66.7 | 55.3 | -17.1% |
Cash flow
|
|---|
| Capex | 5.9 | 8.1 | 8.4 | 7.7 | 34.4 | 346.8% |
Ratios
|
|---|
| Revenue growth | -4.0% | 1.7% | 3.4% | 9.6% | 10.5% | |
| EBITDA growth | -24.7% | -7.8% | 12.6% | 60.9% | -4.7% | |
| EBITDA Margin | 18.9% | 17.1% | 18.6% | 27.3% | 23.6% | -3.8% |
| Net Income Margin | 11.0% | 16.6% | 10.1% | 19.3% | 16.7% | -2.6% |
| CAPEX, % of revenue | 2.3% | 3.2% | 3.2% | 2.7% | 10.7% | 8.1% |
| ROIC | 14.3% | 14.6% | 18.9% | 40.0% | 33.9% | -6.1% |
| ROE | 16.8% | 50.0% | 89.0% | 108.2% | 60.7% | -47.5% |
| Net Debt/EBITDA | 0.2x | 2.6x | 1.9x | 0.8x | 0.6x | -0.2x |
Revenue and profitability
Irish Continental Group's Revenue surged on 10.5% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.8 pp from 27.3% to 23.6% in 2015.
Net Income marign decreased on 2.6 pp from 19.3% to 16.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Irish Continental Group had CAPEX/Revenue of 10.7%. Irish Continental Group showed CAPEX/Revenue growth of 7.6 pp from 3.2% in 2012 to 10.7% in 2015. For the last three years the average CAPEX/Revenue was 5.5%.
Return on investment
The company operates at high and attractive ROIC (33.88%) and ROE (60.75%). ROIC decreased on 6.1 pp from 40.0% to 33.9% in 2015. ROE dropped on 47.5 pp from 108% to 60.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is 0.9x. Net Debt / EBITDA dropped on 0.2x from 0.8x to 0.6x in 2015. Debt dropped on 17.5% in 2015 while cash jumped on 10.1% in 2015.
Appendix 1: Peers in Travel & Leisure
Below we provide Irish Continental Group benchmarking against other companies in Travel & Leisure 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 |
|---|
| Dalata Hotel Group ($DAL) | | 55.4% | 12.0% | 30.4% | 185.4% |
| Action Hotels ($AHCG) | 19.5% | 12.3% | 5.4% | 26.2% | |
| Everyman Media Group ($EMAN) | 23.0% | 23.4% | 26.5% | 22.4% | |
| Paddy Power ($PAP) | 17.0% | 30.9% | 14.0% | 18.3% | |
| Eclectic Bar Grp ($BAR) | | 27.6% | 3.8% | 10.5% | -1.9% |
| |
|---|
| Median (23 companies) | 19.5% | 12.3% | 8.8% | 6.1% | 7.6% |
|---|
| Irish Continental Group ($ICGC) | | 1.7% | 3.4% | 9.6% | 10.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 91.2% | 84.7% | 82.8% | 81.0% | |
| Eclectic Bar Grp ($BAR) | 80.1% | 79.1% | 78.9% | 79.0% | 79.4% |
| Action Hotels ($AHCG) | 73.2% | 75.1% | 75.0% | 73.3% | |
| Dalata Hotel Group ($DAL) | 61.8% | 61.2% | 62.0% | 62.8% | 61.5% |
| Everyman Media Group ($EMAN) | 59.9% | 57.6% | 59.2% | 58.9% | |
| |
|---|
| Median (12 companies) | 21.1% | 29.5% | 30.8% | 30.2% | 22.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 24.0% | 31.0% | 27.9% | 28.6% | |
| Paddy Power ($PAP) | 33.8% | 25.7% | 23.7% | 24.0% | |
| Mandarin Oriental International ($MDOB) | 20.9% | 19.5% | 22.4% | 24.0% | 26.2% |
| Young & Co'S Brewery ($YNGN) | 22.3% | 21.2% | 21.8% | 21.7% | 22.9% |
| Ryanair Hldgs ($RYA) | 21.1% | 22.6% | 21.5% | 20.1% | 25.1% |
| |
|---|
| Median (23 companies) | 13.4% | 12.8% | 12.9% | 12.3% | 13.1% |
|---|
| Irish Continental Group ($ICGC) | 18.9% | 17.1% | 18.6% | 27.3% | 23.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Action Hotels ($AHCG) | 47.8% | 21.0% | 25.6% | 90.0% | |
| Dalata Hotel Group ($DAL) | 2.0% | 0.7% | 6.2% | 26.7% | 12.7% |
| Everyman Media Group ($EMAN) | 0.0% | 0.0% | 36.4% | 25.9% | |
| Air China ($AIRC) | 23.9% | 16.8% | 19.1% | 18.7% | |
| Marston'S ($MARS) | | 18.0% | 19.3% | 17.5% | 16.2% |
| |
|---|
| Median (23 companies) | 6.7% | 4.4% | 5.4% | 4.6% | 8.2% |
|---|
| Irish Continental Group ($ICGC) | 2.3% | 3.2% | 3.2% | 2.7% | 10.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Paddy Power ($PAP) | 58.5% | 53.4% | 47.2% | 47.6% | |
| Air Partner ($AIP) | 51.1% | 34.8% | 27.5% | 21.2% | 20.0% |
| Hanatour Service Inc ($TOUR) | 17.4% | 22.5% | 19.9% | 19.6% | 19.4% |
| Netplay Tv ($NPT) | | | 26.3% | 10.2% | |
| Ryanair Hldgs ($RYA) | 7.6% | 9.7% | 10.0% | 9.5% | 13.3% |
| |
|---|
| Median (24 companies) | 7.5% | 6.4% | 6.9% | 4.2% | 5.8% |
|---|
| Irish Continental Group ($ICGC) | 14.3% | 14.6% | 18.9% | 40.0% | 33.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Marston'S ($MARS) | | | 6.5x | 14.0x | 8.2x |
| Meikles Ltd ($MIK) | | | 5.1x | 10.7x | 73.1x |
| Action Hotels ($AHCG) | 14.1x | 11.2x | 7.8x | 9.6x | |
| Peel Hotels ($PHO) | 5.8x | 8.2x | 7.3x | 5.9x | 4.4x |
| Air China ($AIRC) | 4.7x | 4.7x | 6.4x | 5.6x | |
| |
|---|
| Median (21 companies) | 1.9x | 1.0x | 2.3x | 1.3x | 2.5x |
|---|
| Irish Continental Group ($ICGC) | 0.2x | 2.6x | 1.9x | 0.8x | 0.6x |
