Grupo Clarin Sa Net Income jumped on 134% in 2015 while EBITDA Margin dropped on 12.0 pp from 25.7% to 13.7%
10 Mar 2016 • About Grupo Clarin Sa (
$GCLA) • By InTwits
Grupo Clarin Sa reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Grupo Clarin Sa has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.1%. At the same time it's a lot of higher than industry average of 2.6%.
- CAPEX is quite volatile: 134 in 2015, 2,518 in 2014, 1,859 in 2013, 1,383 in 2012, 1,478 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.4%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is 2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Grupo Clarin Sa ($GCLA) key annual financial indicators
| mln. ARS | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,325 | 11,319 | 14,100 | 19,710 | 8,292 | -57.9% |
| Gross Profit | 3,951 | 4,811 | 5,961 | 8,698 | 3,365 | -61.3% |
| SG&A | 2,241 | 2,910 | 3,811 | 5,103 | 2,431 | -52.4% |
| EBITDA | 2,476 | 2,773 | 3,342 | 5,064 | 1,135 | -77.6% |
| Net Income | 515 | 482 | 480 | 804 | 1,885 | 134.4% |
Balance Sheet
|
|---|
| Cash | 629 | 623 | 1,333 | 1,162 | 2,026 | 74.4% |
| Short Term Debt | 442 | 504 | 1,295 | 1,719 | 2,902 | 68.8% |
| Long Term Debt | 2,749 | 2,683 | 2,845 | 2,870 | 4,033 | 40.5% |
Cash flow
|
|---|
| Capex | 1,478 | 1,383 | 1,859 | 2,518 | 134 | -94.7% |
Ratios
|
|---|
| Revenue growth | 22.2% | 21.4% | 24.6% | 39.8% | -57.9% | |
| EBITDA growth | 5.3% | 12.0% | 20.5% | 51.5% | -77.6% | |
| Gross Margin | 42.4% | 42.5% | 42.3% | 44.1% | 40.6% | -3.5% |
| EBITDA Margin | 26.5% | 24.5% | 23.7% | 25.7% | 13.7% | -12.0% |
| Net Income Margin | 5.5% | 4.3% | 3.4% | 4.1% | 22.7% | 18.7% |
| SG&A, % of revenue | 24.0% | 25.7% | 27.0% | 25.9% | 29.3% | 3.4% |
| CAPEX, % of revenue | 15.9% | 12.2% | 13.2% | 12.8% | 1.6% | -11.2% |
| ROIC | 21.7% | 21.6% | 21.8% | 29.8% | 6.4% | -23.5% |
| ROE | 14.8% | 12.5% | 10.9% | 15.7% | 29.6% | 13.9% |
| Net Debt/EBITDA | 1.0x | 0.9x | 0.8x | 0.7x | 4.3x | 3.6x |
Revenue and profitability
The company's Revenue dropped on 57.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 12.0 pp from 25.7% to 13.7% in 2015.
Gross Margin decreased on 3.5 pp from 44.1% to 40.6% in 2015. SG&A as a % of Revenue increased on 3.4 pp from 25.9% to 29.3% in 2015.
Net Income marign jumped on 18.7 pp from 4.1% to 22.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Grupo Clarin Sa had CAPEX/Revenue of 1.6%. Grupo Clarin Sa's CAPEX/Revenue dropped on 10.6 pp from 12.2% in 2012 to 1.6% in 2015. For the last three years the average CAPEX/Revenue was 9.2%.
Return on investment
The company operates at good ROE (29.65%) while ROIC is low (6.36%). ROIC dropped on 23.5 pp from 29.8% to 6.4% in 2015. ROE surged on 13.9 pp from 15.7% to 29.6% in 2015.
Leverage (Debt)
Debt level is 4.3x Net Debt / EBITDA and 6.1x Debt / EBITDA. Net Debt / EBITDA surged on 3.6x from 0.7x to 4.3x in 2015. Debt jumped on 51.1% in 2015 while cash jumped on 74.4% in 2015.
Valuation
Grupo Clarin Sa's trades at EV/EBITDA 4.3x and P/E 0.0x while industy averages are 10.5x and 26.1x. Grupo Clarin Sa's EV/(EBITDA-CAPEX) is 4.9x with the industry average at 4.7x.
Appendix 1: Peers in Media
Below we provide Grupo Clarin Sa benchmarking against other companies in Media 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 |
|---|
| Porta Communications ($PTCM) | | 970.2% | 10.7% | 150.9% | |
| Tangent Communications ($TNG) | | -3.0% | 11.8% | 11.3% | -2.9% |
| Haynes Publishing Group ($HYNS) | | -8.9% | -7.3% | 6.0% | -11.0% |
| Naspers ($NPSN) | | 15.7% | 10.2% | 4.8% | 6.7% |
| Dq Entertainment ($DQE) | | 9.7% | 1.3% | 4.5% | -23.7% |
| |
|---|
| Median (18 companies) | 7.1% | -4.1% | -7.3% | 0.0% | -2.9% |
|---|
| Grupo Clarin Sa ($GCLA) | | 21.4% | 24.6% | 39.8% | -57.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Porta Communications ($PTCM) | 96.1% | 55.3% | 89.2% | 83.4% | |
| Jaywing ($JWNG) | 80.5% | 79.8% | 76.8% | 81.0% | 89.0% |
| Brainjuicer Group ($BJU) | 77.6% | 77.2% | 78.0% | 78.8% | |
| Tangent Communications ($TNG) | 49.0% | 54.5% | 57.6% | 60.3% | 58.8% |
| Mood Media Corp ($MM.) | 61.6% | 58.6% | 54.4% | 53.9% | 51.6% |
| |
|---|
| Median (18 companies) | 44.2% | 40.6% | 41.6% | 43.5% | 39.8% |
|---|
| Grupo Clarin Sa ($GCLA) | 42.4% | 42.5% | 42.3% | 44.1% | 40.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dq Entertainment ($DQE) | 36.5% | 42.8% | 49.2% | 62.4% | 59.1% |
| Haynes Publishing Group ($HYNS) | 30.2% | 25.7% | 23.4% | 38.8% | 33.5% |
| Quarto Group Inc ($QRT) | 19.9% | 20.0% | 25.9% | 27.8% | |
| Cellcast Group ($CLTV) | 3.0% | 0.5% | -6.3% | 22.6% | |
| Brainjuicer Group ($BJU) | 15.8% | 10.6% | 16.4% | 19.2% | |
| |
|---|
| Median (17 companies) | 9.3% | 11.7% | 9.7% | 10.9% | 8.2% |
|---|
| Grupo Clarin Sa ($GCLA) | 26.5% | 24.5% | 23.7% | 25.7% | 13.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avesco Group ($AVS) | 14.3% | 22.7% | 13.2% | 18.6% | 14.4% |
| Mood Media Corp ($MM.) | 7.0% | 8.6% | 6.4% | 6.9% | 8.2% |
| Trader Media East ($TME) | 5.0% | 4.6% | 3.1% | 3.8% | 2.3% |
| Porta Communications ($PTCM) | 10.5% | 2.2% | 2.0% | 2.7% | |
| Johnston Press ($JPR) | 0.5% | 1.4% | 1.5% | 2.7% | |
| |
|---|
| Median (17 companies) | 1.3% | 1.4% | 2.0% | 1.7% | 2.0% |
|---|
| Grupo Clarin Sa ($GCLA) | 15.9% | 12.2% | 13.2% | 12.8% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Brainjuicer Group ($BJU) | 47.0% | 24.3% | 49.0% | 60.0% | |
| Independent News & Media ($INM) | -3.0% | -43.9% | 136.2% | 29.6% | 65.1% |
| Haynes Publishing Group ($HYNS) | 20.1% | 12.8% | 9.4% | 12.5% | 9.4% |
| Dq Entertainment ($DQE) | 8.2% | 9.3% | 8.9% | 12.1% | 7.0% |
| Quarto Group Inc ($QRT) | 9.2% | 9.7% | 8.9% | 10.2% | |
| |
|---|
| Median (19 companies) | 3.3% | 5.0% | 1.3% | 1.6% | 2.7% |
|---|
| Grupo Clarin Sa ($GCLA) | 21.7% | 21.6% | 21.8% | 29.8% | 6.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Johnston Press ($JPR) | | 5.8x | | 11.4x | |
| Mood Media Corp ($MM.) | 6.7x | 5.2x | 8.1x | 8.2x | 9.8x |
| Porta Communications ($PTCM) | | | | 3.4x | |
| Jaywing ($JWNG) | 0.2x | 0.7x | 0.7x | 3.3x | 1.9x |
| Independent News & Media ($INM) | | | 0.8x | 2.9x | -1.5x |
| |
|---|
| Median (14 companies) | 0.2x | 1.1x | 1.2x | 1.3x | 1.1x |
|---|
| Grupo Clarin Sa ($GCLA) | 1.0x | 0.9x | 0.8x | 0.7x | 4.3x |
