Looking for growth? Don't miss Manx Financial Group with its track record of fast growth
10 Mar 2016 • About Manx Financial Group (
$MFX) • By InTwits
Manx Financial Group is an attractive growth stock in Financial Services industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Manx Financial Group showed fast growth in the last financial year. Manx Financial Group's revenue surged on 28.2% in FY2015. Together with revenue growth Manx Financial Group also managed to keep EBITDA growth. EBITDA grew 33.4% for the same period.
In the longer period Manx Financial Group showed fast revenue growth of 27.7% from 2012 to 2015 annually. EBITDA surged on 45.4% from 2012 to 2015 annually.
Manx Financial Group ($MFX) financials for the last 5 years
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 9 | 9 | 12 | 15 | 19 |
|---|
| Revenue growth, % | | 5.6% | 33.3% | 22.0% | 28.2% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 2 | 4 | 6 | 8 | 11 |
|---|
| EBITDA growth, % | | 73.8% | 64.4% | 40.2% | 33.4% |
|---|
| EBITDA margin, % | 24.2% | 39.8% | 49.2% | 56.5% | 58.8% |
|---|
| Net Income | -1 | -0 | 1 | 2 | 2 |
|---|
| Net Income margin, % | -8.95% | -3.65% | 8.83% | 10.6% | 10.9% |
|---|
| |
| CAPEX | 0 | 0 | 0 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 3.69% | 2.01% | 1.27% | 1.39% | 2.56% |
|---|
| Debt | 2 | 5 | 6 | 7 | 7 |
|---|
| Cash | 2 | 2 | 4 | 6 | 7 |
|---|
| Net Debt/EBITDA | -0.1x | 0.7x | 0.3x | 0.1x | 0.0x |
|---|
| |
| ROIC, % | -1.2% | 8.0% | 19.7% | 29.7% | 40.2% |
|---|
| ROE, % | -9.6% | -4.5% | 13.8% | 17.2% | 19.0% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. Manx Financial Group showed small growth in EBITDA margin of 2.30 pp from 56.5% to 58.8% in 2015. In the last 3 years Manx Financial Group's EBITDA margin surged on 19 pp from 39.8% in 2012 to 58.8% in 2015.
We call Manx Financial Group an attractive growth stock as together with the growth it delivers high ROIC at 40.2%. During the last three years it surged - it was 8.04% in FY2012. It's average level of ROIC for the last three years was 29.9%.
The company's Net Income margin increased slightly on 0.300 pp from 10.6% to 10.9% in 2015. In the longer period Net Income margin surged on 14.5 pp from -3.60% in 2012 to 10.9% in 2015.
Manx Financial Group operates at ROE of 19.0%. For the last three years the average ROE was 16.7%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 2.56% in FY2015. CAPEX/Revenue surged on 0.546 pp from 2.01% in 2012 to 2.56% in 2015. Average CAPEX/Revenue for the last three years was 1.74%.
Leverage (Debt)
Having such a fast growth profile Manx Financial Group keeps low debt level at 0.0x Net Debt/EBITDA. If we look for the longer period the company showed big decline in leverage of 0.69x from 0.70x in 2012 to 0.01x in 2015.
Peers in Financial Services
Below we provide Manx Financial Group benchmarking against other companies in Financial Services 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| First Property Group ($FPO) | | 31.4% | 13.9% | 69.7% | 2.6% |
| Afh Financial Group ($AFHP) | | | 49.9% | 39.3% | 39.5% |
| Fairpoint Group ($FRP) | -12.0% | 32.7% | -17.5% | 35.1% | |
| Commercial Bank Of Qatar(The) ($CBQS) | | 5.7% | 19.3% | 26.1% | -4.2% |
| Hargreaves Lansdown ($HL.) | | 14.8% | 22.5% | 22.6% | 10.3% |
| |
|---|
| Median (30 companies) | -2.1% | 5.2% | 12.6% | 4.7% | 3.0% |
|---|
| Manx Financial Group ($MFX) | | 5.6% | 33.3% | 22.0% | 28.2% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Record ($REC) | 99.6% | 98.8% | 98.8% | 99.6% | 99.3% |
| Panmure Gordon & Co ($PMR) | 93.9% | 95.2% | 95.0% | 95.3% | |
| Schroders ($SDRC) | 75.8% | 76.9% | 76.2% | 77.7% | 78.3% |
| London Capital Group Hldgs ($LCG) | 64.7% | 64.2% | 70.5% | 73.6% | |
| Walker Crips Group ($WCW) | 74.5% | 71.8% | 58.0% | 68.2% | 66.7% |
| |
|---|
| Median (16 companies) | 56.8% | 54.3% | 52.7% | 52.2% | 52.3% |
|---|
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Livermore Investments Group Ltd ($LIV) | 92.1% | 84.9% | 64.8% | 78.8% | |
| Real Estate Credit Investments Pcc ($RECP) | | 58.6% | 89.3% | 77.0% | 80.3% |
| Efg Hermes Hldgs ($EFGD) | 67.0% | 66.0% | 61.4% | 63.1% | |
| Hargreaves Lansdown ($HL.) | 61.0% | 64.1% | 66.4% | 58.7% | 51.2% |
| First Property Group ($FPO) | 45.5% | 44.8% | 37.6% | 40.2% | 42.9% |
| |
|---|
| Median (26 companies) | 15.5% | 11.7% | 15.6% | 14.4% | 17.3% |
|---|
| Manx Financial Group ($MFX) | 24.2% | 39.8% | 49.2% | 56.5% | 58.8% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Daishin Securities Co ($DSS) | 2.8% | 6.0% | 24.7% | 15.0% | 6.5% |
| Efg Hermes Hldgs ($EFGD) | 4.9% | 5.6% | 4.4% | 6.0% | |
| Fulcrum Utility Services Ld ($FCRM) | | 5.4% | 5.0% | 3.7% | 0.1% |
| London Capital Group Hldgs ($LCG) | 5.7% | 1.8% | 0.2% | 3.4% | |
| Guinness Peat Group ($GPG) | 3.7% | 2.6% | 0.6% | 2.9% | 3.0% |
| |
|---|
| Median (29 companies) | 1.1% | 1.3% | 1.4% | 1.3% | 0.7% |
|---|
| Manx Financial Group ($MFX) | 3.7% | 2.0% | 1.3% | 1.4% | 2.6% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Hargreaves Lansdown ($HL.) | 133.9% | 108.7% | 111.7% | 101.0% | 87.5% |
| Record ($REC) | 44.4% | 23.8% | 19.6% | 20.2% | 20.2% |
| S & U ($46IE) | | 17.6% | 19.1% | 19.7% | 13.9% |
| Fairpoint Group ($FRP) | -2.1% | 18.6% | 9.0% | 19.4% | |
| Impax Asset Management Group ($IPX) | 12.5% | -13.7% | 17.2% | 18.7% | 16.1% |
| |
|---|
| Median (30 companies) | 5.5% | 5.2% | 6.0% | 8.9% | 10.6% |
|---|
| Manx Financial Group ($MFX) | -1.2% | 8.0% | 19.7% | 29.7% | 40.2% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Private & Commercial Finance Group ($PCF) | 16.0x | 12.8x | 14.3x | 13.9x | 12.9x |
| Daishin Securities Co ($DSS) | 0.8x | 1.5x | 2.4x | 10.7x | 8.0x |
| First Property Group ($FPO) | 5.6x | 3.6x | 3.0x | 5.6x | 12.3x |
| Livermore Investments Group Ltd ($LIV) | 4.9x | 3.8x | 4.6x | 3.4x | |
| S & U ($46IE) | | 1.4x | 1.3x | 1.7x | 3.1x |
| |
|---|
| Median (26 companies) | -1.6x | -1.2x | -1.7x | -2.3x | -0.5x |
|---|
| Manx Financial Group ($MFX) | -0.1x | 0.7x | 0.3x | 0.1x | 0.0x |
