Quarto Group Inc reports 8.9% EBITDA growth and 6.3% Revenue growth
17 Mar 2016 • About Quarto Group Inc (
$QRT) • By InTwits
Quarto Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Quarto Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has business model with average profitability: ROIC is at 11.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Quarto Group Inc ($QRT) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 186.1 | 180.9 | 176.3 | 171.3 | 182.2 | 6.3% |
| Gross Profit | 65.5 | 65.5 | 54.8 | 55.0 | 59.4 | 7.9% |
| SG&A | | | 41.0 | 39.1 | 42.2 | 7.8% |
| EBITDA | 37.0 | 36.2 | 45.7 | 47.6 | 51.8 | 8.9% |
| Net Income | 7.6 | 5.1 | 3.7 | 8.8 | 8.9 | 1.1% |
Balance Sheet
|
|---|
| Cash | 34.3 | 26.7 | 23.9 | 23.1 | 25.1 | 8.4% |
| Short Term Debt | 82.3 | 16.8 | 16.6 | 89.2 | 5.0 | -94.4% |
| Long Term Debt | 33.4 | 90.9 | 78.3 | 0.0 | 79.6 | |
Cash flow
|
|---|
| Capex | 1.7 | 1.4 | 2.0 | 1.3 | 2.0 | 49.9% |
Ratios
|
|---|
| Revenue growth | 5.5% | -2.8% | -2.5% | -2.8% | 6.3% | |
| EBITDA growth | 2.3% | -2.1% | 26.3% | 4.0% | 8.9% | |
| Gross Margin | 35.2% | 36.2% | 31.1% | 32.1% | 32.6% | 0.5% |
| EBITDA Margin | 19.9% | 20.0% | 25.9% | 27.8% | 28.4% | 0.7% |
| Net Income Margin | 4.1% | 2.8% | 2.1% | 5.1% | 4.9% | -0.3% |
| SG&A, % of revenue | | | 23.3% | 22.8% | 23.1% | 0.3% |
| CAPEX, % of revenue | 0.9% | 0.8% | 1.1% | 0.8% | 1.1% | 0.3% |
| ROIC | 9.2% | 9.7% | 8.9% | 10.2% | 11.3% | 1.1% |
| ROE | 20.6% | 12.2% | 8.5% | 20.0% | 18.5% | -1.4% |
| Net Debt/EBITDA | 2.2x | 2.2x | 1.6x | 1.4x | 1.1x | -0.2x |
Revenue and profitability
Quarto Group Inc's Revenue increased on 6.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.65 pp from 4.0% to 4.6% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.1%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 1.0%.
Return on investment
The company operates at good ROE (18.53%) while ROIC is low (11.34%). ROIC increased slightly on 1.1 pp from 10.2% to 11.3% in 2015. ROE decreased slightly on 1.4 pp from 20.0% to 18.5% in 2015.
Leverage (Debt)
Debt level is 1.1x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 1.4x to 1.1x in 2015. Debt decreased on 5.1% in 2015 while cash increased on 8.4% in 2015.
Valuation
Quarto Group Inc's trades at EV/EBITDA 2.1x and P/E 5.4x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Media
Below we provide Quarto Group Inc 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 ($PTCM) | | 970.2% | 10.7% | 150.9% | |
| Marimedia Ltd ($MARI) | | 24.4% | 71.1% | 45.7% | 20.1% |
| Grupo Clarin Sa ($GCLA) | | 21.4% | 24.6% | 39.8% | -57.9% |
| Tangent Communications ($TNG) | | -3.0% | 11.8% | 11.3% | -2.9% |
| Haynes Publishing Group ($HYNS) | | -8.9% | -7.3% | 6.0% | -11.0% |
| |
|---|
| Median (19 companies) | 8.8% | -3.5% | -6.9% | 1.2% | -2.9% |
|---|
| Quarto Group Inc ($QRT) | | -2.8% | -2.5% | -2.8% | 6.3% |
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 ($MM.) | 61.6% | 58.6% | 54.4% | 53.9% | 51.6% |
| |
|---|
| Median (19 companies) | 43.3% | 41.3% | 41.9% | 43.5% | 39.2% |
|---|
| Quarto Group Inc ($QRT) | 35.2% | 36.2% | 31.1% | 32.1% | 32.6% |
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% |
| Grupo Clarin Sa ($GCLA) | 26.5% | 24.5% | 23.7% | 25.7% | 13.7% |
| Cellcast Group ($CLTV) | 3.0% | 0.5% | -6.3% | 22.6% | |
| Brainjuicer Group ($BJU) | 15.8% | 10.6% | 16.4% | 19.2% | |
| |
|---|
| Median (18 companies) | 12.0% | 11.7% | 11.2% | 11.8% | 8.3% |
|---|
| Quarto Group Inc ($QRT) | 19.9% | 20.0% | 25.9% | 27.8% | 28.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Avesco Group ($AVS) | 14.3% | 22.7% | 13.2% | 18.6% | 14.4% |
| Grupo Clarin Sa ($GCLA) | 15.9% | 12.2% | 13.2% | 12.8% | 1.6% |
| 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 ($PTCM) | 10.5% | 2.2% | 2.0% | 2.7% | |
| |
|---|
| Median (18 companies) | 1.6% | 1.8% | 2.0% | 1.8% | 1.6% |
|---|
| Quarto Group Inc ($QRT) | 0.9% | 0.8% | 1.1% | 0.8% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Brainjuicer Group ($BJU) | 47.0% | 24.3% | 49.0% | 60.0% | |
| Marimedia Ltd ($MARI) | | | | 39.0% | 6.4% |
| Grupo Clarin Sa ($GCLA) | 21.7% | 21.6% | 21.8% | 29.8% | 6.4% |
| Independent News & Media ($INM) | -3.0% | -43.9% | 136.2% | 29.6% | 65.1% |
| Haynes Publishing Group ($HYNS) | 20.1% | 12.8% | 9.4% | 12.5% | 9.4% |
| |
|---|
| Median (20 companies) | 3.3% | 5.0% | 1.3% | 2.1% | 4.6% |
|---|
| Quarto Group Inc ($QRT) | 9.2% | 9.7% | 8.9% | 10.2% | 11.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mood Media Corp ($MM.) | 6.7x | 5.2x | 8.1x | 8.2x | 9.8x |
| Naspers ($NPSN) | 1.1x | 1.4x | 1.9x | | 6.2x |
| Grupo Clarin Sa ($GCLA) | 1.0x | 0.9x | 0.8x | 0.7x | 4.3x |
| Dq Entertainment ($DQE) | 0.2x | 1.1x | 1.5x | 1.5x | 2.8x |
| Jaywing ($JWNG) | 0.2x | 0.7x | 0.7x | 3.3x | 1.9x |
| |
|---|
| Median (12 companies) | 0.2x | 1.0x | 0.8x | 1.1x | 1.1x |
|---|
| Quarto Group Inc ($QRT) | 2.2x | 2.2x | 1.6x | 1.4x | 1.1x |
