Efg Hermes Hldgs EBITDA dropped on 90.2% in 2015 and EBITDA Margin dropped on 35.4 pp from 63.1% to 27.8%
24 Mar 2016 • About Efg Hermes Hldgs (
$EFGD) • By InTwits
Efg Hermes Hldgs reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Efg Hermes Hldgs is a company in decline: 2015 revenue growth was -77.6%, 5 years revenue CAGR was -18.7%
- Efg Hermes Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's a lot of higher than industry average of 1.5%.
- CAPEX is quite volatile: 23.5 in 2015, 313 in 2014, 205 in 2013, 180 in 2012, 149 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Efg Hermes Hldgs ($EFGD) key annual financial indicators
| mln. EGP | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,064 | 3,215 | 4,636 | 5,238 | 1,171 | -77.6% |
| EBITDA | 2,054 | 2,122 | 2,845 | 3,306 | 325 | -90.2% |
| Net Income | 120 | 60 | -540 | 538 | 461 | -14.2% |
Balance Sheet
|
|---|
| Cash | 12,287 | 13,482 | 16,534 | 22,466 | 26,456 | 17.8% |
| Short Term Debt | 614 | 559 | 917 | 2,686 | 3,855 | 43.5% |
| Long Term Debt | 487 | 506 | 554 | 566 | 943 | 66.6% |
Cash flow
|
|---|
| Capex | 149 | 180 | 205 | 313 | 24 | -92.5% |
Ratios
|
|---|
| Revenue growth | -7.3% | 4.9% | 44.2% | 13.0% | -77.6% | |
| EBITDA growth | 0.1% | 3.3% | 34.0% | 16.2% | -90.2% | |
| EBITDA Margin | 67.0% | 66.0% | 61.4% | 63.1% | 27.8% | -35.4% |
| Net Income Margin | 3.9% | 1.9% | -11.7% | 10.3% | 39.4% | 29.1% |
| CAPEX, % of revenue | 4.9% | 5.6% | 4.4% | 6.0% | 2.0% | -4.0% |
| ROIC | | | 4.5% | 5.2% | 1.4% | -3.8% |
| ROE | 1.4% | 0.7% | -6.1% | 5.9% | 4.8% | -1.1% |
| Net Debt/EBITDA | -5.4x | -5.9x | -5.3x | -5.8x | -66.6x | -60.8x |
Revenue and profitability
Efg Hermes Hldgs's Revenue dropped on 77.6% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 35.4 pp from 63.1% to 27.8% in 2015.
Net Income marign jumped on 29.1 pp from 10.3% to 39.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
Efg Hermes Hldgs's CAPEX/Revenue was 2.0% in 2015. Efg Hermes Hldgs showed decline in CAPEX/Revenue of 3.6 pp from 5.6% in 2012 to 2.0% in 2015. For the last three years the average CAPEX/Revenue was 4.1%.
Return on investment
The company operates at low ROIC (1.36%) and ROE (4.82%). ROIC decreased on 3.8 pp from 5.2% to 1.4% in 2015. ROE decreased slightly on 1.1 pp from 5.9% to 4.8% in 2015.
Leverage (Debt)
Debt level is -66.6x Net Debt / EBITDA and 14.8x Debt / EBITDA. Net Debt / EBITDA dropped on 60.8x from -5.8x to -66.6x in 2015. Debt surged on 47.5% in 2015 while cash jumped on 17.8% in 2015.
Appendix 1: Peers in Financial Services
Below we provide Efg Hermes Hldgs 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Real Estate Credit Investments Pcc ($RECP) | | | 335.8% | -59.6% | 47.3% |
| Fairpoint Group ($FRP) | | 32.7% | -17.5% | 35.1% | 41.2% |
| Afh Financial Group ($AFHP) | | | 49.9% | 39.3% | 39.5% |
| Manx Financial Group ($MFX) | | 5.6% | 33.3% | 22.0% | 28.2% |
| Ifg Group ($IFP) | | 5.5% | -20.6% | 8.3% | 21.6% |
| |
|---|
| Median (25 companies) | 36.1% | 5.6% | 12.6% | 4.7% | 3.0% |
|---|
| Efg Hermes Hldgs ($EFGD) | | 4.9% | 44.2% | 13.0% | -77.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Record ($REC) | 99.6% | 98.8% | 98.8% | 99.6% | 99.3% |
| First Property Group ($FPO) | 85.2% | 86.0% | 69.5% | 67.9% | 83.0% |
| Schroders ($SDRC) | 75.8% | 76.9% | 76.2% | 77.7% | 78.3% |
| Walker Crips Group ($WCW) | 74.5% | 71.8% | 58.0% | 68.2% | 66.7% |
| S & U ($46IE) | | 65.6% | 66.5% | 67.6% | 65.3% |
| |
|---|
| Median (13 companies) | 56.8% | 54.3% | 52.7% | 52.2% | 52.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Real Estate Credit Investments Pcc ($RECP) | | 58.6% | 89.3% | 77.0% | 80.3% |
| Manx Financial Group ($MFX) | 24.2% | 39.8% | 49.2% | 56.5% | 58.8% |
| Hargreaves Lansdown ($HL.) | 61.0% | 64.1% | 66.4% | 58.7% | 51.2% |
| Daishin Securities Co ($DSS) | 49.9% | 53.8% | 51.5% | 38.8% | 49.2% |
| S & U ($46IE) | | 25.5% | 27.9% | 30.6% | 47.2% |
| |
|---|
| Median (24 companies) | 15.5% | 11.7% | 15.6% | 14.4% | 16.9% |
|---|
| Efg Hermes Hldgs ($EFGD) | 67.0% | 66.0% | 61.4% | 63.1% | 27.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Daishin Securities Co ($DSS) | 2.8% | 6.0% | 24.7% | 15.0% | 6.5% |
| Commercial Bank Of Qatar(The) ($CBQS) | 3.0% | 6.0% | 3.8% | 2.8% | 3.9% |
| Afh Financial Group ($AFHP) | | 1.6% | 1.5% | 0.7% | 3.8% |
| S & U ($46IE) | | 1.4% | 1.4% | 1.3% | 3.1% |
| Guinness Peat Group ($GPG) | 3.7% | 2.6% | 0.6% | 2.9% | 3.0% |
| |
|---|
| Median (24 companies) | 1.1% | 1.3% | 1.3% | 1.3% | 0.7% |
|---|
| Efg Hermes Hldgs ($EFGD) | 4.9% | 5.6% | 4.4% | 6.0% | 2.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hargreaves Lansdown ($HL.) | 133.9% | 108.7% | 111.7% | 101.0% | 87.5% |
| Manx Financial Group ($MFX) | -1.2% | 8.0% | 19.7% | 29.7% | 40.2% |
| Record ($REC) | 44.4% | 23.8% | 19.6% | 20.2% | 20.2% |
| Impax Asset Management Group ($IPX) | 12.5% | -13.7% | 17.2% | 18.7% | 16.1% |
| Lighthouse Group ($LGT) | 5.1% | 7.2% | -3.9% | 8.6% | 14.6% |
| |
|---|
| Median (25 companies) | 5.5% | 5.4% | 6.3% | 9.2% | 9.6% |
|---|
| Efg Hermes Hldgs ($EFGD) | | | 4.5% | 5.2% | 1.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Private & Commercial Finance Group ($PCF) | 16.0x | 12.8x | 14.3x | 13.9x | 12.9x |
| First Property Group ($FPO) | 5.6x | 3.6x | 3.0x | 5.6x | 12.3x |
| Canaccord Genuity Group Inc ($CF.) | | | | | 10.2x |
| Daishin Securities Co ($DSS) | 0.8x | 1.5x | 2.4x | 10.7x | 8.0x |
| S & U ($46IE) | | 1.4x | 1.3x | 1.7x | 3.1x |
| |
|---|
| Median (23 companies) | -1.1x | -1.0x | -1.0x | -1.9x | -0.5x |
|---|
| Efg Hermes Hldgs ($EFGD) | -5.4x | -5.9x | -5.3x | -5.8x | -66.6x |
