Styles & Wood Group EBITDA jumped on 50.5% in 2015 and Revenue surged on 18.6%
06 Apr 2016 • About Styles & Wood Group (
$STY) • By InTwits
Styles & Wood Group reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 3.8% in 2015 vs. 3.0% in 2014 vs. 2.4% in 2011
- Styles & Wood Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Styles & Wood Group ($STY) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 101.0 | 97.9 | 94.0 | 97.0 | 115.0 | 18.6% |
| Gross Profit | 8.3 | 8.6 | 7.0 | 8.3 | 10.7 | 30.0% |
| SG&A | | | 5.4 | 6.4 | 7.2 | 12.5% |
| EBITDA | 2.4 | 2.8 | 1.9 | 2.9 | 4.4 | 50.5% |
| Net Income | 0.1 | 0.3 | -0.7 | 0.2 | 1.7 | 754.5% |
Balance Sheet
|
|---|
| Cash | 6.7 | 3.6 | 2.5 | 1.2 | 5.6 | 352.0% |
| Short Term Debt | 0.0 | 1.0 | 1.0 | 0.0 | 0.7 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 2.0 | |
Cash flow
|
|---|
| Capex | 0.2 | 0.2 | 0.2 | 0.3 | 0.2 | -46.4% |
Ratios
|
|---|
| Revenue growth | 1.9% | -3.0% | -4.0% | 3.2% | 18.6% | |
| EBITDA growth | 40.8% | 14.3% | -31.8% | 53.7% | 50.5% | |
| Gross Margin | 8.2% | 8.7% | 7.4% | 8.5% | 9.3% | 0.8% |
| EBITDA Margin | 2.4% | 2.8% | 2.0% | 3.0% | 3.8% | 0.8% |
| Net Income Margin | 0.1% | 0.3% | -0.8% | 0.2% | 1.5% | 1.3% |
| SG&A, % of revenue | | | 5.8% | 6.6% | 6.3% | -0.3% |
| CAPEX, % of revenue | 0.1% | 0.2% | 0.2% | 0.3% | 0.1% | -0.2% |
| Net Debt/EBITDA | -2.7x | -1.0x | -0.8x | -0.4x | -0.7x | -0.2x |
Revenue and profitability
The company's Revenue surged on 18.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 23.7 pp from -31.8% to -8.1% in 2015.
Gross Margin increased slightly on 0.82 pp from 8.5% to 9.3% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.3 pp from 0.20% to 1.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.14%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 0.21%.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is 0.6x. Net Debt / EBITDA dropped on 0.2x from -0.4x to -0.7x in 2015. Debt jumped while cash surged on 352% in 2015.
Valuation
The company's trades at EV/EBITDA 3.1x and P/E 9.8x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Support Services
Below we provide Styles & Wood Group benchmarking against other companies in Support 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 |
|---|
| Optimal Payments ($OPAY) | | 39.9% | 41.5% | 44.0% | 68.1% |
| Inspired Energy ($INSE) | | 83.8% | 44.8% | 42.2% | 40.2% |
| Ibex Global Solutions ($IBEX) | | 7.4% | 35.7% | 30.0% | 29.8% |
| Rtc Group ($RTC) | | 40.1% | 13.6% | 4.3% | 27.4% |
| Nakama Group ($NAK) | | 47.4% | 25.3% | 5.0% | 24.1% |
| |
|---|
| Median (47 companies) | 13.1% | 6.9% | 7.4% | 4.8% | 6.6% |
|---|
| Styles & Wood Group ($STY) | | -3.0% | -4.0% | 3.2% | 18.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inspired Energy ($INSE) | | 94.6% | 86.8% | 78.7% | 76.2% |
| Ienergizer Ltd ($IBPO) | 48.1% | 56.2% | 78.4% | 76.8% | 72.7% |
| Grafenia ($GRA) | 57.9% | 53.4% | 54.3% | 56.1% | 70.8% |
| Vianet Group ($VNET) | 53.1% | 53.3% | 51.3% | 58.8% | 69.2% |
| Prime People ($PRP) | 57.6% | 63.4% | 58.3% | 57.7% | 61.4% |
| |
|---|
| Median (41 companies) | 29.0% | 28.8% | 28.6% | 29.8% | 28.4% |
|---|
| Styles & Wood Group ($STY) | 8.2% | 8.7% | 7.4% | 8.5% | 9.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northgate ($67GX) | | 41.2% | 40.4% | 40.6% | 39.4% |
| Inspired Energy ($INSE) | 45.3% | 46.2% | 48.5% | 1.5% | 35.4% |
| Vianet Group ($VNET) | 20.7% | 18.6% | 17.3% | 19.7% | 27.1% |
| Vp ($VP.) | 24.4% | 23.9% | 24.5% | 24.2% | 26.2% |
| Optimal Payments ($OPAY) | 11.2% | 10.3% | 18.5% | 21.3% | 22.6% |
| |
|---|
| Median (47 companies) | 7.6% | 6.8% | 6.5% | 6.9% | 7.8% |
|---|
| Styles & Wood Group ($STY) | 2.4% | 2.8% | 2.0% | 3.0% | 3.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vp ($VP.) | 15.5% | 21.4% | 17.7% | 21.6% | 25.7% |
| Sagentia Group ($SAG) | 1.0% | 1.9% | 1.4% | 1.5% | 25.2% |
| Augean ($AUG) | 11.2% | 9.8% | 15.9% | 12.3% | 12.3% |
| Falkland Islands Hldgs ($FKL) | 2.6% | 3.7% | 6.8% | 12.9% | 11.9% |
| Capital Drilling Ltd ($CAPD) | 20.5% | 18.9% | 4.9% | 13.9% | 10.1% |
| |
|---|
| Median (47 companies) | 0.9% | 1.1% | 1.1% | 1.1% | 1.1% |
|---|
| Styles & Wood Group ($STY) | 0.1% | 0.2% | 0.2% | 0.3% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Inspired Energy ($INSE) | 126.8% | 63.9% | 65.5% | -7.5% | 28.0% |
| Petards Group ($PEG) | 25.6% | 35.5% | -78.0% | 24.7% | 23.9% |
| Servoca ($SVCA) | 14.4% | 1.0% | 7.8% | 14.9% | 22.3% |
| Rtc Group ($RTC) | -2.6% | 14.6% | 17.6% | 19.9% | 22.2% |
| Mortice Ltd ($MORT) | 24.0% | 32.2% | 29.2% | 19.6% | 21.9% |
| |
|---|
| Median (47 companies) | 9.4% | 9.9% | 7.9% | 9.4% | 10.7% |
|---|
| Styles & Wood Group ($STY) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Redhall Group ($RHL) | | 22.8x | 5.8x | 6.6x | 16.8x |
| Mitsubishi Corp ($MBC) | 7.2x | 9.9x | 15.9x | 14.3x | 12.5x |
| Ienergizer Ltd ($IBPO) | -0.7x | 6.3x | 2.8x | 3.0x | 4.0x |
| Kellan Group(The ($KLN) | 194.4x | | | 6.5x | 3.6x |
| Premier Farnell ($PFLA) | | 1.7x | 2.1x | 2.1x | 3.1x |
| |
|---|
| Median (45 companies) | 0.7x | 0.8x | 0.7x | 0.9x | 0.6x |
|---|
| Styles & Wood Group ($STY) | -2.7x | -1.0x | -0.8x | -0.4x | -0.7x |
