Peel Hotels Debt decreased on 5.6% in 2016 while Revenue increased on 3.4%
29 Apr 2016 • About Peel Hotels (
$PHO) • By InTwits
Peel Hotels reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Peel Hotels has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 3.5%.
- CAPEX is quite volatile: 1.6 in FY2016, 0.69 in FY2015, 0.34 in FY2014, 0.68 in FY2013, 0.20 in FY2012
- The company has potentially unprofitable business model: ROIC is at 4.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.9x while industry average is 4.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Peel Hotels ($PHO) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 14.647 | 15.233 | 15.510 | 16.454 | 17.011 | 3.4% |
| Gross Profit | 2.259 | 2.410 | 2.538 | 3.196 | 3.244 | 1.5% |
| SG&A | | | 0.558 | 0.723 | 0.674 | -6.9% |
| EBITDA | 1.558 | 1.698 | 1.980 | 2.473 | 2.571 | 3.9% |
| Net Income | 0.002 | 0.004 | 0.389 | 0.734 | 0.798 | 8.7% |
Balance Sheet
|
|---|
| Cash | 0.043 | 0.117 | 0.195 | 0.147 | 0.283 | 92.6% |
| Short Term Debt | 3.123 | 3.158 | 1.061 | 0.901 | 0.927 | 2.9% |
| Long Term Debt | 9.763 | 9.325 | 10.844 | 10.134 | 9.491 | -6.3% |
Cash flow
|
|---|
| Capex | 0.568 | 0.439 | 0.519 | 0.603 | 0.691 | 14.5% |
Ratios
|
|---|
| Revenue growth | -4.0% | 4.0% | 1.8% | 6.1% | 3.4% | |
| EBITDA growth | -33.3% | 9.0% | 16.6% | 24.9% | 3.9% | |
| Gross Margin | 15.4% | 15.8% | 16.4% | 19.4% | 19.1% | -0.4% |
| EBITDA Margin | 10.6% | 11.1% | 12.8% | 15.0% | 15.1% | 0.1% |
| Net Income Margin | 0.0% | 0.0% | 2.5% | 4.5% | 4.7% | 0.2% |
| SG&A, % of revenue | | | 3.6% | 4.4% | 4.0% | -0.4% |
| CAPEX, % of revenue | 3.9% | 2.9% | 3.3% | 3.7% | 4.1% | 0.4% |
| ROIC | 1.0% | 1.6% | 2.6% | 4.1% | 4.4% | 0.3% |
| ROE | 0.0% | 0.0% | 1.8% | 3.2% | 3.4% | 0.2% |
| Net Debt/EBITDA | 8.2x | 7.3x | 5.9x | 4.4x | 3.9x | -0.5x |
Revenue and profitability
The company's Revenue increased on 3.4% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 45.7 pp from -71.9% to -26.2% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.1% in FY2016. CAPEX/Revenue increased slightly on 1.2 pp from 2.9% in FY2013 to 4.1% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at low ROIC (4.44%) and ROE (3.40%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 4.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 4.4x to 3.9x in FY2016. Debt decreased on 5.6% in FY2016 while cash surged on 92.6% in FY2016.
Appendix 1: Peers in Travel & Leisure
Below we provide Peel Hotels benchmarking against other companies in Travel & Leisure 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dalata Hotel Group ($DAL) | 55.4% | 12.0% | 30.4% | 185.4% | |
| Everyman Media Group ($EMAN) | 23.4% | 26.5% | 22.4% | 44.1% | |
| Webis Holdings ($WEB) | 8.7% | 46.3% | -55.0% | 29.7% | |
| Paddy Power ($PAP) | 30.9% | 14.0% | 18.3% | 24.1% | |
| Hanatour Service Inc ($TOUR) | 15.0% | 14.6% | 9.3% | 19.2% | |
| |
|---|
| Median (22 companies) | 15.0% | 8.8% | 7.2% | 7.6% | 7.9% |
|---|
| Peel Hotels ($PHO) | | 4.0% | 1.8% | 6.1% | 3.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Eclectic Bar Grp ($BAR) | 79.1% | 78.9% | 79.0% | 79.4% | |
| Paddy Power ($PAP) | 84.7% | 82.8% | 81.0% | 74.7% | |
| Action Hotels ($AHCG) | 75.1% | 75.0% | 73.3% | 74.0% | |
| Dalata Hotel Group ($DAL) | 61.2% | 62.0% | 62.8% | 61.5% | |
| Everyman Media Group ($EMAN) | 57.6% | 59.2% | 58.9% | 58.0% | |
| |
|---|
| Median (11 companies) | 36.0% | 38.9% | 39.7% | 40.4% | 19.1% |
|---|
| Peel Hotels ($PHO) | 15.4% | 15.8% | 16.4% | 19.4% | 19.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($AHCG) | 31.0% | 27.9% | 28.6% | 34.3% | |
| Air China ($AIRC) | 19.7% | 16.0% | 18.4% | 27.3% | |
| Mandarin Oriental International ($MDOB) | 19.5% | 22.4% | 24.0% | 26.2% | |
| Ryanair Hldgs ($RYA) | 22.6% | 21.5% | 20.1% | 25.1% | |
| Irish Continental Group ($ICGC) | 17.1% | 18.6% | 27.3% | 23.6% | |
| |
|---|
| Median (22 companies) | 13.8% | 15.4% | 12.3% | 12.9% | 16.7% |
|---|
| Peel Hotels ($PHO) | 10.6% | 11.1% | 12.8% | 15.0% | 15.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($AHCG) | 21.0% | 25.6% | 90.0% | 172.4% | |
| Everyman Media Group ($EMAN) | 0.0% | 36.4% | 25.9% | 56.4% | |
| Marston'S ($MARS) | 18.0% | 19.3% | 17.5% | 16.2% | 15.3% |
| Young & Co'S Brewery ($YNGN) | 14.3% | 8.7% | 10.8% | 14.3% | |
| Ana Hldgs Inc ($ANA) | 12.8% | 10.1% | 10.5% | 14.1% | 14.1% |
| |
|---|
| Median (22 companies) | 4.3% | 5.4% | 4.6% | 9.2% | 14.7% |
|---|
| Peel Hotels ($PHO) | 3.9% | 2.9% | 3.3% | 3.7% | 4.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Paddy Power ($PAP) | 53.4% | 47.2% | 47.6% | 53.2% | |
| Irish Continental Group ($ICGC) | 14.6% | 18.9% | 40.0% | 33.9% | |
| Air Partner ($AIP) | 34.8% | 27.5% | 21.2% | 20.0% | 20.4% |
| Hanatour Service Inc ($TOUR) | 22.5% | 19.9% | 19.6% | 19.4% | |
| Ryanair Hldgs ($RYA) | 9.7% | 10.0% | 9.5% | 13.3% | |
| |
|---|
| Median (22 companies) | 6.8% | 7.8% | 4.3% | 6.3% | 8.8% |
|---|
| Peel Hotels ($PHO) | 1.0% | 1.6% | 2.6% | 4.1% | 4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Meikles Ltd ($MIK) | | 5.1x | 10.7x | 73.1x | |
| Action Hotels ($AHCG) | 11.2x | 7.8x | 9.6x | 12.3x | |
| Marston'S ($MARS) | | 6.5x | 14.0x | 8.2x | 6.2x |
| Rotala ($ROL) | 2.6x | 3.1x | 2.8x | 3.6x | |
| Ana Hldgs Inc ($ANA) | 4.3x | 3.6x | 4.0x | 3.5x | 2.3x |
| |
|---|
| Median (20 companies) | 1.0x | 2.2x | 1.1x | 1.9x | 2.8x |
|---|
| Peel Hotels ($PHO) | 8.2x | 7.3x | 5.9x | 4.4x | 3.9x |
