Young & Co'S Brewery CAPEX surged on 28.4% in 2016 and Revenue increased on 8.3%
19 May 2016 • About Young & Co'S Brewery (
$YNGN) • By InTwits
Young & Co'S Brewery reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 22.9% in FY2016 vs. 22.9% in FY2015 vs. 21.2% in FY2012
- Young & Co'S Brewery has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.0%. At the same time it's in pair with industry average of 16.1%.
- CAPEX is quite volatile: 41.6 in FY2016, 32.4 in FY2015, 22.8 in FY2014, 16.8 in FY2013, 25.6 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Young & Co'S Brewery ($YNGN) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 179.0 | 193.7 | 210.8 | 227.0 | 245.9 | 8.3% |
| EBITDA | 38.0 | 42.1 | 45.8 | 52.0 | 56.3 | 8.3% |
| Net Income | -6.5 | 16.3 | 22.1 | 26.7 | 27.1 | 1.5% |
Balance Sheet
|
|---|
| Cash | 3.9 | 6.1 | 2.4 | 0.2 | 13.2 | 6,500.0% |
| Short Term Debt | 0.0 | 10.0 | 0.0 | 5.0 | 0.0 | -100.0% |
| Long Term Debt | 122.0 | 108.7 | 114.4 | 124.2 | 143.4 | 15.5% |
Cash flow
|
|---|
| Capex | 25.6 | 16.8 | 22.8 | 32.4 | 41.6 | 28.4% |
Ratios
|
|---|
| Revenue growth | 25.5% | 8.2% | 8.8% | 7.7% | 8.3% | |
| EBITDA growth | 19.6% | 10.9% | 8.6% | 13.6% | 8.3% | |
| EBITDA Margin | 21.2% | 21.8% | 21.7% | 22.9% | 22.9% | -0.0% |
| Net Income Margin | -3.6% | 8.4% | 10.5% | 11.8% | 11.0% | -0.7% |
| CAPEX, % of revenue | 14.3% | 8.7% | 10.8% | 14.3% | 16.9% | 2.6% |
| ROIC | 6.4% | 6.1% | 6.3% | 6.6% | 6.3% | -0.3% |
| ROE | -2.6% | 5.0% | 6.2% | 6.8% | 6.3% | -0.5% |
| Net Debt/EBITDA | 3.1x | 2.7x | 2.4x | 2.5x | 2.3x | -0.2x |
Revenue and profitability
The company's Revenue increased on 8.3% in FY2016. EBITDA Margin showed almost no change in FY2016.
Net Income marign decreased slightly on 0.74 pp from 11.8% to 11.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 16.9%. Young & Co'S Brewery showed CAPEX/Revenue growth of 8.2 pp from 8.7% in FY2013 to 16.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 14.0%.The company maintained rich investment policy and has spent a big chunk of EBITDA (73.9%) to CAPEX.
Return on investment
The company operates at low ROIC (6.28%) and ROE (6.28%). ROIC showed almost no change in FY2016. ROE decreased slightly on 0.51 pp from 6.8% to 6.3% in FY2016.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 2.5x to 2.3x in FY2016. Debt surged on 11.0% in FY2016 while cash jumped on 6,500% in FY2016.
Valuation
The company's trades at EV/EBITDA 8.5x and P/E 12.9x while industy averages are 15.6x and 19.1x. Young & Co'S Brewery's EV/(EBITDA-CAPEX) is 32.6x with the industry average at 19.0x.
Appendix 1: Peers in Travel & Leisure
Below you can find Young & Co'S Brewery benchmarking vs. other companies in Travel & Leisure industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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 ($TOUR) | 15.0% | 14.6% | 9.3% | 19.2% | |
| |
|---|
| Median (22 companies) | 13.6% | 8.8% | 6.1% | 7.3% | 6.7% |
|---|
| Young & Co'S Brewery ($YNGN) | | 8.2% | 8.8% | 7.7% | 8.3% |
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 ($EMAN) | 57.6% | 59.2% | 58.9% | 58.0% | |
| |
|---|
| Median (12 companies) | 29.5% | 30.8% | 30.2% | 31.2% | 19.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($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 (23 companies) | 12.8% | 12.9% | 12.3% | 12.8% | 15.9% |
|---|
| Young & Co'S Brewery ($YNGN) | 21.2% | 21.8% | 21.7% | 22.9% | 22.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($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% |
| Ana Hldgs Inc ($ANA) | 12.8% | 10.1% | 10.5% | 14.1% | 14.1% |
| Ryanair Hldgs ($RYA) | 7.2% | 6.4% | 10.0% | 13.9% | |
| |
|---|
| Median (23 companies) | 3.7% | 4.8% | 4.5% | 8.2% | 14.1% |
|---|
| Young & Co'S Brewery ($YNGN) | 14.3% | 8.7% | 10.8% | 14.3% | 16.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Paddy Power ($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 (23 companies) | 6.8% | 7.8% | 4.2% | 5.8% | 8.8% |
|---|
| Young & Co'S Brewery ($YNGN) | 6.4% | 6.1% | 6.3% | 6.6% | 6.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Meikles Ltd ($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 |
| Peel Hotels ($PHO) | 8.2x | 7.3x | 5.9x | 4.4x | 3.9x |
| Rotala ($ROL) | 2.6x | 3.1x | 2.8x | 3.6x | |
| |
|---|
| Median (20 companies) | 1.0x | 2.2x | 1.1x | 1.9x | 3.2x |
|---|
| Young & Co'S Brewery ($YNGN) | 3.1x | 2.7x | 2.4x | 2.5x | 2.3x |
