Creightons reports 56.2% Net Income growth and almost no change in EBITDA Margin of 4.7%
28 Jun 2016 • About Creightons (
$CRL) • By InTwits
Creightons reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 4.7% in FY2016 vs. 5.0% in FY2015 vs. 4.0% in FY2012
- Creightons has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 19.6%.
- CAPEX is quite volatile: 0.77 in FY2016, 0.16 in FY2015, 0.21 in FY2014, 0.097 in FY2013, 0.31 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Creightons ($CRL) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 16.333 | 17.326 | 19.352 | 20.171 | 21.005 | 4.1% |
| Gross Profit | 6.872 | 7.424 | 7.892 | 7.917 | 8.854 | 11.8% |
| SG&A | | | | 7.415 | 8.296 | 11.9% |
| EBITDA | 0.659 | 0.791 | 0.900 | 1.016 | 0.981 | -3.4% |
| Net Income | 0.223 | 0.302 | 0.471 | 0.851 | 1.329 | 56.2% |
Balance Sheet
|
|---|
| Cash | 0.106 | 0.018 | 0.011 | 0.009 | 0.814 | 8,944.4% |
| Short Term Debt | 0.857 | 0.911 | 0.633 | 0.106 | 0.007 | -93.4% |
| Long Term Debt | 0.067 | 0.048 | 0.028 | 0.007 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.308 | 0.097 | 0.211 | 0.159 | 0.769 | 383.6% |
Ratios
|
|---|
| Revenue growth | 15.6% | 6.1% | 11.7% | 4.2% | 4.1% | |
| EBITDA growth | 36.7% | 20.0% | 13.8% | 12.9% | -3.4% | |
| Gross Margin | 42.1% | 42.8% | 40.8% | 39.2% | 42.2% | 2.9% |
| EBITDA Margin | 4.0% | 4.6% | 4.7% | 5.0% | 4.7% | -0.4% |
| Net Income Margin | 1.4% | 1.7% | 2.4% | 4.2% | 6.3% | 2.1% |
| SG&A, % of revenue | | | | 36.8% | 39.5% | 2.7% |
| CAPEX, % of revenue | 1.9% | 0.6% | 1.1% | 0.8% | 3.7% | 2.9% |
| ROIC | 6.3% | 7.0% | 8.4% | 8.8% | 6.7% | -2.1% |
| ROE | 5.7% | 7.2% | 10.2% | 15.9% | 20.5% | 4.7% |
| Net Debt/EBITDA | 1.2x | 1.2x | 0.7x | 0.1x | -0.8x | -0.9x |
Revenue and profitability
Creightons's Revenue increased on 4.1% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.0 pp from 11.6% to 18.5% in FY2016.
Gross Margin increased on 2.9 pp from 39.2% to 42.2% in FY2016. SG&A as a % of Revenue increased on 2.7 pp from 36.8% to 39.5% in FY2016.
Net Income marign increased on 2.1 pp from 4.2% to 6.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.7% in FY2016. The company's CAPEX/Revenue increased on 3.1 pp from 0.56% in FY2013 to 3.7% in FY2016. It's average CAPEX/Revenue for the last three years was 1.8%.The company invested a large share of EBITDA (78.4%) to CAPEX.
Return on investment
The company operates at good ROE (20.54%) while ROIC is low (6.74%). ROIC decreased on 2.1 pp from 8.8% to 6.7% in FY2016. ROE increased on 4.7 pp from 15.9% to 20.5% in FY2016.
Leverage (Debt)
Debt level is -0.8x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from 0.1x to -0.8x in FY2016. Debt dropped on 93.8% in FY2016 while cash jumped on 8,944% in FY2016.
Valuation
Creightons's trades at EV/EBITDA 4.3x and P/E 3.8x while industy averages are 15.6x and 19.1x. Creightons's EV/(EBITDA-CAPEX) is 19.8x with the industry average at 19.0x.
Appendix 1: Peers in Personal Goods
Below you can find Creightons benchmarking vs. other companies in Personal Goods 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 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 5.0% | 8.7% | 12.0% | 10.8% | |
| Swallowfield ($SWL) | 0.7% | -16.0% | 3.0% | -1.2% | |
| Far Eastern New Century Corp ($FETD) | | 0.9% | -1.4% | -7.5% | |
| Pittards ($PTD) | -3.1% | -3.3% | -3.0% | -12.1% | |
| Bagir Grp Ltd ($BAGR) | 1.6% | 14.8% | -2.5% | -22.5% | |
| |
|---|
| Median (5 companies) | 1.2% | 0.9% | -1.4% | -7.5% | |
|---|
| Creightons ($CRL) | | 6.1% | 11.7% | 4.2% | 4.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 24.2% | 24.8% | 25.1% | 25.9% | |
| Far Eastern New Century Corp ($FETD) | 18.7% | 19.5% | 20.3% | 23.2% | |
| Pittards ($PTD) | 17.4% | 20.5% | 20.3% | 21.7% | |
| Swallowfield ($SWL) | 10.6% | 8.2% | 10.3% | 11.8% | |
| Bagir Grp Ltd ($BAGR) | 17.0% | 19.1% | 17.4% | 9.8% | |
| |
|---|
| Median (5 companies) | 17.4% | 19.5% | 20.3% | 21.7% | |
|---|
| Creightons ($CRL) | 42.1% | 42.8% | 40.8% | 39.2% | 42.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Far Eastern New Century Corp ($FETD) | 12.3% | 12.5% | 12.1% | 15.0% | |
| Svenska Cellulosa Ab-Sca ($0MCK) | 12.6% | 15.0% | 15.2% | 14.6% | |
| Pittards ($PTD) | 4.6% | 6.6% | 6.9% | 6.2% | |
| Swallowfield ($SWL) | 4.9% | 1.8% | 4.0% | 4.5% | |
| Bagir Grp Ltd ($BAGR) | 3.9% | 6.1% | 3.4% | -3.9% | |
| |
|---|
| Median (5 companies) | 4.9% | 6.6% | 6.9% | 6.2% | |
|---|
| Creightons ($CRL) | 4.0% | 4.6% | 4.7% | 5.0% | 4.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pittards ($PTD) | 1.7% | 1.0% | 1.7% | 14.3% | |
| Far Eastern New Century Corp ($FETD) | 7.4% | 10.5% | 12.0% | 11.1% | |
| Svenska Cellulosa Ab-Sca ($0MCK) | 6.6% | 6.1% | 5.5% | 6.6% | |
| Swallowfield ($SWL) | 2.1% | 1.5% | 1.8% | 3.1% | |
| Bagir Grp Ltd ($BAGR) | 0.2% | 0.3% | 0.2% | 0.1% | |
| |
|---|
| Median (5 companies) | 2.1% | 1.5% | 1.8% | 6.6% | |
|---|
| Creightons ($CRL) | 1.9% | 0.6% | 1.1% | 0.8% | 3.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 5.5% | 8.2% | 8.7% | 9.0% | |
| Swallowfield ($SWL) | 10.9% | -3.1% | 5.1% | 8.4% | |
| Pittards ($PTD) | 4.7% | 9.1% | 8.2% | 5.2% | |
| Far Eastern New Century Corp ($FETD) | 4.3% | 3.6% | 2.6% | 3.0% | |
| Bagir Grp Ltd ($BAGR) | 4.7% | 18.8% | 1.9% | -24.8% | |
| |
|---|
| Median (5 companies) | 4.7% | 8.2% | 5.1% | 5.2% | |
|---|
| Creightons ($CRL) | 6.3% | 7.0% | 8.4% | 8.8% | 6.7% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Far Eastern New Century Corp ($FETD) | 2.7x | 4.8x | 5.6x | 5.1x | |
| Pittards ($PTD) | 3.3x | 3.0x | 3.2x | 3.4x | |
| Svenska Cellulosa Ab-Sca ($0MCK) | 2.9x | 2.6x | 2.2x | 1.7x | |
| Swallowfield ($SWL) | -0.0x | -0.8x | -0.3x | 0.3x | |
| |
|---|
| Median (4 companies) | 2.9x | 3.0x | 3.2x | 2.5x | |
|---|
| Creightons ($CRL) | 1.2x | 1.2x | 0.7x | 0.1x | -0.8x |
