Cropper(James) EBITDA jumped on 16.1% in 2016 and Revenue increased on 5.9%
28 Jun 2016 • About Cropper(James) (
$CRPR) • By InTwits
Cropper(James) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cropper(James) has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's in pair with industry average of 4.5%.
- CAPEX is quite volatile: 4.0 in FY2016, 2.5 in FY2015, 2.6 in FY2014, 3.9 in FY2013, 5.9 in FY2012
- The company has highly profitable business model: ROIC is at 14.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.0x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cropper(James) ($CRPR) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 78.223 | 79.241 | 84.518 | 83.052 | 87.920 | 5.9% |
| Gross Profit | 38.822 | 39.735 | 41.791 | 43.703 | 49.377 | 13.0% |
| EBITDA | 3.343 | 4.927 | 4.892 | 5.998 | 6.966 | 16.1% |
| Net Income | 0.837 | 1.445 | 1.371 | 1.881 | 2.994 | 59.2% |
Balance Sheet
|
|---|
| Cash | 5.438 | 2.249 | 0.692 | 2.721 | 3.186 | 17.1% |
| Short Term Debt | 2.069 | 4.013 | 3.040 | 2.720 | 3.886 | 42.9% |
| Long Term Debt | 9.874 | 7.522 | 7.929 | 6.106 | 6.605 | 8.2% |
Cash flow
|
|---|
| Capex | 5.920 | 3.915 | 2.622 | 2.483 | 3.953 | 59.2% |
Ratios
|
|---|
| Revenue growth | -6.1% | 1.3% | 6.7% | -1.7% | 5.9% | |
| EBITDA growth | -42.6% | 47.4% | -0.7% | 22.6% | 16.1% | |
| Gross Margin | 49.6% | 50.1% | 49.4% | 52.6% | 56.2% | 3.5% |
| EBITDA Margin | 4.3% | 6.2% | 5.8% | 7.2% | 7.9% | 0.7% |
| Net Income Margin | 1.1% | 1.8% | 1.6% | 2.3% | 3.4% | 1.1% |
| CAPEX, % of revenue | 7.6% | 4.9% | 3.1% | 3.0% | 4.5% | 1.5% |
| ROIC | 1.9% | 6.2% | 7.2% | 12.3% | 14.6% | 2.3% |
| ROE | 3.4% | 6.8% | 6.8% | 9.6% | 13.1% | 3.5% |
| Net Debt/EBITDA | 1.9x | 1.9x | 2.1x | 1.0x | 1.0x | 0.0x |
Revenue and profitability
The company's Revenue increased on 5.9% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 28.9 pp from -48.6% to -19.7% in FY2016.
Gross Margin increased on 3.5 pp from 52.6% to 56.2% in FY2016.
Net Income marign increased slightly on 1.1 pp from 2.3% to 3.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 4.5%. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 3.5%.Cropper(James) maintained rich investment policy and has spent a big chunk of EBITDA (56.7%) to CAPEX.
Return on investment
The company operates at good ROIC (14.62%) and ROE (13.14%). ROIC increased on 2.3 pp from 12.3% to 14.6% in FY2016. ROE increased on 3.5 pp from 9.6% to 13.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 1.5x. Net Debt / EBITDA increased on 0.031x from 1.0x to 1.0x in FY2016. Debt jumped on 18.9% in FY2016 while cash jumped on 17.1% in FY2016.
Appendix 1: Peers in Forestry & Paper
Below you can find Cropper(James) benchmarking vs. other companies in Forestry & Paper 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.
