Hml Hldgs Net Income increased on 9.1% in 2016 and Revenue increased on 7.8%
28 Jun 2016 • About Hml Hldgs (
$HMLH) • By InTwits
Hml Hldgs reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hml Hldgs is a growth stock: FY2016 revenue growth was 7.8%, 5 year revenue CAGR was 14.6% at FY2016 ROIC 11.3%
- EBITDA Margin is relatively stable: 10.1% in FY2016 vs. 10.0% in FY2015 vs. 8.5% in FY2012
- Hml Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 4.4%.
- CAPEX is quite volatile: 0.28 in FY2016, 0.54 in FY2015, 0.24 in FY2014, 0.16 in FY2013, 0.12 in FY2012
- The company has business model with average profitability: ROIC is at 11.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hml Hldgs ($HMLH) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10.600 | 12.809 | 14.763 | 17.227 | 18.564 | 7.8% |
| SG&A | | | | 0.056 | 0.046 | -17.9% |
| EBITDA | 0.902 | 1.188 | 1.492 | 1.725 | 1.871 | 8.5% |
| Net Income | 0.361 | 0.637 | 0.836 | 0.928 | 1.012 | 9.1% |
Balance Sheet
|
|---|
| Cash | 0.502 | 0.266 | 0.203 | 0.000 | 0.000 | |
| Short Term Debt | 0.345 | 0.345 | 0.173 | 0.657 | 0.597 | -9.1% |
| Long Term Debt | 0.604 | 0.259 | 0.086 | 0.000 | 0.425 | |
Cash flow
|
|---|
| Capex | 0.118 | 0.162 | 0.237 | 0.539 | 0.280 | -48.1% |
Ratios
|
|---|
| Revenue growth | 12.9% | 20.8% | 15.3% | 16.7% | 7.8% | |
| EBITDA growth | 41.4% | 31.7% | 25.6% | 15.6% | 8.5% | |
| EBITDA Margin | 8.5% | 9.3% | 10.1% | 10.0% | 10.1% | 0.1% |
| Net Income Margin | 3.4% | 5.0% | 5.7% | 5.4% | 5.5% | 0.1% |
| SG&A, % of revenue | | | | 0.3% | 0.2% | -0.1% |
| CAPEX, % of revenue | 1.1% | 1.3% | 1.6% | 3.1% | 1.5% | -1.6% |
| ROIC | 8.2% | 9.9% | 12.5% | 12.5% | 11.3% | -1.2% |
| ROE | 6.1% | 9.6% | 11.3% | 11.1% | 10.8% | -0.3% |
| Net Debt/EBITDA | 0.5x | 0.3x | 0.0x | 0.4x | 0.5x | 0.2x |
Revenue and profitability
Hml Hldgs's Revenue increased on 7.8% 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.
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 1.5% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 2.1%.
Return on investment
The company operates at low ROIC (11.31%) and ROE (10.81%). ROIC decreased slightly on 1.2 pp from 12.5% to 11.3% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 0.4x to 0.5x in FY2016. Debt surged on 55.6% in FY2016 while cash didn't change in FY2016.
Valuation
Hml Hldgs's trades at EV/EBITDA 7.6x and P/E 13.0x while industy averages are 15.6x and 19.1x. Hml Hldgs's EV/(EBITDA-CAPEX) is 8.9x with the industry average at 19.0x.
Appendix 1: Peers in Real Estate Investment & Services
Below we provide Hml Hldgs benchmarking against other companies in Real Estate Investment & 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Formation Group ($FRM) | -60.8% | 147.9% | 35.8% | 199.3% | |
| Development Securities ($DSC) | | | -20.4% | 156.8% | 18.9% |
| Damac Real Estate Development Ltd ($DMC) | 3.8% | 76.9% | -16.8% | 128.2% | |
| Hagl JSC ($HAG) | 39.5% | -36.9% | 10.2% | 104.7% | |
| Quintain Estates & Development ($QED) | -3.2% | -13.0% | -17.5% | 77.0% | |
| |
|---|
| Median (17 companies) | 3.8% | 5.1% | -0.1% | -1.5% | 3.9% |
|---|
| Hml Hldgs ($HMLH) | | 20.8% | 15.3% | 16.7% | 7.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Arricano Real Estate ($ARO) | | 96.1% | 96.5% | 96.1% | |
| Summit Germany Ltd ($SMTG) | | | | 92.3% | |
| Taliesin Property Fund Ltd ($TPFZ) | 75.2% | 76.6% | 74.9% | 76.3% | |
| Panther Securities ($PNS) | 69.2% | 77.2% | 68.0% | 73.5% | |
| Damac Real Estate Development Ltd ($DMC) | 40.7% | 64.4% | 59.6% | 59.4% | |
| |
|---|
| Median (14 companies) | 40.8% | 46.7% | 35.2% | 34.2% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Quintain Estates & Development ($QED) | -81.5% | -70.4% | 43.6% | 76.3% | |
| Summit Germany Ltd ($SMTG) | 78.3% | 78.7% | 89.3% | 75.5% | |
| Safeland ($SAF) | -1.5% | -1.6% | 7.0% | 65.8% | |
| Damac Real Estate Development Ltd ($DMC) | 32.9% | 54.5% | 46.4% | 53.5% | |
| Panther Securities ($PNS) | 44.8% | 56.9% | 50.3% | 52.0% | |
| |
|---|
| Median (16 companies) | 32.9% | 20.9% | 18.5% | 22.6% | 26.4% |
|---|
| Hml Hldgs ($HMLH) | 8.5% | 9.3% | 10.1% | 10.0% | 10.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Quintain Estates & Development ($QED) | 210.6% | 162.3% | 217.2% | 173.3% | |
| Hagl JSC ($HAG) | 134.2% | 171.2% | 145.6% | 127.1% | |
| HALS-Development JSC ($HALS) | 83.2% | 347.0% | 25.0% | 47.3% | |
| Taliesin Property Fund Ltd ($TPFZ) | 14.1% | 21.3% | 45.2% | 43.7% | |
| Development Securities ($DSC) | | 2.9% | 13.5% | 24.6% | 2.9% |
| |
|---|
| Median (17 companies) | 3.1% | 1.7% | 4.9% | 9.1% | 3.8% |
|---|
| Hml Hldgs ($HMLH) | 1.1% | 1.3% | 1.6% | 3.1% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Damac Real Estate Development Ltd ($DMC) | 163.1% | 127.1% | 31.3% | 41.5% | |
| Safeland ($SAF) | -1.3% | -1.1% | 3.7% | 31.2% | |
| PIK Group OJSC ($PIK) | 21.2% | 25.6% | 13.5% | 25.3% | |
| Etalon Group Ltd ($ETLN) | 12.1% | 14.4% | 14.3% | 10.2% | |
| Farglory Land Development Co Ltd ($FLDS) | 9.7% | 13.0% | 7.7% | 9.5% | |
| |
|---|
| Median (17 companies) | 4.1% | 2.4% | 3.0% | 4.8% | 5.0% |
|---|
| Hml Hldgs ($HMLH) | 8.2% | 9.9% | 12.5% | 12.5% | 11.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Arricano Real Estate ($ARO) | | 11.3x | | 43.0x | |
| Plaza Centers Nv ($PLAZ) | 17.9x | | 41.9x | 25.4x | |
| London & Associated Properties ($LAS) | 40.8x | 11.1x | 13.0x | 20.2x | |
| Hagl JSC ($HAG) | 13.4x | 10.5x | 14.2x | 14.8x | |
| Panther Securities ($PNS) | 13.0x | 10.6x | 11.8x | 9.7x | |
| |
|---|
| Median (13 companies) | 10.6x | 10.6x | 10.2x | 4.5x | 6.3x |
|---|
| Hml Hldgs ($HMLH) | 0.5x | 0.3x | 0.0x | 0.4x | 0.5x |
