Abbey EBITDA surged on 29.8% in 2016 and Revenue surged on 27.9%
12 Jul 2016 • About Abbey (
$ABBY) • By InTwits
Abbey reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Abbey is a fast growth stock: FY2016 revenue growth was 27.9%, 5 year revenue CAGR was 27.1% at FY2016 ROIC 22.9%
- Abbey has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.0%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: 2.1 in FY2016, 0.38 in FY2015, 1.2 in FY2014, 1.5 in FY2013, 5.9 in FY2012
- The company has highly profitable business model: ROIC is at 22.9%
- It operates with high leverage: Net Debt/EBITDA is -1.3x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Abbey ($ABBY) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 70.4 | 98.5 | 114.2 | 172.5 | 220.6 | 27.9% |
| Gross Profit | 16.6 | 17.1 | 29.5 | 52.8 | 73.1 | 38.4% |
| SG&A | 7.6 | 8.8 | 9.1 | 6.5 | 12.5 | 92.8% |
| EBITDA | 13.7 | 13.1 | 25.8 | 53.8 | 69.8 | 29.8% |
| Net Income | 8.9 | 7.7 | 18.7 | 39.6 | 49.5 | 24.9% |
Balance Sheet
|
|---|
| Cash | 19.9 | 33.5 | 30.5 | 67.4 | 90.4 | 34.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 8.6 | 6.4 | 9.2 | 13.9 | 11.8 | -15.2% |
Ratios
|
|---|
| Revenue growth | 5.6% | 40.0% | 15.9% | 51.0% | 27.9% | |
| EBITDA growth | -0.9% | -4.4% | 97.3% | 108.7% | 29.8% | |
| Gross Margin | 23.6% | 17.3% | 25.8% | 30.6% | 33.1% | 2.5% |
| EBITDA Margin | 19.4% | 13.3% | 22.6% | 31.2% | 31.7% | 0.5% |
| Net Income Margin | 12.6% | 7.8% | 16.4% | 23.0% | 22.4% | -0.5% |
| SG&A, % of revenue | 10.8% | 8.9% | 7.9% | 3.8% | 5.7% | 1.9% |
| CAPEX, % of revenue | 12.2% | 6.5% | 8.0% | 8.0% | 5.3% | -2.7% |
| ROIC | 5.4% | 4.7% | 11.2% | 21.1% | 22.9% | 1.8% |
| ROE | 5.3% | 4.4% | 10.3% | 18.1% | 18.7% | 0.6% |
| Net Debt/EBITDA | -1.5x | -2.6x | -1.2x | -1.3x | -1.3x | -0.0x |
Revenue and profitability
The company's Revenue jumped on 27.9% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.93 pp from 9.5% to 10.4% in FY2016.
Gross Margin increased on 2.5 pp from 30.6% to 33.1% in FY2016. SG&A as a % of Revenue increased slightly on 1.9 pp from 3.8% to 5.7% in FY2016.
Net Income marign decreased slightly on 0.54 pp from 23.0% to 22.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Abbey's CAPEX/Revenue was 5.3% in FY2016. The company showed small CAPEX/Revenue decline of 1.2 pp from 6.5% in FY2013 to 5.3% in FY2016. Average CAPEX/Revenue for the last three years was 7.1%.
Return on investment
The company operates at high and attractive ROIC (22.91%) while ROE is a bit lower (18.73%). ROIC increased slightly on 1.8 pp from 21.1% to 22.9% in FY2016. ROE increased slightly on 0.59 pp from 18.1% to 18.7% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 34.2% in FY2016.
Appendix 1: Peers in Household Goods & Home Construction
Below we provide Abbey benchmarking against other companies in Household Goods & Home Construction 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 |
|---|
| Taylor Wimpey ($TW.) | 11.7% | 13.7% | 17.0% | 16.9% | |
| Airea ($AIEA) | -9.1% | -4.7% | -8.4% | 11.3% | |
| Reckitt Benckiser Group ($RB.) | 0.9% | -3.1% | -4.6% | 0.4% | |
| Colefax Group ($CFX) | -9.4% | 0.3% | 10.5% | -1.6% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 4.1% | 16.2% | -5.1% | -9.6% | |
| |
|---|
| Median (7 companies) | 1.3% | 0.3% | -5.1% | -1.6% | |
|---|
| Abbey ($ABBY) | | 40.0% | 15.9% | 51.0% | 27.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Reckitt Benckiser Group ($RB.) | 57.9% | 56.7% | 57.7% | 59.1% | |
| Colefax Group ($CFX) | 55.1% | 55.4% | 53.3% | 54.7% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 23.5% | 23.8% | 24.9% | 25.5% | |
| Taylor Wimpey ($TW.) | 17.6% | 21.6% | 23.8% | 25.1% | |
| Havelock Europa ($HVE) | 13.2% | 12.5% | 13.3% | 11.0% | |
| |
|---|
| Median (6 companies) | 20.6% | 22.7% | 24.4% | 25.3% | |
|---|
| Abbey ($ABBY) | 23.6% | 17.3% | 25.8% | 30.6% | 33.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Reckitt Benckiser Group ($RB.) | 27.1% | 22.0% | 26.3% | 27.2% | |
| Taylor Wimpey ($TW.) | 11.2% | 15.6% | 18.6% | 20.2% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 10.8% | 10.7% | 10.7% | 10.5% | |
| Colefax Group ($CFX) | 6.6% | 7.6% | 9.1% | 8.7% | |
| Airea ($AIEA) | 5.9% | 7.4% | 7.0% | 8.0% | |
| |
|---|
| Median (7 companies) | 6.6% | 7.6% | 9.1% | 8.7% | |
|---|
| Abbey ($ABBY) | 19.4% | 13.3% | 22.6% | 31.2% | 31.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Teco Electric & Machinery Co Ltd ($TECD) | 1.4% | 1.4% | 3.6% | 3.5% | |
| Colefax Group ($CFX) | 4.9% | 3.1% | 2.0% | 2.9% | |
| Airea ($AIEA) | 2.7% | 1.0% | 0.7% | 1.8% | |
| Reckitt Benckiser Group ($RB.) | 1.7% | 2.1% | 1.8% | 1.7% | |
| Havelock Europa ($HVE) | 0.1% | 1.3% | 0.2% | 1.0% | |
| |
|---|
| Median (7 companies) | 1.7% | 1.3% | 1.1% | 1.7% | |
|---|
| Abbey ($ABBY) | 12.2% | 6.5% | 8.0% | 8.0% | 5.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Taylor Wimpey ($TW.) | 12.2% | 17.7% | 21.7% | 24.1% | |
| Colefax Group ($CFX) | 10.7% | 13.5% | 22.0% | 20.6% | |
| Reckitt Benckiser Group ($RB.) | 23.3% | 17.3% | 19.7% | 20.3% | |
| Airea ($AIEA) | 3.3% | 7.2% | 6.4% | 11.7% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 7.1% | 8.3% | 7.3% | 5.8% | |
| |
|---|
| Median (7 companies) | 7.1% | 8.3% | 7.3% | 11.7% | |
|---|
| Abbey ($ABBY) | 5.4% | 4.7% | 11.2% | 21.1% | 22.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Reckitt Benckiser Group ($RB.) | 0.9x | 1.0x | 0.7x | 0.7x | |
| Teco Electric & Machinery Co Ltd ($TECD) | 0.1x | -0.9x | -1.3x | -0.3x | |
| Taylor Wimpey ($TW.) | 0.3x | -0.0x | -0.2x | -0.4x | |
| Airea ($AIEA) | -0.9x | -1.5x | -1.2x | -0.9x | |
| Colefax Group ($CFX) | -1.8x | -1.4x | -0.6x | -1.0x | |
| |
|---|
| Median (6 companies) | 0.2x | -0.5x | -0.6x | -0.6x | |
|---|
| Abbey ($ABBY) | -1.5x | -2.6x | -1.2x | -1.3x | -1.3x |
