Jaywing EBITDA surged on 17.0% in 2016 and Revenue increased on 6.5%
12 Jul 2016 • About Jaywing (
$JWNG) • By InTwits
Jaywing reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jaywing has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 1.9%.
- CAPEX is quite volatile: 0.90 in FY2016, 0.52 in FY2015, 0.40 in FY2014, 0.31 in FY2013, 0.29 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.6x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jaywing ($JWNG) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 37.265 | 26.877 | 26.693 | 33.789 | 35.973 | 6.5% |
| Gross Profit | 29.745 | 20.637 | 21.624 | 30.086 | 31.792 | 5.7% |
| SG&A | | | | 5.657 | | -100.0% |
| EBITDA | 4.359 | 3.384 | 1.735 | 2.764 | 3.235 | 17.0% |
| Net Income | 1.122 | 0.633 | -4.795 | -1.478 | 0.705 | -147.7% |
Balance Sheet
|
|---|
| Cash | 0.061 | 0.001 | 1.994 | 1.000 | 0.347 | -65.3% |
| Short Term Debt | 3.233 | 2.316 | 4.612 | 4.062 | 4.612 | 13.5% |
| Long Term Debt | 0.000 | 0.000 | 3.188 | 2.126 | 1.063 | -50.0% |
Cash flow
|
|---|
| Capex | 0.278 | 0.546 | 0.392 | 0.427 | 0.469 | 9.8% |
Ratios
|
|---|
| Revenue growth | -16.6% | -27.9% | -0.7% | 26.6% | 6.5% | |
| EBITDA growth | -78.8% | -22.4% | -48.7% | 59.3% | 17.0% | |
| Gross Margin | 79.8% | 76.8% | 81.0% | 89.0% | 88.4% | -0.7% |
| EBITDA Margin | 11.7% | 12.6% | 6.5% | 8.2% | 9.0% | 0.8% |
| Net Income Margin | 3.0% | 2.4% | -18.0% | -4.4% | 2.0% | 6.3% |
| SG&A, % of revenue | | | | 16.7% | | -16.7% |
| CAPEX, % of revenue | 0.7% | 2.0% | 1.5% | 1.3% | 1.3% | 0.0% |
| ROIC | 4.1% | 2.8% | -0.7% | -2.6% | 3.3% | 5.9% |
| ROE | 3.0% | 1.7% | -13.3% | -4.5% | 2.2% | 6.6% |
| Net Debt/EBITDA | 0.7x | 0.7x | 3.3x | 1.9x | 1.6x | -0.2x |
Revenue and profitability
The company's Revenue increased on 6.5% in FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.81 pp from 8.2% to 9.0% in FY2016.
Gross Margin decreased slightly on 0.66 pp from 89.0% to 88.4% in FY2016.
Net Income marign increased on 6.3 pp from -4.4% to 2.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Jaywing had CAPEX/Revenue of 1.3%. CAPEX/Revenue decreased slightly on 0.73 pp from 2.0% in FY2013 to 1.3% in FY2016. Average CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at low ROIC (3.31%) and ROE (2.16%). ROIC increased on 5.9 pp from -2.6% to 3.3% in FY2016. ROE increased on 6.6 pp from -4.5% to 2.2% in FY2016.
Leverage (Debt)
Debt level is 1.6x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 1.9x to 1.6x in FY2016. Debt decreased on 8.3% in FY2016 while cash dropped on 65.3% in FY2016.
Valuation
The company's trades at EV/EBITDA 8.9x and P/E 33.4x while industy averages are 15.6x and 19.1x. The company's EV/(EBITDA-CAPEX) is 10.4x with the industry average at 19.0x.
Appendix 1: Peers in Media
Below you can find Jaywing benchmarking vs. other companies in Media 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 |
|---|
| Tla Worldwide ($TLA) | 5,338.4% | 25.0% | 6.3% | 130.0% | |
| Porta Communications ($PTCM) | 970.2% | 10.7% | 150.9% | 46.5% | |
| Marimedia Ltd ($MARI) | 24.4% | 71.1% | 45.7% | 20.1% | |
| Nahl Group ($NAH) | 12.6% | -3.2% | -10.7% | 15.7% | |
| Dcd Media ($DCD) | -17.0% | -23.4% | -21.2% | 14.5% | |
| |
|---|
| Median (23 companies) | -1.1% | -0.6% | 1.9% | 0.8% | 9.1% |
|---|
| Jaywing ($JWNG) | | -27.9% | -0.7% | 26.6% | 6.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Brainjuicer Group ($BJU) | 77.2% | 78.0% | 78.8% | 80.4% | |
| Porta Communications ($PTCM) | 55.3% | 89.2% | 83.4% | 79.0% | |
| Tla Worldwide ($TLA) | 96.1% | 96.6% | 99.9% | 78.8% | |
| Haynes Publishing Group ($HYNS) | 59.9% | 59.6% | 52.9% | 60.2% | |
| Spaceandpeople ($SAL) | | | 62.2% | 58.8% | |
| |
|---|
| Median (24 companies) | 40.6% | 41.6% | 43.5% | 41.2% | 42.4% |
|---|
| Jaywing ($JWNG) | 79.8% | 76.8% | 81.0% | 89.0% | 88.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dq Entertainment ($DQE) | 42.8% | 49.2% | 62.4% | 59.1% | |
| Haynes Publishing Group ($HYNS) | 25.7% | 23.4% | 38.8% | 33.5% | |
| Nahl Group ($NAH) | 36.6% | 39.6% | 28.8% | 29.5% | |
| Tla Worldwide ($TLA) | 43.5% | 39.1% | 40.6% | 28.5% | |
| Quarto Group Inc ($QRT) | 20.0% | 25.9% | 27.8% | 28.4% | |
| |
|---|
| Median (24 companies) | 15.1% | 15.1% | 14.8% | 11.8% | 11.2% |
|---|
| Jaywing ($JWNG) | 11.7% | 12.6% | 6.5% | 8.2% | 9.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Avesco Group ($AVS) | 22.7% | 13.2% | 18.6% | 14.4% | |
| Mood Media Corp ($MM.) | 8.6% | 6.4% | 6.9% | 8.2% | |
| Spaceandpeople ($SAL) | 3.2% | 4.1% | 1.6% | 5.0% | |
| Dq Entertainment ($DQE) | 6.8% | 2.0% | 0.0% | 4.6% | |
| Naspers ($NPSN) | 4.7% | 4.9% | | 4.0% | 3.1% |
| |
|---|
| Median (24 companies) | 1.3% | 1.6% | 1.7% | 1.0% | 1.7% |
|---|
| Jaywing ($JWNG) | 0.7% | 2.0% | 1.5% | 1.3% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Independent News & Media ($INM) | -43.9% | 136.2% | 29.6% | 65.1% | |
| Brainjuicer Group ($BJU) | 24.3% | 49.0% | 60.0% | 58.5% | |
| Uls Technology ($ULS) | | 33.2% | 44.1% | 39.6% | 39.3% |
| Cellcast Group ($CLTV) | -63.1% | | | 28.4% | |
| Nahl Group ($NAH) | 37.1% | 42.3% | 31.5% | 26.0% | |
| |
|---|
| Median (24 companies) | 5.6% | 5.8% | 7.8% | 6.7% | 19.2% |
|---|
| Jaywing ($JWNG) | 4.1% | 2.8% | -0.7% | -2.6% | 3.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Johnston Press ($JPR) | 5.8x | | 11.4x | 15.6x | |
| Mood Media Corp ($MM.) | 5.2x | 8.1x | 8.2x | 9.8x | |
| Naspers ($NPSN) | 1.4x | 1.9x | | 6.2x | 14.7x |
| Grupo Clarin Sa ($GCLA) | 0.9x | 0.8x | 0.7x | 4.3x | |
| Dq Entertainment ($DQE) | 1.1x | 1.5x | 1.5x | 2.8x | |
| |
|---|
| Median (22 companies) | 1.0x | 0.8x | 0.8x | 0.5x | 7.0x |
|---|
| Jaywing ($JWNG) | 0.7x | 0.7x | 3.3x | 1.9x | 1.6x |
