Ensor Hldgs EBITDA jumped on 43.2% in 2016 and EBITDA Margin increased on 7.0 pp from 11.6% to 18.5%
22 Jul 2016 • About Ensor Hldgs (
$ESR) • By InTwits
Ensor Hldgs reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 18.5% in FY2016, 11.6% in FY2015, 7.9% in FY2014, 9.0% in FY2013, 6.8% in FY2012
- Ensor Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 2.9%.
- CAPEX is quite volatile: 0.44 in FY2016, 0.37 in FY2015, 0.40 in FY2014, 0.21 in FY2013, 0.20 in FY2012
- The company has highly profitable business model: ROIC is at 21.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ensor Hldgs ($ESR) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 22.854 | 31.001 | 30.558 | 21.452 | 19.170 | -10.6% |
| Gross Profit | 5.835 | 7.911 | 7.477 | 5.418 | 5.181 | -4.4% |
| SG&A | | | | 3.475 | 2.320 | -33.2% |
| EBITDA | 1.557 | 2.791 | 2.404 | 2.482 | 3.554 | 43.2% |
| Net Income | 0.072 | 1.598 | 1.102 | 2.676 | 3.228 | 20.6% |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.298 | 0.585 | 0.564 | 1.536 | 172.3% |
| Short Term Debt | 1.706 | 1.534 | 0.295 | 1.876 | 0.795 | -57.6% |
| Long Term Debt | 1.018 | 0.865 | 0.568 | 0.268 | 1.065 | 297.4% |
Cash flow
|
|---|
| Capex | 0.293 | 0.569 | 0.721 | 0.746 | 0.674 | -9.7% |
Ratios
|
|---|
| Revenue growth | 17.9% | 35.6% | -1.4% | -29.8% | -10.6% | |
| EBITDA growth | 53.1% | 79.3% | -13.9% | 3.2% | 43.2% | |
| Gross Margin | 25.5% | 25.5% | 24.5% | 25.3% | 27.0% | 1.8% |
| EBITDA Margin | 6.8% | 9.0% | 7.9% | 11.6% | 18.5% | 7.0% |
| Net Income Margin | 0.3% | 5.2% | 3.6% | 12.5% | 16.8% | 4.4% |
| SG&A, % of revenue | | | | 16.2% | 12.1% | -4.1% |
| CAPEX, % of revenue | 1.3% | 1.8% | 2.4% | 3.5% | 3.5% | 0.0% |
| ROIC | 14.4% | 21.2% | 16.9% | 15.5% | 21.9% | 6.4% |
| ROE | 0.9% | 18.9% | 11.9% | 25.4% | 28.5% | 3.1% |
| Net Debt/EBITDA | 1.7x | 0.8x | 0.1x | 0.6x | 0.1x | -0.5x |
Revenue and profitability
The company's Revenue dropped on 10.6% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 7.0 pp from 11.6% to 18.5% in FY2016.
Gross Margin increased slightly on 1.8 pp from 25.3% to 27.0% in FY2016. SG&A as a % of Revenue decreased on 4.1 pp from 16.2% to 12.1% in FY2016.
Net Income marign increased on 4.4 pp from 12.5% to 16.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.5% in FY2016. CAPEX/Revenue increased slightly on 1.7 pp from 1.8% in FY2013 to 3.5% in FY2016. It's average CAPEX/Revenue for the last three years was 3.1%.
Return on investment
The company operates at high and attractive ROIC (21.87%) and ROE (28.53%). ROIC increased on 6.4 pp from 15.5% to 21.9% in FY2016. ROE increased on 3.1 pp from 25.4% to 28.5% in FY2016.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 0.6x to 0.1x in FY2016. Debt dropped on 13.2% in FY2016 while cash jumped on 172% in FY2016.
Valuation
Ensor Hldgs's trades at EV/EBITDA 5.7x and P/E 6.2x while industy averages are 15.6x and 19.1x. Ensor Hldgs's EV/(EBITDA-CAPEX) is 7.1x with the industry average at 19.0x.
Appendix 1: Peers in Support Services
Below you can find Ensor Hldgs benchmarking vs. other companies in Support Services 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 |
|---|
| Camco Clean Energy ($CCE) | | 88.0% | -54.7% | 99.4% | |
| Optimal Payments ($OPAY) | 39.9% | 41.5% | 44.0% | 68.1% | |
| Inspired Energy ($INSE) | 83.8% | 44.8% | 42.2% | 40.2% | |
| 21St Century Technology ($C21) | 0.1% | -22.8% | -16.6% | 35.5% | |
| Ibex Global Solutions ($IBEX) | 7.4% | 35.7% | 30.0% | 29.8% | |
| |
|---|
| Median (55 companies) | 4.9% | 6.9% | 5.0% | 6.9% | 1.3% |
|---|
| Ensor Hldgs ($ESR) | | 35.6% | -1.4% | -29.8% | -10.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inspired Energy ($INSE) | 94.6% | 86.8% | 78.7% | 76.2% | |
| Ienergizer Ltd ($IBPO) | 56.2% | 78.4% | 76.8% | 72.7% | 71.3% |
| Grafenia ($GRA) | 53.4% | 54.3% | 56.1% | 70.8% | 66.3% |
| Vianet Group ($VNET) | 53.3% | 51.3% | 58.8% | 69.2% | 70.1% |
| Prime People ($PRP) | 63.4% | 58.3% | 57.7% | 61.4% | 59.2% |
| |
|---|
| Median (49 companies) | 29.5% | 28.8% | 30.4% | 28.7% | 34.0% |
|---|
| Ensor Hldgs ($ESR) | 25.5% | 25.5% | 24.5% | 25.3% | 27.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 21St Century Technology ($C21) | 13.4% | -0.2% | 36.0% | 44.8% | |
| Northgate ($67GX) | 41.2% | 40.4% | 40.6% | 39.4% | 38.3% |
| Inspired Energy ($INSE) | 46.2% | 48.5% | 1.5% | 35.4% | |
| Vianet Group ($VNET) | 18.6% | 17.3% | 19.7% | 27.1% | 22.1% |
| Vp ($VP.) | 23.9% | 24.5% | 24.2% | 26.2% | 28.4% |
| |
|---|
| Median (55 companies) | 6.7% | 6.3% | 6.8% | 6.9% | 9.6% |
|---|
| Ensor Hldgs ($ESR) | 6.8% | 9.0% | 7.9% | 11.6% | 18.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vp ($VP.) | 21.4% | 17.7% | 21.6% | 25.7% | 24.1% |
| Sagentia Group ($SAG) | 1.9% | 1.4% | 1.5% | 25.2% | |
| Nature Group ($NGR) | 14.3% | 7.2% | 5.6% | 22.9% | |
| Augean ($AUG) | 9.8% | 15.9% | 12.3% | 12.3% | |
| Falkland Islands Hldgs ($FKL) | 3.7% | 6.8% | 12.9% | 11.9% | 4.8% |
| |
|---|
| Median (55 companies) | 1.0% | 1.1% | 1.0% | 1.0% | 1.2% |
|---|
| Ensor Hldgs ($ESR) | 1.3% | 1.8% | 2.4% | 3.5% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 21St Century Technology ($C21) | 20.3% | -2.9% | 45.6% | 111.0% | |
| Inspired Energy ($INSE) | 63.9% | 65.5% | -7.5% | 28.0% | |
| Petards Group ($PEG) | 35.5% | -78.0% | 24.7% | 23.9% | |
| Servoca ($SVCA) | 1.0% | 7.8% | 14.9% | 22.3% | |
| Rtc Group ($RTC) | 14.6% | 17.6% | 19.9% | 22.2% | |
| |
|---|
| Median (55 companies) | 9.5% | 7.8% | 9.3% | 10.2% | 8.6% |
|---|
| Ensor Hldgs ($ESR) | 14.4% | 21.2% | 16.9% | 15.5% | 21.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Redhall Group ($RHL) | 22.8x | 5.8x | 6.6x | 16.8x | |
| Mitsubishi Corp ($MBC) | 9.9x | 15.9x | 14.3x | 12.5x | 25.0x |
| Ienergizer Ltd ($IBPO) | 6.3x | 2.8x | 3.0x | 4.0x | 2.4x |
| Ceps ($CEPS) | | 3.0x | 6.6x | 3.8x | |
| Kellan Group(The ($KLN) | | | 6.5x | 3.6x | |
| |
|---|
| Median (51 companies) | 0.8x | 0.5x | 0.6x | 0.4x | 1.1x |
|---|
| Ensor Hldgs ($ESR) | 1.7x | 0.8x | 0.1x | 0.6x | 0.1x |
