Colefax Group EBITDA increased on 7.4% in 2016 and EBITDA Margin increased slightly on 0.64 pp from 8.7% to 9.4%
26 Jul 2016 • About Colefax Group (
$CFX) • By InTwits
Colefax Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Colefax Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: 12.8 in FY2016, 7.9 in FY2015, 13.7 in FY2014, 5.7 in FY2013, 30.0 in FY2012
- The company has highly profitable business model: ROIC is at 20.2%
- It operates with high leverage: Net Debt/EBITDA is -1.4x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Colefax Group ($CFX) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 70.399 | 70.619 | 78.035 | 76.796 | 76.879 | 0.1% |
| Gross Profit | 38.804 | 39.101 | 41.617 | 42.036 | 43.292 | 3.0% |
| SG&A | | | 36.695 | 36.999 | 38.279 | 3.5% |
| EBITDA | 4.680 | 5.344 | 7.104 | 6.704 | 7.200 | 7.4% |
| Net Income | 2.195 | 2.334 | 3.353 | 3.542 | 3.461 | -2.3% |
Balance Sheet
|
|---|
| Cash | 8.519 | 7.630 | 4.298 | 6.861 | 10.085 | 47.0% |
| Short Term Debt | 0.000 | 0.000 | 0.241 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 3.460 | 2.178 | 1.583 | 2.213 | 2.278 | 2.9% |
Ratios
|
|---|
| Revenue growth | -9.4% | 0.3% | 10.5% | -1.6% | 0.1% | |
| EBITDA growth | -44.9% | 14.2% | 32.9% | -5.6% | 7.4% | |
| Gross Margin | 55.1% | 55.4% | 53.3% | 54.7% | 56.3% | 1.6% |
| EBITDA Margin | 6.6% | 7.6% | 9.1% | 8.7% | 9.4% | 0.6% |
| Net Income Margin | 3.1% | 3.3% | 4.3% | 4.6% | 4.5% | -0.1% |
| SG&A, % of revenue | | | 47.0% | 48.2% | 49.8% | 1.6% |
| CAPEX, % of revenue | 4.9% | 3.1% | 2.0% | 2.9% | 3.0% | 0.1% |
| ROIC | 10.7% | 13.5% | 22.0% | 20.6% | 20.2% | -0.5% |
| ROE | 8.5% | 9.2% | 14.4% | 15.4% | 13.8% | -1.6% |
| Net Debt/EBITDA | -1.8x | -1.4x | -0.6x | -1.0x | -1.4x | -0.4x |
Revenue and profitability
The company's Revenue showed almost no change 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 slightly on 1.6 pp from 54.7% to 56.3% in FY2016. SG&A as a % of Revenue increased slightly on 1.6 pp from 48.2% to 49.8% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
Colefax Group's CAPEX/Revenue was 3.0% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at high and attractive ROIC (20.15%) while ROE is a bit lower (13.82%). ROIC showed almost no change in FY2016. ROE decreased slightly on 1.6 pp from 15.4% to 13.8% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 47.0% in FY2016.
Valuation
Colefax Group's trades at EV/EBITDA 5.0x and P/E 13.4x while industy averages are 15.6x and 19.1x. Colefax Group's EV/(EBITDA-CAPEX) is 7.3x with the industry average at 19.0x.
Appendix 1: Peers in Household Goods & Home Construction
Below you can find Colefax Group benchmarking vs. other companies in Household Goods & Home Construction 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 |
|---|
| Abbey ($ABBY) | | 40.0% | 15.9% | 51.0% | 27.9% |
| Taylor Wimpey ($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% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 4.1% | 16.2% | -5.1% | -9.6% | |
| |
|---|
| Median (7 companies) | 2.7% | 13.7% | -5.1% | 0.4% | 27.9% |
|---|
| Colefax Group ($CFX) | | 0.3% | 10.5% | -1.6% | 0.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Reckitt Benckiser Group ($RB.) | 57.9% | 56.7% | 57.7% | 59.1% | |
| Abbey ($ABBY) | 23.6% | 17.3% | 25.8% | 30.6% | 33.1% |
| 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 ($HVE) | 13.2% | 12.5% | 13.3% | 11.0% | |
| |
|---|
| Median (6 companies) | 20.6% | 19.5% | 24.4% | 25.3% | 33.1% |
|---|
| Colefax Group ($CFX) | 55.1% | 55.4% | 53.3% | 54.7% | 56.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Abbey ($ABBY) | 19.4% | 13.3% | 22.6% | 31.2% | 31.7% |
| Reckitt Benckiser Group ($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% | |
| Airea ($AIEA) | 5.9% | 7.4% | 7.0% | 8.0% | |
| |
|---|
| Median (7 companies) | 10.8% | 10.7% | 10.7% | 10.5% | 31.7% |
|---|
| Colefax Group ($CFX) | 6.6% | 7.6% | 9.1% | 8.7% | 9.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Abbey ($ABBY) | 12.2% | 6.5% | 8.0% | 8.0% | 5.3% |
| Teco Electric & Machinery Co Ltd ($TECD) | 1.4% | 1.4% | 3.6% | 3.5% | |
| Airea ($AIEA) | 2.7% | 1.0% | 0.7% | 1.8% | |
| Reckitt Benckiser Group ($RB.) | 1.7% | 2.1% | 1.8% | 1.7% | |
| Havelock Europa ($HVE) | 0.1% | 1.3% | 0.2% | 1.0% | |
| |
|---|
| Median (7 companies) | 1.7% | 1.3% | 1.1% | 1.7% | 5.3% |
|---|
| Colefax Group ($CFX) | 4.9% | 3.1% | 2.0% | 2.9% | 3.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Taylor Wimpey ($TW.) | 12.2% | 17.7% | 21.7% | 24.1% | |
| Abbey ($ABBY) | 5.4% | 4.7% | 11.2% | 21.1% | 22.9% |
| 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 ($TECD) | 7.1% | 8.3% | 7.3% | 5.8% | |
| |
|---|
| Median (7 companies) | 5.4% | 7.2% | 7.3% | 11.7% | 22.9% |
|---|
| Colefax Group ($CFX) | 10.7% | 13.5% | 22.0% | 20.6% | 20.2% |
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 | |
| Abbey ($ABBY) | -1.5x | -2.6x | -1.2x | -1.3x | -1.3x |
| |
|---|
| Median (6 companies) | 0.2x | -0.5x | -1.2x | -0.6x | -1.3x |
|---|
| Colefax Group ($CFX) | -1.8x | -1.4x | -0.6x | -1.0x | -1.4x |
