Celtic EBITDA Margin jumped on 15.9 pp from -1.3% to 14.6% in 2016 and Revenue increased slightly on 1.8%
19 Sep 2016 • About Celtic (
$CCP) • By InTwits
Celtic reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Celtic doesn't have a profitable business model yet: FY2016 ROIC is 1.5%
- EBITDA Margin is quite volatile: 14.6% in FY2016, -1.3% in FY2015, 10.4% in FY2014, 19.7% in FY2013, -2.5% in FY2012
- Celtic has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 1.5 in FY2016, 2.7 in FY2015, 3 in FY2014, 1.4 in FY2013, 0.88 in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Celtic ($CCP) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 51.341 | 75.816 | 64.736 | 51.080 | 52.009 | 1.8% |
| EBITDA | -1.278 | 14.925 | 6.759 | -0.649 | 7.584 | -1,268.6% |
| Net Income | -7.371 | 9.739 | 11.170 | -3.947 | 0.459 | -111.6% |
Balance Sheet
|
|---|
| Cash | 8.198 | 14.348 | 14.739 | 11.770 | 10.450 | -11.2% |
| Short Term Debt | 0.493 | 0.489 | 0.485 | 0.308 | 0.304 | -1.3% |
| Long Term Debt | 15.035 | 14.564 | 14.128 | 11.112 | 10.892 | -2.0% |
Cash flow
|
|---|
| Capex | 0.879 | 1.352 | 3.000 | 2.656 | 1.455 | -45.2% |
Ratios
|
|---|
| Revenue growth | -2.3% | 47.7% | -14.6% | -21.1% | 1.8% | |
| EBITDA growth | -159.9% | -1,267.8% | -54.7% | -109.6% | -1,268.6% | |
| EBITDA Margin | -2.5% | 19.7% | 10.4% | -1.3% | 14.6% | 15.9% |
| Net Income Margin | -14.4% | 12.8% | 17.3% | -7.7% | 0.9% | 8.6% |
| CAPEX, % of revenue | 1.7% | 1.8% | 4.6% | 5.2% | 2.8% | -2.4% |
| ROIC | -18.2% | 13.5% | -0.5% | -14.7% | 1.5% | 16.2% |
| ROE | -20.3% | 25.9% | 23.2% | -7.6% | 0.9% | 8.5% |
| Net Debt/EBITDA | | 0.0x | -0.0x | | 0.1x | 0.1x |
Revenue and profitability
The company's Revenue increased slightly on 1.8% in FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 15.9 pp from -1.3% to 14.6% in FY2016.
Net Income marign increased on 8.6 pp from -7.7% to 0.88% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.8% in FY2016. CAPEX/Revenue increased slightly on 1.0 pp from 1.8% in FY2013 to 2.8% in FY2016. For the last three years the average CAPEX/Revenue was 4.2%.
Return on investment
The company operates at low ROIC (1.53%) and ROE (0.91%). ROIC surged on 16.2 pp from -14.7% to 1.5% in FY2016. ROE increased on 8.5 pp from -7.6% to 0.91% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 1.5x. Net Debt / EBITDA increased0.1x from to 0.1x in FY2016. Debt decreased slightly on 2.0% in FY2016 while cash dropped on 11.2% in FY2016.
Appendix 1: Peers in Travel & Leisure
Below you can find Celtic benchmarking vs. other companies in Travel & Leisure 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 |
|---|
| Dalata Hotel Group ($DAL) | 55.4% | 12.0% | 30.4% | 185.4% | |
| Everyman Media Group ($EMAN) | 23.4% | 26.5% | 22.4% | 44.1% | |
| Webis Holdings ($WEB) | 8.7% | 46.3% | -55.0% | 29.7% | |
| Paddy Power ($PAP) | 30.9% | 14.0% | 18.3% | 24.1% | |
| Hanatour Service Inc ($TOUR) | 15.0% | 14.6% | 9.3% | 19.2% | |
| |
|---|
| Median (22 companies) | 13.6% | 8.2% | 7.2% | 7.6% | 8.7% |
|---|
| Celtic ($CCP) | | 47.7% | -14.6% | -21.1% | 1.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Eclectic Bar Grp ($BAR) | 79.1% | 78.9% | 79.0% | 79.4% | |
| Paddy Power ($PAP) | 84.7% | 82.8% | 81.0% | 74.7% | |
| Action Hotels ($AHCG) | 75.1% | 75.0% | 73.3% | 74.0% | |
| Dalata Hotel Group ($DAL) | 61.2% | 62.0% | 62.8% | 61.5% | |
| Everyman Media Group ($EMAN) | 57.6% | 59.2% | 58.9% | 58.0% | |
| |
|---|
| Median (12 companies) | 29.5% | 30.8% | 30.2% | 31.2% | 19.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($AHCG) | 31.0% | 27.9% | 28.6% | 34.3% | |
| Air China ($AIRC) | 19.7% | 16.0% | 18.4% | 27.3% | |
| Mandarin Oriental International ($MDOB) | 19.5% | 22.4% | 24.0% | 26.2% | |
| Ryanair Hldgs ($RYA) | 22.6% | 21.5% | 20.1% | 25.1% | 28.9% |
| Irish Continental Group ($ICGC) | 17.1% | 18.6% | 27.3% | 23.6% | |
| |
|---|
| Median (23 companies) | 13.8% | 12.9% | 12.7% | 13.1% | 17.4% |
|---|
| Celtic ($CCP) | -2.5% | 19.7% | 10.4% | -1.3% | 14.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($AHCG) | 21.0% | 25.6% | 90.0% | 172.4% | |
| Everyman Media Group ($EMAN) | 0.0% | 36.4% | 25.9% | 56.4% | |
| Marston'S ($MARS) | 18.0% | 19.3% | 17.5% | 16.2% | 15.3% |
| Young & Co'S Brewery ($YNGN) | 14.3% | 8.7% | 10.8% | 14.3% | 16.9% |
| Ana Hldgs Inc ($ANA) | 12.8% | 10.1% | 10.5% | 14.1% | 14.1% |
| |
|---|
| Median (23 companies) | 4.4% | 5.4% | 4.5% | 8.7% | 15.3% |
|---|
| Celtic ($CCP) | 1.7% | 1.8% | 4.6% | 5.2% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Paddy Power ($PAP) | 53.4% | 47.2% | 47.6% | 53.2% | |
| Irish Continental Group ($ICGC) | 14.6% | 18.9% | 40.0% | 33.9% | |
| Air Partner ($AIP) | 34.8% | 27.5% | 21.2% | 20.0% | 20.4% |
| Hanatour Service Inc ($TOUR) | 22.5% | 19.9% | 19.6% | 19.4% | |
| Ryanair Hldgs ($RYA) | 9.7% | 10.0% | 9.5% | 13.3% | 17.2% |
| |
|---|
| Median (23 companies) | 6.8% | 6.9% | 4.3% | 6.1% | 8.8% |
|---|
| Celtic ($CCP) | -18.2% | 13.5% | -0.5% | -14.7% | 1.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Meikles Ltd ($MIK) | | 5.1x | 10.7x | 73.1x | |
| Action Hotels ($AHCG) | 11.2x | 7.8x | 9.6x | 12.3x | |
| Marston'S ($MARS) | | 6.5x | 14.0x | 8.2x | 6.2x |
| Peel Hotels ($PHO) | 8.2x | 7.3x | 5.9x | 4.4x | 3.9x |
| Rotala ($ROL) | 2.6x | 3.1x | 2.8x | 3.6x | |
| |
|---|
| Median (21 companies) | 1.1x | 2.3x | 1.3x | 2.3x | 2.3x |
|---|
