Mysale Group revenue increased on 7.0% in 2016 and EBITDA Margin increased on 6.5 pp from -4.7% to 1.8%
28 Sep 2016 • About Mysale Group (
$MYSL) • By InTwits
Mysale Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mysale Group doesn't have a profitable business model yet: FY2016 ROIC is 0.3%
- EBITDA Margin is quite volatile: 1.8% in FY2016, -4.7% in FY2015, 2.3% in FY2014, 3.5% in FY2013, 2.4% in FY2012
- Mysale Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is at 0.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mysale Group ($MYSL) key annual financial indicators
| mln. AUD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 112.2 | 181.9 | 224.4 | 235.9 | 252.3 | 7.0% |
| Gross Profit | 36.4 | 54.9 | 60.4 | 55.2 | 66.7 | 20.7% |
| SG&A | | 49.9 | 62.5 | 32.2 | 68.6 | 113.0% |
| EBITDA | 2.6 | 6.4 | 5.2 | -11.1 | 4.6 | -141.6% |
| Net Income | -8.3 | 4.5 | -58.5 | -17.8 | -0.2 | -99.0% |
Balance Sheet
|
|---|
| Cash | 6.6 | 15.1 | 77.3 | 39.9 | 34.0 | -14.7% |
| Short Term Debt | 0.3 | 1.4 | 1.6 | 1.2 | 6.5 | 444.7% |
| Long Term Debt | 0.6 | 0.4 | 0.3 | 0.1 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 1.0 | 1.2 | 1.8 | 1.0 | 0.8 | -24.3% |
Ratios
|
|---|
| Revenue growth | 96.8% | 62.1% | 23.4% | 5.1% | 7.0% | |
| EBITDA growth | 219.3% | 141.2% | -17.9% | -312.4% | -141.6% | |
| Gross Margin | 32.5% | 30.2% | 26.9% | 23.4% | 26.4% | 3.0% |
| EBITDA Margin | 2.4% | 3.5% | 2.3% | -4.7% | 1.8% | 6.5% |
| Net Income Margin | -7.4% | 2.4% | -26.1% | -7.5% | -0.1% | 7.5% |
| SG&A, % of revenue | | 27.4% | 27.9% | 13.7% | 27.2% | 13.5% |
| CAPEX, % of revenue | 0.9% | 0.6% | 0.8% | 0.4% | 0.3% | -0.1% |
| ROIC | | | 10.0% | -19.0% | 0.3% | 19.3% |
| ROE | | | | -21.4% | -0.2% | 21.2% |
| Net Debt/EBITDA | -2.2x | -2.1x | -14.4x | | -6.0x | -6.0x |
Revenue and profitability
Mysale Group's Revenue increased on 7.0% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.3 pp from 51.2% to 57.5% in FY2016.
Gross Margin increased on 3.0 pp from 23.4% to 26.4% in FY2016. SG&A as a % of Revenue surged on 13.5 pp from 13.7% to 27.2% in FY2016.
Net Income marign increased on 7.5 pp from -7.5% to -0.070% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Mysale Group's CAPEX/Revenue was 0.31% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.52%.
Return on investment
The company operates at low but positive ROIC (0.34%) and negative ROE (-0.23%). ROIC jumped on 19.3 pp from -19.0% to 0.34% in FY2016. ROE jumped on 21.2 pp from -21.4% to -0.23% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -6.0x and Debt / EBITDA is 1.4x. Net Debt / EBITDA dropped6.0x from to -6.0x in FY2016. Debt jumped on 417% in FY2016 while cash dropped on 14.7% in FY2016.
Appendix 1: Peers in General Retailers
Below we provide Mysale Group benchmarking against other companies in General Retailers 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 |
|---|
| Just Eat ($JE.) | | | | 57.7% | 51.7% |
| Signet Jewelers Ltd ($SIG) | | 6.2% | 5.7% | 36.3% | 14.2% |
| AO World ($AO.) | | 31.3% | 40.0% | 23.8% | 25.7% |
| Caffyns ($78GL) | | -3.1% | 17.1% | 8.9% | 10.5% |
| Entu (Uk) Ltd ($ENTU) | 36.5% | 4.1% | -3.4% | 7.3% | |
| |
|---|
| Median (9 companies) | 6.1% | 6.2% | 3.1% | 7.3% | 12.4% |
|---|
| Mysale Group ($MYSL) | | 62.1% | 23.4% | 5.1% | 7.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Just Eat ($JE.) | | | 89.7% | 90.2% | 90.6% |
| 7Digital Group ($7DIG) | 16.5% | 13.9% | 59.0% | 68.1% | |
| Aa ($AA.) | 60.4% | 63.9% | 64.7% | 64.8% | 64.3% |
| Stanley Gibbons Group ($SGI) | 43.7% | 43.2% | | 51.5% | |
| French Connection Group ($FCCN) | 48.1% | 47.9% | 47.6% | 46.7% | 46.3% |
| |
|---|
| Median (10 companies) | 32.4% | 36.4% | 37.5% | 41.4% | 41.8% |
|---|
| Mysale Group ($MYSL) | 32.5% | 30.2% | 26.9% | 23.4% | 26.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aa ($AA.) | 35.5% | 37.0% | 42.2% | 37.9% | 36.8% |
| 7Digital Group ($7DIG) | -8.4% | -10.9% | -34.2% | 24.1% | |
| Just Eat ($JE.) | | | 16.3% | 21.0% | 25.8% |
| Signet Jewelers Ltd ($SIG) | 16.0% | 16.6% | 16.2% | 12.7% | 13.4% |
| Entu (Uk) Ltd ($ENTU) | 7.4% | 6.7% | 10.3% | 8.6% | |
| |
|---|
| Median (10 companies) | 8.8% | 6.7% | 7.4% | 8.6% | 7.8% |
|---|
| Mysale Group ($MYSL) | 2.4% | 3.5% | 2.3% | -4.7% | 1.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 7Digital Group ($7DIG) | 2.2% | 0.3% | 3.4% | 8.2% | |
| Signet Jewelers Ltd ($SIG) | 2.6% | 3.4% | 3.6% | 3.8% | 3.5% |
| Aa ($AA.) | 2.7% | 0.7% | 1.0% | 3.8% | 7.7% |
| Lotte Shopping Co Ltd ($LOTS) | 7.1% | 6.5% | 6.6% | 3.8% | |
| Stanley Gibbons Group ($SGI) | 1.0% | 1.1% | | 2.4% | |
| |
|---|
| Median (10 companies) | 1.6% | 1.0% | 3.4% | 2.4% | 2.1% |
|---|
| Mysale Group ($MYSL) | 0.9% | 0.6% | 0.8% | 0.4% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Entu (Uk) Ltd ($ENTU) | 144.6% | 68.6% | 134.8% | 461.3% | |
| Caffyns ($78GL) | 60.8% | 15.4% | 11.1% | 37.3% | 10.4% |
| Aa ($AA.) | 138.0% | 134.4% | 61.1% | 34.9% | 32.8% |
| 7Digital Group ($7DIG) | -7.7% | -11.3% | -51.2% | 22.2% | |
| Signet Jewelers Ltd ($SIG) | 21.6% | 21.5% | 20.4% | 15.5% | 15.2% |
| |
|---|
| Median (10 companies) | 21.3% | 15.4% | 7.4% | 12.3% | 10.1% |
|---|
| Mysale Group ($MYSL) | | | 10.0% | -19.0% | 0.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aa ($AA.) | 0.6x | -0.0x | 7.7x | 7.9x | 7.8x |
| Lotte Shopping Co Ltd ($LOTS) | 5.1x | 4.9x | 5.2x | 6.7x | |
| Stanley Gibbons Group ($SGI) | -1.1x | -3.0x | | 2.3x | |
| Signet Jewelers Ltd ($SIG) | -0.8x | -0.5x | -0.3x | 1.7x | 1.4x |
| Caffyns ($78GL) | 0.5x | 2.0x | 3.0x | 0.7x | 2.2x |
| |
|---|
| Median (10 companies) | -0.8x | -0.0x | 1.4x | 0.3x | 1.8x |
|---|
