Smart(J.)& Co(Contractors) EBITDA jumped on 55.2% in 2016 and Revenue jumped on 39.4%
27 Oct 2016 • About Smart(J.)& Co(Contractors) (
$SMJ) • By InTwits
Smart(J.)& Co(Contractors) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 13.7% in FY2016, 12.3% in FY2015, -2.0% in FY2014, -9.5% in FY2013, 15.0% in FY2012
- Smart(J.)& Co(Contractors) has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 0.63 in FY2016, 0.31 in FY2015, 0.69 in FY2014, 0.98 in FY2013, 0.47 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Smart(J.)& Co(Contractors) ($SMJ) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 24.684 | 18.381 | 22.811 | 20.819 | 29.027 | 39.4% |
| Gross Profit | 3.941 | 1.068 | 0.290 | 2.758 | 3.767 | 36.6% |
| EBITDA | 3.714 | -1.751 | -0.445 | 2.563 | 3.979 | 55.2% |
| Net Income | -0.531 | 0.148 | 1.025 | 2.998 | 3.488 | 16.3% |
Balance Sheet
|
|---|
| Cash | 9.761 | 15.157 | 16.802 | 26.047 | 26.785 | 2.8% |
| Short Term Debt | 4.465 | 9.664 | 8.732 | 12.724 | 12.628 | -0.8% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.230 | 0.544 | 0.582 | 0.483 | 0.488 | 1.0% |
Ratios
|
|---|
| Revenue growth | 45.2% | -25.5% | 24.1% | -8.7% | 39.4% | |
| EBITDA growth | -5.3% | -147.1% | -74.6% | -676.0% | 55.2% | |
| Gross Margin | 16.0% | 5.8% | 1.3% | 13.2% | 13.0% | -0.3% |
| EBITDA Margin | 15.0% | -9.5% | -2.0% | 12.3% | 13.7% | 1.4% |
| Net Income Margin | -2.2% | 0.8% | 4.5% | 14.4% | 12.0% | -2.4% |
| CAPEX, % of revenue | 0.9% | 3.0% | 2.6% | 2.3% | 1.7% | -0.6% |
| ROIC | 3.2% | -2.1% | -0.9% | 2.1% | 3.4% | 1.3% |
| ROE | -0.6% | 0.2% | 1.1% | 3.4% | 3.9% | 0.5% |
| Net Debt/EBITDA | -1.4x | | | -5.2x | -3.6x | 1.6x |
Revenue and profitability
The company's Revenue surged on 39.4% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.0 pp from 11.6% to 18.5% in FY2016.
Gross Margin showed almost no change in FY2016.
Net Income marign decreased on 2.4 pp from 14.4% to 12.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Smart(J.)& Co(Contractors) had CAPEX/Revenue of 1.7%. Smart(J.)& Co(Contractors) showed small CAPEX/Revenue decline of 1.3 pp from 3.0% in FY2013 to 1.7% in FY2016. It's average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at low ROIC (3.41%) and ROE (3.92%). ROIC increased slightly on 1.3 pp from 2.1% to 3.4% in FY2016. ROE increased slightly on 0.54 pp from 3.4% to 3.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.6x and Debt / EBITDA is 3.2x. Net Debt / EBITDA jumped on 1.6x from -5.2x to -3.6x in FY2016. Debt decreased slightly on 0.75% in FY2016 while cash increased on 2.8% in FY2016.
Valuation
The company's trades at EV/EBITDA 8.3x and P/E 13.5x while industy averages are 15.6x and 19.1x. The company's EV/(EBITDA-CAPEX) is 9.5x with the industry average at 19.0x.
Appendix 1: Peers in Construction & Materials
Below we provide Smart(J.)& Co(Contractors) benchmarking against other companies in Construction & Materials 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 |
|---|
| Kingspan Group ($KGP) | 5.3% | 9.1% | 6.4% | 46.7% | |
| Accsys Technologies ($AXS) | | 25.5% | 78.0% | 37.5% | 14.5% |
| Billington Hldgs ($BILN) | -34.0% | 8.4% | 14.5% | 25.8% | |
| Crh ($CRH) | | -0.3% | 4.9% | 25.0% | 14.7% |
| Clarke(T.) ($CTO) | 5.5% | 12.0% | -4.2% | 16.6% | |
| |
|---|
| Median (25 companies) | 0.5% | 5.6% | 8.8% | 1.7% | 2.1% |
|---|
| Smart(J.)& Co(Contractors) ($SMJ) | | -25.5% | 24.1% | -8.7% | 39.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 46.5% | 24.5% | 21.7% | 51.7% | |
| Swp Group ($SWP) | 43.0% | 48.1% | 39.2% | 49.7% | |
| Heath(Samuel)& Sons ($HSM) | 49.5% | 47.3% | 48.6% | 47.6% | 48.1% |
| James Halstead ($JHD) | 41.2% | 41.6% | 41.0% | 41.7% | 42.4% |
| Michelmersh Brick Hldgs ($MBH) | 35.3% | 28.4% | 31.1% | 38.2% | |
| |
|---|
| Median (23 companies) | 25.4% | 25.2% | 27.0% | 29.3% | 34.0% |
|---|
| Smart(J.)& Co(Contractors) ($SMJ) | 16.0% | 5.8% | 1.3% | 13.2% | 13.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucky Cement Ltd ($LKCS) | 31.5% | 26.8% | 24.4% | 26.5% | 30.4% |
| Steppe Cement ($STCM) | 20.8% | 23.2% | 14.3% | 24.7% | |
| James Halstead ($JHD) | 20.2% | 19.8% | 20.1% | 20.9% | 21.6% |
| Michelmersh Brick Hldgs ($MBH) | 10.6% | 7.9% | 14.1% | 20.3% | |
| LSR Group OJSC ($LSRG) | 20.2% | 19.5% | 22.9% | 19.3% | |
| |
|---|
| Median (25 companies) | 8.5% | 7.4% | 9.7% | 9.5% | 11.9% |
|---|
| Smart(J.)& Co(Contractors) ($SMJ) | 15.0% | -9.5% | -2.0% | 12.3% | 13.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 74.2% | 5.4% | 12.8% | 54.9% | |
| Lucky Cement Ltd ($LKCS) | 3.2% | 5.2% | 6.9% | 12.0% | 8.9% |
| Billington Hldgs ($BILN) | 1.0% | 1.1% | 2.9% | 10.8% | |
| Low & Bonar ($BD46) | 3.5% | 2.8% | 4.6% | 9.1% | 4.7% |
| Superglass Hldgs ($SPGH) | 12.9% | 14.2% | 3.4% | 7.9% | |
| |
|---|
| Median (25 companies) | 2.2% | 2.4% | 2.4% | 2.2% | 3.1% |
|---|
| Smart(J.)& Co(Contractors) ($SMJ) | 0.9% | 3.0% | 2.6% | 2.3% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| James Halstead ($JHD) | 49.3% | 46.2% | 46.7% | 45.3% | 47.1% |
| Alumasc Group ($ALU) | 6.5% | 17.5% | 22.6% | 36.0% | 47.8% |
| Heath(Samuel)& Sons ($HSM) | 9.7% | 8.7% | 19.7% | 32.0% | 89.2% |
| Aukett Swanke Group ($AUK) | 2.7% | 11.4% | 27.3% | 31.6% | |
| Lucky Cement Ltd ($LKCS) | 23.8% | 22.9% | 20.3% | 20.0% | 20.8% |
| |
|---|
| Median (25 companies) | 4.8% | 7.5% | 7.4% | 8.0% | 13.2% |
|---|
| Smart(J.)& Co(Contractors) ($SMJ) | 3.2% | -2.1% | -0.9% | 2.1% | 3.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mountfield Group ($MOGP) | 26.3x | 4.8x | 52.0x | 18.8x | |
| Asia Cement Corp ($ASCD) | 7.8x | 6.9x | 6.8x | 8.6x | |
| Crh ($CRH) | 2.0x | 3.6x | 1.6x | 3.1x | 1.7x |
| Low & Bonar ($BD46) | 2.7x | 2.1x | 2.1x | 2.4x | 2.1x |
| Saint-Gobain(Compagnie De) ($COD) | 2.1x | 2.0x | 2.1x | 1.4x | |
| |
|---|
| Median (21 companies) | 1.7x | 0.7x | 0.5x | -0.0x | -0.9x |
|---|
| Smart(J.)& Co(Contractors) ($SMJ) | -1.4x | | | -5.2x | -3.6x |
