Songbird Estates reports 165 pp EBITDA Margin growth from -114% to 51.7% in 2015 and 5.5% Revenue growth
04 Nov 2016 • About Songbird Estates (
$SBD) • By InTwits
Songbird Estates reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Songbird Estates spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -16.4%0
- Songbird Estates has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has potentially unprofitable business model: ROIC is at 3.0%
- It operates with high leverage: Net Debt/EBITDA is 12.3x while industry average is 9.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Songbird Estates ($SBD) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 352.3 | 361.6 | 379.9 | 379.2 | 400.0 | 5.5% |
| Gross Profit | 243.8 | 258.4 | 259.4 | 268.2 | 289.8 | 8.1% |
| SG&A | | | 45.3 | 77.5 | 91.6 | 18.2% |
| EBITDA | 208.2 | 222.2 | -513.5 | -430.8 | 206.9 | -148.0% |
| Net Income | -68.1 | 118.8 | 616.6 | 404.0 | 463.8 | 14.8% |
Balance Sheet
|
|---|
| Cash | 996.1 | 749.7 | 586.1 | 600.7 | 513.5 | -14.5% |
| Short Term Debt | 93.6 | 114.3 | 472.4 | 61.1 | 182.3 | 198.4% |
| Long Term Debt | 3,575.6 | 3,554.7 | 3,358.6 | 3,022.9 | 2,883.9 | -4.6% |
Cash flow
|
|---|
| Capex | 0.0 | 0.2 | 0.3 | 5.0 | 1.6 | -68.0% |
Ratios
|
|---|
| Revenue growth | -2.0% | 2.6% | 5.1% | -0.2% | 5.5% | |
| EBITDA growth | -5.0% | 6.7% | -331.1% | -16.1% | -148.0% | |
| Gross Margin | 69.2% | 71.5% | 68.3% | 70.7% | 72.5% | 1.7% |
| EBITDA Margin | 59.1% | 61.4% | -135.2% | -113.6% | 51.7% | 165.3% |
| Net Income Margin | -19.3% | 32.9% | 162.3% | 106.5% | 116.0% | 9.4% |
| SG&A, % of revenue | | | 11.9% | 20.4% | 22.9% | 2.5% |
| CAPEX, % of revenue | 0.0% | 0.1% | 0.1% | 1.3% | 0.4% | -0.9% |
| ROIC | 3.8% | 4.1% | -8.5% | -6.5% | 3.0% | 9.5% |
| ROE | -6.3% | 10.9% | 42.8% | 20.7% | 15.1% | -5.7% |
| Net Debt/EBITDA | 12.8x | 13.1x | | | 12.3x | 12.3x |
Revenue and profitability
Songbird Estates's Revenue increased on 5.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 69.6% to 71.2% in 2015.
Gross Margin increased slightly on 1.7 pp from 70.7% to 72.5% in 2015. SG&A as a % of Revenue increased on 2.5 pp from 20.4% to 22.9% in 2015.
Net Income marign increased on 9.4 pp from 107% to 116% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Songbird Estates had CAPEX/Revenue of 0.40%. Songbird Estates's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 0.60%.
Return on investment
The company operates at good ROE (15.07%) while ROIC is low (2.97%). ROIC increased on 9.5 pp from -6.5% to 3.0% in 2015. ROE decreased on 5.7 pp from 20.7% to 15.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 12.3x and Debt / EBITDA is 14.8x. Net Debt / EBITDA surged12.3x from to 12.3x in 2015. Debt decreased slightly on 0.58% in 2015 while cash dropped on 14.5% in 2015.
Appendix 1: Peers in Real Estate Investment & Services
Below we provide Songbird Estates benchmarking against other companies in Real Estate Investment & Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Formation Group ($FRM) | | -60.8% | 147.9% | 35.8% | 199.3% |
| Development Securities ($DSC) | | | | -20.4% | 156.8% |
| Damac Real Estate Development Ltd ($DMC) | | 3.8% | 76.9% | -16.8% | 128.2% |
| Hagl JSC ($HAG) | | 39.5% | -36.9% | 10.2% | 104.7% |
| Quintain Estates & Development ($QED) | | -3.2% | -13.0% | -17.5% | 77.0% |
| |
|---|
| Median (18 companies) | | 3.8% | 20.8% | 3.4% | 6.4% |
|---|
| Songbird Estates ($SBD) | | 2.6% | 5.1% | -0.2% | 5.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Arricano Real Estate ($ARO) | | | 96.1% | 96.5% | 96.1% |
| Summit Germany Ltd ($SMTG) | | | | | 92.3% |
| Taliesin Property Fund Ltd ($TPFZ) | | 75.2% | 76.6% | 74.9% | 76.3% |
| Panther Securities ($PNS) | 65.3% | 69.2% | 77.2% | 68.0% | 73.5% |
| Damac Real Estate Development Ltd ($DMC) | 37.5% | 40.7% | 64.4% | 59.6% | 59.4% |
| |
|---|
| Median (14 companies) | 40.0% | 40.7% | 43.2% | 31.9% | 34.2% |
|---|
| Songbird Estates ($SBD) | 69.2% | 71.5% | 68.3% | 70.7% | 72.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quintain Estates & Development ($QED) | -101.5% | -81.5% | -70.4% | 43.6% | 76.3% |
| Summit Germany Ltd ($SMTG) | 77.8% | 78.3% | 78.7% | 89.3% | 75.5% |
| Safeland ($SAF) | | -1.5% | -1.6% | 7.0% | 65.8% |
| Damac Real Estate Development Ltd ($DMC) | 31.2% | 32.9% | 54.5% | 46.4% | 53.5% |
| Panther Securities ($PNS) | 39.9% | 44.8% | 56.9% | 50.3% | 52.0% |
| |
|---|
| Median (17 companies) | 33.7% | 28.1% | 20.9% | 18.5% | 20.3% |
|---|
| Songbird Estates ($SBD) | 59.1% | 61.4% | -135.2% | -113.6% | 51.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quintain Estates & Development ($QED) | 136.2% | 210.6% | 162.3% | 217.2% | 173.3% |
| Hagl JSC ($HAG) | 152.8% | 134.2% | 171.2% | 145.6% | 127.1% |
| HALS-Development JSC ($HALS) | 874.7% | 83.2% | 347.0% | 25.0% | 47.3% |
| Taliesin Property Fund Ltd ($TPFZ) | | 14.1% | 21.3% | 45.2% | 43.7% |
| Development Securities ($DSC) | | | 2.9% | 13.5% | 24.6% |
| |
|---|
| Median (18 companies) | 1.9% | 3.1% | 1.8% | 4.9% | 6.1% |
|---|
| Songbird Estates ($SBD) | 0.0% | 0.1% | 0.1% | 1.3% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Damac Real Estate Development Ltd ($DMC) | | 163.1% | 127.1% | 31.3% | 41.5% |
| Safeland ($SAF) | | -1.3% | -1.1% | 3.7% | 31.2% |
| PIK Group OJSC ($PIK) | 25.6% | 21.2% | 25.6% | 13.5% | 25.3% |
| Hml Hldgs ($HMLH) | | 8.2% | 9.9% | 12.5% | 12.5% |
| Etalon Group Ltd ($ETLN) | 20.1% | 12.1% | 14.4% | 14.3% | 10.2% |
| |
|---|
| Median (18 companies) | 4.6% | 4.2% | 3.0% | 3.4% | 4.9% |
|---|
| Songbird Estates ($SBD) | 3.8% | 4.1% | -8.5% | -6.5% | 3.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Arricano Real Estate ($ARO) | 8.3x | | 11.3x | | 43.0x |
| Plaza Centers Nv ($PLAZ) | | 17.9x | | 41.9x | 25.4x |
| London & Associated Properties ($LAS) | 10.8x | 40.8x | 11.1x | 13.0x | 20.2x |
| Hagl JSC ($HAG) | 7.5x | 13.4x | 10.5x | 14.2x | 14.8x |
| Panther Securities ($PNS) | 11.8x | 13.0x | 10.6x | 11.8x | 9.7x |
| |
|---|
| Median (14 companies) | 7.9x | 7.3x | 10.5x | 10.1x | 4.5x |
|---|
| Songbird Estates ($SBD) | 12.8x | 13.1x | | | 12.3x |
