Barloworld reports 6.1% revenue growth in FY2016 and almost no change in EBITDA Margin of 10.0%
21 Nov 2016 • About Barloworld (
$BWO) • By InTwits
Barloworld reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 10.0% in FY2016 vs. 10.3% in FY2015 vs. 8.4% in FY2012
- Barloworld has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's in pair with industry average of 8.1%.
- CAPEX is quite volatile: 16,643 in 2016, 11,423 in 2015, 5,206 in 2014, 4,233 in 2013, 7,433 in 2012
- The company has highly profitable business model: ROIC is at 12.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Barloworld ($BWO) key annual financial indicators
| mln. ZAR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 58,554 | 59,498 | 62,101 | 62,720 | 66,547 | 6.1% |
| Gross Profit | 11,877 | 12,174 | 13,326 | 13,666 | 14,613 | 6.9% |
| SG&A | 6,467 | 5,941 | 6,231 | | | |
| EBITDA | 4,905 | 5,409 | 6,180 | 6,479 | 6,674 | 3.0% |
| Net Income | 1,559 | 1,609 | 2,143 | 1,713 | 1,883 | 9.9% |
Balance Sheet
|
|---|
| Cash | 2,624 | 2,695 | 4,162 | 2,372 | 3,028 | 27.7% |
| Short Term Debt | 3,040 | 2,968 | 4,395 | 4,050 | 2,665 | -34.2% |
| Long Term Debt | 7,048 | 7,285 | 6,921 | 9,074 | 8,379 | -7.7% |
Cash flow
|
|---|
| Capex | 824 | 818 | 1,323 | 1,363 | 980 | -28.1% |
Ratios
|
|---|
| Revenue growth | 17.5% | 1.6% | 4.4% | 1.0% | 6.1% | |
| EBITDA growth | 22.8% | 10.3% | 14.3% | 4.8% | 3.0% | |
| Gross Margin | 20.3% | 20.5% | 21.5% | 21.8% | 22.0% | 0.2% |
| EBITDA Margin | 8.4% | 9.1% | 10.0% | 10.3% | 10.0% | -0.3% |
| Net Income Margin | 2.7% | 2.7% | 3.5% | 2.7% | 2.8% | 0.1% |
| SG&A, % of revenue | 11.0% | 10.0% | 10.0% | | | 0.0% |
| CAPEX, % of revenue | 1.4% | 1.4% | 2.1% | 2.2% | 1.5% | -0.7% |
| ROIC | 14.0% | 13.5% | 14.1% | 12.9% | 12.8% | -0.1% |
| ROE | 12.3% | 11.4% | 13.3% | 9.4% | 9.8% | 0.4% |
| Net Debt/EBITDA | 1.5x | 1.4x | 1.2x | 1.7x | 1.2x | -0.5x |
Revenue and profitability
The company's Revenue increased on 6.1% in FY2016. EBITDA Margin showed almost no change in FY2016.
Gross Margin showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
Barloworld's CAPEX/Revenue was 1.5% in FY2016. Barloworld's CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at good ROIC (12.81%) while ROE is low (9.82%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.2x and Debt / EBITDA is 1.7x. Net Debt / EBITDA dropped on 0.5x from 1.7x to 1.2x in FY2016. Debt dropped on 15.8% in FY2016 while cash jumped on 27.7% in FY2016.
Appendix 1: Peers in General Industrials
Below we provide Barloworld benchmarking against other companies in General Industrials 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 |
|---|
| Press Corp ($PESD) | 111.1% | 52.6% | 20.3% | 17.8% | |
| Macfarlane Group ($MACF) | -1.9% | 1.4% | 6.9% | 10.0% | |
| Robinson ($RBN) | -1.6% | 10.2% | 20.3% | 3.8% | |
| Thyssenkrupp Ag ($0O1C) | -2.8% | -7.2% | 6.9% | 3.8% | |
| Coral Products ($CRU) | | -0.2% | -0.3% | 1.2% | 7.4% |
| |
|---|
| Median (9 companies) | 0.5% | 1.4% | 3.2% | 1.2% | 7.4% |
|---|
| Barloworld ($BWO) | | 1.6% | 4.4% | 1.0% | 6.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Press Corp ($PESD) | 58.9% | 54.4% | 56.0% | 54.5% | |
| Macfarlane Group ($MACF) | 32.0% | 31.2% | 30.9% | 31.5% | |
| Honeywell International Inc ($HON) | 24.9% | 27.4% | 28.2% | 30.7% | |
| Smurfit Kappa Group ($SKG) | 28.6% | 28.9% | 29.5% | 30.0% | |
| Coral Products ($CRU) | 22.1% | 24.6% | 23.7% | 29.6% | 33.1% |
| |
|---|
| Median (9 companies) | 24.9% | 27.4% | 25.4% | 29.6% | 33.1% |
|---|
| Barloworld ($BWO) | 20.3% | 20.5% | 21.5% | 21.8% | 22.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Press Corp ($PESD) | 29.5% | 29.6% | 29.2% | 25.3% | |
| Honeywell International Inc ($HON) | 13.5% | 16.6% | 16.8% | 20.0% | |
| Jardine Strategic Hldgs ($88EI) | 15.0% | 13.3% | 13.5% | 15.1% | |
| Smurfit Kappa Group ($SKG) | 13.4% | 12.8% | 12.7% | 14.3% | |
| General Electric Co. ($GEC) | 17.2% | 16.5% | 13.3% | 10.4% | |
| |
|---|
| Median (9 companies) | 13.5% | 13.3% | 13.3% | 10.4% | 7.1% |
|---|
| Barloworld ($BWO) | 8.4% | 9.1% | 10.0% | 10.3% | 10.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Press Corp ($PESD) | 21.3% | 8.5% | 12.1% | 9.0% | |
| General Electric Co. ($GEC) | 10.5% | 9.4% | 6.1% | 6.3% | |
| Smurfit Kappa Group ($SKG) | 4.3% | 4.4% | 5.3% | 5.3% | |
| Robinson ($RBN) | 4.3% | 6.0% | 3.5% | 3.7% | |
| Jardine Strategic Hldgs ($88EI) | 5.8% | 5.2% | 4.1% | 2.9% | |
| |
|---|
| Median (9 companies) | 4.3% | 5.2% | 3.5% | 2.9% | 8.9% |
|---|
| Barloworld ($BWO) | 1.4% | 1.4% | 2.1% | 2.2% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Honeywell International Inc ($HON) | 21.8% | 23.0% | 21.3% | 23.2% | |
| Press Corp ($PESD) | 21.6% | 27.1% | 24.7% | 18.9% | |
| Macfarlane Group ($MACF) | 17.9% | 22.2% | 19.0% | 17.8% | |
| Smurfit Kappa Group ($SKG) | 10.8% | 11.2% | 11.8% | 13.9% | |
| Thyssenkrupp Ag ($0O1C) | -27.3% | -6.5% | 10.8% | 9.5% | |
| |
|---|
| Median (9 companies) | 10.3% | 9.6% | 10.8% | 9.5% | 3.2% |
|---|
| Barloworld ($BWO) | 14.0% | 13.5% | 14.1% | 12.9% | 12.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| General Electric Co. ($GEC) | 10.5x | 8.9x | 12.0x | 10.6x | |
| Coral Products ($CRU) | 1.5x | 2.9x | 3.4x | 2.7x | 2.5x |
| Smurfit Kappa Group ($SKG) | 2.9x | 2.6x | 2.7x | 2.6x | |
| Thyssenkrupp Ag ($0O1C) | 3.4x | 4.5x | 2.0x | 1.8x | |
| Macfarlane Group ($MACF) | 1.0x | 0.8x | 1.3x | 1.3x | |
| |
|---|
| Median (9 companies) | 1.4x | 1.3x | 1.3x | 1.3x | 2.5x |
|---|
| Barloworld ($BWO) | 1.5x | 1.4x | 1.2x | 1.7x | 1.2x |
