Impax Asset Management Group reports 15.0% Net Income growth while 2.9 pp EBITDA Margin decline from 23.7% to 20.8%
01 Dec 2016 • About Impax Asset Management Group (
$IPX) • By InTwits
Impax Asset Management Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 20.8% in FY2016, 23.7% in FY2015, 25.1% in FY2014, 24.4% in FY2013, -15.2% in FY2012
- Impax Asset Management Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has highly profitable business model: ROIC is at 15.0%
- It operates with high leverage: Net Debt/EBITDA is -0.6x while industry average is -4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Impax Asset Management Group ($IPX) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 18.621 | 18.463 | 20.359 | 19.726 | 21.067 | 6.8% |
| EBITDA | -2.837 | 4.510 | 5.107 | 4.668 | 4.377 | -6.2% |
| Net Income | -4.649 | 2.957 | 3.256 | 3.633 | 4.177 | 15.0% |
Balance Sheet
|
|---|
| Cash | 5.577 | 3.680 | 6.634 | 2.364 | 2.804 | 18.6% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.523 | 0.028 | 0.033 | 0.156 | 0.109 | -30.1% |
Ratios
|
|---|
| Revenue growth | -11.0% | -0.8% | 10.3% | -3.1% | 6.8% | |
| EBITDA growth | -198.4% | -259.0% | 13.2% | -8.6% | -6.2% | |
| EBITDA Margin | -15.2% | 24.4% | 25.1% | 23.7% | 20.8% | -2.9% |
| Net Income Margin | -25.0% | 16.0% | 16.0% | 18.4% | 19.8% | 1.4% |
| CAPEX, % of revenue | 2.8% | 0.2% | 0.2% | 0.8% | 0.5% | -0.3% |
| ROIC | -13.7% | 17.2% | 18.7% | 16.1% | 15.0% | -1.0% |
| ROE | -21.1% | 13.0% | 13.6% | 14.3% | 15.9% | 1.6% |
| Net Debt/EBITDA | | -0.8x | -1.3x | -0.5x | -0.6x | -0.1x |
Revenue and profitability
The company's Revenue increased on 6.8% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 3.7% to 2.3% in FY2016.
Net Income marign increased slightly on 1.4 pp from 18.4% to 19.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Impax Asset Management Group's CAPEX/Revenue was 0.52% in FY2016. Impax Asset Management Group's CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.49%.
Return on investment
The company operates at good ROIC (15.01%) and ROE (15.86%). ROIC decreased slightly on 1.0 pp from 16.1% to 15.0% in FY2016. ROE increased slightly on 1.6 pp from 14.3% to 15.9% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 18.6% in FY2016.
Valuation
Impax Asset Management Group's trades at EV/EBITDA 14.7x and P/E 16.0x while industy averages are 15.6x and 19.1x.
Appendix 1: Peers in Financial Services
Below we provide Impax Asset Management Group benchmarking against other companies in Financial 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Volvere ($VLE) | -47.1% | 149.8% | -23.2% | 124.9% | |
| Real Estate Credit Investments Pcc ($RECP) | | 335.8% | -59.6% | 47.3% | -29.8% |
| Fairpoint Group ($FRP) | 32.7% | -17.5% | 35.1% | 41.2% | |
| Afh Financial Group ($AFHP) | | 49.9% | 39.3% | 39.5% | |
| Manx Financial Group ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 5.6% | 14.7% | 4.7% | 2.9% | 3.2% |
|---|
| Impax Asset Management Group ($IPX) | | -0.8% | 10.3% | -3.1% | 6.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Record ($REC) | 98.8% | 98.8% | 99.6% | 99.3% | 99.0% |
| Panmure Gordon & Co ($PMR) | 95.2% | 95.0% | 95.3% | 95.2% | |
| First Property Group ($FPO) | 86.0% | 69.5% | 67.9% | 83.0% | 80.6% |
| Schroders ($SDRC) | 76.9% | 76.2% | 77.7% | 78.3% | |
| London Capital Group Hldgs ($LCG) | 64.2% | 70.5% | 73.6% | 67.9% | |
| |
|---|
| Median (16 companies) | 54.3% | 52.7% | 52.2% | 52.5% | 63.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Livermore Investments Group Ltd ($LIV) | 84.9% | 64.8% | 78.8% | 83.5% | |
| Real Estate Credit Investments Pcc ($RECP) | 58.6% | 89.3% | 77.0% | 80.3% | 79.3% |
| Manx Financial Group ($MFX) | 39.8% | 49.2% | 56.5% | 58.8% | |
| Hargreaves Lansdown ($HL.) | 64.1% | 66.4% | 58.7% | 51.2% | 57.5% |
| Daishin Securities Co ($DSS) | 53.8% | 51.5% | 38.8% | 49.2% | |
| |
|---|
| Median (28 companies) | 14.9% | 15.6% | 14.4% | 15.9% | 25.1% |
|---|
| Impax Asset Management Group ($IPX) | -15.2% | 24.4% | 25.1% | 23.7% | 20.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| London Capital Group Hldgs ($LCG) | 1.8% | 0.2% | 3.4% | 7.7% | |
| Daishin Securities Co ($DSS) | 6.0% | 24.7% | 15.0% | 6.5% | |
| Commercial Bank Of Qatar(The) ($CBQS) | 6.0% | 3.8% | 2.8% | 3.9% | |
| Nmbz Hldgs ($NMB) | 6.1% | 3.0% | 2.1% | 3.8% | |
| Afh Financial Group ($AFHP) | 1.6% | 1.5% | 0.7% | 3.8% | |
| |
|---|
| Median (29 companies) | 1.3% | 1.4% | 1.3% | 1.2% | 0.9% |
|---|
| Impax Asset Management Group ($IPX) | 2.8% | 0.2% | 0.2% | 0.8% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hargreaves Lansdown ($HL.) | 108.7% | 111.7% | 101.0% | 87.5% | 90.0% |
| Manx Financial Group ($MFX) | 8.0% | 19.7% | 29.7% | 40.2% | |
| Record ($REC) | 23.8% | 19.6% | 20.2% | 20.2% | 18.5% |
| Lighthouse Group ($LGT) | 7.2% | -3.9% | 8.6% | 14.6% | |
| S & U ($46IE) | 17.6% | 19.1% | 19.7% | 13.9% | 14.5% |
| |
|---|
| Median (30 companies) | 5.5% | 6.0% | 8.9% | 7.3% | 8.5% |
|---|
| Impax Asset Management Group ($IPX) | -13.7% | 17.2% | 18.7% | 16.1% | 15.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Private & Commercial Finance Group ($PCF) | 12.8x | 14.3x | 13.9x | 12.9x | 10.6x |
| First Property Group ($FPO) | 3.6x | 3.0x | 5.6x | 12.3x | 9.4x |
| Canaccord Genuity Group Inc ($CF.) | | | | 10.2x | |
| Daishin Securities Co ($DSS) | 1.5x | 2.4x | 10.7x | 8.0x | |
| S & U ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| |
|---|
| Median (25 companies) | -1.1x | -1.7x | -2.3x | -1.1x | -0.4x |
|---|
| Impax Asset Management Group ($IPX) | | -0.8x | -1.3x | -0.5x | -0.6x |
