Titon Hldgs reports 22.7% Net Income growth and 6.6% Revenue growth
14 Dec 2016 • About Titon Hldgs (
$TON) • By InTwits
Titon Hldgs reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 9.8% in FY2016, 9.5% in FY2015, 8.8% in FY2014, 5.6% in FY2013, -2.5% in FY2012
- Titon Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 3.3%.
- CAPEX is quite volatile: 0.72 in FY2016, 0.50 in FY2015, 0.29 in FY2014, 0.28 in FY2013, 0.33 in FY2012
- The company has highly profitable business model: ROIC is at 13.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Titon Hldgs ($TON) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 14.548 | 15.740 | 19.256 | 22.258 | 23.721 | 6.6% |
| Gross Profit | 2.880 | 3.681 | 5.330 | 6.513 | 7.048 | 8.2% |
| SG&A | | | 3.624 | 3.799 | 3.998 | 5.2% |
| EBITDA | -0.358 | 0.884 | 1.689 | 2.124 | 2.328 | 9.6% |
| Net Income | -0.721 | 0.303 | 0.899 | 1.333 | 1.635 | 22.7% |
Balance Sheet
|
|---|
| Cash | 1.840 | 2.151 | 2.149 | 2.870 | 2.438 | -15.1% |
| Short Term Debt | 0.027 | 0.035 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.327 | 0.280 | 0.290 | 0.498 | 0.721 | 44.8% |
Ratios
|
|---|
| Revenue growth | -9.0% | 8.2% | 22.3% | 15.6% | 6.6% | |
| EBITDA growth | -155.2% | -346.9% | 91.1% | 25.8% | 9.6% | |
| Gross Margin | 19.8% | 23.4% | 27.7% | 29.3% | 29.7% | 0.5% |
| EBITDA Margin | -2.5% | 5.6% | 8.8% | 9.5% | 9.8% | 0.3% |
| Net Income Margin | -5.0% | 1.9% | 4.7% | 6.0% | 6.9% | 0.9% |
| SG&A, % of revenue | | | 18.8% | 17.1% | 16.9% | -0.2% |
| CAPEX, % of revenue | 2.2% | 1.8% | 1.5% | 2.2% | 3.0% | 0.8% |
| ROIC | -9.7% | 2.4% | 11.1% | 13.7% | 13.3% | -0.5% |
| ROE | -7.6% | 3.3% | 9.4% | 12.7% | 13.6% | 0.9% |
| Net Debt/EBITDA | | -2.4x | -1.3x | -1.4x | -1.0x | 0.3x |
Revenue and profitability
Titon Hldgs's Revenue increased on 6.6% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.4 pp from 7.4% to 10.7% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 0.90 pp from 6.0% to 6.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 3.0%. The company's CAPEX/Revenue increased slightly on 1.3 pp from 1.8% in FY2013 to 3.0% in FY2016. Average CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at good ROIC (13.29%) and ROE (13.56%). ROIC showed almost no change in FY2016. ROE increased slightly on 0.90 pp from 12.7% to 13.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 15.1% in FY2016.
Valuation
The company's trades at EV/EBITDA 3.6x and P/E 6.6x while industy averages are 15.6x and 19.1x. Titon Hldgs's EV/(EBITDA-CAPEX) is 5.2x with the industry average at 19.0x.
Appendix 1: Peers in Construction & Materials
Below you can find Titon Hldgs benchmarking vs. other companies in Construction & Materials industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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.) ($CTO) | 5.5% | 12.0% | -4.2% | 16.6% | |
| |
|---|
| Median (25 companies) | 1.0% | 5.5% | 8.8% | 1.6% | 6.3% |
|---|
| Titon Hldgs ($TON) | | 8.2% | 22.3% | 15.6% | 6.6% |
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 ($MBH) | 35.3% | 28.4% | 31.1% | 38.2% | |
| |
|---|
| Median (23 companies) | 25.4% | 25.2% | 26.3% | 29.1% | 33.7% |
|---|
| Titon Hldgs ($TON) | 19.8% | 23.4% | 27.7% | 29.3% | 29.7% |
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 ($LSRG) | 20.2% | 19.5% | 22.9% | 19.3% | |
| |
|---|
| Median (25 companies) | 8.7% | 7.4% | 9.7% | 9.7% | 12.0% |
|---|
| Titon Hldgs ($TON) | -2.5% | 5.6% | 8.8% | 9.5% | 9.8% |
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 ($SPGH) | 12.9% | 14.2% | 3.4% | 7.9% | |
| |
|---|
| Median (25 companies) | 2.1% | 2.5% | 2.6% | 2.3% | 2.6% |
|---|
| Titon Hldgs ($TON) | 2.2% | 1.8% | 1.5% | 2.2% | 3.0% |
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 ($LKCS) | 23.8% | 22.9% | 20.3% | 20.0% | 20.8% |
| |
|---|
| Median (25 companies) | 4.8% | 7.5% | 5.4% | 7.8% | 11.2% |
|---|
| Titon Hldgs ($TON) | -9.7% | 2.4% | 11.1% | 13.7% | 13.3% |
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) ($COD) | 2.1x | 2.0x | 2.1x | 1.4x | |
| |
|---|
| Median (21 companies) | 1.6x | 0.8x | 0.5x | -0.0x | -0.9x |
|---|
| Titon Hldgs ($TON) | | -2.4x | -1.3x | -1.4x | -1.0x |
