Palm Hills Developments Sae revenue surged on 54.6% in 2016 while EBITDA Margin dropped on 13.2 pp from 29.8% to 16.6%
07 Feb 2017 • About Palm Hills Developments Sae (
$PHDC) • By InTwits
Palm Hills Developments Sae reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 16.6% in 2016, 29.8% in 2015, 20.2% in 2014, 13.4% in 2013, -39.2% in 2012
- Palm Hills Developments Sae has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has business model with low profitability: ROIC is at 8.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Palm Hills Developments Sae ($PHDC) key annual financial indicators
| mln. EGP | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 392 | 1,209 | 2,106 | 3,642 | 5,631 | 54.6% |
| Gross Profit | -20 | 270 | 705 | 1,150 | 1,679 | 46.0% |
| SG&A | | 110 | 280 | 596 | 833 | 39.7% |
| EBITDA | -154 | 162 | 425 | 1,086 | 935 | -13.9% |
| Net Income | -135 | 239 | 353 | 916 | 640 | -30.1% |
Balance Sheet
|
|---|
| Cash | 56 | 111 | 195 | 966 | 809 | -16.3% |
| Short Term Debt | 1,479 | 1,225 | 1,019 | 666 | 1,637 | 145.9% |
| Long Term Debt | 1,167 | 1,580 | 1,998 | 3,067 | 3,570 | 16.4% |
Cash flow
|
|---|
| Capex | 5 | 6 | 13 | 44 | 51 | 15.9% |
Ratios
|
|---|
| Revenue growth | -30.0% | 208.5% | 74.2% | 72.9% | 54.6% | |
| EBITDA growth | -60.6% | -205.3% | 162.5% | 155.5% | -13.9% | |
| Gross Margin | -5.2% | 22.3% | 33.5% | 31.6% | 29.8% | -1.8% |
| EBITDA Margin | -39.2% | 13.4% | 20.2% | 29.8% | 16.6% | -13.2% |
| Net Income Margin | -34.3% | 19.8% | 16.8% | 25.1% | 11.4% | -13.8% |
| SG&A, % of revenue | | 9.1% | 13.3% | 16.4% | 14.8% | -1.6% |
| CAPEX, % of revenue | 1.4% | 0.5% | 0.6% | 1.2% | 0.9% | -0.3% |
| ROIC | -2.9% | 2.0% | 5.6% | 12.2% | 8.2% | -3.9% |
| ROE | -3.9% | 7.3% | 10.0% | 18.3% | 10.3% | -7.9% |
| Net Debt/EBITDA | | 16.6x | 6.6x | 2.5x | 4.7x | 2.2x |
Revenue and profitability
The company's Revenue jumped on 54.6% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.4 pp from 13.9% to 15.2% in 2016.
Gross Margin decreased slightly on 1.8 pp from 31.6% to 29.8% in 2016. SG&A as a % of Revenue decreased slightly on 1.6 pp from 16.4% to 14.8% in 2016.
Net Income marign dropped on 13.8 pp from 25.1% to 11.4% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Palm Hills Developments Sae had CAPEX/Revenue of 0.91%. Palm Hills Developments Sae showed almost no change in CAPEX/Revenue from 2013 to 2016. For the last three years the average CAPEX/Revenue was 0.91%.
Return on investment
The company operates at low ROIC (8.24%) and ROE (10.34%). ROIC decreased on 3.9 pp from 12.2% to 8.2% in 2016. ROE decreased on 7.9 pp from 18.3% to 10.3% in 2016.
Leverage (Debt)
Debt level is 4.7x Net Debt / EBITDA and 5.6x Debt / EBITDA. Net Debt / EBITDA surged on 2.2x from 2.5x to 4.7x in 2016. Debt jumped on 39.5% in 2016 while cash dropped on 16.3% in 2016.
Appendix 1: Peers in
Below you can find Palm Hills Developments Sae benchmarking vs. other companies in 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 |
|---|
| Development Securities(Investments) ($36JS) | | | -20.4% | 156.8% | 18.9% |
| Wereldhave Property Corp ($93IA) | | -9.0% | 13.5% | 65.7% | 9.4% |
| Bld Property Hldgs ($09GE) | | -1.1% | 16.0% | 39.3% | 6.1% |
| Grosvenor Uk Finance ($62QE) | | 0.8% | 15.1% | 14.3% | |
| Bbva International ($80LJ) | | -1.5% | -3.5% | 14.0% | 9.8% |
| |
|---|
| Median (48 companies) | -12.5% | 1.5% | 2.9% | 1.0% | 0.6% |
|---|
| Palm Hills Developments Sae ($PHDC) | | 208.5% | 74.2% | 72.9% | 54.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sanctuary Housing ($BB21) | | 98.2% | 97.0% | 97.6% | 97.1% |
| Glh Hotels Ltd ($97KI) | | | 57.8% | 57.6% | 57.8% |
| Corus Finance ($BD84) | 26.1% | 29.2% | 31.7% | 35.4% | 32.7% |
| Lewis(John) ($BC32) | 33.4% | 33.4% | 33.4% | 33.8% | 33.9% |
| Lewis(John)Partnership ($BD32) | 33.4% | 33.4% | 33.4% | 33.8% | 33.9% |
| |
|---|
| Median (8 companies) | 30.9% | 31.8% | 33.4% | 33.8% | 33.9% |
|---|
| Palm Hills Developments Sae ($PHDC) | -5.2% | 22.3% | 33.5% | 31.6% | 29.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bld Property Hldgs ($09GE) | 108.3% | 91.0% | 218.5% | 215.1% | 165.3% |
| Intu Debenture ($69ZM) | 70.3% | 79.8% | 163.8% | 107.2% | 67.1% |
| T.H.F.C.(Indexed) ($96JS) | 0.7% | 1.0% | 2.4% | 97.9% | 97.1% |
| T.H.F.C.(Social Housing Finance) ($96JP) | 0.7% | 1.0% | 2.4% | 97.9% | 97.1% |
| T.H.F.C.(Indexed 2) ($90IL) | 0.7% | 1.0% | 2.4% | 97.9% | 97.1% |
| |
|---|
| Median (30 companies) | 26.1% | 32.4% | 37.3% | 45.8% | 51.6% |
|---|
| Palm Hills Developments Sae ($PHDC) | -39.2% | 13.4% | 20.2% | 29.8% | 16.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wereldhave Property Corp ($93IA) | 145.6% | 147.1% | 848.7% | 379.0% | 48.2% |
| Sanctuary Housing ($BB21) | | 0.0% | 0.0% | 60.0% | 31.0% |
| Bld Property Hldgs ($09GE) | 146.6% | 195.3% | 186.5% | 59.2% | 84.6% |
| Mid Kent Water ($48HO) | 46.7% | 43.9% | 47.1% | 37.7% | 41.2% |
| Chagala Group Ltd ($CHGG) | 11.6% | 6.2% | 11.7% | 25.9% | |
| |
|---|
| Median (39 companies) | 3.8% | 3.0% | 3.3% | 4.4% | 3.3% |
|---|
| Palm Hills Developments Sae ($PHDC) | 1.4% | 0.5% | 0.6% | 1.2% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lewis(John) ($BC32) | 12.5% | 15.6% | 16.4% | 18.6% | 19.8% |
| Lewis(John)Partnership ($BD32) | 12.5% | 15.6% | 16.4% | 18.6% | 19.8% |
| Canadian Pacific Railways ($BC87) | 8.2% | 10.5% | 16.0% | 17.0% | 15.0% |
| Calgary & Edmonton Railway Co ($05GM) | 8.2% | 10.5% | 16.0% | 17.0% | 15.0% |
| Bet ($83GK) | 16.0% | 12.9% | 16.1% | 13.7% | 13.9% |
| |
|---|
| Median (43 companies) | 1.7% | 3.4% | 3.3% | 3.1% | 4.9% |
|---|
| Palm Hills Developments Sae ($PHDC) | -2.9% | 2.0% | 5.6% | 12.2% | 8.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Skipton Building Society ($SBSA) | 29.7x | 30.3x | 30.2x | 34.7x | |
| T.H.F.C.(Indexed) ($96JS) | 2,312.9x | 1,673.5x | 718.9x | 20.3x | 22.6x |
| Housing Finance Corp ($68HB) | 2,312.9x | 1,673.5x | 718.9x | 20.3x | 22.6x |
| T.H.F.C.(Social Housing Finance) ($96JP) | 2,312.9x | 1,673.5x | 718.9x | 20.3x | 22.6x |
| T.H.F.C.(Indexed 2) ($90IL) | 2,312.9x | 1,673.5x | 718.9x | 20.3x | 22.6x |
| |
|---|
| Median (28 companies) | 3.2x | 3.5x | 3.4x | 3.1x | 4.9x |
|---|
| Palm Hills Developments Sae ($PHDC) | | 16.6x | 6.6x | 2.5x | 4.7x |
