Macfarlane Group reports 14.2% EBITDA growth and 6.3% Revenue growth
23 Feb 2017 • About Macfarlane Group (
$MACF) • By InTwits
Macfarlane Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 6.2% in FY2016 vs. 5.7% in FY2015 vs. 5.0% in FY2012
- Macfarlane Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has highly profitable business model: ROIC is at 17.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Macfarlane Group ($MACF) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 141.8 | 143.9 | 153.8 | 169.1 | 179.8 | 6.3% |
| Gross Profit | 45.3 | 44.9 | 47.5 | 53.2 | 55.7 | 4.7% |
| SG&A | | | 40.8 | 37.9 | 47.0 | 23.9% |
| EBITDA | 7.2 | 7.6 | 8.1 | 9.7 | 11.1 | 14.2% |
| Net Income | 3.9 | 3.5 | 4.4 | 5.5 | 6.1 | 11.0% |
Balance Sheet
|
|---|
| Cash | 0.3 | 0.5 | 1.3 | 1.4 | 1.9 | 37.2% |
| Short Term Debt | 7.1 | 6.4 | 11.5 | 13.4 | 17.6 | 31.1% |
| Long Term Debt | 0.0 | 0.0 | 0.5 | 0.7 | 0.4 | -45.5% |
Cash flow
|
|---|
| Capex | 0.8 | 0.8 | 0.6 | 0.8 | 1.1 | 41.4% |
Ratios
|
|---|
| Revenue growth | -1.9% | 1.4% | 6.9% | 10.0% | 6.3% | |
| EBITDA growth | 17.8% | 5.9% | 6.8% | 20.0% | 14.2% | |
| Gross Margin | 32.0% | 31.2% | 30.9% | 31.5% | 31.0% | -0.5% |
| EBITDA Margin | 5.0% | 5.3% | 5.3% | 5.7% | 6.2% | 0.4% |
| Net Income Margin | 2.7% | 2.4% | 2.9% | 3.2% | 3.4% | 0.1% |
| SG&A, % of revenue | | | 26.5% | 22.4% | 26.1% | 3.7% |
| CAPEX, % of revenue | 0.6% | 0.5% | 0.4% | 0.5% | 0.6% | 0.2% |
| ROIC | 17.9% | 22.2% | 19.0% | 17.8% | 17.0% | -0.8% |
| ROE | 16.2% | 13.7% | 15.7% | 17.1% | 16.6% | -0.5% |
| Net Debt/EBITDA | 1.0x | 0.8x | 1.3x | 1.3x | 1.4x | 0.1x |
Revenue and profitability
Macfarlane Group's Revenue increased on 6.3% in FY2016. EBITDA Margin showed almost no change in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased on 3.7 pp from 22.4% to 26.1% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
Macfarlane Group's CAPEX/Revenue was 0.64% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.51%.
Return on investment
The company operates at good ROIC (16.97%) and ROE (16.62%). ROIC decreased slightly on 0.84 pp from 17.8% to 17.0% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.6x. Net Debt / EBITDA jumped on 0.1x from 1.3x to 1.4x in FY2016. Debt jumped on 27.1% in FY2016 while cash jumped on 37.2% in FY2016.
Appendix 1: Peers in General Industrials
Below we provide Macfarlane Group 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 ($PESD) | 111.1% | 52.6% | 20.3% | 17.8% | |
| Robinson ($RBN) | -1.6% | 10.2% | 20.3% | 3.8% | |
| Thyssenkrupp Ag ($0O1C) | | -7.2% | 6.9% | 3.8% | -8.2% |
| Coral Products ($CRU) | | -0.2% | -0.3% | 1.2% | 7.4% |
| Barloworld ($BWO) | | 1.6% | 4.4% | 1.0% | 6.1% |
| |
|---|
| Median (9 companies) | 6.6% | 1.6% | 3.2% | 1.0% | 2.9% |
|---|
| Macfarlane Group ($MACF) | | 1.4% | 6.9% | 10.0% | 6.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Press Corp ($PESD) | 58.9% | 54.4% | 56.0% | 54.5% | |
| Honeywell International Inc ($HON) | 24.9% | 27.4% | 28.2% | 30.7% | 30.9% |
| Smurfit Kappa Group ($SKG) | 28.6% | 28.9% | 29.5% | 30.0% | 30.3% |
| Coral Products ($CRU) | 22.1% | 24.6% | 23.7% | 29.6% | 33.1% |
| Jardine Strategic Hldgs ($88EI) | 24.0% | 24.0% | 25.4% | 25.5% | |
| |
|---|
| Median (9 companies) | 24.0% | 24.6% | 24.5% | 25.5% | 26.1% |
|---|
| Macfarlane Group ($MACF) | 32.0% | 31.2% | 30.9% | 31.5% | 31.0% |
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% | 19.6% |
| Jardine Strategic Hldgs ($88EI) | 15.0% | 13.3% | 13.5% | 15.1% | |
| Smurfit Kappa Group ($SKG) | 13.4% | 12.8% | 12.7% | 14.3% | 14.9% |
| General Electric Co. ($GEC) | 17.2% | 16.5% | 13.3% | 10.4% | 9.4% |
| |
|---|
| Median (9 companies) | 13.5% | 13.3% | 13.3% | 10.4% | 9.7% |
|---|
| Macfarlane Group ($MACF) | 5.0% | 5.3% | 5.3% | 5.7% | 6.2% |
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% | 6.0% |
| Smurfit Kappa Group ($SKG) | 4.3% | 4.4% | 5.3% | 5.3% | 5.2% |
| Robinson ($RBN) | 4.3% | 6.0% | 3.5% | 3.7% | |
| Jardine Strategic Hldgs ($88EI) | 5.8% | 5.2% | 4.1% | 2.9% | |
| |
|---|
| Median (9 companies) | 4.3% | 5.2% | 3.5% | 2.9% | 4.2% |
|---|
| Macfarlane Group ($MACF) | 0.6% | 0.5% | 0.4% | 0.5% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Honeywell International Inc ($HON) | 21.8% | 23.0% | 21.3% | 23.2% | 19.6% |
| Press Corp ($PESD) | 21.6% | 27.1% | 24.7% | 18.9% | |
| Smurfit Kappa Group ($SKG) | 10.8% | 11.2% | 11.8% | 13.9% | 14.1% |
| Barloworld ($BWO) | 14.0% | 13.5% | 14.1% | 12.9% | 12.8% |
| Thyssenkrupp Ag ($0O1C) | -27.3% | -6.5% | 10.8% | 9.5% | 12.7% |
| |
|---|
| Median (9 companies) | 10.3% | 9.6% | 10.8% | 9.5% | 12.8% |
|---|
| Macfarlane Group ($MACF) | 17.9% | 22.2% | 19.0% | 17.8% | 17.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| General Electric Co. ($GEC) | 10.5x | 8.9x | 12.0x | 10.6x | 7.8x |
| Coral Products ($CRU) | 1.5x | 2.9x | 3.4x | 2.7x | 2.5x |
| Smurfit Kappa Group ($SKG) | 2.9x | 2.6x | 2.7x | 2.6x | 2.4x |
| Thyssenkrupp Ag ($0O1C) | 3.4x | 4.5x | 2.0x | 1.8x | 1.8x |
| Barloworld ($BWO) | 1.5x | 1.4x | 1.2x | 1.7x | 1.2x |
| |
|---|
| Median (9 companies) | 1.5x | 1.4x | 1.3x | 1.7x | 2.1x |
|---|
| Macfarlane Group ($MACF) | 1.0x | 0.8x | 1.3x | 1.3x | 1.4x |
