Guinness Peat Group EBITDA jumped on 25.2% in 2016 and EBITDA Margin increased on 2.8 pp from 10.5% to 13.3%
24 Feb 2017 • About Guinness Peat Group (
$GPG) • By InTwits
Guinness Peat Group reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 13.3% in 2016 vs. 10.5% in 2015 vs. 0.5% in 2012
- EBITDA Margin is quite volatile: 13.3% in 2016, 10.5% in 2015, 9.6% in 2014, 6.5% in 2013, 0.5% in 2012
- Guinness Peat Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 2.5%.
- CAPEX is quite volatile: 40.1 in 2016, 44.1 in 2015, 46 in 2014, 9.4 in 2013, 42.8 in 2012
- The company has highly profitable business model: ROIC is at 23.8%
- It operates with high leverage: Net Debt/EBITDA is -0.4x while industry average is -4.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Guinness Peat Group ($GPG) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,653 | 1,704 | 1,561 | 1,473 | 1,457 | -1.0% |
| Gross Profit | 457 | 595 | 568 | 535 | 565 | 5.6% |
| SG&A | 499 | 534 | 469 | 433 | 412 | -4.9% |
| EBITDA | 8 | 111 | 150 | 155 | 194 | 25.2% |
| Net Income | -46 | 36 | 15 | -51 | 59 | -217.2% |
Balance Sheet
|
|---|
| Cash | 523 | 759 | 739 | 650 | 477 | -26.7% |
| Short Term Debt | 44 | 83 | 114 | 20 | 8 | -61.9% |
| Long Term Debt | 452 | 371 | 305 | 389 | 391 | 0.4% |
Cash flow
|
|---|
| Capex | 43 | 9 | 46 | 44 | 40 | -9.1% |
Ratios
|
|---|
| Revenue growth | -2.7% | 3.1% | -8.4% | -5.7% | -1.0% | |
| EBITDA growth | -94.3% | 1,301.8% | 35.0% | 3.3% | 25.2% | |
| Gross Margin | 27.6% | 34.9% | 36.4% | 36.3% | 38.8% | 2.5% |
| EBITDA Margin | 0.5% | 6.5% | 9.6% | 10.5% | 13.3% | 2.8% |
| Net Income Margin | -2.8% | 2.1% | 1.0% | -3.4% | 4.1% | 7.5% |
| SG&A, % of revenue | 30.2% | 31.3% | 30.0% | 29.4% | 28.3% | -1.2% |
| CAPEX, % of revenue | 2.6% | 0.6% | 2.9% | 3.0% | 2.8% | -0.2% |
| ROIC | -3.0% | 5.1% | 10.0% | 13.7% | 23.8% | 10.1% |
| ROE | -5.6% | 5.2% | 2.7% | -14.3% | 29.8% | 44.2% |
| Net Debt/EBITDA | -3.5x | -2.7x | -2.1x | -1.6x | -0.4x | 1.1x |
Revenue and profitability
The company's Revenue decreased slightly on 1.0% in 2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.8 pp from 10.5% to 13.3% in 2016.
Gross Margin increased on 2.5 pp from 36.3% to 38.8% in 2016. SG&A as a % of Revenue decreased slightly on 1.2 pp from 29.4% to 28.3% in 2016.
Net Income marign increased on 7.5 pp from -3.4% to 4.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.8%. Guinness Peat Group's CAPEX/Revenue increased on 2.2 pp from 0.55% in 2013 to 2.8% in 2016. It's average level of CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at high and attractive ROIC (23.83%) and ROE (29.81%). ROIC jumped on 10.1 pp from 13.7% to 23.8% in 2016. ROE surged on 44.2 pp from -14.3% to 29.8% in 2016.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and 2.1x Debt / EBITDA. Net Debt / EBITDA jumped on 1.1x from -1.6x to -0.4x in 2016. Debt decreased on 2.7% in 2016 while cash dropped on 26.7% in 2016.
Appendix 1: Peers in Financial Services
Below we provide Guinness Peat 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% | 15.0% |
| Manx Financial Group ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 5.6% | 14.7% | 6.8% | 2.9% | 2.3% |
|---|
| Guinness Peat Group ($GPG) | | 3.1% | -8.4% | -5.7% | -1.0% |
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 ($LCG) | 64.2% | 70.5% | 73.6% | 67.9% | |
| |
|---|
| Median (15 companies) | 56.8% | 53.3% | 53.0% | 52.8% | 55.4% |
|---|
| Guinness Peat Group ($GPG) | 27.6% | 34.9% | 36.4% | 36.3% | 38.8% |
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 ($DSS) | 53.8% | 51.5% | 38.8% | 49.2% | 38.9% |
| |
|---|
| Median (28 companies) | 14.9% | 17.0% | 16.8% | 16.9% | 18.7% |
|---|
| Guinness Peat Group ($GPG) | 0.5% | 6.5% | 9.6% | 10.5% | 13.3% |
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% | 15.1% |
| Commercial Bank Of Qatar(The) ($CBQS) | 6.0% | 3.8% | 2.8% | 3.9% | 3.3% |
| Nmbz Hldgs ($NMB) | 6.1% | 3.0% | 2.1% | 3.8% | |
| Afh Financial Group ($AFHP) | 1.6% | 1.5% | 0.7% | 3.8% | 1.8% |
| |
|---|
| Median (29 companies) | 1.3% | 1.4% | 1.3% | 0.9% | 1.1% |
|---|
| Guinness Peat Group ($GPG) | 2.6% | 0.6% | 2.9% | 3.0% | 2.8% |
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 ($REC) | 23.8% | 19.6% | 20.2% | 20.2% | 18.5% |
| Impax Asset Management Group ($IPX) | -13.7% | 17.2% | 18.7% | 16.1% | 15.0% |
| Lighthouse Group ($LGT) | 7.2% | -3.9% | 8.6% | 14.6% | 25.7% |
| |
|---|
| Median (30 companies) | 5.5% | 6.3% | 8.9% | 7.3% | 9.9% |
|---|
| Guinness Peat Group ($GPG) | -3.0% | 5.1% | 10.0% | 13.7% | 23.8% |
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 | 13.4x |
| S & U ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| |
|---|
| Median (25 companies) | -1.0x | -1.0x | -2.1x | -0.5x | -0.6x |
|---|
| Guinness Peat Group ($GPG) | -3.5x | -2.7x | -2.1x | -1.6x | -0.4x |
