Standard Life reports 111% revenue growth in 2016
24 Feb 2017 • About Standard Life (
$SL.) • By InTwits
Standard Life reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Standard Life doesn't have a profitable business model yet: 2016 ROIC is 0.5%
- Standard Life has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has potentially unprofitable business model: ROIC is at 0.5%
- It operates with high leverage: Net Debt/EBITDA is 0.3x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Standard Life ($SL.) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 19,185 | 16,816 | 16,588 | 8,892 | 18,729 | 110.6% |
| Net Income | 665 | 466 | 503 | 1,423 | 368 | -74.1% |
Balance Sheet
|
|---|
| Cash | 9,942 | 10,322 | 10,617 | 9,640 | 7,938 | -17.7% |
| Short Term Debt | 108 | 95 | 44 | | | |
| Long Term Debt | 1,868 | 1,861 | 1,612 | 1,318 | 1,319 | 0.1% |
Cash flow
|
|---|
| Capex | 18 | 17 | 21 | 8 | 10 | 25.0% |
Ratios
|
|---|
| Revenue growth | 111.1% | -12.3% | -1.4% | -46.4% | 110.6% | |
| Net Income Margin | 3.5% | 2.8% | 3.0% | 16.0% | 2.0% | -14.0% |
| CAPEX, % of revenue | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | -0.0% |
| ROIC | 0.7% | 0.5% | 0.5% | 0.4% | 0.5% | 0.1% |
| ROE | 16.0% | 10.9% | 11.3% | 32.8% | 8.8% | -24.0% |
Revenue and profitability
The company's Revenue jumped on 111% in 2016.
Net Income marign dropped on 14.0 pp from 16.0% to 2.0% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.053% in 2016. Standard Life's CAPEX/Revenue showed almost no change from 2013 to 2016. It's average level of CAPEX/Revenue for the last three years was 0.090%.
Return on investment
The company operates at low ROIC (0.52%) and ROE (8.82%). ROIC showed almost no change in 2016. ROE dropped on 24.0 pp from 32.8% to 8.8% in 2016.
Appendix 1: Peers in Life Insurance
Below we provide Standard Life benchmarking against other companies in Life Insurance 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 |
|---|
| Cathay Financial Hldg Co ($CFHS) | -25.4% | 58.9% | 14.8% | 9.3% | |
| Sagicor Financial Corp ($SFI) | 12.7% | -2.3% | -2.8% | 7.5% | |
| Shin Kong Financial Hldg Co ($SKFS) | 2.2% | 0.8% | 21.5% | 6.2% | |
| Torchmark Corp ($TMK) | | 5.1% | -4.0% | 4.0% | 4.5% |
| Prudential ($PRU) | 49.1% | -3.8% | 14.8% | -31.3% | |
| |
|---|
| Median (7 companies) | 21.3% | -2.3% | 14.8% | 4.0% | 4.5% |
|---|
| Standard Life ($SL.) | | -12.3% | -1.4% | -46.4% | 110.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sagicor Financial Corp ($SFI) | 1.9% | 1.8% | 2.1% | 1.6% | |
| Torchmark Corp ($TMK) | 0.1% | 0.3% | 0.5% | 1.0% | 0.6% |
| Shin Kong Financial Hldg Co ($SKFS) | 0.4% | 0.3% | 0.4% | 0.8% | |
| Prudential ($PRU) | 0.3% | 0.4% | 0.3% | 0.6% | |
| Aviva ($AV.A) | 0.5% | 0.1% | 0.3% | 0.2% | |
| |
|---|
| Median (7 companies) | 0.4% | 0.3% | 0.3% | 0.6% | 0.6% |
|---|
| Standard Life ($SL.) | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Torchmark Corp ($TMK) | 5.4% | 4.9% | 4.6% | 4.3% | 4.2% |
| Cathay Financial Hldg Co ($CFHS) | 0.6% | 0.9% | 1.3% | 1.3% | |
| Prudential ($PRU) | 1.1% | 0.6% | 0.8% | 0.9% | |
| Aviva ($AV.A) | 0.4% | 0.7% | 1.0% | 0.6% | |
| Shin Kong Financial Hldg Co ($SKFS) | 0.8% | 0.8% | 0.7% | 0.5% | |
| |
|---|
| Median (7 companies) | 0.9% | 0.9% | 0.9% | 0.8% | 4.2% |
|---|
| Standard Life ($SL.) | 0.7% | 0.5% | 0.5% | 0.4% | 0.5% |
