Dalata Hotel Group reports 280% CAPEX growth and 28.7% Revenue growth
28 Feb 2017 • About Dalata Hotel Group (
$DAL) • By InTwits
Dalata Hotel Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 24.5% in FY2016, 20.8% in FY2015, 7.7% in FY2014, 8.8% in FY2013, 6.5% in FY2012
- Dalata Hotel Group has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.7%. At the same time it's in pair with industry average of 17.8%.
- CAPEX is quite volatile: 109 in FY2016, 28.6 in FY2015, 21.1 in FY2014, 3.8 in FY2013, 0.37 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.4%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dalata Hotel Group ($DAL) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 54.1 | 60.6 | 79.1 | 225.7 | 290.6 | 28.7% |
| Gross Profit | 33.1 | 37.6 | 49.7 | 138.8 | 180.7 | 30.2% |
| SG&A | 29.6 | 32.3 | 43.6 | 94.5 | 110.2 | 16.6% |
| EBITDA | 3.5 | 5.3 | 6.1 | 47.0 | 71.1 | 51.3% |
| Net Income | -2.0 | -0.6 | 3.5 | 21.6 | 34.9 | 61.5% |
Balance Sheet
|
|---|
| Cash | 5.3 | 4.9 | 217.8 | 149.2 | 81.1 | -45.6% |
| Short Term Debt | 8.0 | 2.0 | 0.0 | 16.0 | 15.7 | -1.5% |
| Long Term Debt | 0.0 | 7.0 | 0.0 | 250.2 | 264.7 | 5.8% |
Cash flow
|
|---|
| Capex | 0.4 | 3.8 | 21.1 | 28.6 | 108.6 | 280.4% |
Ratios
|
|---|
| Revenue growth | 55.4% | 12.0% | 30.4% | 185.4% | 28.7% | |
| EBITDA growth | 83.4% | 52.7% | 14.2% | 670.8% | 51.3% | |
| Gross Margin | 61.2% | 62.0% | 62.8% | 61.5% | 62.2% | 0.7% |
| EBITDA Margin | 6.5% | 8.8% | 7.7% | 20.8% | 24.5% | 3.6% |
| Net Income Margin | -3.6% | -1.0% | 4.5% | 9.6% | 12.0% | 2.4% |
| SG&A, % of revenue | 54.7% | 53.2% | 55.1% | 41.9% | 37.9% | -3.9% |
| CAPEX, % of revenue | 0.7% | 6.2% | 26.7% | 12.7% | 37.4% | 24.7% |
| ROIC | | | 4.3% | 6.8% | 6.4% | -0.4% |
| ROE | | | | 5.3% | 6.0% | 0.7% |
| Net Debt/EBITDA | 0.8x | 0.8x | -35.7x | 2.5x | 2.8x | 0.3x |
Revenue and profitability
The company's Revenue surged on 28.7% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.79 pp from 20.9% to 21.6% in FY2016.
Gross Margin increased slightly on 0.70 pp from 61.5% to 62.2% in FY2016. SG&A as a % of Revenue decreased on 3.9 pp from 41.9% to 37.9% in FY2016.
Net Income marign increased on 2.4 pp from 9.6% to 12.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Dalata Hotel Group's CAPEX/Revenue was 37.4% in FY2016. Dalata Hotel Group showed fast CAPEX/Revenue growth of 31.2 pp from 6.2% in FY2013 to 37.4% in FY2016. For the last three years the average CAPEX/Revenue was 25.6%.Dalata Hotel Group has spent a lot to CAPEX (153% of EBITDA) to fuel its growth.
Return on investment
The company operates at low ROIC (6.39%) and ROE (6.03%). ROIC showed almost no change in FY2016. ROE increased slightly on 0.69 pp from 5.3% to 6.0% in FY2016.
Leverage (Debt)
Debt level is 2.8x Net Debt / EBITDA and 3.9x Debt / EBITDA. Net Debt / EBITDA surged on 0.3x from 2.5x to 2.8x in FY2016. Debt increased on 5.4% in FY2016 while cash dropped on 45.6% in FY2016.
Valuation
The company's trades at EV/EBITDA 2.9x and P/E 0.2x while industy averages are 15.6x and 19.1x.
Appendix 1: Peers in Travel & Leisure
Below we provide Dalata Hotel Group benchmarking against other companies in Travel & Leisure 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 |
|---|
| Everyman Media Group ($EMAN) | 23.4% | 26.5% | 22.4% | 44.1% | |
| Webis Holdings ($WEB) | | 46.3% | -55.0% | 29.7% | 45.3% |
| Paddy Power ($PAP) | 30.9% | 14.0% | 18.3% | 24.1% | |
| Hanatour Service Inc ($TOUR) | | 14.6% | 9.3% | 19.2% | 29.6% |
| Action Hotels ($AHCG) | 12.3% | 5.4% | 26.2% | 15.7% | |
| |
|---|
| Median (23 companies) | 10.8% | 8.2% | 6.1% | 7.6% | 8.7% |
|---|
| Dalata Hotel Group ($DAL) | | 12.0% | 30.4% | 185.4% | 28.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Eclectic Bar Grp ($BAR) | 79.1% | 78.9% | 79.0% | 79.4% | 80.7% |
| Paddy Power ($PAP) | 84.7% | 82.8% | 81.0% | 74.7% | |
| Action Hotels ($AHCG) | 75.1% | 75.0% | 73.3% | 74.0% | |
| Everyman Media Group ($EMAN) | 57.6% | 59.2% | 58.9% | 58.0% | |
| Mandarin Oriental International ($MDOB) | 36.0% | 38.9% | 39.7% | 40.4% | |
| |
|---|
| Median (11 companies) | 23.0% | 22.6% | 20.7% | 22.1% | 19.1% |
|---|
| Dalata Hotel Group ($DAL) | 61.2% | 62.0% | 62.8% | 61.5% | 62.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($AHCG) | 31.0% | 27.9% | 28.6% | 34.3% | |
| Air China ($AIRC) | 19.7% | 16.0% | 18.4% | 27.3% | |
| Mandarin Oriental International ($MDOB) | 19.5% | 22.4% | 24.0% | 26.2% | |
| Ryanair Hldgs ($RYA) | 22.6% | 21.5% | 20.1% | 25.1% | 28.9% |
| Irish Continental Group ($ICGC) | 17.1% | 18.6% | 27.3% | 23.6% | |
| |
|---|
| Median (24 companies) | 13.8% | 15.4% | 12.7% | 12.5% | 15.1% |
|---|
| Dalata Hotel Group ($DAL) | 6.5% | 8.8% | 7.7% | 20.8% | 24.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($AHCG) | 21.0% | 25.6% | 90.0% | 172.4% | |
| Everyman Media Group ($EMAN) | 0.0% | 36.4% | 25.9% | 56.4% | |
| Marston'S ($MARS) | 18.0% | 19.3% | 17.5% | 16.2% | 15.3% |
| Young & Co'S Brewery ($YNGN) | 14.3% | 8.7% | 10.8% | 14.3% | 16.9% |
| Ana Hldgs Inc ($ANA) | 12.8% | 10.1% | 10.5% | 14.1% | 14.1% |
| |
|---|
| Median (24 companies) | 4.4% | 4.8% | 4.5% | 7.2% | 8.1% |
|---|
| Dalata Hotel Group ($DAL) | 0.7% | 6.2% | 26.7% | 12.7% | 37.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Paddy Power ($PAP) | 53.4% | 47.2% | 47.6% | 53.2% | |
| Irish Continental Group ($ICGC) | 14.6% | 18.9% | 40.0% | 33.9% | |
| Aer Lingus Group ($AERL) | 3.0% | 3.3% | -11.9% | 31.7% | |
| Air Partner ($AIP) | 34.8% | 27.5% | 21.2% | 20.0% | 20.4% |
| Hanatour Service Inc ($TOUR) | 22.5% | 19.9% | 19.6% | 19.4% | 8.6% |
| |
|---|
| Median (24 companies) | 6.6% | 7.4% | 4.2% | 5.9% | 7.2% |
|---|
| Dalata Hotel Group ($DAL) | | | 4.3% | 6.8% | 6.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Meikles Ltd ($MIK) | | 5.1x | 10.7x | 73.1x | |
| Action Hotels ($AHCG) | 11.2x | 7.8x | 9.6x | 12.3x | |
| Marston'S ($MARS) | | 6.5x | 14.0x | 8.2x | 6.2x |
| Peel Hotels ($PHO) | 8.2x | 7.3x | 5.9x | 4.4x | 3.9x |
| Rotala ($ROL) | 2.6x | 3.1x | 2.8x | 3.6x | |
| |
|---|
| Median (21 companies) | 1.4x | 2.3x | 1.3x | 1.5x | 2.3x |
|---|
| Dalata Hotel Group ($DAL) | 0.8x | 0.8x | -35.7x | 2.5x | 2.8x |
