Taylor Wimpey reports 20.7% EBITDA growth and 0.62 pp EBITDA Margin growth from 20.2% to 20.8%
28 Feb 2017 • About Taylor Wimpey (
$TW.) • By InTwits
Taylor Wimpey reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Taylor Wimpey is a fast growth stock: FY2016 revenue growth was 17.1%, 5 year revenue CAGR was 15.2% at FY2016 ROIC 26.8%
- Taylor Wimpey has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has highly profitable business model: ROIC is at 26.8%
- It operates with high leverage: Net Debt/EBITDA is -0.5x while industry average is -1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Taylor Wimpey ($TW.) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,019 | 2,296 | 2,686 | 3,140 | 3,676 | 17.1% |
| Gross Profit | 356 | 495 | 640 | 787 | 940 | 19.4% |
| SG&A | 142 | 152 | 159 | 172 | 189 | 9.9% |
| EBITDA | 226 | 358 | 500 | 635 | 766 | 20.7% |
| Net Income | 229 | 271 | 374 | 490 | 589 | 20.2% |
Balance Sheet
|
|---|
| Cash | 190 | 105 | 213 | 323 | 450 | 39.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 249 | 100 | 100 | 100 | 86 | -14.5% |
Cash flow
|
|---|
| Capex | 4 | 3 | 10 | 6 | 3 | -44.6% |
Ratios
|
|---|
| Revenue growth | 11.7% | 13.7% | 17.0% | 16.9% | 17.1% | |
| EBITDA growth | 46.4% | 58.7% | 39.5% | 27.0% | 20.7% | |
| Gross Margin | 17.6% | 21.6% | 23.8% | 25.1% | 25.6% | 0.5% |
| EBITDA Margin | 11.2% | 15.6% | 18.6% | 20.2% | 20.8% | 0.6% |
| Net Income Margin | 11.3% | 11.8% | 13.9% | 15.6% | 16.0% | 0.4% |
| SG&A, % of revenue | 7.0% | 6.6% | 5.9% | 5.5% | 5.1% | -0.3% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.4% | 0.2% | 0.1% | -0.1% |
| ROIC | 12.2% | 17.7% | 21.7% | 24.1% | 26.8% | 2.7% |
| ROE | 12.0% | 12.8% | 15.6% | 18.6% | 21.0% | 2.3% |
| Net Debt/EBITDA | 0.3x | -0.0x | -0.2x | -0.4x | -0.5x | -0.1x |
Revenue and profitability
The company's Revenue jumped on 17.1% in FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.62 pp from 20.2% to 20.8% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.084%. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.21%.
Return on investment
The company operates at high and attractive ROIC (26.78%) and ROE (20.96%). ROIC increased on 2.7 pp from 24.1% to 26.8% in FY2016. ROE increased on 2.3 pp from 18.6% to 21.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped on 0.1x from -0.4x to -0.5x in FY2016. Debt dropped on 14.5% in FY2016 while cash surged on 39.3% in FY2016.
Appendix 1: Peers in Household Goods & Home Construction
Below we provide Taylor Wimpey benchmarking against other companies in Household Goods & Home Construction 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 |
|---|
| Abbey ($ABBY) | | 40.0% | 15.9% | 51.0% | 27.9% |
| Airea ($AIEA) | | -4.7% | -8.4% | 11.3% | -3.8% |
| Reckitt Benckiser Group ($RB.) | | -3.1% | -4.6% | 0.4% | 11.5% |
| Colefax Group ($CFX) | | 0.3% | 10.5% | -1.6% | 0.1% |
| Teco Electric & Machinery Co Ltd ($TECD) | 4.1% | 16.2% | -5.1% | -9.6% | |
| |
|---|
| Median (7 companies) | 4.1% | 0.3% | -5.1% | -1.6% | 5.8% |
|---|
| Taylor Wimpey ($TW.) | | 13.7% | 17.0% | 16.9% | 17.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Reckitt Benckiser Group ($RB.) | 57.9% | 56.7% | 57.7% | 59.1% | 60.9% |
| Colefax Group ($CFX) | 55.1% | 55.4% | 53.3% | 54.7% | 56.3% |
| Abbey ($ABBY) | 23.6% | 17.3% | 25.8% | 30.6% | 33.1% |
| Teco Electric & Machinery Co Ltd ($TECD) | 23.5% | 23.8% | 24.9% | 25.5% | |
| Havelock Europa ($HVE) | 13.2% | 12.5% | 13.3% | 11.0% | |
| |
|---|
| Median (6 companies) | 23.5% | 20.6% | 25.4% | 28.1% | 56.3% |
|---|
| Taylor Wimpey ($TW.) | 17.6% | 21.6% | 23.8% | 25.1% | 25.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Abbey ($ABBY) | 19.4% | 13.3% | 22.6% | 31.2% | 31.7% |
| Reckitt Benckiser Group ($RB.) | 27.1% | 22.0% | 26.3% | 27.2% | 26.2% |
| Teco Electric & Machinery Co Ltd ($TECD) | 10.8% | 10.7% | 10.7% | 10.5% | |
| Colefax Group ($CFX) | 6.6% | 7.6% | 9.1% | 8.7% | 9.4% |
| Airea ($AIEA) | 5.9% | 7.4% | 7.0% | 8.0% | 11.7% |
| |
|---|
| Median (7 companies) | 6.6% | 7.6% | 9.1% | 8.7% | 19.0% |
|---|
| Taylor Wimpey ($TW.) | 11.2% | 15.6% | 18.6% | 20.2% | 20.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Abbey ($ABBY) | 12.2% | 6.5% | 8.0% | 8.0% | 5.3% |
| Teco Electric & Machinery Co Ltd ($TECD) | 1.4% | 1.4% | 3.6% | 3.5% | |
| Colefax Group ($CFX) | 4.9% | 3.1% | 2.0% | 2.9% | 3.0% |
| Airea ($AIEA) | 2.7% | 1.0% | 0.7% | 1.8% | 2.9% |
| Reckitt Benckiser Group ($RB.) | 1.7% | 2.1% | 1.8% | 1.7% | 1.8% |
| |
|---|
| Median (7 companies) | 2.4% | 1.4% | 1.8% | 1.8% | 2.9% |
|---|
| Taylor Wimpey ($TW.) | 0.2% | 0.1% | 0.4% | 0.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Abbey ($ABBY) | 5.4% | 4.7% | 11.2% | 21.1% | 22.9% |
| Colefax Group ($CFX) | 10.7% | 13.5% | 22.0% | 20.6% | 20.2% |
| Reckitt Benckiser Group ($RB.) | 23.3% | 17.3% | 19.7% | 20.3% | 20.3% |
| Airea ($AIEA) | 3.3% | 7.2% | 6.4% | 11.7% | 18.2% |
| Teco Electric & Machinery Co Ltd ($TECD) | 7.1% | 8.3% | 7.3% | 5.8% | |
| |
|---|
| Median (7 companies) | 5.4% | 7.2% | 7.3% | 11.7% | 20.2% |
|---|
| Taylor Wimpey ($TW.) | 12.2% | 17.7% | 21.7% | 24.1% | 26.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Reckitt Benckiser Group ($RB.) | 0.9x | 1.0x | 0.7x | 0.7x | 0.6x |
| Teco Electric & Machinery Co Ltd ($TECD) | 0.1x | -0.9x | -1.3x | -0.3x | |
| Airea ($AIEA) | -0.9x | -1.5x | -1.2x | -0.9x | -1.1x |
| Colefax Group ($CFX) | -1.8x | -1.4x | -0.6x | -1.0x | -1.4x |
| Abbey ($ABBY) | -1.5x | -2.6x | -1.2x | -1.3x | -1.3x |
| |
|---|
| Median (6 companies) | -0.4x | -1.2x | -1.2x | -1.0x | -1.2x |
|---|
| Taylor Wimpey ($TW.) | 0.3x | -0.0x | -0.2x | -0.4x | -0.5x |
