Jardine Matheson Hldgs EBITDA jumped on 43.0% in 2016 and EBITDA Margin increased on 5.5 pp from 12.8% to 18.2%
02 Mar 2017 • About Jardine Matheson Hldgs (
$J36) • By InTwits
Jardine Matheson Hldgs reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 18.2% in FY2016 vs. 12.8% in FY2015 vs. 13.1% in FY2012
- Jardine Matheson Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 5.2%.
- CAPEX is quite volatile: 1,510 in 2016, 1,701 in 2015, 2,727 in 2014, 5,584 in 2013, 5,671 in 2012
- The company has business model with low profitability: ROIC is at 9.8%
- It operates with high leverage: Net Debt/EBITDA is 0.8x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jardine Matheson Hldgs ($J36) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 39,593 | 39,465 | 39,921 | 37,007 | 37,051 | 0.1% |
| Gross Profit | 8,864 | 8,802 | 9,346 | 8,632 | 8,819 | 2.2% |
| SG&A | 5,474 | 5,586 | 5,973 | 5,941 | 6,030 | 1.5% |
| EBITDA | 5,183 | 4,565 | 4,691 | 4,726 | 6,757 | 43.0% |
| Net Income | 1,671 | 1,566 | 1,710 | 1,797 | 2,503 | 39.3% |
Balance Sheet
|
|---|
| Cash | 4,298 | 5,214 | 5,315 | 4,782 | 5,543 | 15.9% |
| Short Term Debt | 3,619 | 4,811 | 4,068 | 3,991 | 4,323 | 8.3% |
| Long Term Debt | 7,896 | 6,473 | 7,416 | 6,995 | 6,861 | -1.9% |
Cash flow
|
|---|
| Capex | 1,936 | 1,735 | 1,390 | 1,326 | 1,309 | -1.3% |
Ratios
|
|---|
| Revenue growth | 4.3% | -0.3% | 1.2% | -7.3% | 0.1% | |
| EBITDA growth | -44.1% | -11.9% | 2.8% | 0.7% | 43.0% | |
| Gross Margin | 22.4% | 22.3% | 23.4% | 23.3% | 23.8% | 0.5% |
| EBITDA Margin | 13.1% | 11.6% | 11.8% | 12.8% | 18.2% | 5.5% |
| Net Income Margin | 4.2% | 4.0% | 4.3% | 4.9% | 6.8% | 1.9% |
| SG&A, % of revenue | 13.8% | 14.2% | 15.0% | 16.1% | 16.3% | 0.2% |
| CAPEX, % of revenue | 4.9% | 4.4% | 3.5% | 3.6% | 3.5% | -0.1% |
| ROIC | 7.9% | 6.4% | 6.6% | 6.6% | 9.8% | 3.2% |
| ROE | 9.8% | 8.7% | 9.1% | 9.2% | 12.0% | 2.8% |
| Net Debt/EBITDA | 1.4x | 1.3x | 1.3x | 1.3x | 0.8x | -0.5x |
Revenue and profitability
The company's Revenue showed almost no change in FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.5 pp from 12.8% to 18.2% 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 increased slightly on 1.9 pp from 4.9% to 6.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Jardine Matheson Hldgs had CAPEX/Revenue of 3.5%. The company's CAPEX/Revenue decreased slightly on 0.86 pp from 4.4% in FY2013 to 3.5% in FY2016. Average CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at low ROIC (9.79%) and ROE (11.99%). ROIC increased on 3.2 pp from 6.6% to 9.8% in FY2016. ROE increased on 2.8 pp from 9.2% to 12.0% in FY2016.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from 1.3x to 0.8x in FY2016. Debt increased slightly on 1.8% in FY2016 while cash jumped on 15.9% in FY2016.
Valuation
The company's trades at EV/EBITDA 0.9x and P/E 0.2x while industy averages are 15.6x and 19.1x. Jardine Matheson Hldgs's EV/(EBITDA-CAPEX) is 1.1x with the industry average at 19.0x.
Appendix 1: Peers in Food & Drug Retailers
Below you can find Jardine Matheson Hldgs benchmarking vs. other companies in Food & Drug Retailers industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenta Ltd ($LNTA) | | 31.3% | 34.5% | 30.3% | 21.2% |
| X5 Retail Group N.V ($89VS) | 8.0% | 9.0% | 18.5% | 27.6% | |
| Magnit PJSC ($MGNT) | 33.5% | 29.4% | 32.3% | 24.4% | |
| Crawshaw Group ($CRAW) | | -0.6% | 11.9% | 17.1% | 50.5% |
| Total Produce ($TOT) | | 8.5% | 1.1% | 7.8% | 8.0% |
| |
|---|
| Median (8 companies) | 26.0% | 8.7% | 10.5% | 12.5% | 8.0% |
|---|
| Jardine Matheson Hldgs ($J36) | | -0.3% | 1.2% | -7.3% | 0.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Snacktime ($SNAK) | 56.6% | 51.8% | 55.1% | 53.9% | 54.0% |
| Crawshaw Group ($CRAW) | 43.3% | 43.7% | 43.8% | 44.4% | 45.1% |
| Dairy Farm International Hldgs ($DFIB) | 28.9% | 29.8% | 29.9% | 29.5% | 30.2% |
| Magnit PJSC ($MGNT) | 26.5% | 28.5% | 28.9% | 28.5% | |
| X5 Retail Group N.V ($89VS) | 23.6% | 24.4% | 24.5% | 24.5% | |
| |
|---|
| Median (8 companies) | 25.1% | 26.4% | 26.7% | 26.5% | 30.2% |
|---|
| Jardine Matheson Hldgs ($J36) | 22.4% | 22.3% | 23.4% | 23.3% | 23.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenta Ltd ($LNTA) | 10.7% | 11.2% | 11.0% | 11.1% | 10.2% |
| Magnit PJSC ($MGNT) | 10.3% | 11.0% | 11.3% | 10.9% | |
| X5 Retail Group N.V ($89VS) | 6.9% | 7.1% | 7.7% | 7.2% | |
| Crawshaw Group ($CRAW) | 3.7% | 3.4% | 6.5% | 6.4% | 1.5% |
| O'Key Group Sa ($OKEY) | 8.1% | 7.3% | 7.3% | 6.1% | |
| |
|---|
| Median (8 companies) | 6.7% | 7.0% | 6.9% | 6.2% | 2.3% |
|---|
| Jardine Matheson Hldgs ($J36) | 13.1% | 11.6% | 11.8% | 12.8% | 18.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenta Ltd ($LNTA) | 13.4% | 16.2% | 17.9% | 12.3% | 13.8% |
| X5 Retail Group N.V ($89VS) | 4.6% | 3.8% | 4.5% | 6.4% | |
| Crawshaw Group ($CRAW) | 1.1% | 1.0% | 1.2% | 6.3% | 6.1% |
| Magnit PJSC ($MGNT) | 10.5% | 8.6% | 7.3% | 5.7% | |
| O'Key Group Sa ($OKEY) | 7.1% | 8.7% | 10.6% | 5.1% | |
| |
|---|
| Median (8 companies) | 4.9% | 4.1% | 3.9% | 5.4% | 3.9% |
|---|
| Jardine Matheson Hldgs ($J36) | 4.9% | 4.4% | 3.5% | 3.6% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Magnit PJSC ($MGNT) | 23.1% | 26.0% | 33.2% | 32.6% | |
| Dairy Farm International Hldgs ($DFIB) | 32.8% | 34.6% | 31.1% | 21.6% | 18.5% |
| Lenta Ltd ($LNTA) | 42.9% | 34.0% | 24.5% | 20.3% | 16.0% |
| X5 Retail Group N.V ($89VS) | 3.1% | 13.0% | 14.9% | 15.7% | |
| O'Key Group Sa ($OKEY) | 25.0% | 21.8% | 17.1% | 10.4% | |
| |
|---|
| Median (8 companies) | 16.1% | 17.4% | 16.0% | 13.1% | 9.2% |
|---|
| Jardine Matheson Hldgs ($J36) | 7.9% | 6.4% | 6.6% | 6.6% | 9.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| O'Key Group Sa ($OKEY) | 1.0x | 1.3x | 2.4x | 2.6x | |
| X5 Retail Group N.V ($89VS) | 3.3x | 2.7x | 2.2x | 2.3x | |
| Lenta Ltd ($LNTA) | 2.2x | 2.5x | 2.8x | 1.9x | 2.8x |
| Magnit PJSC ($MGNT) | 1.1x | 1.1x | 0.9x | 0.9x | |
| Dairy Farm International Hldgs ($DFIB) | -0.8x | -0.9x | -0.7x | 0.7x | 1.0x |
| |
|---|
| Median (7 companies) | 1.0x | 1.2x | 1.6x | 0.9x | 0.8x |
|---|
| Jardine Matheson Hldgs ($J36) | 1.4x | 1.3x | 1.3x | 1.3x | 0.8x |
