Jardine Strategic Hldgs EBITDA jumped on 42.6% in 2016 and EBITDA Margin increased on 6.3 pp from 15.1% to 21.4%
02 Mar 2017 • About Jardine Strategic Hldgs (
$88EI) • By InTwits
Jardine Strategic Hldgs reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 21.4% in FY2016 vs. 15.1% in FY2015 vs. 15.0% in FY2012
- Jardine Strategic Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's in pair with industry average of 4.4%.
- CAPEX is quite volatile: 906 in FY2016, 859 in FY2015, 1,322 in FY2014, 1,685 in FY2013, 1,930 in FY2012
- The company has business model with low profitability: ROIC is at 9.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jardine Strategic Hldgs ($88EI) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 33,098 | 32,666 | 32,236 | 29,391 | 29,552 | 0.5% |
| Gross Profit | 7,960 | 7,852 | 8,176 | 7,506 | 7,631 | 1.7% |
| SG&A | 4,581 | 4,680 | 4,906 | 4,892 | 5,090 | 4.0% |
| EBITDA | 4,965 | 4,343 | 4,365 | 4,441 | 6,331 | 42.6% |
| Net Income | 1,827 | 1,700 | 1,832 | 1,953 | 2,741 | 40.3% |
Balance Sheet
|
|---|
| Cash | 3,947 | 4,901 | 5,074 | 4,575 | 5,103 | 11.5% |
| Short Term Debt | 3,228 | 4,464 | 3,672 | 3,558 | 4,036 | 13.4% |
| Long Term Debt | 7,661 | 6,226 | 7,260 | 6,684 | 6,636 | -0.7% |
Cash flow
|
|---|
| Capex | 1,930 | 1,685 | 1,322 | 859 | 906 | 5.5% |
Ratios
|
|---|
| Revenue growth | 6.6% | -1.3% | -1.3% | -8.8% | 0.5% | |
| EBITDA growth | -44.5% | -12.5% | 0.5% | 1.7% | 42.6% | |
| Gross Margin | 24.0% | 24.0% | 25.4% | 25.5% | 25.8% | 0.3% |
| EBITDA Margin | 15.0% | 13.3% | 13.5% | 15.1% | 21.4% | 6.3% |
| Net Income Margin | 5.5% | 5.2% | 5.7% | 6.6% | 9.3% | 2.6% |
| SG&A, % of revenue | 13.8% | 14.3% | 15.2% | 16.6% | 17.2% | 0.6% |
| CAPEX, % of revenue | 5.8% | 5.2% | 4.1% | 2.9% | 3.1% | 0.1% |
| ROIC | 7.7% | 6.2% | 6.2% | 6.3% | 9.2% | 3.0% |
| ROE | 8.9% | 7.8% | 8.1% | 8.3% | 10.9% | 2.7% |
| Net Debt/EBITDA | 1.4x | 1.3x | 1.3x | 1.3x | 0.9x | -0.4x |
Revenue and profitability
The company's Revenue increased slightly on 0.55% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.9 pp from 14.7% to 19.6% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 0.58 pp from 16.6% to 17.2% in FY2016.
Net Income marign increased on 2.6 pp from 6.6% to 9.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.1% in FY2016. Jardine Strategic Hldgs's CAPEX/Revenue decreased on 2.1 pp from 5.2% in FY2013 to 3.1% in FY2016. Average CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at low ROIC (9.22%) and ROE (10.93%). ROIC increased on 3.0 pp from 6.3% to 9.2% in FY2016. ROE increased on 2.7 pp from 8.3% to 10.9% in FY2016.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 1.3x to 0.9x in FY2016. Debt increased on 4.2% in FY2016 while cash surged on 11.5% 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 Strategic Hldgs's EV/(EBITDA-CAPEX) is 1.1x with the industry average at 19.0x.
Appendix 1: Peers in General Industrials
Below you can find Jardine Strategic Hldgs benchmarking vs. other companies in General Industrials 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 |
|---|
| Coral Products ($CRU) | | -0.2% | -0.3% | 1.2% | 7.4% |
| Macfarlane Group ($MACF) | | 1.4% | 6.9% | 10.0% | 6.3% |
| Barloworld ($BWO) | | 1.6% | 4.4% | 1.0% | 6.1% |
| General Electric Co. ($GEC) | | -0.8% | -18.6% | -1.1% | 3.9% |
| Honeywell International Inc ($HON) | | 3.7% | 3.2% | -4.3% | 1.9% |
| |
|---|
| Median (7 companies) | 54.8% | 1.6% | 4.4% | 1.2% | 3.9% |
|---|
| Jardine Strategic Hldgs ($88EI) | | -1.3% | -1.3% | -8.8% | 0.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coral Products ($CRU) | 22.1% | 24.6% | 23.7% | 29.6% | 33.1% |
| Macfarlane Group ($MACF) | 32.0% | 31.2% | 30.9% | 31.5% | 31.0% |
| Honeywell International Inc ($HON) | 24.9% | 27.4% | 28.2% | 30.7% | 30.9% |
| Smurfit Kappa Group ($SKG) | 28.6% | 28.9% | 29.5% | 30.0% | 30.3% |
| Barloworld ($BWO) | 20.3% | 20.5% | 21.5% | 21.8% | 22.0% |
| |
|---|
| Median (7 companies) | 24.9% | 27.4% | 24.5% | 29.6% | 30.3% |
|---|
| Jardine Strategic Hldgs ($88EI) | 24.0% | 24.0% | 25.4% | 25.5% | 25.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Honeywell International Inc ($HON) | 13.5% | 16.6% | 16.8% | 20.0% | 19.6% |
| Smurfit Kappa Group ($SKG) | 13.4% | 12.8% | 12.7% | 14.3% | 14.9% |
| Barloworld ($BWO) | 8.4% | 9.1% | 10.0% | 10.3% | 10.0% |
| General Electric Co. ($GEC) | 17.2% | 16.5% | 13.3% | 10.4% | 9.4% |
| Coral Products ($CRU) | 7.1% | 7.8% | 6.8% | 8.5% | 7.1% |
| |
|---|
| Median (7 companies) | 13.4% | 12.8% | 12.7% | 10.3% | 9.4% |
|---|
| Jardine Strategic Hldgs ($88EI) | 15.0% | 13.3% | 13.5% | 15.1% | 21.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coral Products ($CRU) | 9.1% | 15.3% | 2.2% | 2.5% | 8.9% |
| General Electric Co. ($GEC) | 10.5% | 9.4% | 6.1% | 6.3% | 6.0% |
| Smurfit Kappa Group ($SKG) | 4.3% | 4.4% | 5.3% | 5.3% | 5.2% |
| Thyssenkrupp Ag ($0O1C) | 3.8% | 2.9% | 2.9% | 2.7% | 3.1% |
| Honeywell International Inc ($HON) | 2.3% | 2.4% | 2.7% | 2.8% | 2.8% |
| |
|---|
| Median (7 companies) | 4.3% | 4.4% | 2.9% | 2.8% | 3.1% |
|---|
| Jardine Strategic Hldgs ($88EI) | 5.8% | 5.2% | 4.1% | 2.9% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Honeywell International Inc ($HON) | 21.8% | 23.0% | 21.3% | 23.2% | 19.6% |
| Macfarlane Group ($MACF) | 17.9% | 22.2% | 19.0% | 17.8% | 17.0% |
| Smurfit Kappa Group ($SKG) | 10.8% | 11.2% | 11.8% | 13.9% | 14.1% |
| Barloworld ($BWO) | 14.0% | 13.5% | 14.1% | 12.9% | 12.8% |
| Thyssenkrupp Ag ($0O1C) | -27.3% | -6.5% | 10.8% | 9.5% | 12.7% |
| |
|---|
| Median (7 companies) | 10.8% | 11.2% | 11.8% | 12.9% | 12.8% |
|---|
| Jardine Strategic Hldgs ($88EI) | 7.7% | 6.2% | 6.2% | 6.3% | 9.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| General Electric Co. ($GEC) | 10.5x | 8.9x | 12.0x | 10.6x | 7.8x |
| Coral Products ($CRU) | 1.5x | 2.9x | 3.4x | 2.7x | 2.5x |
| Smurfit Kappa Group ($SKG) | 2.9x | 2.6x | 2.7x | 2.6x | 2.4x |
| Thyssenkrupp Ag ($0O1C) | 3.4x | 4.5x | 2.0x | 1.8x | 1.8x |
| Macfarlane Group ($MACF) | 1.0x | 0.8x | 1.3x | 1.3x | 1.4x |
| |
|---|
| Median (7 companies) | 1.5x | 1.4x | 1.3x | 1.7x | 1.8x |
|---|
| Jardine Strategic Hldgs ($88EI) | 1.4x | 1.3x | 1.3x | 1.3x | 0.9x |
