Irish Continental Group reports 64.8% CAPEX growth and 1.5% Revenue growth
06 Mar 2017 • About Irish Continental Group (
$ICGC) • By InTwits
Irish Continental Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Irish Continental Group has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.4%. At the same time it's a lot of higher than industry average of 2.7%.
- CAPEX is quite volatile: 56.7 in FY2016, 34.4 in FY2015, 7.7 in FY2014, 8.4 in FY2013, 8.1 in FY2012
- The company has highly profitable business model: ROIC is at 30.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Irish Continental Group ($ICGC) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 256.1 | 264.7 | 290.1 | 320.6 | 325.4 | 1.5% |
| EBITDA | 43.8 | 49.3 | 79.3 | 75.6 | 83.6 | 10.6% |
| Net Income | 42.4 | 26.8 | 56.0 | 53.7 | 58.8 | 9.5% |
Balance Sheet
|
|---|
| Cash | 22.3 | 18.5 | 22.7 | 25.0 | 42.2 | 68.8% |
| Short Term Debt | 15.1 | 16.7 | 17.3 | 14.0 | 78.4 | 460.0% |
| Long Term Debt | 123.2 | 95.2 | 66.7 | 55.3 | 1.7 | -96.9% |
Cash flow
|
|---|
| Capex | 8.1 | 8.4 | 7.7 | 34.4 | 56.7 | 64.8% |
Ratios
|
|---|
| Revenue growth | 1.7% | 3.4% | 9.6% | 10.5% | 1.5% | |
| EBITDA growth | -7.8% | 12.6% | 60.9% | -4.7% | 10.6% | |
| EBITDA Margin | 17.1% | 18.6% | 27.3% | 23.6% | 25.7% | 2.1% |
| Net Income Margin | 16.6% | 10.1% | 19.3% | 16.7% | 18.1% | 1.3% |
| CAPEX, % of revenue | 3.2% | 3.2% | 2.7% | 10.7% | 17.4% | 6.7% |
| ROIC | 14.6% | 18.9% | 40.0% | 33.9% | 30.1% | -3.8% |
| ROE | 50.0% | 89.0% | 108.2% | 60.7% | 45.2% | -15.5% |
| Net Debt/EBITDA | 2.6x | 1.9x | 0.8x | 0.6x | 0.5x | -0.1x |
Revenue and profitability
Irish Continental Group's Revenue increased slightly on 1.5% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 6.3 pp from 51.2% to 57.5% in FY2016.
Net Income marign increased slightly on 1.3 pp from 16.7% to 18.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Irish Continental Group's CAPEX/Revenue was 17.4% in FY2016. CAPEX/Revenue jumped on 14.3 pp from 3.2% in FY2013 to 17.4% in FY2016. It's average level of CAPEX/Revenue for the last three years was 10.3%.The company maintained rich investment policy and has spent a big chunk of EBITDA (67.8%) to CAPEX.
Return on investment
The company operates at high and attractive ROIC (30.11%) and ROE (45.25%). ROIC decreased on 3.8 pp from 33.9% to 30.1% in FY2016. ROE dropped on 15.5 pp from 60.7% to 45.2% in FY2016.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 0.6x to 0.5x in FY2016. Debt jumped on 15.6% in FY2016 while cash surged on 68.8% in FY2016.
Appendix 1: Peers in Travel & Leisure
Below you can find Irish Continental Group benchmarking vs. other companies in Travel & Leisure 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 |
|---|
| Dalata Hotel Group ($DAL) | | 12.0% | 30.4% | 185.4% | 28.7% |
| Everyman Media Group ($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 ($TOUR) | | 14.6% | 9.3% | 19.2% | 29.6% |
| |
|---|
| Median (23 companies) | 17.8% | 8.8% | 6.1% | 7.6% | 8.7% |
|---|
| Irish Continental Group ($ICGC) | | 3.4% | 9.6% | 10.5% | 1.5% |
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 ($AHCG) | 75.1% | 75.0% | 73.3% | 74.0% | |
| Dalata Hotel Group ($DAL) | 61.2% | 62.0% | 62.8% | 61.5% | 62.2% |
| Everyman Media Group ($EMAN) | 57.6% | 59.2% | 58.9% | 58.0% | |
| |
|---|
| Median (12 companies) | 29.5% | 30.8% | 30.2% | 31.2% | 25.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($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% | 21.4% |
| Ryanair Hldgs ($RYA) | 22.6% | 21.5% | 20.1% | 25.1% | 28.9% |
| Young & Co'S Brewery ($YNGN) | 21.2% | 21.8% | 21.7% | 22.9% | 22.9% |
| |
|---|
| Median (24 companies) | 12.8% | 12.9% | 12.3% | 12.5% | 15.9% |
|---|
| Irish Continental Group ($ICGC) | 17.1% | 18.6% | 27.3% | 23.6% | 25.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Action Hotels ($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% | 5.4% | 4.6% | 7.2% | 14.1% |
|---|
| Irish Continental Group ($ICGC) | 3.2% | 3.2% | 2.7% | 10.7% | 17.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Paddy Power ($PAP) | 53.4% | 47.2% | 47.6% | 53.2% | |
| 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 ($TOUR) | 22.5% | 19.9% | 19.6% | 19.4% | 8.6% |
| Ryanair Hldgs ($RYA) | 9.7% | 10.0% | 9.5% | 13.3% | 17.2% |
| |
|---|
| Median (24 companies) | 6.4% | 6.9% | 4.2% | 5.9% | 6.4% |
|---|
| Irish Continental Group ($ICGC) | 14.6% | 18.9% | 40.0% | 33.9% | 30.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Meikles Ltd ($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) | 1.0x | 2.3x | 1.3x | 2.3x | 2.3x |
|---|
| Irish Continental Group ($ICGC) | 2.6x | 1.9x | 0.8x | 0.6x | 0.5x |
