Just Eat reports 210% Net Income growth and 4.8 pp EBITDA Margin growth from 21.0% to 25.8%
07 Mar 2017 • About Just Eat (
$JE.) • By InTwits
Just Eat reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 25.8% in 2016 vs. 21.0% in 2015 vs. -11.3% in 2012
- EBITDA Margin is quite volatile: 25.8% in 2016, 21.0% in 2015, 16.3% in 2014, 11.3% in 2013, -11.3% in 2012
- Just Eat has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 2.9%.
- CAPEX is quite volatile: 9.5 in 2016, 5.8 in 2015, 5.4 in 2014, 3.3 in 2013, 3.8 in 2012
- The company has business model with low profitability: ROIC is at 9.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Just Eat ($JE.) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 59.8 | 96.8 | 157.0 | 247.6 | 375.7 | 51.7% |
| Gross Profit | 54.7 | 86.8 | 140.9 | 223.4 | 340.5 | 52.4% |
| SG&A | 52.4 | 73.7 | 113.5 | 176.2 | 250.2 | 42.0% |
| EBITDA | -6.7 | 10.9 | 25.6 | 52.1 | 97.1 | 86.4% |
| Net Income | -3.9 | 7.0 | 52.0 | 23.1 | 71.7 | 210.4% |
Balance Sheet
|
|---|
| Cash | 50.0 | 61.6 | 164.4 | 192.7 | 130.6 | -32.2% |
| Short Term Debt | 0.0 | 0.0 | 0.3 | 0.0 | 0.4 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.6 | |
Cash flow
|
|---|
| Capex | 3.8 | 3.3 | 5.4 | 5.8 | 9.5 | 63.8% |
Ratios
|
|---|
| Revenue growth | 77.0% | 61.9% | 62.3% | 57.7% | 51.7% | |
| EBITDA growth | 2,814.7% | -262.6% | 133.9% | 103.5% | 86.4% | |
| Gross Margin | 91.5% | 89.7% | 89.7% | 90.2% | 90.6% | 0.4% |
| EBITDA Margin | -11.3% | 11.3% | 16.3% | 21.0% | 25.8% | 4.8% |
| Net Income Margin | -6.5% | 7.2% | 33.1% | 9.3% | 19.1% | 9.8% |
| SG&A, % of revenue | 87.7% | 76.1% | 72.3% | 71.2% | 66.6% | -4.6% |
| CAPEX, % of revenue | 6.4% | 3.4% | 3.4% | 2.3% | 2.5% | 0.2% |
| ROIC | -27.5% | 14.6% | 16.4% | 9.1% | 9.8% | 0.7% |
| ROE | -11.9% | 13.9% | 44.0% | 5.7% | 9.9% | 4.2% |
| Net Debt/EBITDA | | -5.6x | -6.4x | -3.7x | -1.3x | 2.4x |
Revenue and profitability
The company's Revenue surged on 51.7% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.3 pp from 51.2% to 57.5% in FY2016.
Gross Margin showed almost no change in 2016. SG&A as a % of Revenue decreased on 4.6 pp from 71.2% to 66.6% in 2016.
Net Income marign increased on 9.8 pp from 9.3% to 19.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.5%. The company's CAPEX/Revenue decreased slightly on 0.86 pp from 3.4% in 2013 to 2.5% in 2016. It's average CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at low ROIC (9.84%) and ROE (9.93%). ROIC increased slightly on 0.73 pp from 9.1% to 9.8% in 2016. ROE increased on 4.2 pp from 5.7% to 9.9% in 2016.
Leverage (Debt)
Debt level is -1.3x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA surged on 2.4x from -3.7x to -1.3x in 2016. Debt jumped while cash dropped on 32.2% in 2016.
Appendix 1: Peers in General Retailers
Below we provide Just Eat benchmarking against other companies in General Retailers 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 |
|---|
| AO World ($AO.) | | 31.3% | 40.0% | 23.8% | 25.7% |
| Signet Jewelers Ltd ($SIG) | | 6.2% | 5.7% | 36.3% | 14.2% |
| Caffyns ($78GL) | | -3.1% | 17.1% | 8.9% | 10.5% |
| Mysale Group ($MYSL) | | 62.1% | 23.4% | 5.1% | 7.0% |
| Lotte Shopping Co Ltd ($LOTS) | | 12.6% | -0.4% | 3.7% | 1.4% |
| |
|---|
| Median (8 companies) | 4.4% | 9.4% | 5.7% | 5.1% | 4.2% |
|---|
| Just Eat ($JE.) | | | | 57.7% | 51.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aa ($AA.) | 60.4% | 63.9% | 64.7% | 64.8% | 64.3% |
| French Connection Group ($FCCN) | 48.1% | 47.9% | 47.6% | 46.7% | 46.3% |
| Stanley Gibbons Group ($SGI) | 43.7% | 43.2% | | 51.5% | 40.3% |
| Signet Jewelers Ltd ($SIG) | 38.3% | 38.6% | 37.5% | 36.2% | 37.3% |
| Lotte Shopping Co Ltd ($LOTS) | 30.5% | 30.7% | 31.2% | 30.6% | 31.6% |
| |
|---|
| Median (8 companies) | 32.5% | 33.5% | 31.6% | 34.3% | 34.4% |
|---|
| Just Eat ($JE.) | | | 89.7% | 90.2% | 90.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aa ($AA.) | 35.5% | 37.0% | 42.2% | 37.9% | 36.8% |
| Signet Jewelers Ltd ($SIG) | 16.0% | 16.6% | 16.2% | 12.7% | 13.4% |
| Lotte Shopping Co Ltd ($LOTS) | 8.8% | 8.2% | 7.4% | 6.3% | 6.5% |
| Caffyns ($78GL) | 10.8% | 3.0% | 2.0% | 6.5% | 2.2% |
| Mysale Group ($MYSL) | 2.4% | 3.5% | 2.3% | -4.7% | 1.8% |
| |
|---|
| Median (8 companies) | 8.1% | 5.2% | 2.3% | 7.5% | 2.0% |
|---|
| Just Eat ($JE.) | | | 16.3% | 21.0% | 25.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aa ($AA.) | 2.7% | 0.7% | 1.0% | 3.8% | 7.7% |
| Lotte Shopping Co Ltd ($LOTS) | 7.1% | 6.5% | 6.6% | 3.8% | 4.1% |
| Signet Jewelers Ltd ($SIG) | 2.6% | 3.4% | 3.6% | 3.8% | 3.5% |
| Caffyns ($78GL) | 1.6% | 2.2% | 3.9% | 1.4% | 1.6% |
| Stanley Gibbons Group ($SGI) | 1.0% | 1.1% | | 2.4% | 1.5% |
| |
|---|
| Median (8 companies) | 1.4% | 0.8% | 1.0% | 1.9% | 1.6% |
|---|
| Just Eat ($JE.) | | | 3.4% | 2.3% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aa ($AA.) | 138.0% | 134.4% | 61.1% | 34.9% | 32.8% |
| Signet Jewelers Ltd ($SIG) | 21.6% | 21.5% | 20.4% | 15.5% | 15.2% |
| Caffyns ($78GL) | 60.8% | 15.4% | 11.1% | 37.3% | 10.4% |
| Lotte Shopping Co Ltd ($LOTS) | 5.3% | 4.9% | 3.8% | 2.6% | 2.9% |
| Mysale Group ($MYSL) | | | 10.0% | -19.0% | 0.3% |
| |
|---|
| Median (8 companies) | 21.3% | 15.4% | 6.9% | 10.0% | 1.6% |
|---|
| Just Eat ($JE.) | | | 16.4% | 9.1% | 9.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aa ($AA.) | 0.6x | -0.0x | 7.7x | 7.9x | 7.8x |
| Lotte Shopping Co Ltd ($LOTS) | 5.1x | 4.9x | 5.2x | 6.7x | 6.4x |
| Stanley Gibbons Group ($SGI) | -1.1x | -3.0x | | 2.3x | |
| Signet Jewelers Ltd ($SIG) | -0.8x | -0.5x | -0.3x | 1.7x | 1.4x |
| Caffyns ($78GL) | 0.5x | 2.0x | 3.0x | 0.7x | 2.2x |
| |
|---|
| Median (9 companies) | -0.8x | -0.2x | 1.4x | 0.7x | 2.2x |
|---|
| Just Eat ($JE.) | | | -6.4x | -3.7x | -1.3x |
