Share Net Income surged on 10.8% in 2016 and Revenue increased on 4.0%
09 Mar 2017 • About Share (
$SHRE) • By InTwits
Share reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Share doesn't have a profitable business model yet: FY2016 ROIC is -6.9%
- The company operates at negative EBITDA Margin: -7.6%
- EBITDA Margin is quite volatile: -7.6% in FY2016, -0.8% in FY2015, 6.6% in FY2014, 10.2% in FY2013, 7.5% in FY2012
- Share has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has unprofitable business model: ROIC is at -6.9%
- It operates with high leverage: Net Debt/EBITDA is -0.6x while industry average is -3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Share ($SHRE) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13.914 | 14.996 | 15.042 | 14.050 | 14.610 | 4.0% |
| SG&A | | | 14.590 | 14.944 | 15.956 | 6.8% |
| EBITDA | 1.047 | 1.524 | 0.989 | -0.113 | -1.117 | 888.5% |
| Net Income | 0.521 | 1.331 | 0.690 | 0.665 | 0.737 | 10.8% |
Balance Sheet
|
|---|
| Cash | 12.186 | 13.626 | 12.655 | 11.663 | 11.421 | -2.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.126 | 0.143 | 0.125 | 0.085 | 0.162 | 90.6% |
Ratios
|
|---|
| Revenue growth | -2.4% | 7.8% | 0.3% | -6.6% | 4.0% | |
| EBITDA growth | -32.1% | 45.6% | -35.1% | -111.4% | 888.5% | |
| EBITDA Margin | 7.5% | 10.2% | 6.6% | -0.8% | -7.6% | -6.8% |
| Net Income Margin | 3.7% | 8.9% | 4.6% | 4.7% | 5.0% | 0.3% |
| SG&A, % of revenue | | | 97.0% | 106.4% | 109.2% | 2.8% |
| CAPEX, % of revenue | 0.9% | 1.0% | 0.8% | 0.6% | 1.1% | 0.5% |
| ROIC | 5.5% | 7.4% | 4.0% | -1.1% | -6.9% | -5.8% |
| ROE | 3.2% | 7.4% | 3.4% | 3.4% | 4.0% | 0.7% |
| Net Debt/EBITDA | -11.6x | -8.9x | -12.8x | | | 0.0x |
Revenue and profitability
Share's Revenue increased on 4.0% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 45.7 pp from -71.9% to -26.2% in FY2016.
SG&A as a % of Revenue increased on 2.8 pp from 106% to 109% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Share had CAPEX/Revenue of 1.1%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.85%.
Return on investment
The company operates at negative ROIC (-6.90%) and low but positive ROE (4.04%). ROIC decreased on 5.8 pp from -1.1% to -6.9% in FY2016. ROE increased slightly on 0.67 pp from 3.4% to 4.0% in FY2016.
Leverage (Debt)
The company has no debt. Cash decreased on 2.1% in FY2016.
Appendix 1: Peers in Financial Services
Below you can find Share benchmarking vs. other companies in Financial Services 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 |
|---|
| Volvere ($VLE) | -47.1% | 149.8% | -23.2% | 124.9% | |
| Real Estate Credit Investments Pcc ($RECP) | | 335.8% | -59.6% | 47.3% | -29.8% |
| Fairpoint Group ($FRP) | 32.7% | -17.5% | 35.1% | 41.2% | |
| Afh Financial Group ($AFHP) | | 49.9% | 39.3% | 39.5% | 15.0% |
| Manx Financial Group ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 8.0% | 14.7% | 6.8% | 2.9% | 2.0% |
|---|
| Share ($SHRE) | | 7.8% | 0.3% | -6.6% | 4.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Record ($REC) | 98.8% | 98.8% | 99.6% | 99.3% | 99.0% |
| Panmure Gordon & Co ($PMR) | 95.2% | 95.0% | 95.3% | 95.2% | |
| First Property Group ($FPO) | 86.0% | 69.5% | 67.9% | 83.0% | 80.6% |
| Schroders ($SDRC) | 76.9% | 76.2% | 77.7% | 78.3% | 79.9% |
| London Capital Group Hldgs ($LCG) | 64.2% | 70.5% | 73.6% | 67.9% | |
| |
|---|
| Median (16 companies) | 54.3% | 52.7% | 52.2% | 52.5% | 55.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Livermore Investments Group Ltd ($LIV) | 84.9% | 64.8% | 78.8% | 83.5% | |
| Real Estate Credit Investments Pcc ($RECP) | 58.6% | 89.3% | 77.0% | 80.3% | 79.3% |
| Manx Financial Group ($MFX) | 39.8% | 49.2% | 56.5% | 58.8% | |
| Hargreaves Lansdown ($HL.) | 64.1% | 66.4% | 58.7% | 51.2% | 57.5% |
| Daishin Securities Co ($DSS) | 53.8% | 51.5% | 38.8% | 49.2% | 38.9% |
| |
|---|
| Median (28 companies) | 14.9% | 17.0% | 16.8% | 16.9% | 16.6% |
|---|
| Share ($SHRE) | 7.5% | 10.2% | 6.6% | -0.8% | -7.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| London Capital Group Hldgs ($LCG) | 1.8% | 0.2% | 3.4% | 7.7% | |
| Daishin Securities Co ($DSS) | 6.0% | 24.7% | 15.0% | 6.5% | 15.1% |
| Commercial Bank Of Qatar(The) ($CBQS) | 6.0% | 3.8% | 2.8% | 3.9% | 3.3% |
| Nmbz Hldgs ($NMB) | 6.1% | 3.0% | 2.1% | 3.8% | |
| Afh Financial Group ($AFHP) | 1.6% | 1.5% | 0.7% | 3.8% | 1.8% |
| |
|---|
| Median (29 companies) | 1.4% | 1.4% | 1.3% | 1.2% | 1.8% |
|---|
| Share ($SHRE) | 0.9% | 1.0% | 0.8% | 0.6% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hargreaves Lansdown ($HL.) | 108.7% | 111.7% | 101.0% | 87.5% | 90.0% |
| Manx Financial Group ($MFX) | 8.0% | 19.7% | 29.7% | 40.2% | |
| Record ($REC) | 23.8% | 19.6% | 20.2% | 20.2% | 18.5% |
| Impax Asset Management Group ($IPX) | -13.7% | 17.2% | 18.7% | 16.1% | 15.0% |
| Lighthouse Group ($LGT) | 7.2% | -3.9% | 8.6% | 14.6% | 25.7% |
| |
|---|
| Median (30 companies) | 5.2% | 6.0% | 9.2% | 7.7% | 9.4% |
|---|
| Share ($SHRE) | 5.5% | 7.4% | 4.0% | -1.1% | -6.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Private & Commercial Finance Group ($PCF) | 12.8x | 14.3x | 13.9x | 12.9x | 10.6x |
| First Property Group ($FPO) | 3.6x | 3.0x | 5.6x | 12.3x | 9.4x |
| Canaccord Genuity Group Inc ($CF.) | | | | 10.2x | |
| Daishin Securities Co ($DSS) | 1.5x | 2.4x | 10.7x | 8.0x | 13.4x |
| S & U ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| |
|---|
| Median (26 companies) | -1.0x | -1.0x | -1.9x | -0.8x | -0.4x |
|---|
