Grupo Clarin Sa revenue surged on 37.2% in 2016 while EBITDA Margin decreased on 3.6 pp from 13.7% to 10.1%
13 Mar 2017 • About Grupo Clarin Sa (
$GCLA) • By InTwits
Grupo Clarin Sa reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 10.1% in 2016, 13.7% in 2015, 25.7% in 2014, 23.7% in 2013, 24.5% in 2012
- Grupo Clarin Sa has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.5%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: 311 in 2016, 134 in 2015, 2,518 in 2014, 1,859 in 2013, 1,383 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Grupo Clarin Sa ($GCLA) key annual financial indicators
| mln. ARS | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,319 | 14,100 | 19,710 | 8,292 | 11,379 | 37.2% |
| Gross Profit | 4,811 | 5,961 | 8,698 | 3,365 | 4,375 | 30.0% |
| SG&A | 2,910 | 3,811 | 5,103 | 2,431 | 3,593 | 47.8% |
| EBITDA | 2,773 | 3,342 | 5,064 | 1,135 | 1,149 | 1.2% |
| Net Income | 482 | 480 | 804 | 1,885 | 2,530 | 34.2% |
Balance Sheet
|
|---|
| Cash | 623 | 1,333 | 1,162 | 2,026 | 416 | -79.5% |
| Short Term Debt | 504 | 1,295 | 1,719 | 2,902 | 340 | -88.3% |
| Long Term Debt | 2,683 | 2,845 | 2,870 | 4,033 | 469 | -88.4% |
Cash flow
|
|---|
| Capex | 1,383 | 1,859 | 2,518 | 134 | 311 | 132.4% |
Ratios
|
|---|
| Revenue growth | 21.4% | 24.6% | 39.8% | -57.9% | 37.2% | |
| EBITDA growth | 12.0% | 20.5% | 51.5% | -77.6% | 1.2% | |
| Gross Margin | 42.5% | 42.3% | 44.1% | 40.6% | 38.5% | -2.1% |
| EBITDA Margin | 24.5% | 23.7% | 25.7% | 13.7% | 10.1% | -3.6% |
| Net Income Margin | 4.3% | 3.4% | 4.1% | 22.7% | 22.2% | -0.5% |
| SG&A, % of revenue | 25.7% | 27.0% | 25.9% | 29.3% | 31.6% | 2.3% |
| CAPEX, % of revenue | 12.2% | 13.2% | 12.8% | 1.6% | 2.7% | 1.1% |
| ROIC | 21.6% | 21.8% | 29.8% | 6.4% | 5.8% | -0.5% |
| ROE | 12.5% | 10.9% | 15.7% | 29.6% | 30.0% | 0.4% |
| Net Debt/EBITDA | 0.9x | 0.8x | 0.7x | 4.3x | 0.3x | -4.0x |
Revenue and profitability
Grupo Clarin Sa's Revenue jumped on 37.2% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.0 pp from 34.7% to 37.7% in FY2016.
Gross Margin decreased on 2.1 pp from 40.6% to 38.5% in 2016. SG&A as a % of Revenue increased on 2.3 pp from 29.3% to 31.6% in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Grupo Clarin Sa had CAPEX/Revenue of 2.7%. CAPEX/Revenue dropped on 10.5 pp from 13.2% in 2013 to 2.7% in 2016. For the last three years the average CAPEX/Revenue was 5.7%.
Return on investment
The company operates at good ROE (30.01%) while ROIC is low (5.83%). ROIC decreased slightly on 0.53 pp from 6.4% to 5.8% in 2016. ROE showed almost no change in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 4.0x from 4.3x to 0.3x in 2016. Debt dropped on 88.3% in 2016 while cash dropped on 79.5% in 2016.
Valuation
The company's trades at EV/EBITDA 0.4x and P/E 0.0x while industy averages are 15.6x and 19.1x. The company's EV/(EBITDA-CAPEX) is 0.5x with the industry average at 19.0x.
Appendix 1: Peers in Media
Below we provide Grupo Clarin Sa benchmarking against other companies in Media 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 |
|---|
| Tla Worldwide ($TLA) | 5,338.4% | 25.0% | 6.3% | 130.0% | |
| Porta Communications ($PTCM) | 970.2% | 10.7% | 150.9% | 46.5% | |
| Jaywing ($JWNG) | | -27.9% | -0.7% | 26.6% | 6.5% |
| Marimedia Ltd ($MARI) | 24.4% | 71.1% | 45.7% | 20.1% | |
| Nahl Group ($NAH) | 12.6% | -3.2% | -10.7% | 15.7% | |
| |
|---|
| Median (23 companies) | 0.8% | -2.9% | 1.2% | 2.2% | 6.5% |
|---|
| Grupo Clarin Sa ($GCLA) | | 24.6% | 39.8% | -57.9% | 37.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jaywing ($JWNG) | 79.8% | 76.8% | 81.0% | 89.0% | 88.4% |
| Brainjuicer Group ($BJU) | 77.2% | 78.0% | 78.8% | 80.4% | 82.1% |
| Porta Communications ($PTCM) | 55.3% | 89.2% | 83.4% | 79.0% | |
| Tla Worldwide ($TLA) | 96.1% | 96.6% | 99.9% | 78.8% | |
| Haynes Publishing Group ($HYNS) | 59.9% | 59.6% | 52.9% | 60.2% | 53.6% |
| |
|---|
| Median (24 companies) | 40.6% | 41.6% | 43.5% | 42.2% | 42.8% |
|---|
| Grupo Clarin Sa ($GCLA) | 42.5% | 42.3% | 44.1% | 40.6% | 38.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dq Entertainment ($DQE) | 42.8% | 49.2% | 62.4% | 59.1% | |
| Haynes Publishing Group ($HYNS) | 25.7% | 23.4% | 38.8% | 33.5% | 15.4% |
| Nahl Group ($NAH) | 36.6% | 39.6% | 28.8% | 29.5% | |
| Tla Worldwide ($TLA) | 43.5% | 39.1% | 40.6% | 28.5% | |
| Quarto Group Inc ($QRT) | 20.0% | 25.9% | 27.8% | 28.4% | |
| |
|---|
| Median (24 companies) | 14.7% | 13.9% | 13.7% | 9.8% | 9.0% |
|---|
| Grupo Clarin Sa ($GCLA) | 24.5% | 23.7% | 25.7% | 13.7% | 10.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Avesco Group ($AVS) | 22.7% | 13.2% | 18.6% | 14.4% | |
| Mood Media Corp ($MM.) | 8.6% | 6.4% | 6.9% | 8.2% | 5.9% |
| Spaceandpeople ($SAL) | 3.2% | 4.1% | 1.6% | 5.0% | |
| Dq Entertainment ($DQE) | 6.8% | 2.0% | 0.0% | 4.6% | |
| Naspers ($NPSN) | 4.7% | 4.9% | | 4.0% | 3.1% |
| |
|---|
| Median (24 companies) | 1.1% | 1.6% | 1.5% | 1.0% | 0.8% |
|---|
| Grupo Clarin Sa ($GCLA) | 12.2% | 13.2% | 12.8% | 1.6% | 2.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Independent News & Media ($INM) | -43.9% | 136.2% | 29.6% | 65.1% | |
| Brainjuicer Group ($BJU) | 24.3% | 49.0% | 60.0% | 58.5% | 72.5% |
| Uls Technology ($ULS) | | 33.2% | 44.1% | 39.6% | 39.3% |
| Cellcast Group ($CLTV) | -63.1% | | | 28.4% | |
| Nahl Group ($NAH) | 37.1% | 42.3% | 31.5% | 26.0% | |
| |
|---|
| Median (24 companies) | 5.4% | 5.4% | 7.8% | 6.7% | 0.7% |
|---|
| Grupo Clarin Sa ($GCLA) | 21.6% | 21.8% | 29.8% | 6.4% | 5.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Johnston Press ($JPR) | 5.8x | | 11.4x | 15.6x | |
| Mood Media Corp ($MM.) | 5.2x | 8.1x | 8.2x | 9.8x | 7.9x |
| Naspers ($NPSN) | 1.4x | 1.9x | | 6.2x | 14.7x |
| Dq Entertainment ($DQE) | 1.1x | 1.5x | 1.5x | 2.8x | |
| Porta Communications ($PTCM) | | | 3.4x | 2.7x | |
| |
|---|
| Median (22 companies) | 0.9x | 0.8x | 1.0x | 0.5x | -0.4x |
|---|
| Grupo Clarin Sa ($GCLA) | 0.9x | 0.8x | 0.7x | 4.3x | 0.3x |
