Miton Group Net Income jumped on 133% in 2016 and Revenue increased on 9.2%
16 Mar 2017 • About Miton Group (
$MGR) • By InTwits
Miton Group reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Miton Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has business model with low profitability: ROIC is at 7.1%
- It operates with high leverage: Net Debt/EBITDA is -4.6x while industry average is -4.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Miton Group ($MGR) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 22.333 | 27.999 | 26.952 | 22.031 | 24.067 | 9.2% |
| SG&A | | | 11.297 | 11.319 | 13.122 | 15.9% |
| EBITDA | 3.934 | 4.756 | 5.127 | 3.596 | 4.615 | 28.3% |
| Net Income | 1.066 | 0.708 | -4.827 | 1.395 | 3.248 | 132.8% |
Balance Sheet
|
|---|
| Cash | 11.951 | 11.211 | 15.192 | 14.073 | 21.288 | 51.3% |
| 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 | 0.024 | 0.233 | 0.072 | 0.036 | 0.012 | -66.7% |
Ratios
|
|---|
| Revenue growth | 4.2% | 25.4% | -3.7% | -18.3% | 9.2% | |
| EBITDA growth | 1.2% | 20.9% | 7.8% | -29.9% | 28.3% | |
| EBITDA Margin | 17.6% | 17.0% | 19.0% | 16.3% | 19.2% | 2.9% |
| Net Income Margin | 4.8% | 2.5% | -17.9% | 6.3% | 13.5% | 7.2% |
| SG&A, % of revenue | | | 41.9% | 51.4% | 54.5% | 3.1% |
| CAPEX, % of revenue | 0.1% | 0.8% | 0.3% | 0.2% | 0.0% | -0.1% |
| ROIC | 1.5% | 2.8% | 6.4% | 4.7% | 7.1% | 2.3% |
| ROE | 1.9% | 1.2% | -8.3% | 2.4% | 5.4% | 3.0% |
| Net Debt/EBITDA | -3.0x | -2.4x | -3.0x | -3.9x | -4.6x | -0.7x |
Revenue and profitability
The company's Revenue increased on 9.2% in 2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.4 pp from 7.4% to 10.7% in FY2016.
SG&A as a % of Revenue increased on 3.1 pp from 51.4% to 54.5% in 2016.
Net Income marign increased on 7.2 pp from 6.3% to 13.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.050% in 2016. The company showed small CAPEX/Revenue decline of 0.78 pp from 0.83% in 2013 to 0.050% in 2016. It's average CAPEX/Revenue for the last three years was 0.16%.
Return on investment
The company operates at low ROIC (7.06%) and ROE (5.43%). ROIC increased on 2.3 pp from 4.7% to 7.1% in 2016. ROE increased on 3.0 pp from 2.4% to 5.4% in 2016.
Leverage (Debt)
The company has no debt. Cash surged on 51.3% in 2016.
Valuation
The company's trades at EV/EBITDA 10.2x and P/E 21.1x while industy averages are 15.6x and 19.1x.
Appendix 1: Peers in Financial Services
Below we provide Miton Group benchmarking against other companies in Financial Services 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 |
|---|
| 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 ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 8.0% | 12.6% | 6.8% | 2.9% | 3.1% |
|---|
| Miton Group ($MGR) | | 25.4% | -3.7% | -18.3% | 9.2% |
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) | 11.7% | 15.6% | 14.4% | 16.5% | 16.6% |
|---|
| Miton Group ($MGR) | 17.6% | 17.0% | 19.0% | 16.3% | 19.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| London Capital Group Hldgs ($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% | 1.3% |
|---|
| Miton Group ($MGR) | 0.1% | 0.8% | 0.3% | 0.2% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hargreaves Lansdown ($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) | 5.5% | 6.3% | 9.2% | 7.7% | 9.4% |
|---|
| Miton Group ($MGR) | 1.5% | 2.8% | 6.4% | 4.7% | 7.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Private & Commercial Finance Group ($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 ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| |
|---|
| Median (25 companies) | -1.0x | -1.0x | -1.9x | -0.5x | -0.5x |
|---|
| Miton Group ($MGR) | -3.0x | -2.4x | -3.0x | -3.9x | -4.6x |
