Independent News & Media ROIC jumped on 57.0 pp from 65.1% to 122% in 2016 and EBITDA surged on 45.8%
21 Mar 2017 • About Independent News & Media (
$INM) • By InTwits
Independent News & Media reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 18.1% in FY2016, 12.5% in FY2015, 10.9% in FY2014, 40.8% in FY2013, -25.6% in FY2012
- Independent News & Media has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has highly profitable business model: ROIC is at 122.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Independent News & Media ($INM) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 345.1 | 322.4 | 318.7 | 321.2 | 323.4 | 0.7% |
| Gross Profit | 50.0 | 104.1 | 115.3 | 117.5 | | -100.0% |
| SG&A | 81.2 | -29.4 | 74.9 | 73.4 | | -100.0% |
| EBITDA | -88.5 | 131.6 | 34.7 | 40.2 | 58.6 | 45.8% |
| Net Income | -258.4 | 240.1 | 4.5 | 72.9 | 50.3 | -31.0% |
Balance Sheet
|
|---|
| Cash | 17.2 | 24.4 | 26.2 | 59.7 | 84.8 | 42.0% |
| Short Term Debt | 63.3 | 11.2 | 15.3 | 0.0 | 0.0 | |
| Long Term Debt | 376.3 | 118.5 | 110.2 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 3.7 | 2.5 | 4.5 | 1.9 | 2.3 | 21.1% |
Ratios
|
|---|
| Revenue growth | -38.2% | -6.6% | -1.1% | 0.8% | 0.7% | |
| EBITDA growth | 2,754.8% | -248.7% | -73.6% | 15.9% | 45.8% | |
| Gross Margin | 14.5% | 32.3% | 36.2% | 36.6% | | -36.6% |
| EBITDA Margin | -25.6% | 40.8% | 10.9% | 12.5% | 18.1% | 5.6% |
| Net Income Margin | -74.9% | 74.5% | 1.4% | 22.7% | 15.6% | -7.1% |
| SG&A, % of revenue | 23.5% | -9.1% | 23.5% | 22.9% | | -22.9% |
| CAPEX, % of revenue | 1.1% | 0.8% | 1.4% | 0.6% | 0.7% | 0.1% |
| ROIC | -43.9% | 136.2% | 29.6% | 65.1% | 122.1% | 57.0% |
| ROE | | | | | 94.2% | 94.2% |
| Net Debt/EBITDA | | 0.8x | 2.9x | -1.5x | -1.4x | 0.0x |
Revenue and profitability
Independent News & Media's Revenue increased slightly on 0.68% in FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.6 pp from 12.5% to 18.1% in FY2016.
Net Income marign decreased on 7.1 pp from 22.7% to 15.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.71% in FY2016. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.90%.
Return on investment
The company operates at high and attractive ROIC (122.11%) and ROE (94.19%). ROIC jumped on 57.0 pp from 65.1% to 122% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 42.0% in FY2016.
Appendix 1: Peers in Media
Below we provide Independent News & Media 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) | | 71.1% | 45.7% | 20.1% | 66.0% |
| Nahl Group ($NAH) | | -3.2% | -10.7% | 15.7% | -0.2% |
| |
|---|
| Median (23 companies) | -1.0% | -0.6% | 1.9% | 2.2% | 10.1% |
|---|
| Independent News & Media ($INM) | | -6.6% | -1.1% | 0.8% | 0.7% |
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 ($HYNS) | 59.9% | 59.6% | 52.9% | 60.2% | 53.6% |
| |
|---|
| Median (24 companies) | 42.0% | 42.3% | 43.8% | 42.2% | 42.8% |
|---|
| Independent News & Media ($INM) | 14.5% | 32.3% | 36.2% | 36.6% | |
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 ($NAH) | 36.6% | 39.6% | 28.8% | 29.5% | 34.9% |
| Tla Worldwide ($TLA) | 43.5% | 39.1% | 40.6% | 28.5% | |
| Quarto Group Inc ($QRT) | 20.0% | 25.9% | 27.8% | 28.4% | |
| |
|---|
| Median (24 companies) | 15.1% | 13.9% | 14.8% | 9.8% | 10.1% |
|---|
| Independent News & Media ($INM) | -25.6% | 40.8% | 10.9% | 12.5% | 18.1% |
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 ($NPSN) | 4.7% | 4.9% | | 4.0% | 3.1% |
| |
|---|
| Median (24 companies) | 1.2% | 1.8% | 1.7% | 1.1% | 0.8% |
|---|
| Independent News & Media ($INM) | 1.1% | 0.8% | 1.4% | 0.6% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | 23.0% |
| Tla Worldwide ($TLA) | | 5.3% | 8.6% | 13.9% | |
| |
|---|
| Median (24 companies) | 5.6% | 5.4% | 7.8% | 6.4% | 2.6% |
|---|
| Independent News & Media ($INM) | -43.9% | 136.2% | 29.6% | 65.1% | 122.1% |
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 ($NPSN) | 1.4x | 1.9x | | 6.2x | 14.7x |
| Grupo Clarin Sa ($GCLA) | 0.9x | 0.8x | 0.7x | 4.3x | 0.3x |
| Dq Entertainment ($DQE) | 1.1x | 1.5x | 1.5x | 2.8x | |
| |
|---|
| Median (22 companies) | 0.9x | 0.8x | 0.8x | 0.9x | 0.1x |
|---|
| Independent News & Media ($INM) | | 0.8x | 2.9x | -1.5x | -1.4x |
