Nahl Group EBITDA jumped on 18.2% in 2016 and Revenue showed almost no change
21 Mar 2017 • About Nahl Group (
$NAH) • By InTwits
Nahl Group reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nahl Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has highly profitable business model: ROIC is at 23.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nahl Group ($NAH) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 50.766 | 49.123 | 43.848 | 50.716 | 50.635 | -0.2% |
| Gross Profit | 26.900 | 26.033 | 19.963 | 24.931 | 29.826 | 19.6% |
| SG&A | | | 8.190 | 10.812 | 13.665 | 26.4% |
| EBITDA | 18.585 | 19.459 | 12.637 | 14.966 | 17.683 | 18.2% |
| Net Income | 9.117 | 9.458 | 8.473 | 10.766 | 12.224 | 13.5% |
Balance Sheet
|
|---|
| Cash | 34.465 | 14.249 | 13.637 | 10.056 | 4.814 | -52.1% |
| Short Term Debt | 1.853 | 6.789 | 2.950 | 3.693 | 3.693 | 0.0% |
| Long Term Debt | 31.368 | 0.070 | 2.951 | 11.089 | 7.396 | -33.3% |
Cash flow
|
|---|
| Capex | 0.321 | 0.177 | 0.027 | 0.195 | 0.232 | 19.0% |
Ratios
|
|---|
| Revenue growth | 12.6% | -3.2% | -10.7% | 15.7% | -0.2% | |
| EBITDA growth | 13.1% | 4.7% | -35.1% | 18.4% | 18.2% | |
| Gross Margin | 53.0% | 53.0% | 45.5% | 49.2% | 58.9% | 9.7% |
| EBITDA Margin | 36.6% | 39.6% | 28.8% | 29.5% | 34.9% | 5.4% |
| Net Income Margin | 18.0% | 19.3% | 19.3% | 21.2% | 24.1% | 2.9% |
| SG&A, % of revenue | | | 18.7% | 21.3% | 27.0% | 5.7% |
| CAPEX, % of revenue | 0.6% | 0.4% | 0.1% | 0.4% | 0.5% | 0.1% |
| ROIC | 37.1% | 42.3% | 31.5% | 26.0% | 23.0% | -3.0% |
| ROE | 56.6% | 37.2% | 25.5% | 23.6% | 21.3% | -2.3% |
| Net Debt/EBITDA | -0.1x | -0.4x | -0.6x | 0.3x | 0.4x | 0.0x |
Revenue and profitability
The company's Revenue showed almost no change in 2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.4 pp from 29.5% to 34.9% in 2016.
Gross Margin increased on 9.7 pp from 49.2% to 58.9% in 2016. SG&A as a % of Revenue increased on 5.7 pp from 21.3% to 27.0% in 2016.
Net Income marign increased on 2.9 pp from 21.2% to 24.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Nahl Group had CAPEX/Revenue of 0.46%. Nahl Group's CAPEX/Revenue showed almost no change from 2013 to 2016. Average CAPEX/Revenue for the last three years was 0.30%.
Return on investment
The company operates at high and attractive ROIC (22.98%) and ROE (21.28%). ROIC decreased on 3.0 pp from 26.0% to 23.0% in 2016. ROE decreased on 2.3 pp from 23.6% to 21.3% in 2016.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 0.6x Debt / EBITDA. Net Debt / EBITDA increased on 0.039x from 0.3x to 0.4x in 2016. Debt dropped on 25.0% in 2016 while cash dropped on 52.1% in 2016.
Valuation
The company's trades at EV/EBITDA 4.6x and P/E 6.2x while industy averages are 15.6x and 19.1x.
Appendix 1: Peers in Media
Below you can find Nahl Group benchmarking vs. other companies in Media 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 |
|---|
| 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% |
| Dcd Media ($DCD) | -17.0% | -23.4% | -21.2% | 14.5% | |
| |
|---|
| Median (23 companies) | -1.0% | -0.6% | 1.9% | 0.8% | 10.1% |
|---|
| Nahl Group ($NAH) | | -3.2% | -10.7% | 15.7% | -0.2% |
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 ($HYNS) | 59.9% | 59.6% | 52.9% | 60.2% | 53.6% |
| |
|---|
| Median (24 companies) | 40.6% | 41.6% | 43.5% | 41.2% | 42.4% |
|---|
| Nahl Group ($NAH) | 53.0% | 53.0% | 45.5% | 49.2% | 58.9% |
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% |
| Tla Worldwide ($TLA) | 43.5% | 39.1% | 40.6% | 28.5% | |
| Quarto Group Inc ($QRT) | 20.0% | 25.9% | 27.8% | 28.4% | |
| Dcd Media ($DCD) | 41.7% | 41.6% | 9.5% | 23.2% | |
| |
|---|
| Median (24 companies) | 14.7% | 13.9% | 13.7% | 9.8% | 10.1% |
|---|
| Nahl Group ($NAH) | 36.6% | 39.6% | 28.8% | 29.5% | 34.9% |
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 ($NPSN) | 4.7% | 4.9% | | 4.0% | 3.1% |
| |
|---|
| Median (24 companies) | 1.3% | 1.8% | 1.7% | 1.1% | 0.8% |
|---|
| Nahl Group ($NAH) | 0.6% | 0.4% | 0.1% | 0.4% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Independent News & Media ($INM) | -43.9% | 136.2% | 29.6% | 65.1% | 122.1% |
| Brainjuicer Group ($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% | |
| Tla Worldwide ($TLA) | | 5.3% | 8.6% | 13.9% | |
| |
|---|
| Median (24 companies) | 5.4% | 5.4% | 7.8% | 6.4% | 2.6% |
|---|
| Nahl Group ($NAH) | 37.1% | 42.3% | 31.5% | 26.0% | 23.0% |
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 ($DQE) | 1.1x | 1.5x | 1.5x | 2.8x | |
| |
|---|
| Median (22 companies) | 1.0x | 0.8x | 1.0x | 0.9x | -0.4x |
|---|
| Nahl Group ($NAH) | -0.1x | -0.4x | -0.6x | 0.3x | 0.4x |
