Ifg Group reports 26.2% Net Income decline and 2.2% Revenue decline
23 Mar 2017 • About Ifg Group (
$IFP) • By InTwits
Ifg Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ifg Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 2.7%.
- CAPEX is quite volatile: 3.4 in FY2016, 1.6 in FY2015, 1.5 in FY2014, 2.1 in FY2013, 0.66 in FY2012
- The company has business model with low profitability: ROIC is at 7.2%
- It operates with high leverage: Net Debt/EBITDA is -2.5x while industry average is -4.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ifg Group ($IFP) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 93.913 | 74.577 | 80.776 | 98.240 | 96.061 | -2.2% |
| Gross Profit | 14.346 | 12.974 | 13.199 | 21.286 | | -100.0% |
| SG&A | 5.757 | 5.261 | 7.130 | 7.731 | | -100.0% |
| EBITDA | 13.988 | 11.669 | 10.708 | 17.197 | 13.455 | -21.8% |
| Net Income | 26.638 | 5.741 | 0.828 | 8.713 | 6.427 | -26.2% |
Balance Sheet
|
|---|
| Cash | 33.630 | 28.195 | 37.763 | 46.224 | 33.038 | -28.5% |
| Short Term Debt | 0.176 | 0.011 | 0.003 | 9.263 | 0.000 | -100.0% |
| Long Term Debt | 8.112 | 7.792 | 8.549 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.661 | 2.099 | 1.546 | 1.649 | 3.368 | 104.3% |
Ratios
|
|---|
| Revenue growth | 5.5% | -20.6% | 8.3% | 21.6% | -2.2% | |
| EBITDA growth | -8.7% | -16.6% | -8.2% | 60.6% | -21.8% | |
| Gross Margin | 15.3% | 17.4% | 16.3% | 21.7% | | -21.7% |
| EBITDA Margin | 14.9% | 15.6% | 13.3% | 17.5% | 14.0% | -3.5% |
| Net Income Margin | 28.4% | 7.7% | 1.0% | 8.9% | 6.7% | -2.2% |
| SG&A, % of revenue | 6.1% | 7.1% | 8.8% | 7.9% | | -7.9% |
| CAPEX, % of revenue | 0.7% | 2.8% | 1.9% | 1.7% | 3.5% | 1.8% |
| ROIC | 5.2% | 5.9% | 5.5% | 9.6% | 7.2% | -2.4% |
| ROE | 24.6% | 6.0% | 0.8% | 8.1% | 6.6% | -1.5% |
| Net Debt/EBITDA | -1.8x | -1.7x | -2.7x | -2.1x | -2.5x | -0.3x |
Revenue and profitability
The company's Revenue decreased on 2.2% in FY2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.5 pp from 17.5% to 14.0% in FY2016.
Net Income marign decreased on 2.2 pp from 8.9% to 6.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.5% in FY2016. Ifg Group showed small growth in CAPEX/Revenue of 0.69 pp from 2.8% in FY2013 to 3.5% in FY2016. For the last three years the average CAPEX/Revenue was 2.4%.
Return on investment
The company operates at low ROIC (7.23%) and ROE (6.59%). ROIC decreased on 2.4 pp from 9.6% to 7.2% in FY2016. ROE decreased slightly on 1.5 pp from 8.1% to 6.6% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash dropped on 28.5% in FY2016.
Appendix 1: Peers in Financial Services
Below you can find Ifg Group 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 ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 10.3% | 14.7% | 4.7% | 2.7% | 4.0% |
|---|
| Ifg Group ($IFP) | | -20.6% | 8.3% | 21.6% | -2.2% |
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 ($LCG) | 64.2% | 70.5% | 73.6% | 67.9% | |
| |
|---|
| Median (15 companies) | 56.8% | 53.3% | 53.0% | 52.8% | 55.4% |
|---|
| Ifg Group ($IFP) | 15.3% | 17.4% | 16.3% | 21.7% | |
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 ($DSS) | 53.8% | 51.5% | 38.8% | 49.2% | 38.9% |
| |
|---|
| Median (28 companies) | 11.7% | 17.0% | 16.8% | 15.9% | 17.2% |
|---|
| Ifg Group ($IFP) | 14.9% | 15.6% | 13.3% | 17.5% | 14.0% |
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 ($AFHP) | 1.6% | 1.5% | 0.7% | 3.8% | 1.8% |
| |
|---|
| Median (29 companies) | 1.4% | 1.3% | 1.3% | 0.9% | 1.3% |
|---|
| Ifg Group ($IFP) | 0.7% | 2.8% | 1.9% | 1.7% | 3.5% |
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 ($LGT) | 7.2% | -3.9% | 8.6% | 14.6% | 25.7% |
| |
|---|
| Median (30 companies) | 5.5% | 6.3% | 9.2% | 7.3% | 8.9% |
|---|
| Ifg Group ($IFP) | 5.2% | 5.9% | 5.5% | 9.6% | 7.2% |
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 ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| |
|---|
| Median (25 companies) | -1.0x | -1.0x | -1.9x | -0.5x | -0.6x |
|---|
| Ifg Group ($IFP) | -1.8x | -1.7x | -2.7x | -2.1x | -2.5x |
