Robinson EBITDA jumped on 223% in 2016 while Revenue decreased on 5.8%
24 Mar 2017 • About Robinson (
$RBN) • By InTwits
Robinson reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 14.1% in FY2016, 4.1% in FY2015, 15.1% in FY2014, 14.1% in FY2013, 16.0% in FY2012
- Robinson has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's in pair with industry average of 4.7%.
- CAPEX is quite volatile: 0.056 in FY2016, 2.2 in FY2015, 0.47 in FY2014, 0.015 in FY2013, 0.0050 in FY2012
- The company has potentially unprofitable business model: ROIC is at 5.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Robinson ($RBN) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 21.171 | 23.329 | 28.071 | 29.138 | 27.459 | -5.8% |
| Gross Profit | 5.030 | 5.181 | 6.402 | 6.995 | 6.258 | -10.5% |
| SG&A | | | 3.914 | 4.467 | | -100.0% |
| EBITDA | 3.392 | 3.294 | 4.228 | 1.195 | 3.862 | 223.2% |
| Net Income | 2.095 | 3.094 | 2.001 | 0.095 | 1.228 | 1,192.6% |
Balance Sheet
|
|---|
| Cash | 1.743 | 5.375 | 0.710 | 4.688 | 0.881 | -81.2% |
| Short Term Debt | 0.307 | 0.000 | 2.856 | 4.641 | 5.570 | 20.0% |
| Long Term Debt | 0.000 | 0.000 | 2.002 | 1.132 | 0.201 | -82.2% |
Cash flow
|
|---|
| Capex | 0.902 | 1.402 | 0.993 | 1.072 | 1.782 | 66.2% |
Ratios
|
|---|
| Revenue growth | -1.6% | 10.2% | 20.3% | 3.8% | -5.8% | |
| EBITDA growth | 9.2% | -2.9% | 28.4% | -71.7% | 223.2% | |
| Gross Margin | 23.8% | 22.2% | 22.8% | 24.0% | 22.8% | -1.2% |
| EBITDA Margin | 16.0% | 14.1% | 15.1% | 4.1% | 14.1% | 10.0% |
| Net Income Margin | 9.9% | 13.3% | 7.1% | 0.3% | 4.5% | 4.1% |
| SG&A, % of revenue | | | 13.9% | 15.3% | | -15.3% |
| CAPEX, % of revenue | 4.3% | 6.0% | 3.5% | 3.7% | 6.5% | 2.8% |
| ROIC | 10.3% | 9.6% | 9.0% | -3.6% | 5.1% | 8.7% |
| ROE | 9.2% | 13.0% | 7.9% | 0.4% | 5.2% | 4.8% |
| Net Debt/EBITDA | -0.4x | -1.6x | 1.0x | 0.9x | 1.3x | 0.4x |
Revenue and profitability
Robinson's Revenue decreased on 5.8% in FY2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 10.0 pp from 4.1% to 14.1% in FY2016.
Gross Margin decreased slightly on 1.2 pp from 24.0% to 22.8% in FY2016.
Net Income marign increased on 4.1 pp from 0.33% to 4.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 6.5% in FY2016. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 4.6%.
Return on investment
The company operates at low ROIC (5.10%) and ROE (5.20%). ROIC increased on 8.7 pp from -3.6% to 5.1% in FY2016. ROE increased on 4.8 pp from 0.38% to 5.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.5x. Net Debt / EBITDA surged on 0.4x from 0.9x to 1.3x in FY2016. Debt showed almost no change in FY2016 while cash dropped on 81.2% in FY2016.
Valuation
The company's trades at EV/EBITDA 6.4x and P/E 16.2x while industy averages are 15.6x and 19.1x. The company's EV/(EBITDA-CAPEX) is 11.9x with the industry average at 19.0x.
Appendix 1: Peers in General Industrials
Below you can find Robinson benchmarking vs. other companies in General Industrials 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 |
|---|
| Coral Products ($CRU) | | -0.2% | -0.3% | 1.2% | 7.4% |
| Macfarlane Group ($MACF) | | 1.4% | 6.9% | 10.0% | 6.3% |
| Barloworld ($BWO) | | 1.6% | 4.4% | 1.0% | 6.1% |
| General Electric Co. ($GEC) | | -0.8% | -18.6% | -1.1% | 3.9% |
| Honeywell International Inc ($HON) | | 3.7% | 3.2% | -4.3% | 1.9% |
| |
|---|
| Median (8 companies) | 111.1% | 1.4% | 3.2% | 1.0% | 2.9% |
|---|
| Robinson ($RBN) | | 10.2% | 20.3% | 3.8% | -5.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coral Products ($CRU) | 22.1% | 24.6% | 23.7% | 29.6% | 33.1% |
| Macfarlane Group ($MACF) | 32.0% | 31.2% | 30.9% | 31.5% | 31.0% |
| Honeywell International Inc ($HON) | 24.9% | 27.4% | 28.2% | 30.7% | 30.9% |
| Smurfit Kappa Group ($SKG) | 28.6% | 28.9% | 29.5% | 30.0% | 30.3% |
| Jardine Strategic Hldgs ($88EI) | 24.0% | 24.0% | 25.4% | 25.5% | 25.8% |
| |
|---|
| Median (8 companies) | 24.9% | 27.4% | 25.4% | 29.6% | 28.0% |
|---|
| Robinson ($RBN) | 23.8% | 22.2% | 22.8% | 24.0% | 22.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jardine Strategic Hldgs ($88EI) | 15.0% | 13.3% | 13.5% | 15.1% | 21.4% |
| Honeywell International Inc ($HON) | 13.5% | 16.6% | 16.8% | 20.0% | 19.6% |
| Smurfit Kappa Group ($SKG) | 13.4% | 12.8% | 12.7% | 14.3% | 14.9% |
| Barloworld ($BWO) | 8.4% | 9.1% | 10.0% | 10.3% | 10.0% |
| General Electric Co. ($GEC) | 17.2% | 16.5% | 13.3% | 10.4% | 9.4% |
| |
|---|
| Median (8 companies) | 13.4% | 12.8% | 12.7% | 10.4% | 9.7% |
|---|
| Robinson ($RBN) | 16.0% | 14.1% | 15.1% | 4.1% | 14.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coral Products ($CRU) | 9.1% | 15.3% | 2.2% | 2.5% | 8.9% |
| General Electric Co. ($GEC) | 10.5% | 9.4% | 6.1% | 6.3% | 6.0% |
| Smurfit Kappa Group ($SKG) | 4.3% | 4.4% | 5.3% | 5.3% | 5.2% |
| Thyssenkrupp Ag ($0O1C) | 3.8% | 2.9% | 2.9% | 2.7% | 3.1% |
| Jardine Strategic Hldgs ($88EI) | 5.8% | 5.2% | 4.1% | 2.9% | 3.1% |
| |
|---|
| Median (8 companies) | 4.3% | 4.4% | 2.9% | 2.8% | 3.1% |
|---|
| Robinson ($RBN) | 4.3% | 6.0% | 3.5% | 3.7% | 6.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Honeywell International Inc ($HON) | 21.8% | 23.0% | 21.3% | 23.2% | 19.6% |
| Macfarlane Group ($MACF) | 17.9% | 22.2% | 19.0% | 17.8% | 17.0% |
| Smurfit Kappa Group ($SKG) | 10.8% | 11.2% | 11.8% | 13.9% | 14.1% |
| Barloworld ($BWO) | 14.0% | 13.5% | 14.1% | 12.9% | 12.8% |
| Thyssenkrupp Ag ($0O1C) | -27.3% | -6.5% | 10.8% | 9.5% | 12.7% |
| |
|---|
| Median (8 companies) | 10.8% | 11.2% | 11.8% | 12.9% | 12.8% |
|---|
| Robinson ($RBN) | 10.3% | 9.6% | 9.0% | -3.6% | 5.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| General Electric Co. ($GEC) | 10.5x | 8.9x | 12.0x | 10.6x | 7.8x |
| Coral Products ($CRU) | 1.5x | 2.9x | 3.4x | 2.7x | 2.5x |
| Smurfit Kappa Group ($SKG) | 2.9x | 2.6x | 2.7x | 2.6x | 2.4x |
| Thyssenkrupp Ag ($0O1C) | 3.4x | 4.5x | 2.0x | 1.8x | 1.8x |
| Macfarlane Group ($MACF) | 1.0x | 0.8x | 1.3x | 1.3x | 1.4x |
| |
|---|
| Median (8 companies) | 1.5x | 1.4x | 1.3x | 1.7x | 1.6x |
|---|
| Robinson ($RBN) | -0.4x | -1.6x | 1.0x | 0.9x | 1.3x |
