Efg Hermes Hldgs EBITDA jumped on 585% in 2016 and Revenue surged on 268%
27 Mar 2017 • About Efg Hermes Hldgs (
$EFGD) • By InTwits
Efg Hermes Hldgs reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Efg Hermes Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 2.6%.
- CAPEX is quite volatile: 22.4 in 2016, 23.5 in 2015, 313 in 2014, 205 in 2013, 180 in 2012
- The company has business model with average profitability: ROIC is at 10.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Efg Hermes Hldgs ($EFGD) key annual financial indicators
| mln. EGP | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,215 | 4,636 | 5,238 | 1,171 | 4,306 | 267.6% |
| EBITDA | 2,122 | 2,845 | 3,306 | 325 | 2,228 | 585.1% |
| Net Income | 60 | -540 | 538 | 461 | 1,414 | 206.5% |
Balance Sheet
|
|---|
| Cash | 13,482 | 16,534 | 22,466 | 26,456 | 11,508 | -56.5% |
| Short Term Debt | 559 | 917 | 2,686 | 3,855 | 727 | -81.2% |
| Long Term Debt | 506 | 554 | 566 | 943 | 1,107 | 17.5% |
Cash flow
|
|---|
| Capex | 180 | 205 | 313 | 24 | 22 | -4.8% |
Ratios
|
|---|
| Revenue growth | 4.9% | 44.2% | 13.0% | -77.6% | 267.6% | |
| EBITDA growth | 3.3% | 34.0% | 16.2% | -90.2% | 585.1% | |
| EBITDA Margin | 66.0% | 61.4% | 63.1% | 27.8% | 51.7% | 24.0% |
| Net Income Margin | 1.9% | -11.7% | 10.3% | 39.4% | 32.8% | -6.5% |
| CAPEX, % of revenue | 5.6% | 4.4% | 6.0% | 2.0% | 0.5% | -1.5% |
| ROIC | | 4.5% | 5.2% | 1.4% | 10.8% | 9.5% |
| ROE | 0.7% | -6.1% | 5.9% | 4.8% | 12.0% | 7.1% |
| Net Debt/EBITDA | -5.9x | -5.3x | -5.8x | -66.6x | -4.3x | 62.3x |
Revenue and profitability
Efg Hermes Hldgs's Revenue surged on 268% in 2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 24.0 pp from 27.8% to 51.7% in 2016.
Net Income marign decreased on 6.5 pp from 39.4% to 32.8% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.52% in 2016. The company's CAPEX/Revenue decreased on 3.9 pp from 4.4% in 2013 to 0.52% in 2016. It's average CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at low ROIC (10.82%) and ROE (11.96%). ROIC increased on 9.5 pp from 1.4% to 10.8% in 2016. ROE increased on 7.1 pp from 4.8% to 12.0% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -4.3x and Debt / EBITDA is 0.8x. Net Debt / EBITDA surged on 62.3x from -66.6x to -4.3x in 2016. Debt dropped on 61.8% in 2016 while cash dropped on 56.5% in 2016.
Appendix 1: Peers in Financial Services
Below we provide Efg Hermes Hldgs 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 ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 10.3% | 12.6% | 4.7% | 2.9% | 3.1% |
|---|
| Efg Hermes Hldgs ($EFGD) | | 44.2% | 13.0% | -77.6% | 267.6% |
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% | 15.9% | 16.6% |
|---|
| Efg Hermes Hldgs ($EFGD) | 66.0% | 61.4% | 63.1% | 27.8% | 51.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| London Capital Group Hldgs ($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) | 1.3% | 1.3% | 1.3% | 0.9% | 1.3% |
|---|
| Efg Hermes Hldgs ($EFGD) | 5.6% | 4.4% | 6.0% | 2.0% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hargreaves Lansdown ($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) | 5.4% | 6.3% | 9.2% | 7.7% | 8.5% |
|---|
| Efg Hermes Hldgs ($EFGD) | | 4.5% | 5.2% | 1.4% | 10.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Private & Commercial Finance Group ($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 ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| |
|---|
| Median (25 companies) | -1.0x | -1.0x | -1.9x | -0.5x | -0.8x |
|---|
| Efg Hermes Hldgs ($EFGD) | -5.9x | -5.3x | -5.8x | -66.6x | -4.3x |
