Nahl Group EBITDA dropped on 19.6% in 2017 and EBITDA Margin decreased on 7.5 pp from 34.9% to 27.4%
20 Mar 2018 • About Nahl Group (
$NAH) • By InTwits
Nahl Group reported 2017 financial results today. Overall looking at the company's long term financial model we can say that:
- Nahl Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has highly profitable business model: ROIC is at 17.3%
- It operates with high leverage: Net Debt/EBITDA is 0.8x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nahl Group ($NAH) key annual financial indicators
| mln. £ | 2013 | 2014 | 2015 | 2016 | 2017 | 2017/2016 |
|---|
P&L
|
|---|
| Revenue | 49.123 | 43.848 | 50.716 | 50.635 | 51.912 | 2.5% |
| Gross Profit | 26.033 | 19.963 | 24.931 | 29.826 | 26.688 | -10.5% |
| SG&A | | 8.190 | 10.812 | 13.665 | 14.086 | 3.1% |
| EBITDA | 19.459 | 12.637 | 14.966 | 17.683 | 14.210 | -19.6% |
| Net Income | 9.458 | 8.473 | 10.766 | 12.224 | 9.876 | -19.2% |
Balance Sheet
|
|---|
| Cash | 14.249 | 13.637 | 10.056 | 4.814 | 0.858 | -82.2% |
| Short Term Debt | 6.789 | 2.950 | 3.693 | 3.693 | 0.000 | -100.0% |
| Long Term Debt | 0.070 | 2.951 | 11.089 | 7.396 | 12.922 | 74.7% |
Cash flow
|
|---|
| Capex | 0.177 | 0.027 | 0.195 | 0.232 | 0.111 | -52.2% |
Ratios
|
|---|
| Revenue growth | -3.2% | -10.7% | 15.7% | -0.2% | 2.5% | |
| EBITDA growth | 4.7% | -35.1% | 18.4% | 18.2% | -19.6% | |
| Gross Margin | 53.0% | 45.5% | 49.2% | 58.9% | 51.4% | -7.5% |
| EBITDA Margin | 39.6% | 28.8% | 29.5% | 34.9% | 27.4% | -7.5% |
| Net Income Margin | 19.3% | 19.3% | 21.2% | 24.1% | 19.0% | -5.1% |
| SG&A, % of revenue | | 18.7% | 21.3% | 27.0% | 27.1% | 0.1% |
| CAPEX, % of revenue | 0.4% | 0.1% | 0.4% | 0.5% | 0.2% | -0.2% |
| ROIC | 42.3% | 31.5% | 26.0% | 23.0% | 17.3% | -5.7% |
| ROE | 37.2% | 25.5% | 23.6% | 21.3% | 16.3% | -5.0% |
| Net Debt/EBITDA | -0.4x | -0.6x | 0.3x | 0.4x | 0.8x | 0.5x |
Revenue and profitability
Nahl Group's Revenue increased on 2.5% in 2017. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 7.5 pp from 34.9% to 27.4% in 2017.
Gross Margin decreased on 7.5 pp from 58.9% to 51.4% in 2017. SG&A as a % of Revenue showed almost no change in 2017.
Net Income marign decreased on 5.1 pp from 24.1% to 19.0% in 2017.
Capital expenditures (CAPEX) and working capital investments
In 2017 the company had CAPEX/Revenue of 0.21%. The company showed almost no change in CAPEX/Revenue from 2014 to 2017. For the last three years the average CAPEX/Revenue was 0.35%.
Return on investment
The company operates at good ROIC (17.31%) and ROE (16.25%). ROIC decreased on 5.7 pp from 23.0% to 17.3% in 2017. ROE decreased on 5.0 pp from 21.3% to 16.3% in 2017.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 0.4x to 0.8x in 2017. Debt jumped on 16.5% in 2017 while cash dropped on 82.2% in 2017.
Valuation
The company's trades at EV/EBITDA 5.8x and P/E 7.1x.
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 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Marimedia Ltd ($MARI) | 71.1% | 45.7% | 20.1% | 66.0% | |
| Grupo Clarin Sa ($GCLA) | 24.6% | 39.8% | -57.9% | 37.2% | |
| Uls Technology ($ULS) | 26.6% | 53.9% | -1.0% | 28.0% | |
| Ten Alps ($TAL) | -19.1% | | | 25.5% | |
| Brainjuicer Group ($BJU) | 17.5% | 0.8% | 2.2% | 24.0% | |
| |
|---|
| Median (15 companies) | -0.6% | 1.9% | 0.8% | 6.5% | |
|---|
| Nahl Group ($NAH) | | -10.7% | 15.7% | -0.2% | 2.5% |
Top companies by Gross margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Jaywing ($JWNG) | 76.8% | 81.0% | 89.0% | 88.4% | |
| Brainjuicer Group ($BJU) | 78.0% | 78.8% | 80.4% | 82.1% | |
| Haynes Publishing Group ($HYNS) | 59.6% | 52.9% | 60.2% | 53.6% | |
| Mood Media Corp ($MM.) | 54.4% | 53.9% | 51.6% | 52.2% | |
| Naspers ($NPSN) | 44.5% | 43.5% | 41.8% | 42.8% | |
| |
|---|
| Median (11 companies) | 41.6% | 43.5% | 41.2% | 41.9% | |
|---|
| Nahl Group ($NAH) | 53.0% | 45.5% | 49.2% | 58.9% | 51.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Brainjuicer Group ($BJU) | 16.4% | 19.2% | 19.9% | 21.4% | |
| Uls Technology ($ULS) | 16.3% | 16.7% | 21.1% | 19.8% | |
| Independent News & Media ($INM) | 40.8% | 10.9% | 12.5% | 18.1% | |
| Mood Media Corp ($MM.) | 13.9% | 14.8% | 13.0% | 16.5% | |
| Haynes Publishing Group ($HYNS) | 23.4% | 38.8% | 33.5% | 15.4% | |
| |
|---|
| Median (12 companies) | 13.9% | 13.7% | 9.8% | 9.5% | |
|---|
| Nahl Group ($NAH) | 39.6% | 28.8% | 29.5% | 34.9% | 27.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Mood Media Corp ($MM.) | 6.4% | 6.9% | 8.2% | 5.9% | |
| Naspers ($NPSN) | 4.9% | | 4.0% | 3.1% | |
| Grupo Clarin Sa ($GCLA) | 13.2% | 12.8% | 1.6% | 2.7% | |
| Johnston Press ($JPR) | 1.5% | 2.7% | 2.5% | 1.5% | |
| Jaywing ($JWNG) | 2.0% | 1.5% | 1.3% | 1.3% | |
| |
|---|
| Median (12 companies) | 1.8% | 1.7% | 1.1% | 0.9% | |
|---|
| Nahl Group ($NAH) | 0.4% | 0.1% | 0.4% | 0.5% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Independent News & Media ($INM) | 136.2% | 29.6% | 65.1% | 122.1% | |
| Brainjuicer Group ($BJU) | 49.0% | 60.0% | 58.5% | 72.5% | |
| Uls Technology ($ULS) | 33.2% | 44.1% | 39.6% | 39.3% | |
| Grupo Clarin Sa ($GCLA) | 21.8% | 29.8% | 6.4% | 5.8% | |
| Jaywing ($JWNG) | 2.8% | -0.7% | -2.6% | 3.3% | |
| |
|---|
| Median (15 companies) | 5.4% | 7.8% | 6.4% | 1.7% | |
|---|
| Nahl Group ($NAH) | 42.3% | 31.5% | 26.0% | 23.0% | 17.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|
| Naspers ($NPSN) | 1.9x | | 6.2x | 14.7x | |
| Mood Media Corp ($MM.) | 8.1x | 8.2x | 9.8x | 7.9x | |
| Jaywing ($JWNG) | 0.7x | 3.3x | 1.9x | 1.6x | |
| Grupo Clarin Sa ($GCLA) | 0.8x | 0.7x | 4.3x | 0.3x | |
| Haynes Publishing Group ($HYNS) | -0.9x | 0.1x | -0.0x | -0.1x | |
| |
|---|
| Median (10 companies) | 0.8x | 1.0x | 0.9x | -0.4x | |
|---|
| Nahl Group ($NAH) | -0.4x | -0.6x | 0.3x | 0.4x | 0.8x |
