Creightons EBITDA jumped on 18.8% and EBITDA Margin showed almost no change
26 Jun 2018 • About Creightons (
$CRL) • By InTwits
Creightons reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Creightons is a growth stock: FY2018 revenue growth was 13.8%, 5 year revenue CAGR was 15.0% at FY2018 ROIC 14.4%
- EBITDA Margin is relatively stable: 6.4% in FY2018 vs. 6.1% in FY2017 vs. 4.7% in FY2014
- Creightons has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 2.3%
- CAPEX is quite volatile: £1m in FY2018, £1m in FY2017, £1m in FY2016, £0m in FY2015, £0m in FY2014
- The company has highly profitable business model: ROIC is 14.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 13.8%. EBITDA Margin showed almost no change in FY2018. EBITDA Margin grew at 0.46 pp per annum in the last 5 years.
Gross Margin decreased slightly on 1.8 pp from 42.5% to 40.6% in FY2018. SG&A as a % of Revenue decreased slightly on 1.6 pp from 37.5% to 36.0% in FY2018.
Net Income margin decreased slightly on 0.55 pp from 4.1% to 3.5% in FY2018. During FY2014-FY2018 Net Income margin topped in FY2016 at 6.3% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 1.8% in FY2018. Creightons showed small growth in CAPEX/Revenue of 1.0 pp from 0.79% in FY2015 to 1.8% in FY2018. For the last three years the average CAPEX/Revenue was 2.4%.
Return on investment
The company operates at good ROIC (14.4%) and ROE (13.6%). ROIC decreased slightly on 1.1 pp from 15.5% to 14.4% in FY2018. ROE decreased on 2.4 pp from 16.0% to 13.6% in FY2018. During the last 5 years ROE topped in FY2016 at 20.5% and was declining since that time.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and 0.3x Debt / EBITDA. Debt surged on 53.7% while cash dropped on 63.2%.
Creightons has no short term refinancing risk: cash is higher than short term debt (129.6%).
Financial and operational results
FY ended 31 Mar 2018
Creightons ($CRL) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 19.352 | 20.171 | 21.005 | 30.586 | 34.810 | 13.8% |
| Gross Profit | 7.892 | 7.917 | 8.854 | 12.988 | 14.150 | 8.9% |
| SG&A | | 7.415 | 8.296 | 11.475 | 12.515 | 9.1% |
| EBITDA | 0.900 | 1.016 | 0.981 | 1.872 | 2.223 | 18.8% |
| Net Income | 0.471 | 0.851 | 1.329 | 1.251 | 1.232 | -1.5% |
Balance Sheet
|
|---|
| Cash | 0.011 | 0.009 | 0.814 | 2.631 | 0.968 | -63.2% |
| Short Term Debt | 0.633 | 0.106 | 0.007 | 0.068 | 0.747 | 998.5% |
| Long Term Debt | 0.028 | 0.007 | 0.000 | 0.418 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.211 | 0.159 | 0.769 | 0.551 | 0.633 | 14.9% |
Ratios
|
|---|
| Revenue growth | 11.7% | 4.2% | 4.1% | 45.6% | 13.8% | |
| EBITDA growth | 13.8% | 12.9% | -3.4% | 90.8% | 18.8% | |
|
|---|
| Gross Margin | 40.8% | 39.2% | 42.2% | 42.5% | 40.6% | -1.8% |
| EBITDA Margin | 4.7% | 5.0% | 4.7% | 6.1% | 6.4% | 0.3% |
| SG&A, % of revenue | | 36.8% | 39.5% | 37.5% | 36.0% | -1.6% |
| Net Income Margin | 2.4% | 4.2% | 6.3% | 4.1% | 3.5% | -0.6% |
| CAPEX, % of revenue | 1.1% | 0.8% | 3.7% | 1.8% | 1.8% | 0.0% |
|
|---|
| ROIC | 8.4% | 8.8% | 6.7% | 15.5% | 14.4% | -1.1% |
| ROE | 10.2% | 15.9% | 20.5% | 16.0% | 13.6% | -2.4% |
| Net Debt/EBITDA | 0.7x | 0.1x | -0.8x | -1.1x | -0.1x | 1.0x |
Peers in Personal Goods
Below you can find Creightons benchmarking vs. other companies in Personal Goods 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Swallowfield ($SWL) | 3.0% | -1.2% | 10.1% | 36.5% | |
| Pittards ($PTD) | -3.0% | -12.1% | -11.5% | 12.1% | |
| Svenska Cellulosa Ab-Sca ($0MCK) | | 10.8% | -86.7% | 8.4% | |
| Far Eastern New Century Corp ($FETD) | | -7.5% | -1.0% | 0.9% | |
| Bagir Grp Ltd ($BAGR) | -2.5% | -22.5% | -14.8% | -20.3% | |
| |
|---|
| Median (6 companies) | 0.2% | -9.8% | -6.2% | 4.7% | |
|---|
| Creightons ($CRL) | | 4.2% | 4.1% | 45.6% | 13.8% |
Top companies by Gross margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Pittards ($PTD) | 20.3% | 21.7% | 8.0% | 23.4% | |
| Far Eastern New Century Corp ($FETD) | 20.3% | 23.2% | 23.7% | 22.8% | |
| Swallowfield ($SWL) | 10.3% | 11.8% | 14.8% | 18.7% | |
| Bagir Grp Ltd ($BAGR) | 17.4% | 9.8% | 16.4% | 15.0% | |
| |
|---|
| Median (4 companies) | 20.3% | 21.7% | 16.4% | 20.8% | |
|---|
| Creightons ($CRL) | 40.8% | 39.2% | 42.2% | 42.5% | 40.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 15.2% | 14.6% | 22.1% | 21.9% | |
| Far Eastern New Century Corp ($FETD) | 12.1% | 15.0% | 15.7% | 16.5% | |
| Swallowfield ($SWL) | 4.0% | 4.5% | 6.7% | 6.5% | |
| Pittards ($PTD) | 6.9% | 6.2% | -10.9% | 5.2% | |
| Bagir Grp Ltd ($BAGR) | 3.4% | -3.9% | 2.2% | 2.6% | |
| |
|---|
| Median (6 companies) | 9.5% | 10.4% | 11.2% | 5.8% | |
|---|
| Creightons ($CRL) | 4.7% | 5.0% | 4.7% | 6.1% | 6.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 5.5% | 6.6% | 19.8% | 21.5% | |
| Far Eastern New Century Corp ($FETD) | 12.0% | 11.1% | 9.3% | 10.8% | |
| Paternoster Resources ($PRS) | 38.5% | 147.6% | 102.1% | 3.6% | |
| Pittards ($PTD) | 1.7% | 14.3% | 4.4% | 2.3% | |
| Swallowfield ($SWL) | 1.8% | 3.1% | 2.2% | 1.8% | |
| |
|---|
| Median (6 companies) | 3.6% | 8.8% | 6.8% | 2.9% | |
|---|
| Creightons ($CRL) | 1.1% | 0.8% | 3.7% | 1.8% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Swallowfield ($SWL) | 5.1% | 8.4% | 18.7% | 18.4% | |
| Far Eastern New Century Corp ($FETD) | 2.6% | 3.0% | 3.1% | 3.3% | |
| Pittards ($PTD) | 8.2% | 5.2% | -11.9% | 3.3% | |
| Svenska Cellulosa Ab-Sca ($0MCK) | 8.7% | 9.0% | 1.9% | 2.8% | |
| Bagir Grp Ltd ($BAGR) | 1.9% | -24.8% | -1.6% | -2.8% | |
| |
|---|
| Median (6 companies) | 6.7% | 4.1% | 2.1% | 3.0% | |
|---|
| Creightons ($CRL) | 8.4% | 8.8% | 6.7% | 15.5% | 14.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Pittards ($PTD) | 3.2x | 3.4x | | 5.1x | |
| Far Eastern New Century Corp ($FETD) | 5.6x | 5.1x | 4.7x | 4.7x | |
| Svenska Cellulosa Ab-Sca ($0MCK) | 2.2x | 1.7x | 9.7x | 1.8x | |
| Bagir Grp Ltd ($BAGR) | 4.0x | | -5.9x | 0.1x | |
| Swallowfield ($SWL) | -0.3x | 0.3x | -0.1x | -0.4x | |
| |
|---|
| Median (5 companies) | 2.7x | 3.4x | 4.7x | 1.8x | |
|---|
| Creightons ($CRL) | 0.7x | 0.1x | -0.8x | -1.1x | -0.1x |
