Cropper(James) reports 11.7% Net Income decline in 2018 while 4.3% Revenue growth
26 Jun 2018 • About Cropper(James) (
$CRPR) • By InTwits
Cropper(James) reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Cropper(James) has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's a lot of higher than industry average of 2.0%.
- CAPEX is quite volatile: £2m in FY2018, £5m in FY2017, £4m in FY2016, £2m in FY2015, £3m in FY2014
- The company has highly profitable business model: ROIC is 18.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.6x while industry average is 0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Cropper(James)'s Revenue increased on 4.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.9 pp from 9.8% to 7.8% in FY2018. EBITDA Margin grew at 0.72 pp per annum in the last 5 years.
Net Income margin decreased slightly on 0.77 pp from 5.0% to 4.2% in FY2018. Net Income margin stuck to a growing trend at 0.80 pp per annum in FY2014-FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Cropper(James) had CAPEX/Revenue of 2.0%. The company showed small CAPEX/Revenue decline of 1.0 pp from 3.0% in FY2015 to 2.0% in FY2018. Average CAPEX/Revenue for the last three years was 3.9%.
Return on investment
The company operates at good ROIC (18.9%) and ROE (19.3%). ROIC decreased slightly on 0.76 pp from 19.7% to 18.9% in FY2018. ROE decreased slightly on 0.95 pp from 20.2% to 19.3% in FY2018. ROIC grew at 3.1 pp per annum in the last 5 years. ROE followed a growing trend at 3.6 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 0.9x to 0.6x in FY2018. Debt surged on 11.6% while cash surged on 189%. Net Debt/EBITDA followed a declining trend at -0.3x per annum in the last 5 years.
Cropper(James) has no short term refinancing risk: cash is higher than short term debt (347.3%).
Financial and operational results
FY ended 31 Mar 2018
Cropper(James) ($CRPR) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 84.518 | 83.052 | 87.920 | 92.363 | 96.312 | 4.3% |
| Gross Profit | 41.791 | 43.703 | 49.377 | 52.889 | | |
| EBITDA | 4.892 | 5.998 | 6.966 | 8.485 | 8.116 | -4.3% |
| Net Income | 1.371 | 1.881 | 2.994 | 4.631 | 4.090 | -11.7% |
Balance Sheet
|
|---|
| Cash | 0.692 | 2.721 | 3.186 | 1.921 | 5.557 | 189.3% |
| Short Term Debt | 3.040 | 2.720 | 3.886 | 1.570 | 1.600 | 1.9% |
| Long Term Debt | 7.929 | 6.106 | 6.605 | 7.715 | 8.763 | 13.6% |
Cash flow
|
|---|
| Capex | 2.622 | 2.483 | 3.953 | 4.828 | 1.894 | -60.8% |
Ratios
|
|---|
| Revenue growth | 6.7% | -1.7% | 5.9% | 5.1% | 4.3% | |
| EBITDA growth | -0.7% | 22.6% | 16.1% | 21.8% | -4.3% | |
|
|---|
| Gross Margin | 49.4% | 52.6% | 56.2% | 57.3% | | |
| EBITDA Margin | 5.8% | 7.2% | 7.9% | 9.2% | 8.4% | -0.8% |
| Net Income Margin | 1.6% | 2.3% | 3.4% | 5.0% | 4.2% | -0.8% |
| CAPEX, % of revenue | 3.1% | 3.0% | 4.5% | 5.2% | 2.0% | -3.3% |
|
|---|
| ROIC | 7.2% | 12.3% | 14.6% | 19.7% | 18.9% | -0.8% |
| ROE | 6.8% | 9.6% | 13.1% | 20.2% | 19.3% | -1.0% |
| Net Debt/EBITDA | 2.1x | 1.0x | 1.0x | 0.9x | 0.6x | -0.3x |
Peers in Forestry & Paper
Below we provide Cropper(James) benchmarking against other companies in Forestry & Paper 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.
