Dee Valley Group Net Income jumped on 726% and EBITDA Margin increased on 9.7 pp from 31.8% to 41.5%
13 Jul 2018 • About Dee Valley Group (
$DVW) • By InTwits
Dee Valley Group reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company has potentially unprofitable business model: ROIC is 5.1%
- It operates with high leverage: Net Debt/EBITDA is 5.5x while industry average is 3.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased slightly on 1.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 10.7 pp from -28.0% to -38.7% in FY2018. During FY2014-FY2018 EBITDA Margin bottomed in FY2017 at 31.8%.
Net Income margin increased on 7.2 pp from 1.0% to 8.2% in FY2018.
Return on investment
The company operates at low ROIC (5.1%) and ROE (5.6%). ROIC increased slightly on 1.7 pp from 3.4% to 5.1% in FY2018. ROE increased on 4.8 pp from 0.80% to 5.6% in FY2018. During FY2014-FY2018 ROIC bottomed in FY2017 at 3.4%.
Leverage (Debt)
Debt level is 5.5x Net Debt / EBITDA and 5.5x Debt / EBITDA. Net Debt / EBITDA dropped on 1.0x from 6.5x to 5.5x in FY2018. Debt jumped on 14.1% while cash jumped on 1,716%. During FY2014-FY2018 Net Debt/EBITDA topped in FY2017 at 6.5x.
Dee Valley Group has no short term refinancing risk: cash is higher than short term debt (190.0%).
Financial and operational results
FY ended 31 Mar 2018
Dee Valley Group ($DVW) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 23.787 | 24.599 | 23.149 | 26.910 | 27.352 | 1.6% |
| Gross Profit | 23.073 | 23.834 | 22.342 | | | |
| EBITDA | 12.012 | 12.112 | 11.364 | 8.545 | 11.346 | 32.8% |
| Net Income | 5.664 | 3.490 | 4.655 | 0.273 | 2.255 | 726.0% |
Balance Sheet
|
|---|
| Cash | 8.226 | 8.737 | 3.099 | 0.050 | 0.908 | 1,716.0% |
| Short Term Debt | 7.639 | 7.391 | 1.263 | 0.000 | 0.478 | |
| Long Term Debt | 50.500 | 51.772 | 52.297 | 55.193 | 62.482 | 13.2% |
Cash flow
|
|---|
| Capex | 6.687 | 6.725 | 5.626 | 8.961 | | |
Ratios
|
|---|
| Revenue growth | 4.3% | 3.4% | -5.9% | 16.2% | 1.6% | |
| EBITDA growth | -1.6% | 0.8% | -6.2% | -24.8% | 32.8% | |
|
|---|
| Gross Margin | 97.0% | 96.9% | 96.5% | | | |
| EBITDA Margin | 50.5% | 49.2% | 49.1% | 31.8% | 41.5% | 9.7% |
| Net Income Margin | 23.8% | 14.2% | 20.1% | 1.0% | 8.2% | 7.2% |
| CAPEX, % of revenue | 28.1% | 27.3% | 24.3% | 33.3% | | |
|
|---|
| ROIC | 7.5% | 7.4% | 6.4% | 3.4% | 5.1% | 1.7% |
| ROE | 21.4% | 12.3% | 15.1% | 0.8% | 5.6% | 4.8% |
| Net Debt/EBITDA | 4.2x | 4.2x | 4.4x | 6.5x | 5.5x | -1.0x |
Peers in Gas, Water & Multiutilities
Below you can find Dee Valley Group benchmarking vs. other companies in Gas, Water & Multiutilities 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| National Grid ($NG.) | | 2.6% | -13.1% | 13.8% | 1.4% |
| Inter RAO JSC ($IRAO) | 11.9% | 12.3% | 4.4% | 5.6% | |
| Centrica ($CNA) | 10.7% | -4.9% | -3.1% | 3.4% | |
| United Utilities Group ($UU.) | | 1.9% | 0.6% | -1.5% | 1.9% |
| |
|---|
| Median (4 companies) | 11.3% | 2.3% | -1.3% | 4.5% | 1.6% |
|---|
| Dee Valley Group ($DVW) | | 3.4% | -5.9% | 16.2% | 1.6% |
Top companies by Gross margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Centrica ($CNA) | 11.0% | 15.6% | 20.1% | 14.9% | |
| |
|---|
| Median (1 company) | 11.0% | 15.6% | 20.1% | 14.9% | |
|---|
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| United Utilities Group ($UU.) | 57.3% | 58.5% | 53.8% | 56.9% | 58.4% |
| National Grid ($NG.) | 34.8% | 34.7% | 34.3% | 31.2% | 32.9% |
| Inter RAO JSC ($IRAO) | 5.6% | 5.9% | 11.5% | 8.4% | |
| Centrica ($CNA) | 6.1% | 1.9% | 13.3% | 8.0% | |
| |
|---|
| Median (4 companies) | 20.5% | 20.3% | 23.8% | 19.8% | 45.7% |
|---|
| Dee Valley Group ($DVW) | 50.5% | 49.2% | 49.1% | 31.8% | 41.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| United Utilities Group ($UU.) | 39.2% | 38.7% | 36.7% | 39.5% | 40.2% |
| National Grid ($NG.) | 19.9% | 20.2% | 21.6% | 21.9% | 24.5% |
| Inter RAO JSC ($IRAO) | 4.9% | 3.5% | 4.0% | 3.4% | |
| Centrica ($CNA) | 5.0% | 3.5% | 3.1% | 3.1% | |
| |
|---|
| Median (4 companies) | 12.4% | 11.9% | 12.8% | 12.7% | 32.4% |
|---|
| Dee Valley Group ($DVW) | 28.1% | 27.3% | 24.3% | 33.3% | |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inter RAO JSC ($IRAO) | 4.4% | 5.5% | 17.3% | 11.8% | |
| National Grid ($NG.) | 8.9% | 9.0% | 7.3% | 6.4% | 6.8% |
| United Utilities Group ($UU.) | 6.8% | 6.7% | 5.4% | 5.5% | 5.5% |
| Centrica ($CNA) | -11.1% | -11.7% | 28.5% | 4.9% | |
| |
|---|
| Median (4 companies) | 5.6% | 6.1% | 12.3% | 6.0% | 6.1% |
|---|
| Dee Valley Group ($DVW) | 7.5% | 7.4% | 6.4% | 3.4% | 5.1% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| United Utilities Group ($UU.) | 6.1x | 6.4x | 7.3x | 7.4x | 7.3x |
| National Grid ($NG.) | 5.0x | 4.9x | 6.2x | 5.9x | 5.2x |
| Centrica ($CNA) | 3.5x | 10.1x | 1.2x | 1.5x | |
| Inter RAO JSC ($IRAO) | 0.7x | 0.2x | -0.8x | -1.6x | |
| |
|---|
| Median (4 companies) | 4.2x | 5.6x | 3.7x | 3.7x | 6.3x |
|---|
| Dee Valley Group ($DVW) | 4.2x | 4.2x | 4.4x | 6.5x | 5.5x |
