Celtic reports 124% Net Income growth in 2018 and 12.1% Revenue growth
19 Sep 2018 • About Celtic (
$CCP) • By InTwits
Celtic reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is expanding: 28.4% in FY2018 vs. 18.5% in FY2017 vs. 10.4% in FY2014
- EBITDA Margin is quite volatile: 28.4% in FY2018, 18.5% in FY2017, 14.6% in FY2016, -1.3% in FY2015, 10.4% in FY2014
- Celtic has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 2.5%.
- CAPEX is quite volatile: $4m in FY2018, $4m in FY2017, $2m in FY2016, $1m in FY2015, $3m in FY2014
- The company has highly profitable business model: ROIC is 23.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 12.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 27.3 pp from -24.3% to 3.0% in FY2018. During the last 5 years EBITDA Margin bottomed in FY2015 at -1.3% and was growing since that time.
Net Income margin increased on 7.6 pp from 7.6% to 15.2% in FY2018. During the last 5 years Net Income margin bottomed in FY2015 at -7.7% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.4% in FY2018. The company showed small CAPEX/Revenue decline of 1.8 pp from 5.2% in FY2015 to 3.4% in FY2018. It's average CAPEX/Revenue for the last three years was 3.1%.
Return on investment
The company operates at high and attractive ROIC (23.7%) and ROE (23.7%). ROIC jumped on 12.1 pp from 11.6% to 23.7% in FY2018. ROE jumped on 10.9 pp from 12.8% to 23.7% in FY2018. During the last 5 years ROIC bottomed in FY2015 at -14.7% and was growing since that time. During the last 5 years ROE bottomed in FY2015 at -7.6% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is 0.4x. Debt decreased on 2.1% while cash jumped on 73.7%.
Celtic has no short term refinancing risk: cash is higher than short term debt (14,187.7%).
Financial and operational results
FY ended 30 Jun 2018
Celtic ($CCP) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 64.7 | 51.1 | 52.0 | 90.6 | 101.6 | 12.1% |
| EBITDA | 6.8 | -0.6 | 7.6 | 16.7 | 28.8 | 72.0% |
| Net Income | 11.2 | -3.9 | 0.5 | 6.9 | 15.4 | 123.6% |
Balance Sheet
|
|---|
| Cash | 14.7 | 11.8 | 10.5 | 24.5 | 42.6 | 73.7% |
| Short Term Debt | 0.5 | 0.3 | 0.3 | 0.3 | 0.3 | -1.3% |
| Long Term Debt | 14.1 | 11.1 | 10.9 | 10.7 | 10.5 | -2.1% |
Cash flow
|
|---|
| Capex | 3.0 | 2.7 | 1.5 | 2.7 | 3.5 | 26.5% |
Ratios
|
|---|
| Revenue growth | -14.6% | -21.1% | 1.8% | 74.3% | 12.1% | |
| EBITDA growth | -54.7% | -109.6% | -1,268.6% | 120.8% | 72.0% | |
|
|---|
| EBITDA Margin | 10.4% | -1.3% | 14.6% | 18.5% | 28.4% | 9.9% |
| Net Income Margin | 17.3% | -7.7% | 0.9% | 7.6% | 15.2% | 7.6% |
| CAPEX, % of revenue | 4.6% | 5.2% | 2.8% | 3.0% | 3.4% | 0.4% |
|
|---|
| ROIC | -0.5% | -14.7% | 1.5% | 11.6% | 23.7% | 12.1% |
| ROE | 23.2% | -7.6% | 0.9% | 12.8% | 23.7% | 10.9% |
| Net Debt/EBITDA | -0.0x | | 0.1x | -0.8x | -1.1x | -0.3x |
Peers in Travel & Leisure
Below you can find Celtic benchmarking vs. other companies in Travel & Leisure 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 |
|---|
| Nektan ($NKTN) | 75.8% | -71.7% | 995.3% | 129.1% | |
| Webis Holdings ($WEB) | -55.0% | 29.7% | 45.3% | 65.8% | |
| Easyhotel ($EZH) | 34.1% | 56.4% | 8.7% | 39.7% | |
| Eclectic Bar Grp ($BAR) | 10.5% | -1.9% | 1.4% | 38.6% | |
| Everyman Media Group ($EMAN) | 22.4% | 44.1% | 45.5% | 37.4% | |
| |
|---|
| Median (26 companies) | 9.1% | 7.6% | 8.7% | 7.3% | 3.9% |
|---|
| Celtic ($CCP) | | -21.1% | 1.8% | 74.3% | 12.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 60.1% | 64.5% | 86.0% | 86.0% | |
| Eclectic Bar Grp ($BAR) | 79.0% | 79.4% | 80.7% | 82.3% | |
| Paddy Power ($PAP) | 81.0% | 74.7% | 76.9% | 76.8% | |
| Action Hotels ($AHCG) | 73.3% | 74.0% | 70.7% | 69.8% | |
| Nektan ($NKTN) | 57.6% | 42.6% | 67.9% | 64.1% | |
| |
|---|
| Median (18 companies) | 48.1% | 40.4% | 42.7% | 38.1% | 20.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Irish Continental Group ($ICGC) | 27.3% | 23.6% | 25.7% | 32.8% | |
| Ryanair Hldgs ($RYA) | 20.1% | 25.1% | 28.9% | 30.6% | 31.2% |
| Dalata Hotel Group ($DAL) | 7.7% | 20.8% | 24.5% | 29.5% | |
| Heavitree Brewery ($HVT) | 22.7% | 23.7% | 25.0% | 27.8% | |
| Paddy Power ($PAP) | 29.8% | 20.4% | 17.0% | 26.7% | |
| |
|---|
| Median (26 companies) | 12.7% | 12.9% | 17.0% | 16.7% | 16.2% |
|---|
| Celtic ($CCP) | 10.4% | -1.3% | 14.6% | 18.5% | 28.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Easyhotel ($EZH) | 209.8% | 46.8% | 153.2% | 269.8% | |
| Action Hotels ($AHCG) | 90.0% | 172.4% | 120.1% | 139.5% | |
| Dalata Hotel Group ($DAL) | 26.7% | 12.7% | 37.4% | 39.0% | |
| Everyman Media Group ($EMAN) | 25.9% | 56.4% | 64.2% | 38.4% | |
| Richoux Group ($RIC) | 14.3% | 10.0% | 17.0% | 34.3% | |
| |
|---|
| Median (26 companies) | 5.4% | 7.2% | 14.1% | 7.4% | 10.9% |
|---|
| Celtic ($CCP) | 4.6% | 5.2% | 2.8% | 3.0% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($IHG) | 56.3% | 96.6% | 51.2% | 92.2% | |
| Irish Continental Group ($ICGC) | 40.0% | 33.9% | 30.1% | 35.4% | |
| Air Partner ($AIP) | 21.2% | 20.0% | 20.4% | 24.6% | 34.6% |
| Ryanair Hldgs ($RYA) | 9.5% | 13.3% | 17.2% | 17.7% | 18.4% |
| Hanatour Service Inc ($TOUR) | 19.6% | 19.4% | 8.6% | 15.7% | |
| |
|---|
| Median (27 companies) | 5.3% | 6.3% | 6.3% | 6.5% | 7.1% |
|---|
| Celtic ($CCP) | -0.5% | -14.7% | 1.5% | 11.6% | 23.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Action Hotels ($AHCG) | 9.6x | 12.3x | 14.4x | 23.9x | |
| Marston'S ($MARS) | 14.0x | 8.2x | 6.2x | 6.9x | 8.7x |
| Rotala ($ROL) | 2.8x | 3.6x | 3.6x | 3.9x | |
| Heavitree Brewery ($HVT) | 2.9x | 4.6x | 4.1x | 3.7x | |
| Fuller Smith & Turner ($BA80) | 2.7x | 2.8x | 3.2x | 3.1x | 3.0x |
| |
|---|
| Median (23 companies) | 1.3x | 1.2x | 2.3x | 2.0x | 2.3x |
|---|
| Celtic ($CCP) | -0.0x | | 0.1x | -0.8x | -1.1x |
