Meikles Ltd reports 60.3% EBITDA growth in 2018 and 2.0 pp EBITDA Margin growth from 5.5% to 7.5%
28 Sep 2018 • About Meikles Ltd (
$MIK) • By InTwits
Meikles Ltd reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is expanding: 7.5% in FY2018 vs. 5.5% in FY2017 vs. 2.0% in FY2014
- EBITDA Margin is quite volatile: 7.5% in FY2018, 5.5% in FY2017, 2.6% in FY2016, 0.3% in FY2015, 2.0% in FY2014
- Meikles Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.1%. At the same time it's in pair with industry average of 3.4%
- CAPEX is quite volatile: $2m in FY2018, $2m in FY2017, $6m in FY2016, $4m in FY2015, $8m in FY2014
- The company has highly profitable business model: ROIC is 12.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.0x while industry average is -2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Meikles Ltd's Revenue jumped on 16.9%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 23.8 pp from -6.7% to 17.0% in FY2018. EBITDA Margin followed a growing trend at 1.6 pp per annum in the last 5 years.
Net Income margin increased slightly on 1.3 pp from -1.5% to -0.15% in FY2018. During the last 5 years Net Income margin bottomed in FY2015 at -8.3% and was growing since that time.
Investments (CAPEX, working capital and M&A)
Meikles Ltd's CAPEX/Revenue was 3.3% in FY2018. The company's CAPEX/Revenue decreased on 2.8 pp from 6.1% in FY2015 to 3.3% in FY2018. It's average CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at low but positive ROIC (12.2%) and negative ROE (-0.8%). ROIC increased on 6.1 pp from 6.1% to 12.2% in FY2018. ROE increased on 5.6 pp from -6.4% to -0.83% in FY2018. ROIC grew at 3.5 pp per annum in FY2014-FY2018. During FY2014-FY2018 ROE bottomed in FY2015 at -23.6% and was growing since that time.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 1.0x from 2.0x to 1.0x in FY2018. Debt jumped on 10.7% while cash jumped on 119%. During FY2014-FY2018 Net Debt/EBITDA topped in FY2015 at 73.1x and was declining since that time.
Meikles Ltd has short term refinancing risk: cash is only 61.1% of short term debt.
Financial and operational results
FY ended 31 Mar 2018
Meikles Ltd ($MIK) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 384.3 | 413.3 | 453.6 | 457.6 | 534.9 | 16.9% |
| SG&A | | 5.3 | | | | |
| EBITDA | 7.9 | 1.2 | 11.8 | 25.0 | 40.0 | 60.3% |
| Net Income | 34.4 | -34.4 | -22.7 | -6.7 | -0.8 | |
Balance Sheet
|
|---|
| Cash | 23.0 | 8.9 | 10.5 | 15.6 | 34.2 | 118.6% |
| Short Term Debt | 69.6 | 70.2 | 66.9 | 57.0 | 56.0 | -1.8% |
| Long Term Debt | 37.3 | 24.4 | 11.1 | 9.2 | 17.3 | 87.3% |
Cash flow
|
|---|
| Capex | 17.4 | 25.3 | 14.6 | 14.2 | 17.7 | 24.5% |
Ratios
|
|---|
| Revenue growth | -1.8% | 7.6% | 9.7% | 0.9% | 16.9% | |
| EBITDA growth | -23.3% | -85.1% | 908.5% | 111.1% | 60.3% | |
|
|---|
| EBITDA Margin | 2.0% | 0.3% | 2.6% | 5.5% | 7.5% | 2.0% |
| SG&A, % of revenue | | 1.3% | | | | |
| Net Income Margin | 9.0% | -8.3% | -5.0% | -1.5% | -0.2% | 1.3% |
| CAPEX, % of revenue | 4.5% | 6.1% | 3.2% | 3.1% | 3.3% | 0.2% |
|
|---|
| ROIC | -0.3% | -3.5% | 1.0% | 6.1% | 12.2% | 6.1% |
| ROE | 22.3% | -23.6% | -19.9% | -6.4% | -0.8% | 5.6% |
| Net Debt/EBITDA | 10.7x | 73.1x | 5.7x | 2.0x | 1.0x | -1.0x |
Peers in Travel & Leisure
Below you can find Meikles Ltd 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 ($NKTN) | 75.8% | -71.7% | 995.3% | 129.1% | |
| Celtic ($CCP) | | -21.1% | 1.8% | 74.3% | 12.1% |
| Webis Holdings ($WEB) | -55.0% | 29.7% | 45.3% | 65.8% | |
| Easyhotel ($EZH) | 34.1% | 56.4% | 8.7% | 39.7% | |
| Eclectic Bar Grp ($BAR) | | -1.9% | 1.4% | 38.6% | 1.2% |
| |
|---|
| Median (26 companies) | 9.1% | 7.0% | 8.3% | 7.9% | 3.9% |
|---|
| Meikles Ltd ($MIK) | | 7.6% | 9.7% | 0.9% | 16.9% |
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% | 82.9% |
| Paddy Power ($PAP) | 81.0% | 74.7% | 76.9% | 76.8% | |
| Action Hotels ($AHCG) | 73.3% | 74.0% | 70.7% | 69.8% | |
| Nektan ($NKTN) | 57.6% | 42.6% | 67.9% | 64.1% | |
| |
|---|
| Median (18 companies) | 48.1% | 40.4% | 42.7% | 38.1% | 24.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Irish Continental Group ($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% | 17.6% | 16.2% |
|---|
| Meikles Ltd ($MIK) | 2.0% | 0.3% | 2.6% | 5.5% | 7.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Easyhotel ($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% | 6.7% | 14.1% | 7.4% | 10.5% |
|---|
| Meikles Ltd ($MIK) | 4.5% | 6.1% | 3.2% | 3.1% | 3.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Intercontinental Hotels Group ($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% | 7.1% | 8.1% |
|---|
| Meikles Ltd ($MIK) | -0.3% | -3.5% | 1.0% | 6.1% | 12.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Action Hotels ($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) | 1.1x | 0.8x | 1.9x | 1.9x | 2.3x |
|---|
| Meikles Ltd ($MIK) | 10.7x | 73.1x | 5.7x | 2.0x | 1.0x |
