Titon Hldgs reports 11.3% Net Income growth in 2018 and 6.3% Revenue growth
13 Dec 2018 • About Titon Hldgs (
$TON) • By InTwits
Titon Hldgs reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Titon Hldgs is a growth stock: FY2018 revenue growth was 6.3%, 5 year revenue CAGR was 13.6% at FY2018 ROIC 12.2%
- EBITDA Margin is relatively stable: 9.0% in FY2018 vs. 8.8% in FY2017 vs. 8.8% in FY2014
- Titon Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 1.8%
- CAPEX is quite volatile: £0m in FY2018, £0m in FY2017, £0m in FY2016, £1m in FY2015, £0m in FY2014
- The company has highly profitable business model: ROIC is 12.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Titon Hldgs's Revenue increased on 6.3%. EBITDA Margin showed almost no change in FY2018.
Gross Margin increased on 3.0 pp from 25.9% to 28.9% in FY2018. SG&A as a % of Revenue increased on 3.0 pp from 17.7% to 20.7% in FY2018. During FY2014-FY2018 SG&A as a % of Revenue bottomed in FY2016 at 16.9% and was growing since that time.
Net Income margin showed almost no change in FY2018.
Investments (CAPEX, working capital and M&A)
Titon Hldgs's CAPEX/Revenue was 1.9% in FY2018. Titon Hldgs's CAPEX/Revenue showed almost no change from FY2015 to FY2018. For the last three years the average CAPEX/Revenue was 2.3%.
Return on investment
The company operates at good ROIC (12.2%) and ROE (13.5%). ROIC showed almost no change in FY2018. ROE showed almost no change in FY2018.
Leverage (Debt)
The company has no debt. Cash increased on 4.5%.
Valuation and dividends
The company's trades at EV/EBITDA 6.2x and P/E 10.0x.
Financial and operational results
FY ended 30 Sep 2018
Titon Hldgs ($TON) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 19.256 | 22.258 | 23.721 | 28.011 | 29.774 | 6.3% |
| Gross Profit | 5.330 | 6.513 | 7.048 | 7.265 | 8.604 | 18.4% |
| SG&A | 3.624 | 3.799 | 3.998 | 4.966 | 6.161 | 24.1% |
| EBITDA | 1.689 | 2.124 | 2.328 | 2.463 | 2.673 | 8.5% |
| Net Income | 0.899 | 1.333 | 1.635 | 1.804 | 2.007 | 11.3% |
Balance Sheet
|
|---|
| Cash | 2.149 | 2.870 | 2.438 | 3.269 | 3.415 | 4.5% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.290 | 0.498 | 0.721 | 0.520 | 0.578 | 11.2% |
Ratios
|
|---|
| Revenue growth | 22.3% | 15.6% | 6.6% | 18.1% | 6.3% | |
| EBITDA growth | 91.1% | 25.8% | 9.6% | 5.8% | 8.5% | |
|
|---|
| Gross Margin | 27.7% | 29.3% | 29.7% | 25.9% | 28.9% | 3.0% |
| EBITDA Margin | 8.8% | 9.5% | 9.8% | 8.8% | 9.0% | 0.2% |
| SG&A, % of revenue | 18.8% | 17.1% | 16.9% | 17.7% | 20.7% | 3.0% |
| Net Income Margin | 4.7% | 6.0% | 6.9% | 6.4% | 6.7% | 0.3% |
| CAPEX, % of revenue | 1.5% | 2.2% | 3.0% | 1.9% | 1.9% | 0.1% |
|
|---|
| ROIC | 11.1% | 13.7% | 13.3% | 12.0% | 12.2% | 0.2% |
| ROE | 9.4% | 12.7% | 13.6% | 13.2% | 13.5% | 0.3% |
| Net Debt/EBITDA | -1.3x | -1.4x | -1.0x | -1.3x | -1.3x | 0.0x |
Peers in Construction & Materials
Below you can find Titon Hldgs benchmarking vs. other companies in Construction & Materials 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 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 68.0% | -56.5% | 5.3% | 46.2% | |
| Mountfield Group ($MOGP) | -4.1% | 10.4% | -26.1% | 31.7% | |
| LSR Group OJSC ($LSRG) | | -6.0% | 22.1% | 30.0% | |
| Michelmersh Brick Hldgs ($MBH) | 9.8% | 2.1% | 3.4% | 26.0% | |
| Steppe Cement ($STCM) | -8.9% | -19.7% | -44.0% | 25.5% | |
| |
|---|
| Median (23 companies) | 10.3% | 1.6% | 5.3% | 7.1% | 5.7% |
|---|
| Titon Hldgs ($TON) | | 15.6% | 6.6% | 18.1% | 6.3% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 21.7% | 51.7% | 64.7% | 58.1% | |
| Heath(Samuel)& Sons ($HSM) | 48.6% | 47.6% | 48.1% | 51.1% | 49.6% |
| James Halstead ($JHD) | 41.0% | 41.7% | 42.4% | 43.5% | 41.9% |
| Billington Hldgs ($BILN) | 38.8% | 36.3% | 37.7% | 35.6% | |
| Michelmersh Brick Hldgs ($MBH) | 31.1% | 38.2% | 34.4% | 35.4% | |
| |
|---|
| Median (22 companies) | 25.8% | 29.1% | 30.0% | 27.6% | 28.4% |
|---|
| Titon Hldgs ($TON) | 27.7% | 29.3% | 29.7% | 25.9% | 28.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Lucky Cement Ltd ($LKCS) | 24.4% | 26.5% | 30.4% | 29.7% | 22.4% |
| James Halstead ($JHD) | 20.1% | 20.9% | 21.6% | 20.8% | |
| Asia Cement Corp ($ASCD) | 18.3% | 14.8% | 19.1% | 19.4% | |
| Michelmersh Brick Hldgs ($MBH) | 14.1% | 20.3% | 18.7% | 19.4% | |
| Smart(J.)& Co(Contractors) ($SMJ) | -2.0% | 12.3% | 13.7% | 18.6% | 46.8% |
| |
|---|
| Median (23 companies) | 9.6% | 9.7% | 11.9% | 9.8% | 12.2% |
|---|
| Titon Hldgs ($TON) | 8.8% | 9.5% | 9.8% | 8.8% | 9.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 12.8% | 54.9% | 313.4% | 40.8% | |
| Lucky Cement Ltd ($LKCS) | 6.9% | 12.0% | 9.0% | 13.0% | 20.3% |
| Accsys Technologies ($AXS) | 1.7% | 2.0% | 4.9% | 11.3% | 48.5% |
| Low & Bonar ($BD46) | 4.6% | 9.1% | 4.7% | 6.4% | |
| Heath(Samuel)& Sons ($HSM) | 2.0% | 2.0% | 3.1% | 4.9% | 1.5% |
| |
|---|
| Median (23 companies) | 2.5% | 2.3% | 2.7% | 2.3% | 3.7% |
|---|
| Titon Hldgs ($TON) | 1.5% | 2.2% | 3.0% | 1.9% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Heath(Samuel)& Sons ($HSM) | 19.7% | 32.0% | 89.2% | 54.2% | 35.4% |
| Alumasc Group ($ALU) | 22.6% | 36.0% | 47.8% | 50.2% | 23.1% |
| Clarke(T.) ($CTO) | -0.4% | 19.6% | 23.6% | 48.5% | |
| James Halstead ($JHD) | 46.7% | 45.3% | 47.1% | 46.5% | 39.9% |
| Yolo Leisure & Technology ($YOLO) | -49.9% | -26.1% | -51.5% | 24.2% | |
| |
|---|
| Median (25 companies) | 5.4% | 6.4% | 8.2% | 8.6% | 17.8% |
|---|
| Titon Hldgs ($TON) | 11.1% | 13.7% | 13.3% | 12.0% | 12.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Low & Bonar ($BD46) | 2.1x | 2.4x | 2.1x | 14.3x | |
| Asia Cement Corp ($ASCD) | 6.8x | 8.6x | 6.1x | 5.8x | |
| Michelmersh Brick Hldgs ($MBH) | 0.5x | -0.5x | -0.8x | 2.4x | |
| Crh ($CRH) | 1.6x | 3.1x | 1.8x | 1.9x | |
| LSR Group OJSC ($LSRG) | 0.1x | 0.7x | 1.8x | 1.7x | |
| |
|---|
| Median (20 companies) | 0.5x | -0.0x | -0.7x | -0.4x | -1.0x |
|---|
| Titon Hldgs ($TON) | -1.3x | -1.4x | -1.0x | -1.3x | -1.3x |
