Tui Ag reports 9.9% CAPEX decline in 2018 and almost no change in Revenue of 18,469
13 Dec 2018 • About Tui Ag (
$TUI) • By InTwits
Tui Ag reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: 6.5% in FY2018 vs. 6.9% in FY2017 vs. 6.1% in FY2014
- Tui Ag has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's a lot of higher than industry average of 2.5%.
- CAPEX is quite volatile: £0m in FY2018, £0m in FY2017, £0m in FY2016, £2m in FY2015, £0m in FY2014
- The company has highly profitable business model: ROIC is 12.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tui Ag's Revenue showed almost no change in FY2018. EBITDA Margin showed almost no change in FY2018. During the last 5 years EBITDA Margin topped in FY2015 at 7.7% and was declining since that time.
Gross Margin showed almost no change in FY2018. Gross Margin followed a declining trend at -0.29 pp per annum in the last 5 years. SG&A as a % of Revenue showed almost no change in FY2018. SG&A as a % of Revenue followed a declining trend at -0.44 pp per annum in FY2014-FY2018.
Net Income margin showed almost no change in FY2018. The efficient tax rate was 20.8% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Tui Ag had CAPEX/Revenue of 5.4%. Tui Ag's CAPEX/Revenue increased slightly on 0.54 pp from 4.9% in FY2015 to 5.4% in FY2018. It's average CAPEX/Revenue for the last three years was 5.3%. Battling declining revenue the company invested a large share of EBITDA (83.3%) to CAPEX but that didn't help at least in this year.
Tui Ag has spent €136m on M&A in FY2018 which accounts for 0.73% of revenue.
Return on investment
The company operates at high and attractive ROE (22.2%) while ROIC is a bit lower (12.1%). ROIC decreased on 2.3 pp from 14.4% to 12.1% in FY2018. ROE decreased slightly on 0.90 pp from 23.1% to 22.2% in FY2018. ROIC declined at -0.85 pp per annum in FY2014-FY2018. During the last 5 years ROE topped in FY2016 at 45.2% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is 2.1x. Net Debt / EBITDA surged on 0.5x from -0.5x to 0.0022x in FY2018. Debt surged on 31.9% while cash increased slightly on 1.3%.
Tui Ag has good short term financial stability: Interest coverage ratio (ICR) is 5.9x. Tui Ag has no short term refinancing risk: cash is higher than short term debt (892.5%).
Average interest expence paid by the company was 5.0% in FY2018.
Valuation and dividends
Tui Ag's trades at EV/EBITDA 5.5x and P/E 9.1x.
The company paid 52.5% of Net Income as dividends in FY2018.
Management team
The company's CEO is Friedrich Joussen "Fritz". Friedrich Joussen "Fritz" is a founder and has 4 years tenure with the company. CEO total compensation was €4,754,100 in FY2018 which included €1,100,000 salary and €1,270,000 annual bonus. Tui Ag's CFO is Birgit Conix. Birgit Conix has 1 year tenure at the company.
At the end of financial year the company had 69,546 employees. Average revenue per employee in FY2018 was €265,561.
Financial and operational results
FY ended 30 Sep 2018
Tui Ag ($TUI) key annual financial indicators| mln. € | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 18,537 | 17,516 | 17,185 | 18,535 | 18,469 | -0.4% |
| Gross Profit | 2,236 | 1,966 | 1,907 | 2,000 | 2,003 | 0.2% |
| SG&A | 1,534 | 1,274 | 1,154 | 1,163 | 1,216 | 4.5% |
| EBITDA | 1,135 | 1,351 | 1,297 | 1,272 | 1,196 | -6.0% |
| EBIT | | | | | 755 | |
| Interest expence | | | | | 128 | |
| Tax | | | | | 191 | |
| Net Income | 90 | 340 | 1,037 | 645 | 727 | 12.8% |
Balance Sheet
|
|---|
| Cash | 2,258 | 1,673 | 2,073 | 2,516 | 2,548 | 1.3% |
| Inventory | | | | | 119 | |
| Accounts Payable | | | | | 2,693 | |
| Short Term Debt | 217 | 233 | 538 | 172 | 286 | 66.1% |
| Long Term Debt | 1,748 | 1,653 | 1,503 | 1,761 | 2,265 | 28.6% |
Cash flow
|
|---|
| Capex | 949 | 851 | 755 | 1,106 | 997 | -9.9% |
| Dividends | | | | | 382 | |
| Acquisitions | | | | | 136 | |
Ratios
|
|---|
| Revenue growth | 0.3% | -5.5% | -1.9% | 7.9% | -0.4% | |
| EBITDA growth | 21.8% | 19.1% | -4.0% | -1.9% | -6.0% | |
|
|---|
| Gross Margin | 12.1% | 11.2% | 11.1% | 10.8% | 10.8% | 0.1% |
| EBITDA Margin | 6.1% | 7.7% | 7.5% | 6.9% | 6.5% | -0.4% |
| EBIT Margin | | | | | 4.1% |
| SG&A, % of revenue | 8.3% | 7.3% | 6.7% | 6.3% | 6.6% | 0.3% |
| Net Income Margin | 0.5% | 1.9% | 6.0% | 3.5% | 3.9% | 0.5% |
| CAPEX, % of revenue | 5.1% | 4.9% | 4.4% | 6.0% | 5.4% | -0.6% |
|
|---|
| ROIC | 16.1% | 15.0% | 15.5% | 14.4% | 12.1% | -2.3% |
| ROE | 4.1% | 15.7% | 45.2% | 23.1% | 22.2% | -0.9% |
| Net Debt/EBITDA | -0.3x | 0.2x | -0.0x | -0.5x | 0.0x | 0.5x |
| Interest coverage ratio (ICR) | | | | | 5.9x |
| Interest expence / Average debt | | | | | 5.0% | |
People
|
|---|
| Employees | | | | | 69,546 | |
| Revenue/Employee, th. € | | | | | 266 | |
Peers in Travel & Leisure
Below we provide Tui Ag benchmarking against other companies in Travel & Leisure 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.
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 ($WEB) | | 29.7% | 45.3% | 65.8% | 24.0% |
| Easyhotel ($EZH) | | 56.4% | 8.7% | 39.7% | 33.7% |
| Eclectic Bar Grp ($BAR) | | -1.9% | 1.4% | 38.6% | 1.2% |
| |
|---|
| Median (26 companies) | 9.2% | 7.6% | 8.7% | 7.4% | 9.6% |
|---|
| Tui Ag ($TUI) | | -5.5% | -1.9% | 7.9% | -0.4% |
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 ($NKTN) | 57.6% | 42.6% | 67.9% | 64.1% | |
| |
|---|
| Median (17 companies) | 56.6% | 41.5% | 50.7% | 40.0% | 39.2% |
|---|
| Tui Ag ($TUI) | 12.1% | 11.2% | 11.1% | 10.8% | 10.8% |
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 ($PAP) | 29.8% | 20.4% | 17.0% | 26.7% | |
| |
|---|
| Median (26 companies) | 12.7% | 12.9% | 17.0% | 17.6% | 16.2% |
|---|
| Tui Ag ($TUI) | 6.1% | 7.7% | 7.5% | 6.9% | 6.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Easyhotel ($EZH) | 209.8% | 46.8% | 153.2% | 269.8% | 412.1% |
| Action Hotels ($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 ($RIC) | 14.3% | 10.0% | 17.0% | 34.3% | |
| |
|---|
| Median (26 companies) | 5.4% | 7.2% | 14.1% | 7.2% | 10.5% |
|---|
| Tui Ag ($TUI) | 5.1% | 4.9% | 4.4% | 6.0% | 5.4% |
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 ($TOUR) | 19.6% | 19.4% | 8.6% | 15.7% | |
| |
|---|
| Median (27 companies) | 4.8% | 5.9% | 5.3% | 6.5% | 8.1% |
|---|
| Tui Ag ($TUI) | 16.1% | 15.0% | 15.5% | 14.4% | 12.1% |
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 ($BA80) | 2.7x | 2.8x | 3.2x | 3.1x | 3.0x |
| |
|---|
| Median (23 companies) | 1.3x | 1.5x | 2.3x | 2.0x | 2.2x |
|---|
| Tui Ag ($TUI) | -0.3x | 0.2x | -0.0x | -0.5x | 0.0x |
