Jersey Electricity reports 14.3% Net Income growth in 2018 and 3.7% Revenue growth
14 Dec 2018 • About Jersey Electricity (
$JEL) • By InTwits
Jersey Electricity reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jersey Electricity has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.8%. At the same time it's in pair with industry average of 30.5%
- CAPEX is quite volatile: £15m in FY2018, £14m in FY2017, £32m in FY2016, £17m in FY2015, £33m in FY2014
- The company has potentially unprofitable business model: ROIC is 7.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Jersey Electricity's Revenue increased on 3.7%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 11.9 pp from -3.7% to 8.2% in FY2018.
Gross Margin showed almost no change in FY2018. Gross Margin stuck to a growing trend at 1.9 pp per annum in the last 5 years. SG&A as a % of Revenue decreased slightly on 0.85 pp from 23.9% to 23.0% in FY2018.
Net Income margin increased slightly on 1.1 pp from 10.4% to 11.4% in FY2018. The efficient tax rate was 20.6% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 13.9%. CAPEX/Revenue decreased on 2.7 pp from 16.5% in FY2015 to 13.9% in FY2018. It's average level of CAPEX/Revenue for the last three years was 19.7%. The company invested a large share of EBITDA (52.6%) to CAPEX.
Return on investment
The company operates at low ROIC (7.0%) and ROE (6.6%). ROIC showed almost no change in FY2018. ROE showed almost no change in FY2018.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 1.1x. Net Debt / EBITDA dropped on 0.4x from 0.9x to 0.5x in FY2018. Debt didn't change in FY2018 while cash jumped on 94.8%.
The company has no short term refinancing risk: short term debt is zero.
Valuation and dividends
Jersey Electricity's trades at EV/EBITDA 2.3x and P/E 4.1x.
The company paid 33.0% of Net Income as dividends in FY2018.
Management team
At the end of financial year the company had 0.46% shares owned by insiders.
At the end of financial year the company had 302 employees. Average revenue per employee in FY2018 was £350,576.
Financial and operational results
FY ended 30 Sep 2018
Jersey Electricity ($JEL) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 98.4 | 100.5 | 103.4 | 102.1 | 105.9 | 3.7% |
| Gross Profit | 30.0 | 35.9 | 38.1 | 39.1 | 40.8 | 4.4% |
| SG&A | 20.1 | 10.6 | 12.3 | 24.4 | 24.4 | 0.0% |
| EBITDA | 18.2 | 23.9 | 26.2 | 25.4 | 27.9 | 9.9% |
| EBIT | | | | | 16.7 | |
| Tax | | | | | 3.2 | |
| Net Income | 4.9 | 10.7 | 11.5 | 10.6 | 12.1 | 14.3% |
| Stock Based Compensation | | | | | 0.1 | |
Balance Sheet
|
|---|
| Cash | 9.8 | 12.5 | 1.9 | 8.1 | 15.7 | 94.8% |
| Inventory | | | | | 7.1 | |
| Short Term Debt | | 0.0 | 0.9 | 0.0 | 0.0 | |
| Long Term Debt | 30.0 | 30.0 | 30.0 | 30.0 | 30.0 | 0.0% |
Cash flow
|
|---|
| Capex | 32.5 | 16.6 | 32.4 | 14.3 | 14.7 | 3.2% |
| Dividends | | | | | 4.0 | |
Ratios
|
|---|
| Revenue growth | -3.8% | 2.1% | 2.9% | -1.2% | 3.7% | |
| EBITDA growth | 34.7% | 31.5% | 9.9% | -3.1% | 9.9% | |
|
|---|
| Gross Margin | 30.4% | 35.7% | 36.9% | 38.3% | 38.5% | 0.2% |
| EBITDA Margin | 18.4% | 23.8% | 25.4% | 24.9% | 26.4% | 1.5% |
| EBIT Margin | | | | | 15.8% |
| SG&A, % of revenue | 20.4% | 10.6% | 11.9% | 23.9% | 23.0% | -0.9% |
| SBC, % of revenue | | | | | 0.0% |
| Net Income Margin | 5.0% | 10.7% | 11.2% | 10.4% | 11.4% | 1.1% |
| CAPEX, % of revenue | 33.0% | 16.5% | 31.3% | 14.0% | 13.9% | -0.1% |
|
|---|
| ROIC | 5.4% | 7.3% | 7.8% | 6.6% | 7.0% | 0.4% |
| ROE | 3.3% | 7.3% | 7.4% | 6.2% | 6.6% | 0.4% |
| Net Debt/EBITDA | 1.1x | 0.7x | 1.1x | 0.9x | 0.5x | -0.4x |
People
|
|---|
| Insider ownership | | | | | 0.5% | |
| Employees | | | | | 302 | |
| Revenue/Employee, th. £ | | | | | 351 | |
Peers in Electricity
Below you can find Jersey Electricity benchmarking vs. other companies in Electricity 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 |
|---|
| Good Energy Group ($GOOD) | 42.6% | 11.6% | 40.7% | 15.6% | |
| Datang Intl Power Generation ($DAT) | -6.7% | -12.8% | -4.8% | 10.9% | |
| Mosenergo AO ($AOMD) | 3.5% | 6.0% | 11.4% | 2.8% | |
| Societatea Comerciala De Dis Si Fur ($ELSA) | -6.3% | 9.1% | 0.3% | 1.5% | |
| Public Power Corp S.A. ($PPCD) | | -2.2% | -9.0% | -5.3% | |
| |
|---|
| Median (7 companies) | -6.3% | 5.4% | 4.0% | 1.5% | |
|---|
| Jersey Electricity ($JEL) | | 2.1% | 2.9% | -1.2% | 3.7% |
Top companies by Gross margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Good Energy Group ($GOOD) | 32.7% | 33.1% | 30.4% | 28.1% | |
| Ksk Power Ventur ($KSK) | 27.1% | 27.0% | 34.3% | 24.5% | |
| |
|---|
| Median (2 companies) | 34.3% | 33.1% | 32.4% | 26.3% | |
|---|
| Jersey Electricity ($JEL) | 30.4% | 35.7% | 36.9% | 38.3% | 38.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ksk Power Ventur ($KSK) | 30.3% | 26.0% | 37.3% | 47.2% | |
| Datang Intl Power Generation ($DAT) | 34.8% | 38.0% | 38.9% | 29.4% | |
| Mosenergo AO ($AOMD) | 10.6% | 10.6% | 16.3% | 22.4% | |
| RusHydro OJSC ($HYDR) | 16.8% | 16.4% | 19.2% | 20.9% | |
| Public Power Corp S.A. ($PPCD) | 20.0% | 17.7% | 23.0% | 19.4% | |
| |
|---|
| Median (7 companies) | 16.8% | 17.8% | 21.1% | 20.9% | |
|---|
| Jersey Electricity ($JEL) | 18.4% | 23.8% | 25.4% | 24.9% | 26.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ksk Power Ventur ($KSK) | 59.5% | 58.3% | 8.7% | 31.9% | |
| RusHydro OJSC ($HYDR) | 23.8% | 22.8% | 16.3% | 20.6% | |
| Datang Intl Power Generation ($DAT) | 28.8% | 29.7% | 28.1% | 15.6% | |
| Societatea Comerciala De Dis Si Fur ($ELSA) | 7.1% | 7.0% | 9.6% | 13.9% | |
| Public Power Corp S.A. ($PPCD) | 11.4% | 13.1% | 13.9% | 8.6% | |
| |
|---|
| Median (7 companies) | 23.8% | 22.8% | 11.8% | 13.9% | |
|---|
| Jersey Electricity ($JEL) | 33.0% | 16.5% | 31.3% | 14.0% | 13.9% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Mosenergo AO ($AOMD) | 0.5% | -0.1% | 5.0% | 8.7% | |
| Good Energy Group ($GOOD) | 7.0% | 5.8% | 7.1% | 6.2% | |
| RusHydro OJSC ($HYDR) | 4.3% | 4.2% | 5.5% | 5.3% | |
| Ksk Power Ventur ($KSK) | 1.7% | 1.1% | 4.4% | 4.7% | |
| Datang Intl Power Generation ($DAT) | 4.8% | 4.6% | 4.4% | 3.7% | |
| |
|---|
| Median (7 companies) | 3.7% | 4.2% | 4.7% | 4.7% | |
|---|
| Jersey Electricity ($JEL) | 5.4% | 7.3% | 7.8% | 6.6% | 7.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ksk Power Ventur ($KSK) | 26.5x | 30.7x | 12.7x | 13.5x | |
| Datang Intl Power Generation ($DAT) | 8.3x | 7.5x | 6.5x | 7.7x | |
| Good Energy Group ($GOOD) | 5.7x | 7.8x | 5.4x | 5.7x | |
| Public Power Corp S.A. ($PPCD) | 4.3x | 4.8x | 3.7x | 4.2x | |
| RusHydro OJSC ($HYDR) | 2.6x | 2.6x | 1.8x | 1.4x | |
| |
|---|
| Median (7 companies) | 5.1x | 4.3x | 4.5x | 4.2x | |
|---|
| Jersey Electricity ($JEL) | 1.1x | 0.7x | 1.1x | 0.9x | 0.5x |
