Caledonian Trust reports 178% Net Income growth in 2018 and 126 pp EBITDA Margin growth from 191% to 317%
21 Dec 2018 • About Caledonian Trust (
$CNN) • By InTwits
Caledonian Trust reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Caledonian Trust is a fast growth stock: FY2018 revenue growth was 65.9%, 5 year revenue CAGR was 22.5% at FY2018 ROIC 11.7%
- EBITDA Margin is expanding: 316.6% in FY2018 vs. 191.0% in FY2017 vs. -59.1% in FY2014
- The company has business model with average profitability: ROIC is 11.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 65.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.1 pp from 10.4% to -3.8% in FY2018.
Gross Margin decreased on 5.7 pp from 80.5% to 74.8% in FY2018. SG&A as a % of Revenue dropped on 39.6 pp from 110% to 70.5% in FY2018.
Net Income margin surged on 126 pp from 187% to 313% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Caledonian Trust had CAPEX/Revenue of 0.33%. The company's CAPEX/Revenue showed almost no change from FY2015 to FY2018. For the last three years the average CAPEX/Revenue was 0.73%.
Return on investment
The company operates at good ROE (14.1%) while ROIC is low (11.7%). ROIC increased on 7.0 pp from 4.7% to 11.7% in FY2018. ROE increased on 8.5 pp from 5.6% to 14.1% in FY2018.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA dropped on 2.6x from 4.0x to 1.4x in FY2018. Debt increased on 3.4% while cash surged on 720%.
Caledonian Trust has no short term refinancing risk: cash is higher than short term debt (125.3%).
Valuation and dividends
Caledonian Trust's trades at EV/EBITDA 8.5x and P/E 7.2x.
Financial and operational results
FY ended 30 Jun 2018
Caledonian Trust ($CNN) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 0.845 | 0.744 | 0.789 | 0.555 | 0.921 | 65.9% |
| Gross Profit | 0.365 | | 0.398 | 0.447 | 0.689 | 54.1% |
| SG&A | | | 0.635 | 0.611 | 0.649 | 6.2% |
| EBITDA | -0.499 | | 0.137 | 1.060 | 2.916 | 175.1% |
| Net Income | 0.164 | | 0.105 | 1.040 | 2.886 | 177.5% |
Balance Sheet
|
|---|
| Cash | 0.034 | | 0.103 | 0.055 | 0.451 | 720.0% |
| Short Term Debt | 3.180 | | 0.000 | 0.360 | 0.360 | 0.0% |
| Long Term Debt | 0.000 | | 3.630 | 3.925 | 4.070 | 3.7% |
Cash flow
|
|---|
| Capex | 0.024 | | 0.002 | 0.009 | 0.003 | -66.7% |
Ratios
|
|---|
| Revenue growth | 153.0% | -12.0% | 6.0% | -29.7% | 65.9% | |
| EBITDA growth | 8.0% | | | 673.7% | 175.1% | |
|
|---|
| Gross Margin | 43.2% | | 50.4% | 80.5% | 74.8% | -5.7% |
| EBITDA Margin | -59.1% | | 17.4% | 191.0% | 316.6% | 125.6% |
| SG&A, % of revenue | | | 80.5% | 110.1% | 70.5% | -39.6% |
| Net Income Margin | 19.4% | | 13.3% | 187.4% | 313.4% | 126.0% |
| CAPEX, % of revenue | 2.8% | | 0.3% | 1.6% | 0.3% | -1.3% |
|
|---|
| ROIC | -2.5% | | 0.6% | 4.7% | 11.7% | 7.0% |
| ROE | 1.0% | | 0.6% | 5.6% | 14.1% | 8.5% |
| Net Debt/EBITDA | | | 25.7x | 4.0x | 1.4x | -2.6x |
Peers in Real Estate Investment & Services
Below we provide Caledonian Trust benchmarking against other companies in Real Estate Investment & Services 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 |
|---|
| Plaza Centers Nv ($PLAZ) | 131.0% | -13.4% | -53.3% | 664.4% | |
| PIK Group OJSC ($PIK) | -2.1% | -16.5% | 17.5% | 191.5% | |
| London & Associated Properties ($LAS) | -22.6% | -2.6% | -9.1% | 51.4% | |
| Etalon Group Ltd ($ETLN) | 29.0% | -17.6% | 15.6% | 44.1% | |
| Formation Group ($FRM) | 35.8% | 199.3% | 23.8% | 25.8% | |
| |
|---|
| Median (20 companies) | 1.0% | 7.0% | 8.9% | 11.7% | 24.2% |
|---|
| Caledonian Trust ($CNN) | | -12.0% | 6.0% | -29.7% | 65.9% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arricano Real Estate ($ARO) | 96.5% | 96.1% | 96.4% | 96.5% | |
| Summit Germany Ltd ($SMTG) | | 92.3% | 92.2% | 92.2% | |
| Panther Securities ($PNS) | 68.0% | 73.5% | 75.2% | 70.8% | |
| Songbird Estates ($SBD) | 70.7% | 72.5% | 72.8% | 68.6% | |
| Damac Real Estate Development Ltd ($DMC) | 59.6% | 59.4% | 55.9% | 48.8% | |
| |
|---|
| Median (14 companies) | 35.2% | 34.5% | 41.1% | 28.3% | 10.5% |
|---|
| Caledonian Trust ($CNN) | 43.2% | | 50.4% | 80.5% | 74.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Summit Germany Ltd ($SMTG) | 89.3% | 75.5% | 129.4% | 241.4% | |
| Arricano Real Estate ($ARO) | -138.3% | 12.7% | 190.4% | 238.1% | |
| Safestore Hldgs ($SAFE) | 77.7% | 128.4% | 95.1% | 84.8% | |
| Raven Russia Ltd ($RUS) | 4.7% | -52.3% | 40.4% | 75.8% | |
| Panther Securities ($PNS) | 50.3% | 52.0% | 52.4% | 69.3% | |
| |
|---|
| Median (19 companies) | 20.4% | 25.8% | 32.8% | 20.8% | 19.5% |
|---|
| Caledonian Trust ($CNN) | -59.1% | | 17.4% | 191.0% | 316.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Panther Securities ($PNS) | 26.0% | 15.7% | 3.7% | 68.6% | |
| Taliesin Property Fund Ltd ($TPFZ) | 45.2% | 43.7% | 37.2% | 40.5% | |
| Hagl JSC ($HAG) | 145.6% | 127.1% | 55.5% | 30.0% | |
| St.Modwen Properties ($SMP) | 36.7% | 55.8% | 31.3% | 19.3% | |
| Safestore Hldgs ($SAFE) | 6.3% | 7.2% | 24.5% | 16.7% | |
| |
|---|
| Median (20 companies) | 6.3% | 7.2% | 1.5% | 1.7% | 1.5% |
|---|
| Caledonian Trust ($CNN) | 2.8% | | 0.3% | 1.6% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Arricano Real Estate ($ARO) | -12.3% | 1.7% | 34.2% | 43.8% | |
| Damac Real Estate Development Ltd ($DMC) | 31.3% | 41.5% | 24.5% | 16.0% | |
| Summit Germany Ltd ($SMTG) | 7.1% | 5.6% | 9.2% | 15.8% | |
| Taliesin Property Fund Ltd ($TPFZ) | 0.3% | -3.0% | 15.3% | 15.1% | |
| Etalon Group Ltd ($ETLN) | 14.3% | 10.2% | 6.6% | 12.6% | |
| |
|---|
| Median (20 companies) | 3.7% | 5.1% | 6.9% | 7.1% | 8.9% |
|---|
| Caledonian Trust ($CNN) | -2.5% | | 0.6% | 4.7% | 11.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Development Securities ($DSC) | 10.3x | 3.5x | 5.7x | 70.8x | 3.9x |
| Hagl JSC ($HAG) | 14.2x | 14.8x | 30.8x | 11.7x | |
| Songbird Estates ($SBD) | | 12.3x | 12.4x | 11.3x | |
| Farglory Land Development Co Ltd ($FLDS) | 5.7x | 4.4x | 4.8x | 8.9x | |
| Panther Securities ($PNS) | 11.8x | 9.7x | 9.4x | 8.5x | |
| |
|---|
| Median (17 companies) | 9.7x | 4.4x | 4.5x | 3.4x | 3.4x |
|---|
| Caledonian Trust ($CNN) | | | 25.7x | 4.0x | 1.4x |
