Crest Nicholson Hldgs Net Income dropped on 19.0% while Revenue increased on 7.5%
29 Jan 2019 • About Crest Nicholson Hldgs (
$CRST) • By InTwits
Crest Nicholson Hldgs reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Crest Nicholson Hldgs is a fast growth stock: FY2018 revenue growth was 7.5%, 5 year revenue CAGR was 16.4% at FY2018 ROIC 18.0%
- Crest Nicholson Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has highly profitable business model: ROIC is 18.0%
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 increased on 7.5%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.9 pp from 29.9% to 32.8% in 2018. During the last 5 years EBITDA Margin topped in FY2016 at 20.6% and was declining since that time.
Gross Margin decreased on 4.3 pp from 26.4% to 22.0% in FY2018. Gross Margin declined at -1.4 pp per annum in FY2014-FY2018. SG&A as a % of Revenue showed almost no change in FY2018. SG&A as a % of Revenue declined at -0.65 pp per annum in FY2014-FY2018.
Net Income margin decreased on 4.0 pp from 16.2% to 12.2% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.22% in FY2018. Crest Nicholson Hldgs showed almost no change in CAPEX/Revenue from FY2015 to FY2018. Average CAPEX/Revenue for the last three years was 0.21%.
Return on investment
The company operates at good ROIC (18.0%) and ROE (16.2%). ROIC decreased on 4.5 pp from 22.5% to 18.0% in FY2018. ROE decreased on 5.8 pp from 21.9% to 16.2% in FY2018. During the last 5 years ROE topped in FY2016 at 23.2% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.1x and Debt / EBITDA is 0.9x. Debt surged on 19.9% while cash increased on 5.2%.
Crest Nicholson Hldgs has no short term refinancing risk: cash is higher than short term debt (9,700.0%).
Valuation and dividends
Crest Nicholson Hldgs's trades at EV/EBITDA 5.2x and P/E 7.2x.
Financial and operational results
FY ended 31 Oct 2018
Crest Nicholson Hldgs ($CRST) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 636 | 805 | 997 | 1,043 | 1,121 | 7.5% |
| Gross Profit | 182 | 221 | 266 | 275 | 247 | -10.2% |
| SG&A | 54 | 58 | 62 | 63 | 65 | 2.5% |
| EBITDA | 129 | 165 | 205 | 213 | 184 | -13.7% |
| Net Income | 99 | 124 | 157 | 169 | 137 | -19.0% |
Balance Sheet
|
|---|
| Cash | 142 | 187 | 282 | 175 | 184 | 5.2% |
| Short Term Debt | 15 | 7 | 2 | 2 | 2 | 0.0% |
| Long Term Debt | 147 | 211 | 203 | 140 | 168 | 20.1% |
Cash flow
|
|---|
| Capex | 1 | 2 | 2 | 3 | 3 | 0.0% |
Ratios
|
|---|
| Revenue growth | 21.0% | 26.5% | 23.9% | 4.6% | 7.5% | |
| EBITDA growth | 39.5% | 27.5% | 24.6% | 4.0% | -13.7% | |
|
|---|
| Gross Margin | 28.6% | 27.5% | 26.7% | 26.4% | 22.0% | -4.3% |
| EBITDA Margin | 20.3% | 20.4% | 20.6% | 20.4% | 16.4% | -4.0% |
| SG&A, % of revenue | 8.5% | 7.2% | 6.2% | 6.1% | 5.8% | -0.3% |
| Net Income Margin | 15.5% | 15.4% | 15.7% | 16.2% | 12.2% | -4.0% |
| CAPEX, % of revenue | 0.2% | 0.2% | 0.2% | 0.2% | 0.2% | -0.0% |
|
|---|
| ROIC | 22.2% | 22.0% | 23.5% | 22.5% | 18.0% | -4.5% |
| ROE | 19.6% | 21.3% | 23.2% | 21.9% | 16.2% | -5.8% |
| Net Debt/EBITDA | 0.1x | 0.2x | -0.4x | -0.2x | -0.1x | 0.1x |
Peers in Household Goods & Home Construction
Below we provide Crest Nicholson Hldgs benchmarking against other companies in Household Goods & Home Construction 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 |
|---|
| Reckitt Benckiser Group ($RB.) | | 0.4% | 6.8% | 21.4% | |
| Taylor Wimpey ($TW.) | | 16.9% | 17.1% | 7.9% | |
| Colefax Group ($CFX) | | -1.6% | 0.1% | 4.7% | 6.9% |
| Depa Ltd ($DEPS) | | -15.4% | 5.5% | 4.0% | |
| Teco Electric & Machinery Co Ltd ($TECD) | -5.1% | -9.6% | 2.7% | 2.0% | |
| |
|---|
| Median (9 companies) | -6.0% | 0.4% | 4.9% | 2.0% | 3.9% |
|---|
| Crest Nicholson Hldgs ($CRST) | | 26.5% | 23.9% | 4.6% | 7.5% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Reckitt Benckiser Group ($RB.) | 57.7% | 59.1% | 61.2% | 59.7% | |
| Colefax Group ($CFX) | 53.3% | 54.7% | 56.3% | 55.1% | 53.7% |
| John Lewis Of Hungerford ($JLH) | 52.4% | | 49.5% | 50.6% | |
| Abbey ($ABBY) | 25.8% | 30.6% | 33.1% | 33.7% | 31.0% |
| Taylor Wimpey ($TW.) | 23.8% | 25.1% | 25.6% | 26.1% | |
| |
|---|
| Median (7 companies) | 25.4% | 25.5% | 29.7% | 33.7% | 42.4% |
|---|
| Crest Nicholson Hldgs ($CRST) | 28.6% | 27.5% | 26.7% | 26.4% | 22.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Abbey ($ABBY) | 22.6% | 31.2% | 31.7% | 32.7% | 30.1% |
| Reckitt Benckiser Group ($RB.) | 26.3% | 27.2% | 25.8% | 25.7% | |
| Taylor Wimpey ($TW.) | 18.6% | 20.2% | 20.8% | 17.8% | |
| Depa Ltd ($DEPS) | 4.8% | -8.1% | 6.6% | 12.3% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 10.7% | 10.5% | 11.5% | 9.8% | |
| |
|---|
| Median (9 companies) | 9.1% | 9.6% | 11.5% | 9.8% | 19.4% |
|---|
| Crest Nicholson Hldgs ($CRST) | 20.3% | 20.4% | 20.6% | 20.4% | 16.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Abbey ($ABBY) | 8.0% | 8.0% | 5.3% | 5.5% | 4.6% |
| Colefax Group ($CFX) | 2.0% | 2.9% | 3.0% | 5.1% | 2.8% |
| Reckitt Benckiser Group ($RB.) | 1.8% | 1.7% | 1.9% | 2.5% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 3.6% | 3.5% | 2.9% | 2.0% | |
| John Lewis Of Hungerford ($JLH) | 9.1% | | 2.6% | 1.7% | |
| |
|---|
| Median (8 companies) | 1.8% | 1.8% | 2.6% | 1.8% | 3.7% |
|---|
| Crest Nicholson Hldgs ($CRST) | 0.2% | 0.2% | 0.2% | 0.2% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Taylor Wimpey ($TW.) | 21.7% | 24.1% | 26.8% | 23.0% | |
| Abbey ($ABBY) | 11.2% | 21.1% | 22.9% | 21.1% | 17.6% |
| Reckitt Benckiser Group ($RB.) | 19.7% | 20.3% | 19.1% | 12.9% | |
| Depa Ltd ($DEPS) | 1.8% | -10.8% | 4.1% | 11.4% | |
| Colefax Group ($CFX) | 22.0% | 20.6% | 20.2% | 11.2% | 17.6% |
| |
|---|
| Median (9 companies) | 7.3% | 16.0% | 18.2% | 11.2% | 17.6% |
|---|
| Crest Nicholson Hldgs ($CRST) | 22.2% | 22.0% | 23.5% | 22.5% | 18.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Reckitt Benckiser Group ($RB.) | 0.7x | 0.7x | 0.6x | 3.6x | |
| Teco Electric & Machinery Co Ltd ($TECD) | -1.3x | -0.3x | 0.4x | -0.1x | |
| Taylor Wimpey ($TW.) | -0.2x | -0.4x | -0.5x | -0.7x | |
| Colefax Group ($CFX) | -0.6x | -1.0x | -1.4x | -1.2x | -1.2x |
| Abbey ($ABBY) | -1.2x | -1.3x | -1.3x | -1.3x | -1.2x |
| |
|---|
| Median (7 companies) | -1.2x | -0.9x | -0.8x | -1.2x | -1.2x |
|---|
| Crest Nicholson Hldgs ($CRST) | 0.1x | 0.2x | -0.4x | -0.2x | -0.1x |
