Primary Health Properties CAPEX surged on 35.1% and Revenue increased on 9.8%
31 Jan 2019 • About Primary Health Properties (
$PHP) • By InTwits
Primary Health Properties reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Primary Health Properties is a growth stock: 2018 revenue growth was 9.8%, 5 year revenue CAGR was 13.7% at 2018 ROIC 7.4%
- Primary Health Properties has high CAPEX intensity: 5 year average CAPEX/Revenue was 102.9%. At the same time it's a lot of higher than industry average of 75.1%.
- CAPEX is quite volatile: £102m in 2018, £75m in 2017, £97m in 2016, £29m in 2015, £55m in 2014
- The company has business model with low profitability: ROIC is 7.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 9.8%. During the last 5 years Revenue growth bottomed in 2015 at 5.2% and was accelerating since that time.
Net Income margin dropped on 33.4 pp from 127% to 93.3% in 2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 128% in 2018. The company showed fast CAPEX/Revenue growth of 81.3 pp from 46.7% in 2015 to 128% in 2018. For the last three years the average CAPEX/Revenue was 125%.
Return on investment
The company operates at low ROIC (7.4%) and ROE (10.8%). ROIC decreased on 2.9 pp from 10.2% to 7.4% in 2018. ROE decreased on 6.1 pp from 16.9% to 10.8% in 2018.
Leverage (Debt)
Debt decreased on 7.4% while cash jumped on 55.3%.
Primary Health Properties has short term refinancing risk: cash is only 5.8% of short term debt.
Financial and operational results
FY ended 31 Dec 2018
Primary Health Properties ($PHP) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 59.985 | 63.115 | 67.439 | 72.500 | 79.600 | 9.8% |
| Net Income | 36.880 | 56.032 | 43.701 | 91.900 | 74.300 | -19.2% |
Balance Sheet
|
|---|
| Cash | 4.872 | 2.881 | 4.944 | 3.800 | 5.900 | 55.3% |
| Short Term Debt | 159.543 | 166.328 | 168.197 | 148.100 | 101.500 | -31.5% |
| Long Term Debt | 507.733 | 531.412 | 500.236 | 582.300 | 574.600 | -1.3% |
Cash flow
|
|---|
| Capex | 54.921 | 29.477 | 97.359 | 75.400 | 101.900 | 35.1% |
Ratios
|
|---|
| Revenue growth | 42.9% | 5.2% | 6.9% | 7.5% | 9.8% | |
|
|---|
| Net Income Margin | 61.5% | 88.8% | 64.8% | 126.8% | 93.3% | -33.4% |
| CAPEX, % of revenue | 91.6% | 46.7% | 144.4% | 104.0% | 128.0% | 24.0% |
|
|---|
| ROIC | 8.5% | 9.4% | 7.2% | 10.2% | 7.4% | -2.9% |
| ROE | 12.1% | 17.1% | 10.3% | 16.9% | 10.8% | -6.1% |
Peers in Real Estate Investment Trusts
Below you can find Primary Health Properties benchmarking vs. other companies in Real Estate Investment Trusts 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 |
|---|
| Great Portland Estates ($GPOR) | | -17.6% | 83.5% | -5.4% | 217.1% |
| Town Centre Securities ($50BF) | | 3.2% | 11.1% | 5.1% | 10.0% |
| Shaftesbury ($SHB) | | 8.2% | 7.6% | 5.0% | 9.5% |
| Green REIT ($GRN) | | 276.8% | 45.7% | 8.3% | 9.0% |
| Hibernia REIT ($HBRN) | | | 32.2% | 37.2% | 9.0% |
| |
|---|
| Median (8 companies) | -14.7% | 2.5% | 11.1% | 5.0% | 9.0% |
|---|
| Primary Health Properties ($PHP) | | 5.2% | 6.9% | 7.5% | 9.8% |
Top companies by Gross margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Local Shopping REIT ($LSR) | 72.1% | 74.4% | 73.4% | 67.3% | 27.5% |
| |
|---|
| Median (1 company) | 72.1% | 74.4% | 73.4% | 67.3% | 27.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Mucklow(A.& J.)Group ($MKLW) | 210.6% | 277.1% | 121.8% | 130.8% | 274.1% |
| Hibernia REIT ($HBRN) | | | 428.5% | 277.6% | 231.8% |
| Shaftesbury ($SHB) | 498.6% | 503.7% | 168.3% | 273.6% | 166.7% |
| British Land Co ($BA45) | 218.5% | 215.1% | 165.3% | 36.3% | 87.6% |
| Town Centre Securities ($50BF) | 150.0% | 119.7% | 70.6% | 49.3% | 73.5% |
| |
|---|
| Median (7 companies) | 199.4% | 242.1% | 153.2% | 130.8% | 87.6% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Hibernia REIT ($HBRN) | | 1,795.1% | 634.9% | 304.9% | 191.3% |
| Shaftesbury ($SHB) | 117.5% | 51.6% | 83.7% | 61.2% | 148.3% |
| British Land Co ($BA45) | 186.5% | 59.2% | 84.6% | 53.0% | 55.6% |
| Great Portland Estates ($GPOR) | 0.0% | 0.0% | 284.0% | 153.7% | 33.3% |
| Mucklow(A.& J.)Group ($MKLW) | 0.0% | 0.0% | 17.2% | 46.2% | 25.5% |
| |
|---|
| Median (8 companies) | 70.4% | 97.9% | 83.7% | 61.2% | 29.4% |
|---|
| Primary Health Properties ($PHP) | 91.6% | 46.7% | 144.4% | 104.0% | 128.0% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Mucklow(A.& J.)Group ($MKLW) | 15.9% | 18.5% | 8.2% | 8.7% | 16.9% |
| Green REIT ($GRN) | | 14.6% | 12.3% | 9.8% | 10.5% |
| Hibernia REIT ($HBRN) | | 2.1% | 16.3% | 11.6% | 9.0% |
| Town Centre Securities ($50BF) | 11.2% | 8.3% | 5.0% | 3.4% | 5.7% |
| Shaftesbury ($SHB) | 20.7% | 18.4% | 5.8% | 9.0% | 5.4% |
| |
|---|
| Median (8 companies) | 12.6% | 12.0% | 7.5% | 8.7% | 5.5% |
|---|
| Primary Health Properties ($PHP) | 8.5% | 9.4% | 7.2% | 10.2% | 7.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Town Centre Securities ($50BF) | 4.6x | 6.2x | 9.8x | 13.6x | 8.4x |
| British Land Co ($BA45) | 3.6x | 3.2x | 3.7x | 14.8x | 5.4x |
| Shaftesbury ($SHB) | 1.2x | 1.3x | 4.7x | 3.0x | 4.1x |
| Hibernia REIT ($HBRN) | | | 0.4x | 1.2x | 1.7x |
| Mucklow(A.& J.)Group ($MKLW) | 1.5x | 1.2x | 2.4x | 2.4x | 1.0x |
| |
|---|
| Median (6 companies) | 3.3x | 3.0x | 3.9x | 2.7x | 2.9x |
|---|
