Henderson Group EBITDA jumped on 40.4% and EBITDA Margin increased on 4.0 pp from 27.4% to 31.4%
05 Feb 2019 • About Henderson Group (
$HGG) • By InTwits
Henderson Group reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Henderson Group is a fast growth stock: 2018 revenue growth was 22.5%, 5 year revenue CAGR was 24.4% at 2018 ROIC 10.4%
- Henderson Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has business model with average profitability: ROIC is 10.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 22.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.9 pp from 29.9% to 32.8% in 2018. During 2014-2018 EBITDA Margin bottomed in 2016 at 26.2% and was growing since that time.
Net Income margin dropped on 13.4 pp from 36.3% to 22.9% in 2018.
Investments (CAPEX, working capital and M&A)
In 2018 Henderson Group had CAPEX/Revenue of 1.3%. The company's CAPEX/Revenue showed almost no change from 2015 to 2018. It's average CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at low ROIC (10.4%) and ROE (10.6%). ROIC showed almost no change in 2018. ROE decreased on 9.1 pp from 19.7% to 10.6% in 2018. During the last 5 years ROIC topped in 2015 at 19.7% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.9x and Debt / EBITDA is 0.5x. Debt dropped on 10.7% while cash jumped on 22.5%.
The company has no short term refinancing risk: short term debt is zero.
Management team
Richard Maccoy Weil "Dick" is a the company's CEO. Richard Maccoy Weil "Dick" is a founder and has spent 1 year with the company. The company's CFO is Roger Thompson. Roger Thompson has 2 years tenure at the company.
Financial and operational results
FY ended 31 Dec 2018
Henderson Group ($HGG) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 658 | 743 | 736 | 1,403 | 1,718 | 22.5% |
| EBITDA | 209 | 223 | 193 | 385 | 540 | 40.4% |
| Net Income | 259 | 216 | 140 | 509 | 393 | -22.8% |
Balance Sheet
|
|---|
| Cash | 235 | 259 | 262 | 587 | 719 | 22.5% |
| Short Term Debt | | 102 | 0 | 42 | 0 | -100.0% |
| Long Term Debt | 149 | 0 | 0 | 238 | 250 | 5.1% |
Cash flow
|
|---|
| Capex | 2 | 8 | 11 | 14 | 22 | 58.8% |
Ratios
|
|---|
| Revenue growth | 13.8% | 13.0% | -1.0% | 90.7% | 22.5% | |
| EBITDA growth | 19.3% | 6.7% | -13.7% | 99.7% | 40.4% | |
|
|---|
| EBITDA Margin | 31.8% | 30.0% | 26.2% | 27.4% | 31.4% | 4.0% |
| Net Income Margin | 39.3% | 29.1% | 19.0% | 36.3% | 22.9% | -13.4% |
| CAPEX, % of revenue | 0.2% | 1.1% | 1.4% | 1.0% | 1.3% | 0.3% |
|
|---|
| ROIC | 12.5% | 19.7% | 14.5% | 10.6% | 10.4% | -0.2% |
| ROE | 28.0% | 24.5% | 13.7% | 19.7% | 10.6% | -9.1% |
| Net Debt/EBITDA | -0.4x | -0.7x | -1.4x | -0.8x | -0.9x | -0.1x |
Peers in Financial Services
Below you can find Henderson Group benchmarking vs. other companies in Financial Services 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 |
|---|
| Starvest ($SVE) | | -52.9% | -4.8% | 346.6% | |
| Arden Partners ($ARDN) | | -31.0% | 6.8% | 78.9% | -29.7% |
| Impax Asset Management Group ($IPX) | | -3.1% | 6.8% | 55.2% | 100.9% |
| Afh Financial Group ($AFHP) | | 39.5% | 15.0% | 39.4% | 50.6% |
| S & U ($46IE) | | -40.6% | 25.2% | 33.9% | 31.8% |
| |
|---|
| Median (33 companies) | -2.3% | 2.7% | 6.8% | 12.3% | 16.3% |
|---|
| Henderson Group ($HGG) | | 13.0% | -1.0% | 90.7% | 22.5% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Record ($REC) | 99.6% | 99.3% | 99.0% | 98.8% | 98.7% |
| London Capital Group Hldgs ($LCG) | 73.6% | 67.9% | 84.2% | 86.4% | |
| Schroders ($SDRC) | 77.7% | 78.3% | 79.9% | 80.0% | |
| First Property Group ($FPO) | 67.9% | 83.0% | 80.6% | 78.6% | 76.3% |
| Walker Crips Group ($WCW) | 68.2% | 66.7% | 67.7% | 69.8% | 67.2% |
| |
|---|
| Median (14 companies) | 51.3% | 52.5% | 59.3% | 51.4% | 54.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Real Estate Credit Investments Pcc ($RECP) | 77.0% | 80.3% | 79.3% | 79.5% | 81.8% |
| Hargreaves Lansdown ($HL.) | 58.7% | 51.2% | 57.5% | 69.3% | 66.8% |
| Plus500 Ltd ($PLUS) | 63.5% | 48.2% | 46.0% | 59.3% | |
| First Property Group ($FPO) | 40.2% | 42.9% | 52.2% | 57.4% | 52.9% |
| Livermore Investments Group Ltd ($LIV) | 78.8% | 83.5% | 71.9% | 56.8% | |
| |
|---|
| Median (30 companies) | 14.4% | 16.9% | 17.2% | 20.9% | 20.4% |
|---|
| Henderson Group ($HGG) | 31.8% | 30.0% | 26.2% | 27.4% | 31.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($DSS) | 15.0% | 6.5% | 15.1% | 11.2% | |
| First Property Group ($FPO) | 0.3% | 0.1% | 6.4% | 8.5% | 9.4% |
| Schroders ($SDRC) | 1.5% | 1.9% | 3.0% | 6.9% | |
| Leeds Group ($LDSG) | 0.6% | 0.9% | 11.5% | 5.6% | 1.0% |
| Record ($REC) | 0.1% | 0.6% | 0.1% | 3.8% | 1.0% |
| |
|---|
| Median (30 companies) | 0.8% | 0.8% | 0.8% | 1.0% | 1.0% |
|---|
| Henderson Group ($HGG) | 0.2% | 1.1% | 1.4% | 1.0% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Plus500 Ltd ($PLUS) | 164.3% | 116.5% | 118.9% | 143.2% | |
| Fulcrum Utility Services Ld ($FCRM) | | | 347.2% | 103.4% | 29.9% |
| Hargreaves Lansdown ($HL.) | 101.0% | 87.5% | 90.0% | 93.3% | 82.4% |
| Guinness Peat Group ($GPG) | 10.0% | 13.7% | 23.8% | 28.8% | |
| Lighthouse Group ($LGT) | 8.6% | 14.6% | 25.7% | 26.6% | |
| |
|---|
| Median (35 companies) | 7.6% | 7.6% | 7.5% | 8.5% | 5.0% |
|---|
| Henderson Group ($HGG) | 12.5% | 19.7% | 14.5% | 10.6% | 10.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($DSS) | 10.7x | 8.0x | 13.4x | 12.7x | |
| First Property Group ($FPO) | 5.6x | 12.3x | 9.4x | 7.6x | 7.7x |
| Leeds Group ($LDSG) | -0.5x | -0.3x | 1.4x | 2.6x | 2.5x |
| S & U ($46IE) | 1.7x | 3.1x | 0.5x | 1.8x | 3.2x |
| Guinness Peat Group ($GPG) | -2.1x | -1.6x | -0.4x | 1.2x | |
| |
|---|
| Median (26 companies) | -2.3x | -1.2x | -1.0x | -1.6x | -0.9x |
|---|
| Henderson Group ($HGG) | -0.4x | -0.7x | -1.4x | -0.8x | -0.9x |
