Plus500 Ltd reports 95.2% EBITDA growth in 2018 and 11.0 pp EBITDA Margin growth from 59.3% to 70.2%
12 Feb 2019 • About Plus500 Ltd (
$PLUS) • By InTwits
Plus500 Ltd reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Plus500 Ltd is a fast growth stock: 2018 revenue growth was 64.8%, 5 year revenue CAGR was 44.3% at 2018 ROIC 196%
- Plus500 Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has highly profitable business model: ROIC is 196.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Plus500 Ltd's Revenue surged on 64.8%. During the last 5 years Revenue growth bottomed in 2016 at 19.0% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 45.3 pp from 7.2% to -38.0% in FY2018. During 2014-2018 EBITDA Margin bottomed in 2016 at 46.0% and was growing since that time.
SG&A as a % of Revenue dropped on 11.0 pp from 40.9% to 29.9% in 2018. During the last 5 years SG&A as a % of Revenue topped in 2016 at 54.1% and was declining since that time.
Net Income margin increased on 6.9 pp from 45.7% to 52.6% in 2018. During 2014-2018 Net Income margin bottomed in 2015 at 35.0% and was growing since that time.
Investments (CAPEX, working capital and M&A)
Plus500 Ltd's CAPEX/Revenue was 0.083% in 2018. The company's CAPEX/Revenue showed almost no change from 2015 to 2018. It's average level of CAPEX/Revenue for the last three years was 0.27%.
Return on investment
The company operates at high and attractive ROIC (196.2%) and ROE (149.6%). ROIC surged on 53.0 pp from 143% to 196% in 2018. ROE jumped on 39.3 pp from 110% to 150% in 2018. During the last 5 years ROIC bottomed in 2015 at 116% and was growing since that time. During the last 5 years ROE bottomed in 2015 at 84.7% and was growing since that time.
Leverage (Debt)
The company has no debt. Cash jumped on 30.4%.
Valuation and dividends
The company's trades at EV/EBITDA 1.0x and P/E 2.1x.
Financial and operational results
FY ended 31 Dec 2018
Plus500 Ltd ($PLUS) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 228.9 | 275.7 | 327.9 | 437.2 | 720.4 | 64.8% |
| SG&A | 83.5 | 143.1 | 177.4 | 178.7 | 215.1 | 20.3% |
| EBITDA | 145.4 | 132.8 | 151.0 | 259.2 | 506.0 | 95.2% |
| Net Income | 102.5 | 96.6 | 117.2 | 199.7 | 379.0 | 89.8% |
Balance Sheet
|
|---|
| Cash | 139.2 | 156.5 | 136.5 | 241.9 | 315.3 | 30.4% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.4 | 0.8 | 1.9 | 0.6 | 0.6 | 1.2% |
Ratios
|
|---|
| Revenue growth | 98.9% | 20.4% | 19.0% | 33.3% | 64.8% | |
| EBITDA growth | 116.2% | -8.7% | 13.7% | 71.7% | 95.2% | |
|
|---|
| EBITDA Margin | 63.5% | 48.2% | 46.0% | 59.3% | 70.2% | 11.0% |
| SG&A, % of revenue | 36.5% | 51.9% | 54.1% | 40.9% | 29.9% | -11.0% |
| Net Income Margin | 44.8% | 35.0% | 35.8% | 45.7% | 52.6% | 6.9% |
| CAPEX, % of revenue | 0.6% | 0.3% | 0.6% | 0.1% | 0.1% | -0.1% |
|
|---|
| ROIC | 164.3% | 116.5% | 118.9% | 143.2% | 196.2% | 53.0% |
| ROE | 114.8% | 84.7% | 92.4% | 110.3% | 149.6% | 39.3% |
| Net Debt/EBITDA | -1.0x | -1.2x | -0.9x | -0.9x | -0.6x | 0.3x |
Peers in Financial Services
Below you can find Plus500 Ltd 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 ($SVE) | | -52.9% | -4.8% | 346.6% | |
| Henderson Group ($HGG) | | 13.0% | -1.0% | 90.7% | 22.5% |
| 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 ($AFHP) | | 39.5% | 15.0% | 39.4% | 50.6% |
| |
|---|
| Median (33 companies) | -3.0% | 2.7% | 5.0% | 12.3% | 17.1% |
|---|
| Plus500 Ltd ($PLUS) | | 20.4% | 19.0% | 33.3% | 64.8% |
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 ($HL.) | 58.7% | 51.2% | 57.5% | 69.3% | 66.8% |
| First Property Group ($FPO) | 40.2% | 42.9% | 52.2% | 57.4% | 52.9% |
| Livermore Investments Group Ltd ($LIV) | 78.8% | 83.5% | 71.9% | 56.8% | |
| Starvest ($SVE) | -136.5% | -2,683.1% | 63.4% | 56.4% | |
| |
|---|
| Median (30 companies) | 14.4% | 16.9% | 17.2% | 20.9% | 22.2% |
|---|
| Plus500 Ltd ($PLUS) | 63.5% | 48.2% | 46.0% | 59.3% | 70.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($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% | 1.0% | 1.0% | 1.0% | 1.0% |
|---|
| Plus500 Ltd ($PLUS) | 0.6% | 0.3% | 0.6% | 0.1% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Fulcrum Utility Services Ld ($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 ($LGT) | 8.6% | 14.6% | 25.7% | 26.6% | |
| Numis Corp ($NUM) | 20.7% | 22.3% | 25.2% | 26.3% | 20.5% |
| |
|---|
| Median (35 companies) | 7.6% | 7.6% | 7.5% | 8.5% | 5.8% |
|---|
| Plus500 Ltd ($PLUS) | 164.3% | 116.5% | 118.9% | 143.2% | 196.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Daishin Securities Co ($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 | -1.1x | -1.4x | -1.6x | -0.9x |
|---|
| Plus500 Ltd ($PLUS) | -1.0x | -1.2x | -0.9x | -0.9x | -0.6x |
