Impax Asset Management Group Net Income jumped on 39.2% and EBITDA Margin increased on 2.8 pp from 26.7% to 29.5%
04 Dec 2019 • About Impax Asset Management Group (
$IPX) • By InTwits
Impax Asset Management Group reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Impax Asset Management Group is a fast growth stock: FY2019 revenue growth was 12.2%, 5 year revenue CAGR was 29.3% at FY2019 ROIC 28.8%
- Impax Asset Management Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's in pair with industry average of 1.7%
- CAPEX is quite volatile: £0m in FY2019, £2m in FY2018, £0m in FY2017, £0m in FY2016, £0m in FY2015
- In the last 5 years the company invested considerably less than D&A: £3m vs. £5m. In FY2019 this situation was still the same: CAPEX was 0 while D&A was 3
- The company has highly profitable business model: ROIC is 28.8%
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 12.2%. During the last 5 years Revenue growth topped in FY2018 at 101%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.8 pp from 26.7% to 29.5% in FY2019. During the last 5 years EBITDA Margin bottomed in FY2017 at 19.6% and was growing since that time.
Stock Based Compensation (SBC) as a % of Revenue decreased slightly on 1.2 pp from 2.8% to 1.6% in FY2019.
Net Income margin increased on 4.2 pp from 17.4% to 21.5% in FY2019. The efficient tax rate was 16.0% in FY2019.
Investments (CAPEX, working capital and M&A)
In FY2019 the company had CAPEX/Revenue of 0.55%. Impax Asset Management Group showed almost no change in CAPEX/Revenue from FY2016 to FY2019. For the last three years the average CAPEX/Revenue was 1.4%.
Return on investment
The company operates at high and attractive ROIC (28.8%) and ROE (27.4%). ROIC decreased slightly on 1.9 pp from 30.7% to 28.8% in FY2019. ROE increased slightly on 1.6 pp from 25.8% to 27.4% in FY2019. ROIC followed a growing trend at 4.1 pp per annum in FY2015-FY2019. ROE grew at 3.6 pp per annum in the last 5 years.
Leverage (Debt)
The company paid down all the debt in FY2019. Cash dropped on 23.1%.
Valuation and dividends
Impax Asset Management Group's trades at EV/EBITDA 19.5x and P/E 27.4x.
The company paid 37.8% of Net Income as dividends in FY2019.
Management team
16.3% of the company is owned by insiders. Insider ownership didn't change in 2019.
At the end of financial year the company had 151 employees. The number of employees surged on 10.2%. Average revenue per employee in FY2019 was £488,046 and it increased slightly on 1.8%.
Financial and operational results
FY ended 30 Sep 2019
Impax Asset Management Group ($IPX) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 19.726 | 21.067 | 32.694 | 65.683 | 73.695 | 12.2% |
| EBITDA | 4.668 | 4.377 | 6.400 | 17.534 | 21.764 | 24.1% |
| EBIT | | | | 15.483 | 18.812 | 21.5% |
| Tax | | | | 3.219 | 3.028 | -5.9% |
| Net Income | 3.633 | 4.177 | 7.667 | 11.401 | 15.870 | 39.2% |
| Stock Based Compensation | | | | 1.822 | 1.160 | -36.3% |
Balance Sheet
|
|---|
| Cash | 2.364 | 2.804 | 12.932 | 15.529 | 11.939 | -23.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 3.326 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 6.652 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.156 | 0.109 | 0.367 | 1.690 | 0.402 | -76.2% |
| Dividends | | | | 7.000 | 6.000 | -14.3% |
Ratios
|
|---|
| Revenue growth | -3.1% | 6.8% | 55.2% | 100.9% | 12.2% | |
| EBITDA growth | -8.6% | -6.2% | 46.2% | 174.0% | 24.1% | |
|
|---|
| EBITDA Margin | 23.7% | 20.8% | 19.6% | 26.7% | 29.5% | 2.8% |
| EBIT Margin | | | | 23.6% | 25.5% | 2.0% |
| SBC, % of revenue | | | | 2.8% | 1.6% | -1.2% |
| Net Income Margin | 18.4% | 19.8% | 23.5% | 17.4% | 21.5% | 4.2% |
| CAPEX, % of revenue | 0.8% | 0.5% | 1.1% | 2.6% | 0.5% | -2.0% |
|
|---|
| ROIC | 16.1% | 15.0% | 19.7% | 30.7% | 28.8% | -1.9% |
| ROE | 14.3% | 15.9% | 24.6% | 25.8% | 27.4% | 1.6% |
| Net Debt/EBITDA | -0.5x | -0.6x | -2.0x | -0.3x | -0.5x | -0.2x |
People
|
|---|
| Insider ownership | | | | 16.3% | 16.3% | 0.0% |
| Employees | | | | 137 | 151 | 10.2% |
| Revenue/Employee, th. £ | | | | 479 | 488 | 1.8% |
Peers in Financial Services
Below you can find Impax Asset Management 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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Polo Resources Ltd ($POL) | | | -93.4% | 308.5% | |
| Plus500 Ltd ($PLUS) | 20.4% | 19.0% | 33.3% | 64.8% | |
| Afh Financial Group ($AFHP) | 39.5% | 15.0% | 39.4% | 50.6% | |
| S & U ($46IE) | -40.6% | 25.2% | 33.9% | 31.8% | |
| Real Estate Credit Investments Pcc ($RECP) | 47.3% | -29.8% | 4.0% | 30.7% | |
| |
|---|
| Median (18 companies) | 2.7% | 5.0% | 12.3% | 17.1% | 36.2% |
|---|
| Impax Asset Management Group ($IPX) | | 6.8% | 55.2% | 100.9% | 12.2% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Record ($REC) | 99.3% | 99.0% | 98.8% | 98.7% | |
| First Property Group ($FPO) | 83.0% | 80.6% | 78.6% | 76.3% | |
| Walker Crips Group ($WCW) | 66.7% | 67.7% | 69.8% | 67.2% | |
| Afh Financial Group ($AFHP) | 52.3% | 55.4% | 53.4% | 54.4% | |
| S & U ($46IE) | 65.3% | 63.3% | 58.6% | 53.8% | |
| |
|---|
| Median (8 companies) | 52.5% | 59.3% | 51.4% | 54.1% | |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Real Estate Credit Investments Pcc ($RECP) | 80.3% | 79.3% | 79.5% | 81.8% | |
| Plus500 Ltd ($PLUS) | 48.2% | 46.0% | 59.3% | 70.2% | |
| Hargreaves Lansdown ($HL.) | 51.2% | 57.5% | 69.3% | 66.8% | |
| First Property Group ($FPO) | 42.9% | 52.2% | 57.4% | 52.9% | |
| S & U ($46IE) | 47.2% | 48.0% | 44.8% | 41.7% | |
| |
|---|
| Median (16 companies) | 16.9% | 17.2% | 22.8% | 22.2% | 155.6% |
|---|
| Impax Asset Management Group ($IPX) | 23.7% | 20.8% | 19.6% | 26.7% | 29.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| First Property Group ($FPO) | 0.1% | 6.4% | 8.5% | 9.4% | |
| Walker Crips Group ($WCW) | 2.5% | 0.9% | 1.7% | 5.4% | |
| Mxc Capital ($MXCP) | 0.5% | 4.9% | 0.0% | 4.7% | 0.2% |
| Commercial Bank Of Qatar(The) ($CBQS) | 3.9% | 3.3% | 1.8% | 3.8% | |
| Hargreaves Lansdown ($HL.) | 0.7% | 0.7% | 1.2% | 1.5% | |
| |
|---|
| Median (17 companies) | 1.0% | 1.0% | 1.0% | 1.0% | 0.4% |
|---|
| Impax Asset Management Group ($IPX) | 0.8% | 0.5% | 1.1% | 2.6% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Plus500 Ltd ($PLUS) | 116.5% | 118.9% | 143.2% | 196.2% | |
| Hargreaves Lansdown ($HL.) | 87.5% | 90.0% | 93.3% | 82.4% | |
| Fulcrum Utility Services Ld ($FCRM) | | 347.2% | 103.4% | 29.9% | |
| Record ($REC) | 20.2% | 18.5% | 20.7% | 22.0% | |
| Numis Corp ($NUM) | 22.3% | 25.2% | 26.3% | 20.5% | 7.7% |
| |
|---|
| Median (24 companies) | 7.6% | 7.5% | 8.5% | 5.8% | 8.3% |
|---|
| Impax Asset Management Group ($IPX) | 16.1% | 15.0% | 19.7% | 30.7% | 28.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| First Property Group ($FPO) | 12.3x | 9.4x | 7.6x | 7.7x | |
| S & U ($46IE) | 3.1x | 0.5x | 1.8x | 3.2x | |
| Leeds Group ($LDSG) | -0.3x | 1.4x | 2.6x | 2.5x | |
| Hargreaves Lansdown ($HL.) | -1.1x | -0.9x | -0.3x | -0.4x | |
| Real Estate Credit Investments Pcc ($RECP) | -0.5x | -0.4x | -2.0x | -0.6x | |
| |
|---|
| Median (13 companies) | -1.2x | -1.4x | -1.3x | -0.9x | -3.8x |
|---|
| Impax Asset Management Group ($IPX) | -0.5x | -0.6x | -2.0x | -0.3x | -0.5x |
