Numis Corp reports 65.0% Net Income decline in 2019 and 18.0% Revenue decline
04 Dec 2019 • About Numis Corp (
$NUM) • By InTwits
Numis Corp reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Numis Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 1.7%
- CAPEX is quite volatile: £1m in FY2019, £1m in FY2018, £0m in FY2017, £0m in FY2016, £4m in FY2015
- The company has business model with low profitability: ROIC is 7.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Numis Corp's Revenue dropped on 18.0%. During the last 5 years Revenue growth topped in FY2017 at 15.8% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 12.3 pp from 24.0% to 11.7% in FY2019. During the last 5 years EBITDA Margin topped in FY2017 at 30.3% and was declining since that time.
SG&A as a % of Revenue increased on 9.2 pp from 78.2% to 87.4% in FY2019. SG&A as a % of Revenue grew at 3.5 pp per annum in FY2015-FY2019. Stock Based Compensation (SBC) as a % of Revenue increased slightly on 2.0 pp from 7.8% to 9.8% in FY2019.
Net Income margin dropped on 11.3 pp from 19.6% to 8.4% in FY2019. During FY2015-FY2019 Net Income margin topped in FY2016 at 23.5% and was declining since that time. The efficient tax rate was 25.0% in FY2019.
Investments (CAPEX, working capital and M&A)
In FY2019 the company had CAPEX/Revenue of 0.64%. Numis Corp showed almost no change in CAPEX/Revenue from FY2016 to FY2019. It's average level of CAPEX/Revenue for the last three years was 0.66%.
Inventories as a % of Revenue increased on 7.3 pp from 5.8% to 13.1% in FY2019.
Return on investment
The company operates at low ROIC (7.7%) and ROE (6.6%). ROIC dropped on 12.8 pp from 20.5% to 7.7% in FY2019. ROE dropped on 12.6 pp from 19.3% to 6.6% in FY2019. During FY2015-FY2019 ROIC topped in FY2017 at 26.3% and was declining since that time. During FY2015-FY2019 ROE topped in FY2017 at 23.1% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is -5.4x and Debt / EBITDA is 1.1x. Debt decreased on 3.3% while cash dropped on 24.6%.
Numis Corp has no short term refinancing risk: cash is higher than short term debt (594.9%).
Valuation and dividends
The company's trades at EV/EBITDA 15.2x and P/E 28.8x.
The company paid 139.4% of Net Income as dividends in FY2019.
Management team
Insider ownership is 7.4%. Insider ownership didn't change in 2019.
The company has 276 employees. The number of employees increased slightly on 1.1%. Average revenue per employee in FY2019 was £404,384 and it dropped on 18.9%.
Financial and operational results
FY ended 30 Sep 2019
Numis Corp ($NUM) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 98.0 | 112.3 | 130.1 | 136.0 | 111.6 | -18.0% |
| SG&A | 70.1 | 83.6 | 95.4 | 106.3 | 97.5 | -8.3% |
| EBITDA | 27.4 | 33.7 | 39.4 | 32.6 | 13.1 | -59.9% |
| EBIT | | | | 31.4 | 11.9 | -62.2% |
| Interest expence | | | | 0.0 | | |
| Tax | | | | 5.0 | 3.1 | -37.4% |
| Net Income | 21.5 | 26.4 | 30.4 | 26.7 | 9.3 | -65.0% |
| Stock Based Compensation | | | | 10.6 | 10.9 | 3.1% |
Balance Sheet
|
|---|
| Cash | 59.6 | 89.0 | 95.9 | 111.7 | 84.2 | -24.6% |
| Inventory | | | | 7.9 | 14.6 | 85.2% |
| Short Term Debt | 6.9 | 12.3 | 19.9 | 14.6 | 14.2 | -3.3% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 3.9 | 0.3 | 0.5 | 1.3 | 0.7 | -45.7% |
| Dividends | | | | 13.0 | 13.0 | 0.0% |
Ratios
|
|---|
| Revenue growth | 5.5% | 14.6% | 15.8% | 4.6% | -18.0% | |
| EBITDA growth | 12.7% | 22.9% | 16.9% | -17.4% | -59.9% | |
|
|---|
| EBITDA Margin | 28.0% | 30.0% | 30.3% | 24.0% | 11.7% | -12.3% |
| EBIT Margin | | | | 23.1% | 10.6% | -12.5% |
| SG&A, % of revenue | 71.6% | 74.4% | 73.3% | 78.2% | 87.4% | 9.2% |
| SBC, % of revenue | | | | 7.8% | 9.8% | 2.0% |
| Net Income Margin | 22.0% | 23.5% | 23.3% | 19.6% | 8.4% | -11.3% |
| CAPEX, % of revenue | 4.0% | 0.3% | 0.4% | 1.0% | 0.6% | -0.3% |
|
|---|
| ROIC | 22.3% | 25.2% | 26.3% | 20.5% | 7.7% | -12.8% |
| ROE | 19.1% | 21.6% | 23.1% | 19.3% | 6.6% | -12.6% |
| Net Debt/EBITDA | -1.9x | -2.3x | -1.9x | -3.0x | -5.4x | -2.4x |
| Interest expence / Average debt | | | | 0.1% | | |
People
|
|---|
| Insider ownership | | | | 7.4% | 7.4% | 0.0% |
| Employees | | | | 273 | 276 | 1.1% |
| Revenue/Employee, th. £ | | | | 498 | 404 | -18.9% |
Peers in Financial Services
Below you can find Numis Corp 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 ($POL) | | | -93.4% | 308.5% | |
| Impax Asset Management Group ($IPX) | | 6.8% | 55.2% | 100.9% | 12.2% |
| 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 ($46IE) | -40.6% | 25.2% | 33.9% | 31.8% | |
| |
|---|
| Median (18 companies) | 2.7% | 5.0% | 12.3% | 18.3% | 36.2% |
|---|
| Numis Corp ($NUM) | | 14.6% | 15.8% | 4.6% | -18.0% |
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 ($46IE) | 47.2% | 48.0% | 44.8% | 41.7% | |
| |
|---|
| Median (16 companies) | 16.9% | 17.2% | 20.9% | 23.6% | 164.5% |
|---|
| Numis Corp ($NUM) | 28.0% | 30.0% | 30.3% | 24.0% | 11.7% |
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% | |
| Impax Asset Management Group ($IPX) | 0.8% | 0.5% | 1.1% | 2.6% | 0.5% |
| |
|---|
| Median (17 companies) | 0.8% | 1.0% | 1.0% | 1.0% | 0.3% |
|---|
| Numis Corp ($NUM) | 4.0% | 0.3% | 0.4% | 1.0% | 0.6% |
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% | |
| Impax Asset Management Group ($IPX) | 16.1% | 15.0% | 19.7% | 30.7% | 28.8% |
| Fulcrum Utility Services Ld ($FCRM) | | 347.2% | 103.4% | 29.9% | |
| Record ($REC) | 20.2% | 18.5% | 20.7% | 22.0% | |
| |
|---|
| Median (24 companies) | 7.6% | 7.5% | 8.5% | 5.8% | 14.3% |
|---|
| Numis Corp ($NUM) | 22.3% | 25.2% | 26.3% | 20.5% | 7.7% |
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 | |
| Impax Asset Management Group ($IPX) | -0.5x | -0.6x | -2.0x | -0.3x | -0.5x |
| Hargreaves Lansdown ($HL.) | -1.1x | -0.9x | -0.3x | -0.4x | |
| |
|---|
| Median (13 companies) | -1.1x | -1.0x | -1.3x | -0.6x | -1.4x |
|---|
| Numis Corp ($NUM) | -1.9x | -2.3x | -1.9x | -3.0x | -5.4x |
