Stock Spirits Group reports 14.8% Net Income decline in 2019 and 4.5 pp EBITDA Margin decline from 21.0% to 16.5%
04 Dec 2019 • About Stock Spirits Group (
$STCK) • By InTwits
Stock Spirits Group reported FY2019 financial results today. Here are the key drivers of the company's long term financial model: The company has business model with low profitability: ROIC is 8.0%.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Stock Spirits Group's Revenue surged on 10.6%. Revenue decline was slowing down on average by 4.5 pp per annum in the last 5 years. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 4.5 pp from 21.0% to 16.5% in FY2019.
Gross Margin decreased slightly on 1.6 pp from 48.9% to 47.3% in FY2019. Gross Margin stuck to a declining trend at -1.4 pp per annum in FY2015-FY2019. SG&A as a % of Revenue decreased slightly on 1.3 pp from 31.1% to 29.7% in FY2019.
Net Income margin decreased on 2.7 pp from 11.8% to 9.1% in FY2019. The efficient tax rate was 25.9% in FY2019.
Investments (CAPEX, working capital and M&A)
Stock Spirits Group's CAPEX/Revenue was 2.7% in FY2019. CAPEX/Revenue showed almost no change from FY2016 to FY2019.
Inventories as a % of Revenue increased on 2.9 pp from 10.9% to 13.8% in FY2019.
Stock Spirits Group has spent €32m on M&A in FY2019 which accounts for 10.2% of revenue.
Return on investment
The company operates at low ROIC (8.0%) and ROE (7.9%). ROIC decreased slightly on 1.8 pp from 9.9% to 8.0% in FY2019. ROE decreased slightly on 1.5 pp from 9.4% to 7.9% in FY2019.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA surged on 0.3x from 0.5x to 0.8x in FY2019. Debt jumped on 29.7% while cash surged on 26.5%.
Stock Spirits Group has good short term financial stability: Interest coverage ratio (ICR) is 12.2x. Stock Spirits Group has no short term refinancing risk: cash is higher than short term debt (3,171,850.0%).
Average interest expence paid by the company was 3.3% in FY2019.
Valuation and dividends
Stock Spirits Group's trades at EV/EBITDA 8.6x and P/E 14.1x.
The company paid 60.0% of Net Income as dividends in FY2019.
Management team
The company has 0.12% shares owned by insiders. Insider ownership didn't change in 2019.
Financial and operational results
FY ended 30 Sep 2019
Stock Spirits Group ($STCK) key annual financial indicators| mln. € | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 262.6 | 261.0 | 274.6 | 282.4 | 312.4 | 10.6% |
| Gross Profit | 140.6 | 132.3 | 137.2 | 138.2 | 147.8 | 7.0% |
| SG&A | 63.0 | | | 87.8 | 92.9 | 5.9% |
| EBITDA | 52.7 | 51.4 | 56.3 | 59.4 | 51.5 | -13.2% |
| EBIT | | | | 49.1 | 42.8 | -12.8% |
| Interest expence | | | | | 3.5 | |
| Tax | | | | 12.3 | 9.9 | -19.6% |
| Net Income | 19.4 | 28.4 | 11.3 | 33.2 | 28.3 | -14.8% |
| Stock Based Compensation | | | | | 2.5 | |
Balance Sheet
|
|---|
| Cash | 75.8 | 75.0 | 61.3 | 50.1 | 63.4 | 26.5% |
| Inventory | | | | 30.7 | 43.1 | 40.2% |
| Short Term Debt | 0.2 | 0.2 | 0.1 | 0.0 | 0.0 | -87.5% |
| Long Term Debt | 132.6 | 134.3 | 116.6 | 81.3 | 105.4 | 29.7% |
Cash flow
|
|---|
| Capex | 7.2 | 6.7 | 3.7 | | 8.6 | |
| Dividends | | | | | 17.0 | |
| Acquisitions | | | | | 31.8 | |
Ratios
|
|---|
| Revenue growth | -10.3% | -0.6% | 5.2% | 2.8% | 10.6% | |
| EBITDA growth | -18.5% | -2.6% | 9.7% | 5.4% | -13.2% | |
|
|---|
| Gross Margin | 53.5% | 50.7% | 50.0% | 48.9% | 47.3% | -1.6% |
| EBITDA Margin | 20.1% | 19.7% | 20.5% | 21.0% | 16.5% | -4.5% |
| EBIT Margin | | | | 17.4% | 13.7% | -3.7% |
| SG&A, % of revenue | 24.0% | | | 31.1% | 29.7% | -1.3% |
| SBC, % of revenue | | | | | 0.8% |
| Net Income Margin | 7.4% | 10.9% | 4.1% | 11.8% | 9.1% | -2.7% |
| CAPEX, % of revenue | 2.8% | 2.6% | 1.4% | | 2.7% | |
|
|---|
| ROIC | 7.9% | 7.6% | 8.7% | 9.9% | 8.0% | -1.8% |
| ROE | 5.5% | 8.0% | 3.2% | 9.4% | 7.9% | -1.5% |
| Net Debt/EBITDA | 1.1x | 1.2x | 1.0x | 0.5x | 0.8x | 0.3x |
| Interest expence / Average debt | | | | | 3.3% | |
People
|
|---|
| Insider ownership | | | | 0.1% | 0.1% | 0.0% |
Peers in Beverages
Below we provide Stock Spirits Group benchmarking against other companies in Beverages industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Coca-Cola Hbc Ag ($CCH) | -2.5% | -2.0% | 4.9% | 2.1% | |
| C&C Group ($CCR) | 10.3% | -3.1% | -10.0% | -8.1% | |
| |
|---|
| Median (2 companies) | 3.9% | -2.6% | -2.6% | -3.0% | |
|---|
| Stock Spirits Group ($STCK) | | -0.6% | 5.2% | 2.8% | 10.6% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Coca-Cola Hbc Ag ($CCH) | 36.7% | 37.0% | 37.4% | 37.8% | |
| |
|---|
| Median (1 company) | 36.7% | 37.0% | 37.4% | 37.8% | |
|---|
| Stock Spirits Group ($STCK) | 53.5% | 50.7% | 50.0% | 48.9% | 47.3% |
Top companies by EBITDA margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| C&C Group ($CCR) | -4.9% | 12.7% | -6.7% | 17.0% | |
| Coca-Cola Hbc Ag ($CCH) | 11.5% | 13.1% | 13.7% | 14.2% | |
| |
|---|
| Median (2 companies) | 3.3% | 12.9% | 3.5% | 15.6% | |
|---|
| Stock Spirits Group ($STCK) | 20.1% | 19.7% | 20.5% | 21.0% | 16.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Coca-Cola Hbc Ag ($CCH) | 5.2% | 5.6% | 6.3% | 6.6% | |
| C&C Group ($CCR) | 3.2% | 1.5% | 3.8% | 2.6% | |
| |
|---|
| Median (2 companies) | 4.2% | 3.5% | 5.0% | 4.6% | |
|---|
Top companies by ROIC, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Coca-Cola Hbc Ag ($CCH) | 8.6% | 10.8% | 12.5% | 13.0% | |
| C&C Group ($CCR) | -5.1% | 6.0% | -5.7% | 8.7% | |
| |
|---|
| Median (2 companies) | 1.7% | 8.4% | 3.4% | 10.8% | |
|---|
| Stock Spirits Group ($STCK) | 7.9% | 7.6% | 8.7% | 9.9% | 8.0% |
Top companies by Net Debt / EBITDA
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| C&C Group ($CCR) | | 1.9x | | 2.5x | |
| Coca-Cola Hbc Ag ($CCH) | 1.7x | 1.3x | 1.0x | 0.9x | |
| |
|---|
| Median (2 companies) | 1.7x | 1.6x | 1.0x | 1.7x | |
|---|
| Stock Spirits Group ($STCK) | 1.1x | 1.2x | 1.0x | 0.5x | 0.8x |
