Mysale Group reports 1,087% EBITDA decline in 2019 and 28.6% Revenue decline
05 Dec 2019 • About Mysale Group (
$MYSL) • By InTwits
Mysale Group reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -24.3%
- Mysale Group spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2015-FY2019 is 0.0%. Average EBITDA Margin for the same period was -3.7%
- Mysale Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has unprofitable business model: ROIC is -106.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.7x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Mysale Group's Revenue dropped on 28.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 26.1 pp from 1.8% to -24.3% in FY2019. During the last 5 years EBITDA Margin topped in FY2017 at 2.0% and was declining since that time.
Gross Margin dropped on 20.4 pp from 29.3% to 8.9% in FY2019. During the last 5 years Gross Margin topped in FY2018 at 29.3%. SG&A as a % of Revenue increased on 4.1 pp from 29.3% to 33.5% in FY2019. SG&A as a % of Revenue stuck to a growing trend at 4.2 pp per annum in the last 5 years.
Net Income margin dropped on 33.2 pp from -0.018% to -33.2% in FY2019.
Investments (CAPEX, working capital and M&A)
In FY2019 Mysale Group had CAPEX/Revenue of 0.045%. CAPEX/Revenue showed almost no change from FY2016 to FY2019. It's average CAPEX/Revenue for the last three years was 0.26%.
Return on investment
The company operates at negative ROIC (-106.4%) and ROE (-168.5%). ROIC dropped on 105 pp from -1.9% to -106% in FY2019. ROE dropped on 168 pp from -0.068% to -169% in FY2019. During FY2015-FY2019 ROIC topped in FY2016 at 0.34% and was declining since that time.
Leverage (Debt)
Debt level is 2.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.2x from 1.2x to in FY2019. Debt jumped on 40.6% while cash dropped on 88.0%.
Mysale Group has short term refinancing risk: cash is only 4.4% of short term debt.
Financial and operational results
FY ended 30 Nov -0001
Mysale Group ($MYSL) key annual financial indicators| mln. AUD | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 235.9 | 252.3 | 268.4 | 292.2 | 208.6 | -28.6% |
| Gross Profit | 55.2 | 66.7 | 76.0 | 85.7 | 18.6 | -78.3% |
| SG&A | 32.2 | 68.6 | 70.9 | 85.8 | 69.8 | -18.6% |
| EBITDA | -11.1 | 4.6 | 5.3 | 5.1 | -50.8 | -1,086.5% |
| Net Income | -17.8 | -0.2 | -1.0 | -0.1 | -69.3 | |
Balance Sheet
|
|---|
| Cash | 39.9 | 34.0 | 19.0 | 6.8 | 0.8 | -88.0% |
| Short Term Debt | 1.2 | 6.5 | 10.0 | 13.0 | 18.4 | 41.2% |
| Long Term Debt | 0.1 | 0.0 | 0.1 | 0.1 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 1.0 | 0.8 | 1.2 | 0.8 | 0.1 | -88.8% |
Ratios
|
|---|
| Revenue growth | 5.1% | 7.0% | 6.4% | 8.9% | -28.6% | |
| EBITDA growth | -312.4% | -141.6% | 13.7% | -2.2% | -1,086.5% | |
|
|---|
| Gross Margin | 23.4% | 26.4% | 28.3% | 29.3% | 8.9% | -20.4% |
| EBITDA Margin | -4.7% | 1.8% | 2.0% | 1.8% | -24.3% | -26.1% |
| SG&A, % of revenue | 13.7% | 27.2% | 26.4% | 29.3% | 33.5% | 4.1% |
| Net Income Margin | -7.5% | -0.1% | -0.4% | -0.0% | -33.2% | -33.2% |
| CAPEX, % of revenue | 0.4% | 0.3% | 0.4% | 0.3% | 0.0% | -0.2% |
|
|---|
| ROIC | -19.0% | 0.3% | -0.0% | -1.9% | -106.4% | -104.5% |
| ROE | -21.4% | -0.2% | -1.3% | -0.1% | -168.5% | -168.4% |
| Net Debt/EBITDA | | -6.0x | -1.7x | 1.2x | |
Peers in General Retailers
Below we provide Mysale Group benchmarking against other companies in General Retailers 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 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| AO World ($AO.) | 23.8% | 25.7% | 17.0% | 13.6% | |
| Aa ($AA.) | 1.0% | -5.0% | -0.2% | 2.9% | |
| United Carpets Group ($UCG) | -4.4% | 6.1% | -0.8% | 2.5% | |
| Shoe Zone ($SHOE) | -3.5% | -4.2% | -1.3% | 1.8% | |
| Caffyns ($78GL) | 8.9% | 10.5% | -8.6% | 0.5% | |
| |
|---|
| Median (9 companies) | 2.6% | 0.1% | -1.3% | 0.5% | |
|---|
| Mysale Group ($MYSL) | | 7.0% | 6.4% | 8.9% | -28.6% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aa ($AA.) | 64.8% | 64.0% | 63.5% | 62.5% | |
| United Carpets Group ($UCG) | 64.3% | 63.8% | 61.2% | 61.5% | |
| French Connection Group ($FCCN) | 46.7% | 46.3% | 45.8% | 45.2% | |
| Lotte Shopping Co Ltd ($LOTS) | 30.6% | 32.6% | 42.0% | 42.1% | |
| Stanley Gibbons Group ($SGI) | 51.5% | 40.3% | 31.6% | 40.0% | |
| |
|---|
| Median (9 companies) | 36.2% | 37.3% | 42.0% | 40.0% | |
|---|
| Mysale Group ($MYSL) | 23.4% | 26.4% | 28.3% | 29.3% | 8.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aa ($AA.) | 37.9% | 37.4% | 37.6% | 39.4% | |
| Signet Jewelers Ltd ($SIG) | 12.7% | 13.4% | 14.9% | 12.5% | |
| Shoe Zone ($SHOE) | 8.4% | 8.5% | 8.1% | 9.0% | |
| United Carpets Group ($UCG) | 6.6% | 7.9% | 8.2% | 8.1% | |
| Lotte Shopping Co Ltd ($LOTS) | 6.3% | 7.2% | 7.8% | 7.5% | |
| |
|---|
| Median (9 companies) | 8.4% | 2.2% | 1.9% | 7.5% | |
|---|
| Mysale Group ($MYSL) | -4.7% | 1.8% | 2.0% | 1.8% | -24.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aa ($AA.) | 3.8% | 8.0% | 7.6% | 6.6% | |
| Signet Jewelers Ltd ($SIG) | 3.8% | 3.5% | 4.3% | 3.8% | |
| Lotte Shopping Co Ltd ($LOTS) | 3.8% | 5.0% | 4.9% | 3.4% | |
| Shoe Zone ($SHOE) | 1.1% | 2.0% | 3.3% | 3.2% | |
| United Carpets Group ($UCG) | 2.8% | 5.7% | 2.1% | 2.9% | |
| |
|---|
| Median (9 companies) | 2.3% | 2.0% | 2.7% | 2.9% | |
|---|
| Mysale Group ($MYSL) | 0.4% | 0.3% | 0.4% | 0.3% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aa ($AA.) | 34.9% | 32.0% | 30.8% | 32.3% | |
| Shoe Zone ($SHOE) | 30.0% | 30.6% | 30.7% | 31.7% | |
| United Carpets Group ($UCG) | 36.7% | 37.1% | 33.7% | 29.9% | |
| Signet Jewelers Ltd ($SIG) | 15.5% | 15.2% | 16.0% | 13.0% | |
| Caffyns ($78GL) | 37.3% | 10.4% | 7.1% | 5.5% | |
| |
|---|
| Median (11 companies) | 15.5% | 6.1% | 1.9% | 5.5% | |
|---|
| Mysale Group ($MYSL) | -19.0% | 0.3% | -0.0% | -1.9% | -106.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Aa ($AA.) | 7.9x | 8.0x | 7.6x | 7.0x | |
| Lotte Shopping Co Ltd ($LOTS) | 6.7x | 7.1x | 3.5x | 4.5x | |
| Caffyns ($78GL) | 0.7x | 2.2x | 2.2x | 4.0x | |
| Signet Jewelers Ltd ($SIG) | 1.7x | 1.4x | 1.4x | 0.6x | |
| Shoe Zone ($SHOE) | -1.0x | -1.1x | -0.9x | -1.1x | |
| |
|---|
| Median (6 companies) | -0.7x | 1.4x | 1.8x | 2.3x | |
|---|
| Mysale Group ($MYSL) | | -6.0x | -1.7x | 1.2x | |
