Caledonian Trust reports 78.1 pp EBITDA Margin decline from 317% to 238% in 2019 in 2019 and 4.3% Revenue decline
18 Dec 2019 • About Caledonian Trust (
$CNN) • By InTwits
Caledonian Trust reported FY2019 financial results today. Here are the key drivers of the company's long term financial model: The company has business model with low profitability: ROIC is 7.6%.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased on 4.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.95 pp from 5.5% to 6.4% in FY2019.
Gross Margin dropped on 22.0 pp from 74.8% to 52.8% in FY2019. SG&A as a % of Revenue jumped on 15.2 pp from 70.5% to 85.7% in FY2019.
Net Income margin dropped on 79.6 pp from 313% to 234% in FY2019.
Investments (CAPEX, working capital and M&A)
In FY2019 the company had CAPEX/Revenue of 0.45%. Caledonian Trust showed almost no change in CAPEX/Revenue from FY2016 to FY2019. For the last three years the average CAPEX/Revenue was 0.80%.
Return on investment
The company operates at low ROIC (7.6%) and ROE (9.0%). ROIC decreased on 4.1 pp from 11.7% to 7.6% in FY2019. ROE decreased on 5.1 pp from 14.1% to 9.0% in FY2019.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.4x Debt / EBITDA. Net Debt / EBITDA jumped on 0.9x from 1.4x to 2.3x in FY2019. Debt surged on 11.8% while cash dropped on 71.0%.
Caledonian Trust has short term refinancing risk: cash is only 14.9% of short term debt.
Valuation and dividends
Caledonian Trust's trades at EV/EBITDA 11.7x and P/E 9.6x.
Financial and operational results
FY ended 30 Jun 2019
Caledonian Trust ($CNN) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 0.744 | 0.789 | 0.555 | 0.921 | 0.881 | -4.3% |
| Gross Profit | | 0.398 | 0.447 | 0.689 | 0.465 | -32.5% |
| SG&A | | 0.635 | 0.611 | 0.649 | 0.755 | 16.3% |
| EBITDA | | 0.137 | 1.060 | 2.916 | 2.101 | -27.9% |
| Net Income | | 0.105 | 1.040 | 2.886 | 2.059 | -28.7% |
Balance Sheet
|
|---|
| Cash | | 0.103 | 0.055 | 0.451 | 0.131 | -71.0% |
| Short Term Debt | | 0.000 | 0.360 | 0.360 | 0.881 | 144.7% |
| Long Term Debt | | 3.630 | 3.925 | 4.070 | 4.070 | 0.0% |
Cash flow
|
|---|
| Capex | | 0.002 | 0.009 | 0.003 | 0.004 | 33.3% |
Ratios
|
|---|
| Revenue growth | -12.0% | 6.0% | -29.7% | 65.9% | -4.3% | |
| EBITDA growth | | | 673.7% | 175.1% | -27.9% | |
|
|---|
| Gross Margin | | 50.4% | 80.5% | 74.8% | 52.8% | -22.0% |
| EBITDA Margin | | 17.4% | 191.0% | 316.6% | 238.5% | -78.1% |
| SG&A, % of revenue | | 80.5% | 110.1% | 70.5% | 85.7% | 15.2% |
| Net Income Margin | | 13.3% | 187.4% | 313.4% | 233.7% | -79.6% |
| CAPEX, % of revenue | | 0.3% | 1.6% | 0.3% | 0.5% | 0.1% |
|
|---|
| ROIC | | 0.6% | 4.7% | 11.7% | 7.6% | -4.1% |
| ROE | | 0.6% | 5.6% | 14.1% | 9.0% | -5.1% |
| Net Debt/EBITDA | | 25.7x | 4.0x | 1.4x | 2.3x | 0.9x |
Peers in Real Estate Investment & Services
Below we provide Caledonian Trust benchmarking against other companies in Real Estate Investment & Services 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 |
|---|
| Development Securities ($DSC) | 156.8% | 18.9% | -48.8% | 40.1% | |
| St.Modwen Properties ($SMP) | 7.9% | 0.1% | 10.7% | 36.9% | |
| Hml Hldgs ($HMLH) | 16.7% | 7.8% | 12.6% | 24.2% | |
| Safestore Hldgs ($SAFE) | 7.0% | 10.1% | 12.6% | 10.8% | |
| Formation Group ($FRM) | 199.3% | 23.8% | 25.8% | 4.4% | |
| |
|---|
| Median (7 companies) | 7.0% | 8.9% | 11.7% | 10.8% | |
|---|
| Caledonian Trust ($CNN) | | 6.0% | -29.7% | 65.9% | -4.3% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Damac Real Estate Development Ltd ($DMC) | 59.4% | 55.9% | 48.8% | 34.6% | |
| Safeland ($SAF) | 26.9% | 33.7% | 18.9% | 10.5% | |
| Formation Group ($FRM) | 6.3% | 9.9% | 5.9% | 2.5% | |
| |
|---|
| Median (3 companies) | 34.5% | 41.1% | 28.3% | 10.5% | |
|---|
| Caledonian Trust ($CNN) | | 50.4% | 80.5% | 74.8% | 52.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Safestore Hldgs ($SAFE) | 128.4% | 95.1% | 84.8% | 137.7% | |
| Safeland ($SAF) | 65.8% | 28.0% | 15.2% | 94.0% | |
| St.Modwen Properties ($SMP) | 47.8% | 32.8% | 28.6% | 21.3% | |
| Damac Real Estate Development Ltd ($DMC) | 53.5% | 52.2% | 38.5% | 20.8% | |
| Development Securities ($DSC) | 20.3% | 12.3% | 1.7% | 19.5% | |
| |
|---|
| Median (7 companies) | 25.8% | 32.8% | 20.8% | 20.8% | |
|---|
| Caledonian Trust ($CNN) | | 17.4% | 191.0% | 316.6% | 238.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| St.Modwen Properties ($SMP) | 55.8% | 31.3% | 19.3% | 25.8% | |
| Safestore Hldgs ($SAFE) | 7.2% | 24.5% | 16.7% | 19.2% | |
| Hml Hldgs ($HMLH) | 3.1% | 1.5% | 1.5% | 1.6% | |
| Safeland ($SAF) | 19.5% | 0.5% | 1.1% | 1.5% | |
| Development Securities ($DSC) | 24.6% | 2.9% | 2.5% | 1.4% | |
| |
|---|
| Median (7 companies) | 7.2% | 1.5% | 1.7% | 1.5% | |
|---|
| Caledonian Trust ($CNN) | | 0.3% | 1.6% | 0.3% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Safestore Hldgs ($SAFE) | 17.8% | 12.1% | 10.3% | 16.5% | |
| Hml Hldgs ($HMLH) | 12.5% | 11.3% | 9.6% | 9.1% | |
| Safeland ($SAF) | 31.2% | 22.5% | 6.7% | 8.9% | |
| Damac Real Estate Development Ltd ($DMC) | 41.5% | 24.5% | 16.0% | 6.5% | |
| St.Modwen Properties ($SMP) | 10.7% | 6.3% | 5.9% | 6.3% | |
| |
|---|
| Median (9 companies) | 5.1% | 6.9% | 7.1% | 6.5% | |
|---|
| Caledonian Trust ($CNN) | | 0.6% | 4.7% | 11.7% | 7.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Development Securities ($DSC) | 3.5x | 5.7x | 70.8x | 3.9x | |
| Safeland ($SAF) | 1.2x | 1.3x | 1.2x | 3.4x | |
| St.Modwen Properties ($SMP) | 3.7x | 5.5x | 5.4x | 3.0x | |
| Safestore Hldgs ($SAFE) | 2.1x | 3.4x | 3.2x | 2.1x | |
| Hml Hldgs ($HMLH) | 0.4x | 0.5x | 1.3x | 0.6x | |
| |
|---|
| Median (6 companies) | 4.4x | 4.5x | 3.4x | 2.5x | |
|---|
| Caledonian Trust ($CNN) | | 25.7x | 4.0x | 1.4x | 2.3x |
