Wynnstay Group EBITDA dropped on 12.8% and EBITDA Margin showed almost no change
22 Jan 2020 • About Wynnstay Group (
$WYN) • By InTwits
Wynnstay Group reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 2.2% in FY2019 vs. 2.7% in FY2018 vs. 2.9% in FY2015
- Wynnstay Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has business model with low profitability: ROIC is 7.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Wynnstay Group's Revenue increased on 6.0%. During FY2015-FY2019 Revenue growth topped in FY2018 at 18.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.0 pp from 70.2% to 54.2% in FY2019. EBITDA Margin declined at -0.14 pp per annum in FY2015-FY2019.
Gross Margin decreased slightly on 0.70 pp from 13.3% to 12.6% in FY2019. During the last 5 years Gross Margin topped in FY2016 at 15.6% and was declining since that time. SG&A as a % of Revenue showed almost no change in FY2019.
Net Income margin showed almost no change in FY2019.
Investments (CAPEX, working capital and M&A)
In FY2019 Wynnstay Group had CAPEX/Revenue of 0.49%. The company showed almost no change in CAPEX/Revenue from FY2016 to FY2019. It's average level of CAPEX/Revenue for the last three years was 0.50%. During the last 5 years CAPEX as a % of Revenue topped in FY2016 at 0.75% and was declining since that time.
Return on investment
The company operates at low ROIC (7.3%) and ROE (6.6%). ROIC decreased on 2.6 pp from 9.9% to 7.3% in FY2019. ROE decreased on 2.1 pp from 8.7% to 6.6% in FY2019.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 0.6x. Debt dropped on 11.6% while cash surged on 58.9%.
Wynnstay Group has no short term refinancing risk: cash is higher than short term debt (287.8%).
Valuation and dividends
Wynnstay Group's trades at EV/EBITDA 4.4x and P/E 8.5x.
Financial and operational results
FY ended 30 Nov -0001
Wynnstay Group ($WYN) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 377.4 | 368.1 | 390.7 | 462.7 | 490.6 | 6.0% |
| Gross Profit | 55.5 | 57.4 | 52.9 | 61.7 | 62.0 | 0.4% |
| SG&A | 4.7 | 4.9 | 5.3 | 5.9 | 6.4 | 9.1% |
| EBITDA | 11.1 | 10.1 | 10.3 | 12.6 | 11.0 | -12.8% |
| Net Income | 6.7 | 5.8 | -0.3 | 7.7 | 6.1 | -20.4% |
Balance Sheet
|
|---|
| Cash | 9.8 | 10.1 | 8.9 | 6.7 | 10.6 | 58.9% |
| Short Term Debt | 3.6 | 2.6 | 2.5 | 3.9 | 3.7 | -5.2% |
| Long Term Debt | 4.0 | 3.2 | 1.9 | 3.8 | 3.1 | -18.3% |
Cash flow
|
|---|
| Capex | 1.8 | 2.7 | 2.0 | 2.3 | 2.4 | 4.4% |
Ratios
|
|---|
| Revenue growth | -8.7% | -2.4% | 6.1% | 18.4% | 6.0% | |
| EBITDA growth | 3.6% | -8.8% | 1.5% | 22.4% | -12.8% | |
|
|---|
| Gross Margin | 14.7% | 15.6% | 13.5% | 13.3% | 12.6% | -0.7% |
| EBITDA Margin | 2.9% | 2.8% | 2.6% | 2.7% | 2.2% | -0.5% |
| SG&A, % of revenue | 1.2% | 1.3% | 1.4% | 1.3% | 1.3% | 0.0% |
| Net Income Margin | 1.8% | 1.6% | -0.1% | 1.7% | 1.2% | -0.4% |
| CAPEX, % of revenue | 0.5% | 0.7% | 0.5% | 0.5% | 0.5% | -0.0% |
|
|---|
| ROIC | 9.7% | 8.0% | 8.3% | 9.9% | 7.3% | -2.6% |
| ROE | 8.3% | 6.9% | -0.3% | 8.7% | 6.6% | -2.1% |
| Net Debt/EBITDA | -0.2x | -0.4x | -0.4x | 0.1x | -0.3x | -0.4x |
Peers in Food Producers
Below we provide Wynnstay Group benchmarking against other companies in Food Producers 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 |
|---|
| Real Good Food ($RGD) | -5.1% | -4.0% | 7.3% | 20.5% | |
| Carr'S Milling Industries ($CRM) | -22.8% | -4.9% | 9.9% | 16.5% | |
| Zambeef Products ($ZAM) | | 52.8% | 2.5% | 14.2% | 12.7% |
| Cherkizovo Group OJSC ($CHE) | 11.1% | 7.0% | 9.8% | 11.0% | |
| Origin Enterprises ($OGN) | 3.0% | 4.3% | 0.5% | 6.5% | |
| |
|---|
| Median (10 companies) | 1.3% | 0.6% | 7.3% | 4.8% | 6.6% |
|---|
| Wynnstay Group ($WYN) | | -2.4% | 6.1% | 18.4% | 6.0% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Unilever ($ULVR) | 42.2% | 42.7% | 43.1% | 43.6% | |
| Produce Investments ($PIL) | 36.4% | 37.9% | 35.7% | 37.8% | |
| Zambeef Products ($ZAM) | 43.2% | 36.3% | 32.9% | 35.0% | 34.2% |
| Cherkizovo Group OJSC ($CHE) | 24.9% | 21.7% | 26.0% | 25.0% | |
| Tongaat Hulett Ltd ($THL) | 22.4% | 19.9% | 22.9% | 20.6% | 27.1% |
| |
|---|
| Median (9 companies) | 24.9% | 26.8% | 26.0% | 20.6% | 30.6% |
|---|
| Wynnstay Group ($WYN) | 14.7% | 15.6% | 13.5% | 13.3% | 12.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Unilever ($ULVR) | 16.8% | 18.0% | 19.8% | 28.1% | |
| Cherkizovo Group OJSC ($CHE) | 14.7% | 12.0% | 16.7% | 21.6% | |
| Tongaat Hulett Ltd ($THL) | 16.5% | 17.5% | 19.3% | 17.5% | 10.9% |
| Tate & Lyle ($BD15) | 6.1% | 10.3% | 13.9% | 16.4% | |
| Kerry Group ($KYGA) | 13.8% | 13.0% | 12.3% | 13.3% | |
| |
|---|
| Median (11 companies) | 13.8% | 11.2% | 13.7% | 8.1% | 10.0% |
|---|
| Wynnstay Group ($WYN) | 2.9% | 2.8% | 2.6% | 2.7% | 2.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Tongaat Hulett Ltd ($THL) | 5.0% | 10.9% | 6.0% | 12.1% | 6.4% |
| Cherkizovo Group OJSC ($CHE) | 12.2% | 10.4% | 10.9% | 9.1% | |
| Real Good Food ($RGD) | 1.4% | 6.4% | 10.0% | 8.4% | |
| Zambeef Products ($ZAM) | 15.9% | 2.1% | 6.4% | 5.4% | 3.6% |
| Kerry Group ($KYGA) | 4.1% | 3.7% | 4.7% | 4.5% | |
| |
|---|
| Median (11 companies) | 5.0% | 5.0% | 4.7% | 4.1% | 5.0% |
|---|
| Wynnstay Group ($WYN) | 0.5% | 0.7% | 0.5% | 0.5% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Unilever ($ULVR) | 26.0% | 24.3% | 24.6% | 31.6% | |
| Tate & Lyle ($BD15) | 1.8% | 7.2% | 12.1% | 14.4% | |
| Cherkizovo Group OJSC ($CHE) | 8.9% | 5.6% | 10.2% | 13.3% | |
| Origin Enterprises ($OGN) | 20.1% | 15.3% | 11.1% | 13.0% | |
| Kerry Group ($KYGA) | 15.8% | 12.8% | 11.9% | 11.3% | |
| |
|---|
| Median (13 companies) | 8.9% | 8.0% | 8.1% | 8.4% | 7.8% |
|---|
| Wynnstay Group ($WYN) | 9.7% | 8.0% | 8.3% | 9.9% | 7.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Cherkizovo Group OJSC ($CHE) | 3.1x | 3.8x | 3.2x | 2.7x | |
| Tongaat Hulett Ltd ($THL) | 1.8x | 2.1x | 1.5x | 2.3x | 5.6x |
| Zambeef Products ($ZAM) | 3.0x | 2.1x | 4.0x | 2.0x | 2.7x |
| Kerry Group ($KYGA) | 2.2x | 1.9x | 1.8x | 2.0x | |
| Unilever ($ULVR) | 1.4x | 1.4x | 2.0x | 1.5x | |
| |
|---|
| Median (8 companies) | 1.8x | 1.8x | 2.0x | 1.7x | 4.2x |
|---|
| Wynnstay Group ($WYN) | -0.2x | -0.4x | -0.4x | 0.1x | -0.3x |
