Crest Nicholson Hldgs Net Income dropped on 39.6% and Revenue decreased on 3.1%
28 Jan 2020 • About Crest Nicholson Hldgs (
$CRST) • By InTwits
Crest Nicholson Hldgs reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is declining: 10.8% in FY2019 vs. 16.4% in FY2018 vs. 20.4% in FY2015
- Crest Nicholson Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has business model with average profitability: ROIC is 11.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Crest Nicholson Hldgs's Revenue decreased on 3.1%. Revenue decline was accelerating on average at -7.6 pp per annum in FY2015-FY2019. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.6 pp from 16.4% to 10.8% in FY2019. EBITDA Margin followed a declining trend at -2.3 pp per annum in FY2015-FY2019.
Gross Margin decreased on 5.1 pp from 22.0% to 16.9% in FY2019. Gross Margin stuck to a declining trend at -2.6 pp per annum in FY2015-FY2019. SG&A as a % of Revenue showed almost no change in FY2019. During the last 5 years SG&A as a % of Revenue bottomed in FY2018 at 5.8%.
Net Income margin decreased on 4.6 pp from 12.2% to 7.6% in FY2019. During FY2015-FY2019 Net Income margin topped in FY2017 at 16.2% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2019 the company had CAPEX/Revenue of 0.35%. The company's CAPEX/Revenue showed almost no change from FY2016 to FY2019. It's average CAPEX/Revenue for the last three years was 0.27%.
Return on investment
The company operates at low ROIC (11.2%) and ROE (9.6%). ROIC decreased on 6.8 pp from 18.0% to 11.2% in FY2019. ROE decreased on 6.6 pp from 16.2% to 9.6% in FY2019. During the last 5 years ROIC topped in FY2016 at 23.5% and was declining since that time. During FY2015-FY2019 ROE topped in FY2016 at 23.2% and was declining since that time.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 1.1x Debt / EBITDA. Debt dropped on 21.6% while cash decreased on 7.4%.
Crest Nicholson Hldgs has no short term refinancing risk: cash is higher than short term debt (8,978.9%).
Valuation and dividends
The company's trades at EV/EBITDA 11.0x and P/E 16.0x.
Management team
Crest Nicholson Hldgs's CEO is Peter Truscott. Peter Truscott is a founder and has 0 years tenure with the company. The company's CFO is Duncan Cooper. Duncan Cooper has 0 years tenure at the company.
Financial and operational results
FY ended 31 Oct 2019
Crest Nicholson Hldgs ($CRST) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 805 | 997 | 1,043 | 1,121 | 1,086 | -3.1% |
| Gross Profit | 221 | 266 | 275 | 247 | 183 | -25.7% |
| SG&A | 58 | 62 | 63 | 65 | 65 | 0.9% |
| EBITDA | 165 | 205 | 213 | 184 | 117 | -36.3% |
| Net Income | 124 | 157 | 169 | 137 | 83 | -39.6% |
Balance Sheet
|
|---|
| Cash | 187 | 282 | 175 | 184 | 171 | -7.4% |
| Short Term Debt | 7 | 2 | 2 | 2 | 2 | 0.0% |
| Long Term Debt | 211 | 203 | 140 | 168 | 132 | -21.9% |
Cash flow
|
|---|
| Capex | 2 | 2 | 3 | 3 | 4 | 52.0% |
Ratios
|
|---|
| Revenue growth | 26.5% | 23.9% | 4.6% | 7.5% | -3.1% | |
| EBITDA growth | 27.5% | 24.6% | 4.0% | -13.7% | -36.3% | |
|
|---|
| Gross Margin | 27.5% | 26.7% | 26.4% | 22.0% | 16.9% | -5.1% |
| EBITDA Margin | 20.4% | 20.6% | 20.4% | 16.4% | 10.8% | -5.6% |
| SG&A, % of revenue | 7.2% | 6.2% | 6.1% | 5.8% | 6.0% | 0.2% |
| Net Income Margin | 15.4% | 15.7% | 16.2% | 12.2% | 7.6% | -4.6% |
| CAPEX, % of revenue | 0.2% | 0.2% | 0.2% | 0.2% | 0.3% | 0.1% |
|
|---|
| ROIC | 22.0% | 23.5% | 22.5% | 18.0% | 11.2% | -6.8% |
| ROE | 21.3% | 23.2% | 21.9% | 16.2% | 9.6% | -6.6% |
| Net Debt/EBITDA | 0.2x | -0.4x | -0.2x | -0.1x | -0.3x | -0.2x |
Peers in Household Goods & Home Construction
Below we provide Crest Nicholson Hldgs benchmarking against other companies in Household Goods & Home Construction 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 |
|---|
| Colefax Group ($CFX) | -1.6% | 0.1% | 4.7% | 6.9% | |
| Abbey ($ABBY) | 51.0% | 27.9% | -1.9% | 0.9% | |
| |
|---|
| Median (2 companies) | -0.6% | 4.1% | 3.0% | 3.9% | |
|---|
| Crest Nicholson Hldgs ($CRST) | | 23.9% | 4.6% | 7.5% | -3.1% |
Top companies by Gross margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Colefax Group ($CFX) | 54.7% | 56.3% | 55.1% | 53.7% | |
| Abbey ($ABBY) | 30.6% | 33.1% | 33.7% | 31.0% | |
| |
|---|
| Median (2 companies) | 25.5% | 26.3% | 29.9% | 42.4% | |
|---|
| Crest Nicholson Hldgs ($CRST) | 27.5% | 26.7% | 26.4% | 22.0% | 16.9% |
Top companies by EBITDA margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Abbey ($ABBY) | 31.2% | 31.7% | 32.7% | 30.1% | |
| Colefax Group ($CFX) | 8.7% | 9.4% | 7.0% | 8.7% | |
| |
|---|
| Median (2 companies) | 9.6% | 11.6% | 11.0% | 19.4% | |
|---|
| Crest Nicholson Hldgs ($CRST) | 20.4% | 20.6% | 20.4% | 16.4% | 10.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Abbey ($ABBY) | 8.0% | 5.3% | 5.5% | 4.6% | |
| Colefax Group ($CFX) | 2.9% | 3.0% | 5.1% | 2.8% | |
| |
|---|
| Median (2 companies) | 1.8% | 2.4% | 2.0% | 3.7% | |
|---|
| Crest Nicholson Hldgs ($CRST) | 0.2% | 0.2% | 0.2% | 0.2% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Abbey ($ABBY) | 21.1% | 22.9% | 21.1% | 17.6% | |
| Colefax Group ($CFX) | 20.6% | 20.2% | 11.2% | 17.6% | |
| Depa Ltd ($DEPS) | -10.8% | 4.1% | 11.4% | | |
| Taylor Wimpey ($TW.) | 24.1% | 26.8% | 23.0% | | |
| Reckitt Benckiser Group ($RB.) | 20.3% | 19.1% | 12.9% | | |
| |
|---|
| Median (5 companies) | 16.0% | 18.6% | 11.3% | 17.6% | |
|---|
| Crest Nicholson Hldgs ($CRST) | 22.0% | 23.5% | 22.5% | 18.0% | 11.2% |
Top companies by Net Debt / EBITDA
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Abbey ($ABBY) | -1.3x | -1.3x | -1.3x | -1.2x | |
| Colefax Group ($CFX) | -1.0x | -1.4x | -1.2x | -1.2x | |
| |
|---|
| Median (2 companies) | -0.9x | -0.8x | -1.0x | -1.2x | |
|---|
| Crest Nicholson Hldgs ($CRST) | 0.2x | -0.4x | -0.2x | -0.1x | -0.3x |
