Henderson Group EBITDA Margin dropped on 31.4 pp from 31.4% to in 2019
04 Feb 2020 • About Henderson Group (
$HGG) • By InTwits
Henderson Group reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with low profitability: ROIC is 8.8%.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Henderson Group's Revenue decreased slightly on 0.67%.
Net Income margin decreased on 3.2 pp from 22.9% to 19.6% in FY2019.
Return on investment
The company operates at low ROIC (8.8%) and ROE (8.5%). ROIC decreased slightly on 1.6 pp from 10.4% to 8.8% in FY2019. ROE decreased on 2.0 pp from 10.6% to 8.5% in FY2019. ROIC declined at -2.6 pp per annum in FY2015-FY2019.
Leverage (Debt)
Debt decreased on 4.8% while cash dropped on 23.1%.
The company has no short term refinancing risk: short term debt is zero.
Management team
Richard Maccoy Weil "Dick" is a Henderson Group's CEO. Richard Maccoy Weil "Dick" is a founder and has spent 1 year with the company. Roger Thompson is a Henderson Group's CFO. Roger Thompson has spent 2 years at the company.
Financial and operational results
FY ended 30 Nov -0001
Henderson Group ($HGG) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 743 | 736 | 1,403 | 1,718 | 1,707 | -0.7% |
| EBITDA | 223 | 193 | 385 | 540 | | |
| Net Income | 216 | 140 | 509 | 393 | 335 | -14.7% |
Balance Sheet
|
|---|
| Cash | 259 | 262 | 587 | 719 | 553 | -23.1% |
| Short Term Debt | 102 | 0 | 42 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 238 | 250 | 238 | -4.8% |
Cash flow
|
|---|
| Capex | 8 | 11 | 14 | 22 | | |
Ratios
|
|---|
| Revenue growth | 13.0% | -1.0% | 90.7% | 22.5% | -0.7% | |
| EBITDA growth | 6.7% | -13.7% | 99.7% | 40.4% | | |
|
|---|
| EBITDA Margin | 30.0% | 26.2% | 27.4% | 31.4% | |
| Net Income Margin | 29.1% | 19.0% | 36.3% | 22.9% | 19.6% | -3.2% |
| CAPEX, % of revenue | 1.1% | 1.4% | 1.0% | 1.3% | | |
|
|---|
| ROIC | 19.7% | 14.5% | 10.6% | 10.4% | 8.8% | -1.6% |
| ROE | 24.5% | 13.7% | 19.7% | 10.6% | 8.5% | -2.0% |
| Net Debt/EBITDA | -0.7x | -1.4x | -0.8x | -0.9x | |
Peers in Financial Services
Below you can find Henderson Group benchmarking vs. other companies in Financial Services industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Polo Resources Ltd ($POL) | | | -93.4% | 308.5% | -44.4% |
| Impax Asset Management Group ($IPX) | | 6.8% | 55.2% | 100.9% | 12.2% |
| Plus500 Ltd ($PLUS) | 20.4% | 19.0% | 33.3% | 64.8% | |
| Afh Financial Group ($AFHP) | | 15.0% | 39.4% | 50.6% | 46.7% |
| S & U ($46IE) | -40.6% | 25.2% | 33.9% | 31.8% | |
| |
|---|
| Median (18 companies) | 2.8% | 6.8% | 12.3% | 17.1% | 12.3% |
|---|
| Henderson Group ($HGG) | | -1.0% | 90.7% | 22.5% | -0.7% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Record ($REC) | 99.3% | 99.0% | 98.8% | 98.7% | |
| First Property Group ($FPO) | 83.0% | 80.6% | 78.6% | 76.3% | |
| Walker Crips Group ($WCW) | 66.7% | 67.7% | 69.8% | 67.2% | |
| Afh Financial Group ($AFHP) | 52.3% | 55.4% | 53.4% | 54.4% | 53.4% |
| S & U ($46IE) | 65.3% | 63.3% | 58.6% | 53.8% | |
| |
|---|
| Median (8 companies) | 52.5% | 59.3% | 51.4% | 54.1% | 53.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Real Estate Credit Investments Pcc ($RECP) | 80.3% | 79.3% | 79.5% | 81.8% | |
| Plus500 Ltd ($PLUS) | 48.2% | 46.0% | 59.3% | 70.2% | |
| Hargreaves Lansdown ($HL.) | 51.2% | 57.5% | 69.3% | 66.8% | |
| First Property Group ($FPO) | 42.9% | 52.2% | 57.4% | 52.9% | |
| S & U ($46IE) | 47.2% | 48.0% | 44.8% | 41.7% | |
| |
|---|
| Median (16 companies) | 16.9% | 17.2% | 20.9% | 22.2% | 26.3% |
|---|
| Henderson Group ($HGG) | 30.0% | 26.2% | 27.4% | 31.4% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| First Property Group ($FPO) | 0.1% | 6.4% | 8.5% | 9.4% | |
| Walker Crips Group ($WCW) | 2.5% | 0.9% | 1.7% | 5.4% | |
| Mxc Capital ($MXCP) | 0.5% | 4.9% | 0.0% | 4.7% | 0.2% |
| Commercial Bank Of Qatar(The) ($CBQS) | 3.9% | 3.3% | 1.8% | 3.8% | 1.9% |
| Impax Asset Management Group ($IPX) | 0.8% | 0.5% | 1.1% | 2.6% | 0.5% |
| |
|---|
| Median (17 companies) | 0.8% | 0.8% | 1.0% | 1.0% | 0.6% |
|---|
| Henderson Group ($HGG) | 1.1% | 1.4% | 1.0% | 1.3% | |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Plus500 Ltd ($PLUS) | 116.5% | 118.9% | 143.2% | 196.2% | |
| Hargreaves Lansdown ($HL.) | 87.5% | 90.0% | 93.3% | 82.4% | |
| Impax Asset Management Group ($IPX) | 16.1% | 15.0% | 19.7% | 30.7% | 28.8% |
| Fulcrum Utility Services Ld ($FCRM) | | 347.2% | 103.4% | 29.9% | |
| Record ($REC) | 20.2% | 18.5% | 20.7% | 22.0% | |
| |
|---|
| Median (24 companies) | 7.6% | 7.5% | 8.5% | 5.8% | 8.0% |
|---|
| Henderson Group ($HGG) | 19.7% | 14.5% | 10.6% | 10.4% | 8.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| First Property Group ($FPO) | 12.3x | 9.4x | 7.6x | 7.7x | |
| S & U ($46IE) | 3.1x | 0.5x | 1.8x | 3.2x | |
| Leeds Group ($LDSG) | -0.3x | 1.4x | 2.6x | 2.5x | |
| Impax Asset Management Group ($IPX) | -0.5x | -0.6x | -2.0x | -0.3x | -0.5x |
| Hargreaves Lansdown ($HL.) | -1.1x | -0.9x | -0.3x | -0.4x | |
| |
|---|
| Median (13 companies) | -1.2x | -1.0x | -1.6x | -0.6x | -1.4x |
|---|
| Henderson Group ($HGG) | -0.7x | -1.4x | -0.8x | -0.9x | |
