Heavitree Brewery CAPEX dropped on 34.9% and Revenue decreased slightly on 1.1%
13 Feb 2020 • About Heavitree Brewery (
$HVT) • By InTwits
Heavitree Brewery reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Heavitree Brewery has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.8%. At the same time it's in pair with industry average of 20.7%
- CAPEX is quite volatile: £1m in FY2019, £1m in FY2018, £1m in FY2017, £1m in FY2016, £3m in FY2015
- The company has business model with low profitability: ROIC is 9.6%
- It operates with high leverage: Net Debt/EBITDA is 2.9x while industry average is 2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Heavitree Brewery's Revenue decreased slightly on 1.1%. During the last 5 years Revenue growth topped in FY2018 at 4.3%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.9 pp from 24.5% to 27.4% in FY2019.
Net Income margin decreased on 5.0 pp from 25.3% to 20.3% in FY2019.
Investments (CAPEX, working capital and M&A)
Heavitree Brewery's CAPEX/Revenue was 6.7% in FY2019. CAPEX/Revenue dropped on 11.1 pp from 17.8% in FY2016 to 6.7% in FY2019. It's average CAPEX/Revenue for the last three years was 10.7%. CAPEX as a % of Revenue stuck to a declining trend at -8.2 pp per annum in FY2015-FY2019.
Return on investment
The company operates at good ROE (12.6%) while ROIC is low (9.6%). ROIC increased slightly on 0.82 pp from 8.7% to 9.6% in FY2019. ROE decreased on 4.8 pp from 17.5% to 12.6% in FY2019.
Leverage (Debt)
Debt level is 2.9x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.7x from 3.7x to 2.9x in FY2019. Debt dropped on 10.8% while cash jumped on 15.9%. Net Debt/EBITDA followed a declining trend at -0.4x per annum in the last 5 years.
Heavitree Brewery has short term refinancing risk: cash is only 0.8% of short term debt.
Valuation and dividends
Heavitree Brewery's trades at EV/EBITDA 6.1x and P/E 4.3x.
Financial and operational results
FY ended 30 Nov -0001
Heavitree Brewery ($HVT) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 7.082 | 7.155 | 7.299 | 7.614 | 7.528 | -1.1% |
| Gross Profit | 4.096 | 4.200 | | | | |
| EBITDA | 1.677 | 1.791 | 2.026 | 1.867 | 2.061 | 10.4% |
| EBIT | 1.412 | | | | | |
| Interest expence | 0.170 | | | | | |
| Tax | 0.258 | | | | | |
| Net Income | 0.915 | 1.365 | 1.328 | 1.927 | 1.531 | -20.6% |
Balance Sheet
|
|---|
| Cash | 0.051 | 0.057 | 0.056 | 0.044 | 0.051 | 15.9% |
| Inventory | 0.010 | | | | | |
| Short Term Debt | 1.753 | 1.327 | 1.592 | 0.801 | 6.087 | 659.9% |
| Long Term Debt | 6.011 | 6.057 | 6.045 | 6.067 | 0.037 | -99.4% |
Cash flow
|
|---|
| Capex | 3.124 | 1.275 | 1.117 | 0.777 | 0.506 | -34.9% |
| Dividends | 0.000 | | | | | |
Ratios
|
|---|
| Revenue growth | -1.6% | 1.0% | 2.0% | 4.3% | -1.1% | |
| EBITDA growth | 2.8% | 6.8% | 13.1% | -7.8% | 10.4% | |
|
|---|
| Gross Margin | 57.8% | 58.7% | | | | |
| EBITDA Margin | 23.7% | 25.0% | 27.8% | 24.5% | 27.4% | 2.9% |
| EBIT Margin | 19.9% | | | | |
| Net Income Margin | 12.9% | 19.1% | 18.2% | 25.3% | 20.3% | -5.0% |
| CAPEX, % of revenue | 44.1% | 17.8% | 15.3% | 10.2% | 6.7% | -3.5% |
|
|---|
| ROIC | 9.2% | 8.5% | 10.3% | 8.7% | 9.6% | 0.8% |
| ROE | 10.1% | 15.1% | 13.7% | 17.5% | 12.6% | -4.8% |
| Net Debt/EBITDA | 4.6x | 4.1x | 3.7x | 3.7x | 2.9x | -0.7x |
| Interest coverage ratio (ICR) | 8.3x | | | | |
| Interest expence / Average debt | 2.2% | | | | | |
People
|
|---|
| Insider ownership | 18.2% | | | | | |
| Employees | 13 | | | | | |
| Revenue/Employee, th. £ | 545 | | | | | |
Peers in Travel & Leisure
Below you can find Heavitree Brewery benchmarking vs. other companies in Travel & Leisure 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 |
|---|
| Nektan ($NKTN) | | 995.3% | 129.1% | 50.1% | 13.5% |
| Easyhotel ($EZH) | | 8.7% | 39.7% | 33.7% | 56.0% |
| Webis Holdings ($WEB) | 29.7% | 45.3% | 65.8% | 24.0% | |
| Hanatour Service Inc ($TOUR) | | 29.6% | 14.6% | 21.4% | -8.0% |
| Meikles Ltd ($MIK) | 7.6% | 9.7% | 0.9% | 16.9% | |
| |
|---|
| Median (17 companies) | 7.6% | 8.7% | 7.9% | 7.8% | 10.3% |
|---|
| Heavitree Brewery ($HVT) | | 1.0% | 2.0% | 4.3% | -1.1% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Intercontinental Hotels Group ($IHG) | 64.5% | 86.0% | 86.0% | 83.7% | |
| Eclectic Bar Grp ($BAR) | 79.4% | 80.7% | 82.3% | 82.9% | |
| Air Partner ($AIP) | 11.5% | 12.9% | 14.7% | 74.4% | |
| Nektan ($NKTN) | 42.6% | 67.9% | 64.1% | 62.2% | 56.9% |
| Easyhotel ($EZH) | 68.8% | 64.3% | 61.3% | 53.5% | 48.1% |
| |
|---|
| Median (10 companies) | 40.1% | 39.3% | 38.1% | 47.4% | 43.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Ryanair Hldgs ($RYA) | 25.1% | 28.9% | 30.6% | 31.2% | |
| Celtic ($CCP) | -1.3% | 14.6% | 18.5% | 28.4% | |
| Carnival ($CCL) | 26.7% | 29.3% | 26.6% | 28.3% | 26.1% |
| Young & Co'S Brewery ($YNGN) | 22.9% | 22.6% | 23.5% | 23.4% | |
| Easyhotel ($EZH) | 21.7% | 21.6% | 18.0% | 19.4% | 13.5% |
| |
|---|
| Median (16 companies) | 12.5% | 15.9% | 16.7% | 15.1% | 9.3% |
|---|
| Heavitree Brewery ($HVT) | 23.7% | 25.0% | 27.8% | 24.5% | 27.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Easyhotel ($EZH) | 46.8% | 153.2% | 269.8% | 412.1% | 142.5% |
| Ryanair Hldgs ($RYA) | 13.9% | 18.6% | 21.8% | 20.6% | |
| Carnival ($CCL) | 14.6% | 18.7% | 16.8% | 19.9% | 26.1% |
| Marston'S ($MARS) | 16.2% | 15.3% | 19.4% | 14.3% | |
| Ana Hldgs Inc ($ANA) | 14.1% | 14.1% | 12.7% | 13.5% | |
| |
|---|
| Median (16 companies) | 5.7% | 8.1% | 5.7% | 6.1% | 15.8% |
|---|
| Heavitree Brewery ($HVT) | 44.1% | 17.8% | 15.3% | 10.2% | 6.7% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Intercontinental Hotels Group ($IHG) | 96.6% | 51.2% | 92.2% | 45.0% | |
| Air Partner ($AIP) | 20.0% | 20.4% | 24.6% | 34.6% | |
| Celtic ($CCP) | -14.7% | 1.5% | 11.6% | 23.7% | |
| Ryanair Hldgs ($RYA) | 13.3% | 17.2% | 17.7% | 18.4% | |
| Meikles Ltd ($MIK) | -3.5% | 1.0% | 6.1% | 12.2% | |
| |
|---|
| Median (20 companies) | 5.9% | 5.3% | 6.5% | 8.1% | 6.2% |
|---|
| Heavitree Brewery ($HVT) | 9.2% | 8.5% | 10.3% | 8.7% | 9.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Marston'S ($MARS) | 8.2x | 6.2x | 6.9x | 8.7x | |
| Peel Hotels ($PHO) | 4.4x | 3.9x | 0.4x | 4.3x | |
| Eclectic Bar Grp ($BAR) | 1.5x | 6.8x | 2.1x | 3.4x | |
| Intercontinental Hotels Group ($IHG) | 0.3x | 1.9x | 2.3x | 3.1x | |
| Fuller Smith & Turner ($BA80) | 2.8x | 3.2x | 3.1x | 3.0x | |
| |
|---|
| Median (15 companies) | 0.8x | 1.9x | 1.9x | 1.7x | 2.0x |
|---|
| Heavitree Brewery ($HVT) | 4.6x | 4.1x | 3.7x | 3.7x | 2.9x |
