Creightons CAPEX surged on 351% and Revenue increased on 8.6%
02 Sep 2020 • About Creightons (
$CRL) • By InTwits
Creightons reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Creightons is a fast growth stock: FY2020 revenue growth was 8.6%, 5 year revenue CAGR was 18.8% at FY2020 ROIC 21.8%
- EBITDA Margin is expanding: 11.1% in FY2020 vs. 8.9% in FY2019 vs. 4.7% in FY2016
- EBITDA Margin is quite volatile: 11.1% in FY2020, 8.9% in FY2019, 6.4% in FY2018, 6.1% in FY2017, 4.7% in FY2016
- Creightons has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 2.8%
- CAPEX is quite volatile: £5m in FY2020, £1m in FY2019, £1m in FY2018, £1m in FY2017, £1m in FY2016
- The company has highly profitable business model: ROIC is 21.8%
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 increased on 8.6%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.5 pp from 9.1% to 13.6% in FY2020. EBITDA Margin stuck to a growing trend at 1.6 pp per annum in FY2016-FY2020.
Gross Margin increased on 2.8 pp from 39.4% to 42.2% in FY2020. SG&A as a % of Revenue increased slightly on 1.6 pp from 32.8% to 34.4% in FY2020. SG&A as a % of Revenue stuck to a declining trend at -1.5 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2020. During FY2016-FY2020 Net Income margin bottomed in FY2018 at 3.5% and was growing since that time.
Investments (CAPEX, working capital and M&A)
Creightons's CAPEX/Revenue was 9.7% in FY2020. Creightons showed CAPEX/Revenue growth of 7.9 pp from 1.8% in FY2017 to 9.7% in FY2020. Average CAPEX/Revenue for the last three years was 4.6%. The company maintained rich investment policy and has spent a big chunk of EBITDA (87.5%) to CAPEX. During the last 5 years CAPEX as a % of Revenue bottomed in FY2017 at 1.8% and was growing since that time.
Return on investment
The company operates at high and attractive ROIC (21.8%) and ROE (22.6%). ROIC decreased slightly on 1.8 pp from 23.6% to 21.8% in FY2020. ROE decreased on 3.6 pp from 26.2% to 22.6% in FY2020. ROIC stuck to a growing trend at 3.8 pp per annum in FY2016-FY2020.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA increased on 0.044x from 0.1x to 0.2x in FY2020. Debt surged on 406% while cash surged on 952%. Net Debt/EBITDA followed a growing trend at 0.3x per annum in the last 5 years.
Creightons has no short term refinancing risk: cash is higher than short term debt (411.9%).
Valuation and dividends
Creightons's trades at EV/EBITDA 6.7x and P/E 10.9x.
Financial and operational results
FY ended 31 Mar 2020
Creightons ($CRL) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 21.005 | 30.586 | 34.810 | 44.030 | 47.808 | 8.6% |
| Gross Profit | 8.854 | 12.988 | 14.150 | 17.340 | 20.183 | 16.4% |
| SG&A | 8.296 | 11.475 | 12.515 | 14.440 | 16.429 | 13.8% |
| EBITDA | 0.981 | 1.872 | 2.223 | 3.918 | 5.295 | 35.1% |
| Net Income | 1.329 | 1.251 | 1.232 | 2.891 | 3.168 | 9.6% |
Balance Sheet
|
|---|
| Cash | 0.814 | 2.631 | 0.968 | 0.349 | 3.670 | 951.6% |
| Short Term Debt | 0.007 | 0.068 | 0.747 | 0.772 | 0.891 | 15.4% |
| Long Term Debt | 0.000 | 0.418 | 0.000 | 0.154 | 3.792 | 2,362.3% |
Cash flow
|
|---|
| Capex | 0.769 | 0.551 | 0.633 | 1.026 | 4.631 | 351.4% |
Ratios
|
|---|
| Revenue growth | 4.1% | 45.6% | 13.8% | 26.5% | 8.6% | |
| EBITDA growth | -3.4% | 90.8% | 18.8% | 76.2% | 35.1% | |
|
|---|
| Gross Margin | 42.2% | 42.5% | 40.6% | 39.4% | 42.2% | 2.8% |
| EBITDA Margin | 4.7% | 6.1% | 6.4% | 8.9% | 11.1% | 2.2% |
| SG&A, % of revenue | 39.5% | 37.5% | 36.0% | 32.8% | 34.4% | 1.6% |
| Net Income Margin | 6.3% | 4.1% | 3.5% | 6.6% | 6.6% | 0.1% |
| CAPEX, % of revenue | 3.7% | 1.8% | 1.8% | 2.3% | 9.7% | 7.4% |
|
|---|
| ROIC | 6.7% | 15.5% | 14.4% | 23.6% | 21.8% | -1.8% |
| ROE | 20.5% | 16.0% | 13.6% | 26.2% | 22.6% | -3.6% |
| Net Debt/EBITDA | -0.8x | -1.1x | -0.1x | 0.1x | 0.2x | 0.0x |
Peers in Personal Goods
Below you can find Creightons benchmarking vs. other companies in Personal Goods 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mulberry Group ($MUL) | 4.8% | 7.9% | 0.9% | -2.0% | - |
| Pz Cussons ($PZC) | 0.3% | -1.5% | -8.6% | -15.3% | - |
| Paternoster Resources ($PRS) | -0.1% | -40.3% | 16.9% | -31.9% | - |
| |
|---|
| Median (3 companies) | -0.6% | 4.4% | 0.2% | -15.3% | - |
|---|
| Creightons ($CRL) | - | 45.6% | 13.8% | 26.5% | 8.6% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mulberry Group ($MUL) | 62.0% | 61.6% | 63.5% | 61.5% | - |
| Pz Cussons ($PZC) | 37.9% | 38.5% | 35.5% | 37.9% | - |
| |
|---|
| Median (2 companies) | 23.7% | 23.1% | 35.5% | 49.7% | - |
|---|
| Creightons ($CRL) | 42.2% | 42.5% | 40.6% | 39.4% | 42.2% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pz Cussons ($PZC) | 13.1% | 13.1% | 11.8% | 9.8% | - |
| Mulberry Group ($MUL) | 9.5% | 9.8% | 8.6% | 1.9% | - |
| Paternoster Resources ($PRS) | 53.4% | -159.4% | 50.2% | -110.5% | - |
| |
|---|
| Median (3 companies) | 11.3% | 8.1% | 10.4% | 1.9% | - |
|---|
| Creightons ($CRL) | 4.7% | 6.1% | 6.4% | 8.9% | 11.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Paternoster Resources ($PRS) | 102.1% | 3.6% | 2.6% | 34.4% | - |
| Mulberry Group ($MUL) | 3.2% | 2.6% | 2.8% | 5.7% | - |
| Pz Cussons ($PZC) | 4.3% | 5.0% | 3.0% | 2.3% | - |
| |
|---|
| Median (3 companies) | 4.3% | 3.1% | 2.7% | 5.7% | - |
|---|
| Creightons ($CRL) | 3.7% | 1.8% | 1.8% | 2.3% | 9.7% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pz Cussons ($PZC) | 9.8% | 9.8% | 7.6% | 4.8% | - |
| Mulberry Group ($MUL) | 7.2% | 8.5% | 8.3% | -5.8% | - |
| Paternoster Resources ($PRS) | 2.3% | -26.4% | 3.0% | -22.4% | - |
| |
|---|
| Median (3 companies) | 2.7% | 3.3% | 7.9% | -5.8% | - |
|---|
| Creightons ($CRL) | 6.7% | 15.5% | 14.4% | 23.6% | 21.8% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pz Cussons ($PZC) | 1.4x | 1.4x | 1.9x | 2.5x | - |
| Mulberry Group ($MUL) | -0.9x | -1.3x | -1.7x | -3.0x | - |
| |
|---|
| Median (2 companies) | 1.4x | 1.4x | 1.2x | -0.3x | - |
|---|
| Creightons ($CRL) | -0.8x | -1.1x | -0.1x | 0.1x | 0.2x |
