Ashmore Group revenue increased on 6.9% while EBITDA Margin decreased slightly on 1.1 pp from 62.1% to 61.0%
11 Sep 2020 • About Ashmore Group (
$ASHM) • By InTwits
Ashmore Group reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Ashmore Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has highly profitable business model: ROIC is 23.4%
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 6.9%. During the last 5 years Revenue growth topped in FY2017 at 21.6% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.2 pp from -4.0% to -2.9% in FY2020. During FY2016-FY2020 EBITDA Margin topped in FY2017 at 65.0% and was declining since that time.
Net Income margin decreased on 2.6 pp from 56.5% to 53.9% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.30% in FY2020. Ashmore Group's CAPEX/Revenue showed almost no change from FY2017 to FY2020. Average CAPEX/Revenue for the last three years was 0.21%. During FY2016-FY2020 CAPEX as a % of Revenue bottomed in FY2018 at 0.070% and was growing since that time.
Return on investment
The company operates at high and attractive ROIC (23.4%) and ROE (21.4%). ROIC showed almost no change in FY2020. ROE decreased slightly on 0.86 pp from 22.3% to 21.4% in FY2020. During FY2016-FY2020 ROIC topped in FY2018 at 24.3% and was declining since that time.
Leverage (Debt)
Debt level is -2.4x Net Debt / EBITDA and 0.0x Debt / EBITDA. Debt jumped while cash increased on 5.0%.
Ashmore Group has no short term refinancing risk: cash is higher than short term debt (25,045.0%).
Valuation and dividends
The company's trades at EV/EBITDA 10.8x and P/E 14.9x.
Management team
The company's CEO is Mark Langhorn Coombs. Mark Langhorn Coombs has 22 years tenure with the company. Thomas Adam Shippey "Tom" is a the company's CFO. Thomas Adam Shippey "Tom" has spent 7 years at the company.
Financial and operational results
FY ended 30 Jun 2020
Ashmore Group ($ASHM) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 211.6 | 257.2 | 285.7 | 316.3 | 338.0 | 6.9% |
| SG&A | 1.2 | | | | | |
| EBITDA | 120.9 | 167.3 | 181.7 | 196.3 | 206.1 | 5.0% |
| Net Income | 127.8 | 167.6 | 151.4 | 178.6 | 182.1 | 2.0% |
Balance Sheet
|
|---|
| Cash | 364.0 | 432.5 | 433.0 | 477.2 | 500.9 | 5.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 2.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 8.2 | |
Cash flow
|
|---|
| Capex | 0.6 | 0.4 | 0.2 | 0.8 | 1.0 | 25.0% |
Ratios
|
|---|
| Revenue growth | -21.1% | 21.6% | 11.1% | 10.7% | 6.9% | |
| EBITDA growth | -28.1% | 38.4% | 8.6% | 8.0% | 5.0% | |
|
|---|
| EBITDA Margin | 57.1% | 65.0% | 63.6% | 62.1% | 61.0% | -1.1% |
| SG&A, % of revenue | 0.6% | | | | | |
| Net Income Margin | 60.4% | 65.2% | 53.0% | 56.5% | 53.9% | -2.6% |
| CAPEX, % of revenue | 0.3% | 0.2% | 0.1% | 0.3% | 0.3% | 0.0% |
|
|---|
| ROIC | 17.6% | 23.5% | 24.3% | 23.9% | 23.4% | -0.5% |
| ROE | 19.2% | 23.9% | 20.4% | 22.3% | 21.4% | -0.9% |
| Net Debt/EBITDA | -3.0x | -2.6x | -2.4x | -2.4x | -2.4x | 0.1x |
Peers in Financial Services
Below you can find Ashmore 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mxc Capital ($MXCP) | 118.4% | -3.5% | -76.6% | 214.9% | - |
| Afh Financial Group ($AFHP) | 15.0% | 39.4% | 50.6% | 46.7% | - |
| Private & Commercial Finance Group ($PCF) | 13.2% | -60.1% | 22.4% | 36.2% | - |
| Commercial Bank Of Qatar(The) ($CBQS) | 1.7% | 6.1% | 17.8% | 12.4% | - |
| Impax Asset Management Group ($IPX) | 6.8% | 55.2% | 100.9% | 12.2% | - |
| |
|---|
| Median (16 companies) | 4.8% | 12.9% | 16.1% | 5.0% | 1.9% |
|---|
| Ashmore Group ($ASHM) | - | 21.6% | 11.1% | 10.7% | 6.9% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| 1Pm ($OPM) | 64.3% | 64.0% | 66.3% | 67.7% | - |
| Afh Financial Group ($AFHP) | 55.4% | 53.4% | 54.4% | 53.4% | - |
| Starvest ($SVE) | 38.4% | 49.4% | - | 18.5% | - |
| |
|---|
| Median (3 companies) | 59.3% | 51.4% | 54.1% | 53.4% | - |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mxc Capital ($MXCP) | 105.4% | -263.1% | -755.1% | 299.5% | - |
| Starvest ($SVE) | 63.4% | 56.4% | - | 134.5% | - |
| Plus500 Ltd ($PLUS) | 46.0% | 59.3% | 70.2% | 54.2% | - |
| City Of London Investment Group ($CLIG) | 32.5% | 37.5% | 37.8% | 33.9% | - |
| Impax Asset Management Group ($IPX) | 20.8% | 19.6% | 26.7% | 29.5% | - |
| |
|---|
| Median (11 companies) | 20.8% | 22.1% | 24.0% | 27.7% | -13.3% |
|---|
| Ashmore Group ($ASHM) | 57.1% | 65.0% | 63.6% | 62.1% | 61.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mattioli Woods ($MTW) | 2.6% | 16.3% | 13.2% | 2.9% | 1.4% |
| 1Pm ($OPM) | 4.4% | 6.4% | 3.4% | 2.4% | - |
| Commercial Bank Of Qatar(The) ($CBQS) | 3.3% | 1.8% | 3.8% | 1.9% | - |
| City Of London Investment Group ($CLIG) | 0.6% | 1.6% | 0.4% | 1.3% | - |
| Afh Financial Group ($AFHP) | 1.8% | 0.8% | 0.5% | 1.1% | - |
| |
|---|
| Median (14 companies) | 1.0% | 1.0% | 1.2% | 0.6% | 1.0% |
|---|
| Ashmore Group ($ASHM) | 0.3% | 0.2% | 0.1% | 0.3% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Plus500 Ltd ($PLUS) | 118.9% | 143.2% | 196.2% | 65.4% | - |
| City Of London Investment Group ($CLIG) | 55.3% | 71.6% | 63.7% | 47.5% | - |
| Impax Asset Management Group ($IPX) | 15.0% | 19.7% | 30.7% | 28.8% | - |
| Starvest ($SVE) | 5.9% | 18.5% | -18.6% | 21.4% | - |
| Afh Financial Group ($AFHP) | 11.3% | 12.4% | 14.4% | 16.5% | - |
| |
|---|
| Median (19 companies) | 8.6% | 9.6% | 7.5% | 8.9% | -5.3% |
|---|
| Ashmore Group ($ASHM) | 17.6% | 23.5% | 24.3% | 23.9% | 23.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Redde ($REDD) | 1.3x | 1.3x | 1.8x | 1.6x | - |
| Afh Financial Group ($AFHP) | -1.0x | -1.1x | -1.8x | 0.2x | - |
| 1Pm ($OPM) | 0.2x | -0.2x | 0.3x | 0.2x | - |
| Starvest ($SVE) | -0.1x | -1.5x | - | -0.2x | - |
| Impax Asset Management Group ($IPX) | -0.6x | -2.0x | -0.3x | -0.5x | - |
| |
|---|
| Median (11 companies) | -1.0x | -1.3x | -0.9x | -1.3x | -1.3x |
|---|
| Ashmore Group ($ASHM) | -3.0x | -2.6x | -2.4x | -2.4x | -2.4x |
