Colefax Group reports 35.3% EBITDA growth in 2020 and 4.5 pp EBITDA Margin growth from 9.1% to 13.6%
14 Sep 2020 • About Colefax Group (
$CFX) • By InTwits
Colefax Group reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 13.6% in FY2020 vs. 9.1% in FY2019 vs. 9.4% in FY2016
- Colefax Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: £1m in FY2020, £2m in FY2019, £3m in FY2018, £1m in FY2017, £1m in FY2016
- The company has business model with low profitability: ROIC is 7.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.6x while industry average is -0.4x
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 decreased on 9.3%. During the last 5 years Revenue growth topped in FY2018 at 6.9% and was decelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.5 pp from 9.1% to 13.6% in FY2020. During the last 5 years EBITDA Margin bottomed in FY2017 at 7.0% and was growing since that time.
Gross Margin increased slightly on 1.6 pp from 54.3% to 55.8% in FY2020. During the last 5 years Gross Margin bottomed in FY2018 at 53.7% and was growing since that time. SG&A as a % of Revenue increased on 3.5 pp from 48.4% to 51.9% in FY2020.
Net Income margin decreased slightly on 2.0 pp from 4.4% to 2.5% in FY2020.
Investments (CAPEX, working capital and M&A)
Colefax Group's CAPEX/Revenue was 4.1% in FY2020. Colefax Group's CAPEX/Revenue decreased slightly on 1.1 pp from 5.1% in FY2017 to 4.1% in FY2020. For the last three years the average CAPEX/Revenue was 3.1%.
Return on investment
The company operates at low ROIC (7.9%) and ROE (7.0%). ROIC dropped on 10.4 pp from 18.3% to 7.9% in FY2020. ROE decreased on 7.2 pp from 14.2% to 7.0% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 2.7x. Net Debt / EBITDA surged on 2.8x from -1.2x to 1.6x in FY2020. Debt surged while cash jumped on 22.0%.
Colefax Group has no short term refinancing risk: cash is higher than short term debt (250.2%).
Valuation and dividends
The company's trades at EV/EBITDA 4.8x and P/E 17.8x.
Financial and operational results
FY ended 30 Apr 2020
Colefax Group ($CFX) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 76.879 | 80.475 | 86.052 | 86.355 | 78.364 | -9.3% |
| Gross Profit | 43.292 | 44.356 | 46.241 | 46.859 | 43.762 | -6.6% |
| SG&A | 38.279 | 41.419 | 41.520 | 41.789 | 40.655 | -2.7% |
| EBITDA | 7.200 | 5.657 | 7.456 | 7.870 | 10.651 | 35.3% |
| Net Income | 3.461 | 1.895 | 3.832 | 3.830 | 1.920 | -49.9% |
Balance Sheet
|
|---|
| Cash | 10.085 | 6.710 | 9.177 | 9.458 | 11.538 | 22.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 4.612 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 23.780 | |
Cash flow
|
|---|
| Capex | 2.278 | 4.126 | 2.382 | 2.046 | 3.183 | 55.6% |
Ratios
|
|---|
| Revenue growth | 0.1% | 4.7% | 6.9% | 0.4% | -9.3% | |
| EBITDA growth | 7.4% | -21.4% | 31.8% | 5.6% | 35.3% | |
|
|---|
| Gross Margin | 56.3% | 55.1% | 53.7% | 54.3% | 55.8% | 1.6% |
| EBITDA Margin | 9.4% | 7.0% | 8.7% | 9.1% | 13.6% | 4.5% |
| SG&A, % of revenue | 49.8% | 51.5% | 48.2% | 48.4% | 51.9% | 3.5% |
| Net Income Margin | 4.5% | 2.4% | 4.5% | 4.4% | 2.5% | -2.0% |
| CAPEX, % of revenue | 3.0% | 5.1% | 2.8% | 2.4% | 4.1% | 1.7% |
|
|---|
| ROIC | 20.2% | 11.2% | 17.6% | 18.3% | 7.9% | -10.4% |
| ROE | 13.8% | 7.3% | 14.4% | 14.2% | 7.0% | -7.2% |
| Net Debt/EBITDA | -1.4x | -1.2x | -1.2x | -1.2x | 1.6x | 2.8x |
Peers in Household Goods & Home Construction
Below we provide Colefax Group 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 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| M J Gleeson ($GLE) | - | 12.9% | 22.7% | 27.0% | -41.1% |
| Redrow ($RDW) | 20.2% | 20.1% | 15.7% | 10.0% | - |
| Mcbride ($MCB) | - | -7.0% | 9.0% | 4.6% | -2.1% |
| Barratt Developments ($BDEV) | - | 9.8% | 4.8% | -2.3% | -28.2% |
| Crest Nicholson Hldgs ($CRST) | 23.9% | 4.6% | 7.5% | -3.1% | - |
| |
|---|
| Median (5 companies) | 6.8% | 4.3% | 8.2% | 4.6% | -28.2% |
|---|
| Colefax Group ($CFX) | - | 4.7% | 6.9% | 0.4% | -9.3% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mcbride ($MCB) | 35.8% | 36.4% | 34.2% | 33.3% | - |
| M J Gleeson ($GLE) | 33.5% | 35.4% | 33.2% | 30.0% | 27.5% |
| Redrow ($RDW) | 24.2% | 24.4% | 24.4% | 23.9% | - |
| Barratt Developments ($BDEV) | 18.9% | 20.0% | 20.7% | 22.8% | 18.0% |
| Crest Nicholson Hldgs ($CRST) | 26.7% | 26.4% | 22.0% | 16.9% | - |
| |
|---|
| Median (5 companies) | 26.3% | 26.2% | 27.7% | 23.9% | 22.7% |
|---|
| Colefax Group ($CFX) | 56.3% | 55.1% | 53.7% | 54.3% | 55.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Redrow ($RDW) | 19.0% | 19.5% | 20.1% | 19.6% | - |
| Barratt Developments ($BDEV) | 15.9% | 17.3% | 17.8% | 19.0% | 15.0% |
| M J Gleeson ($GLE) | 20.4% | 21.1% | 19.2% | 16.8% | 5.6% |
| Crest Nicholson Hldgs ($CRST) | 20.6% | 20.4% | 16.4% | 10.8% | - |
| Mcbride ($MCB) | 7.7% | 9.6% | 7.6% | 6.6% | - |
| |
|---|
| Median (5 companies) | 17.4% | 17.6% | 18.5% | 16.8% | 10.3% |
|---|
| Colefax Group ($CFX) | 9.4% | 7.0% | 8.7% | 9.1% | 13.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mcbride ($MCB) | 1.7% | 2.4% | 3.2% | 2.4% | - |
| M J Gleeson ($GLE) | 0.7% | 0.7% | 0.7% | 0.7% | 1.6% |
| Crest Nicholson Hldgs ($CRST) | 0.2% | 0.2% | 0.2% | 0.3% | - |
| Redrow ($RDW) | 0.4% | 0.1% | 0.1% | 0.2% | - |
| Barratt Developments ($BDEV) | 0.1% | 0.1% | 0.2% | 0.2% | 0.2% |
| |
|---|
| Median (5 companies) | 0.6% | 0.7% | 0.5% | 0.3% | 0.9% |
|---|
| Colefax Group ($CFX) | 3.0% | 5.1% | 2.8% | 2.4% | 4.1% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Redrow ($RDW) | 21.8% | 23.4% | 26.0% | 25.4% | - |
| M J Gleeson ($GLE) | 20.2% | 20.9% | 20.7% | 20.7% | 2.5% |
| Barratt Developments ($BDEV) | 16.5% | 18.4% | 18.3% | 17.3% | 9.1% |
| Mcbride ($MCB) | 19.1% | 23.8% | 18.4% | 14.0% | - |
| Crest Nicholson Hldgs ($CRST) | 23.5% | 22.5% | 18.0% | 11.2% | - |
| |
|---|
| Median (5 companies) | 19.1% | 19.7% | 18.4% | 17.3% | 5.8% |
|---|
| Colefax Group ($CFX) | 20.2% | 11.2% | 17.6% | 18.3% | 7.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Mcbride ($MCB) | 1.7x | 1.2x | 2.2x | 2.5x | - |
| Redrow ($RDW) | 0.5x | 0.2x | -0.2x | -0.3x | - |
| Crest Nicholson Hldgs ($CRST) | -0.4x | -0.2x | -0.1x | -0.3x | - |
| M J Gleeson ($GLE) | -0.8x | -1.0x | -1.1x | -0.7x | -2.0x |
| Barratt Developments ($BDEV) | -0.9x | -0.9x | -0.9x | -0.8x | -0.5x |
| |
|---|
| Median (5 companies) | -0.4x | -0.4x | -0.5x | -0.3x | -1.3x |
|---|
| Colefax Group ($CFX) | -1.4x | -1.2x | -1.2x | -1.2x | 1.6x |
