Galliford Try Net Income jumped on 269% and EBITDA Margin increased on 2.2 pp from -4.4% to -2.3%
16 Sep 2020 • About Galliford Try (
$GFRD) • By InTwits
Galliford Try reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Galliford Try is a company in decline: FY2020 revenue growth was -19.9%, 5 years revenue CAGR was -13.7%
- The company operates at negative EBITDA Margin: -2.3%
- EBITDA Margin is quite volatile: -2.3% in FY2020, -4.4% in FY2019, 4.7% in FY2018, 2.4% in FY2017, 5.3% in FY2016
- Galliford Try has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has unprofitable business model: ROIC is -5.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Galliford Try's Revenue dropped on 19.9%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.2 pp from -4.4% to -2.3% in FY2020.
Gross Margin increased slightly on 1.9 pp from 0.69% to 2.6% in FY2020. SG&A as a % of Revenue increased slightly on 0.65 pp from 5.5% to 6.1% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue bottomed in FY2018 at 5.3% and was growing since that time.
Net Income margin surged on 22.4 pp from 6.2% to 28.6% in FY2020. During FY2016-FY2020 Net Income margin bottomed in FY2017 at 1.8% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 0.12%. CAPEX/Revenue showed almost no change from FY2017 to FY2020. It's average level of CAPEX/Revenue for the last three years was 0.16%.
Return on investment
The company operates at negative ROIC (-5.2%) and low but positive ROE (80.1%). ROIC decreased slightly on 0.71 pp from -4.5% to -5.2% in FY2020. ROE jumped on 68.2 pp from 11.9% to 80.1% in FY2020. ROIC declined at -4.5 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is -2.0x Net Debt / EBITDA and Debt / EBITDA. Debt dropped on 96.6% while cash dropped on 66.6%.
Galliford Try has no short term refinancing risk: cash is higher than short term debt (2,075.8%).
Management team
The company's CEO is Bill Hocking. Bill Hocking has 1 year tenure with the company. Galliford Try's CFO Andrew Duxbury has spent 2 years with the company.
Financial and operational results
FY ended 30 Jun 2020
Galliford Try ($GFRD) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 2,495 | 2,662 | 2,932 | 1,400 | 1,122 | -19.9% |
| Gross Profit | 272 | 210 | 285 | 10 | 29 | 203.1% |
| SG&A | 152 | 153 | 155 | 77 | 69 | -10.4% |
| EBITDA | 133 | 63 | 138 | -62 | -25 | |
| Net Income | 109 | 49 | 118 | 87 | 320 | 268.7% |
Balance Sheet
|
|---|
| Cash | 600 | 766 | 912 | 591 | 197 | -66.6% |
| Short Term Debt | 434 | 562 | 617 | 548 | 10 | -98.3% |
| Long Term Debt | 175 | 196 | 197 | 100 | 13 | -87.2% |
Cash flow
|
|---|
| Capex | 8 | 5 | 5 | 3 | 1 | -48.1% |
Ratios
|
|---|
| Revenue growth | 6.2% | 6.7% | 10.1% | -52.2% | -19.9% | |
| EBITDA growth | 4.3% | -52.6% | 117.9% | -145.0% | -59.0% | |
|
|---|
| Gross Margin | 10.9% | 7.9% | 9.7% | 0.7% | 2.6% | 1.9% |
| EBITDA Margin | 5.3% | 2.4% | 4.7% | -4.4% | -2.3% | 2.2% |
| SG&A, % of revenue | 6.1% | 5.8% | 5.3% | 5.5% | 6.1% | 0.6% |
| Net Income Margin | 4.4% | 1.8% | 4.0% | 6.2% | 28.6% | 22.4% |
| CAPEX, % of revenue | 0.3% | 0.2% | 0.2% | 0.2% | 0.1% | -0.1% |
|
|---|
| ROIC | 12.7% | 4.5% | 8.9% | -4.5% | -5.2% | -0.7% |
| ROE | 18.6% | 8.3% | 17.5% | 11.9% | 80.1% | 68.2% |
| Net Debt/EBITDA | 0.1x | -0.1x | -0.7x | | |
Peers in Construction & Materials
Below you can find Galliford Try benchmarking vs. other companies in Construction & Materials 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 |
|---|
| Volution Group ($FAN) | 18.7% | 19.8% | 11.1% | 14.6% | - |
| Aukett Swanke Group ($AUK) | 9.0% | -12.7% | -18.5% | 4.7% | - |
| James Halstead ($JHD) | -0.5% | 6.5% | 3.6% | 1.4% | - |
| Kier Group ($KIE) | 21.8% | 3.4% | 2.7% | -6.8% | - |
| Alumasc Group ($ALU) | - | 13.6% | -6.1% | -8.4% | -15.7% |
| |
|---|
| Median (6 companies) | 8.9% | 9.4% | 5.0% | -2.7% | -15.7% |
|---|
| Galliford Try ($GFRD) | - | 6.7% | 10.1% | -52.2% | -19.9% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Volution Group ($FAN) | 48.8% | 49.2% | 47.0% | 47.1% | - |
| James Halstead ($JHD) | 42.4% | 43.5% | 41.9% | 43.0% | - |
| Titon Hldgs ($TON) | 29.7% | 25.9% | 28.9% | 30.2% | - |
| Alumasc Group ($ALU) | 33.4% | 31.3% | 30.6% | 29.8% | 29.7% |
| Kier Group ($KIE) | 8.9% | 7.0% | 9.5% | 7.4% | - |
| |
|---|
| Median (5 companies) | 29.7% | 26.9% | 28.9% | 30.2% | 29.7% |
|---|
| Galliford Try ($GFRD) | 10.9% | 7.9% | 9.7% | 0.7% | 2.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| James Halstead ($JHD) | 21.6% | 20.8% | - | 20.3% | - |
| Volution Group ($FAN) | 22.2% | 20.6% | 17.6% | 18.9% | - |
| Titon Hldgs ($TON) | 9.8% | 8.8% | 9.0% | 8.8% | - |
| Alumasc Group ($ALU) | 9.7% | 9.8% | 7.8% | 3.9% | 6.9% |
| Aukett Swanke Group ($AUK) | 6.6% | -0.9% | -18.2% | 1.3% | - |
| |
|---|
| Median (7 companies) | 10.9% | 9.4% | 9.0% | 3.9% | 6.9% |
|---|
| Galliford Try ($GFRD) | 5.3% | 2.4% | 4.7% | -4.4% | -2.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Alumasc Group ($ALU) | 1.1% | 0.9% | 3.1% | 2.6% | 1.8% |
| Titon Hldgs ($TON) | 3.0% | 1.9% | 1.9% | 2.6% | - |
| Volution Group ($FAN) | 1.9% | 1.3% | 2.3% | 1.8% | - |
| James Halstead ($JHD) | 2.1% | 1.8% | 1.4% | 1.7% | - |
| Aukett Swanke Group ($AUK) | 0.8% | 0.2% | 0.6% | 0.7% | - |
| |
|---|
| Median (7 companies) | 2.4% | 2.0% | 2.1% | 1.7% | 1.8% |
|---|
| Galliford Try ($GFRD) | 0.3% | 0.2% | 0.2% | 0.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| James Halstead ($JHD) | 47.1% | 46.5% | 39.9% | 36.7% | - |
| Titon Hldgs ($TON) | 13.3% | 12.0% | 12.2% | 9.5% | - |
| Volution Group ($FAN) | 9.0% | 9.2% | 6.9% | 8.8% | - |
| Alumasc Group ($ALU) | 47.8% | 50.2% | 23.1% | 4.8% | 7.8% |
| Aukett Swanke Group ($AUK) | 9.6% | -6.9% | -41.3% | -0.9% | - |
| |
|---|
| Median (8 companies) | 8.6% | 8.7% | 7.3% | 2.0% | 7.8% |
|---|
| Galliford Try ($GFRD) | 12.7% | 4.5% | 8.9% | -4.5% | -5.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Volution Group ($FAN) | 1.0x | 1.0x | 2.1x | 1.7x | - |
| Alumasc Group ($ALU) | -1.0x | -0.6x | 0.6x | 1.5x | 1.9x |
| James Halstead ($JHD) | -0.9x | -1.0x | - | -1.3x | - |
| Titon Hldgs ($TON) | -1.0x | -1.3x | -1.3x | -1.9x | - |
| Aukett Swanke Group ($AUK) | -0.6x | - | - | -3.0x | - |
| |
|---|
| Median (5 companies) | -0.7x | -0.2x | -0.7x | -1.3x | 1.9x |
|---|
