Gcp Student Living Net Income dropped on 47.6% while Revenue increased on 7.5%
17 Sep 2020 • About Gcp Student Living (
$DIGS) • By InTwits
Gcp Student Living reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Gcp Student Living is a fast growth stock: FY2020 revenue growth was 7.5%, 5 year revenue CAGR was 32.9% at FY2020 ROIC 5.8%
- Gcp Student Living has high CAPEX intensity: 5 year average CAPEX/Revenue was 272.8%. At the same time it's a lot of higher than industry average of 80.4%.
- CAPEX is quite volatile: £41m in FY2020, £66m in FY2019, £73m in FY2018, £195m in FY2017, £54m in FY2016
- The company has potentially unprofitable business model: ROIC is 5.8%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Gcp Student Living's Revenue increased on 7.5%. Revenue followed a declining trend in FY2016-FY2020.
Gross Margin increased slightly on 0.86 pp from 78.9% to 79.8% in FY2020. During FY2016-FY2020 Gross Margin bottomed in FY2018 at 77.8% and was growing since that time. SG&A as a % of Revenue increased slightly on 0.81 pp from 19.8% to 20.6% in FY2020. During the last 5 years SG&A as a % of Revenue bottomed in FY2019 at 19.8%.
Net Income margin dropped on 107 pp from 209% to 102% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 86.6%. CAPEX/Revenue dropped on 597 pp from 683% in FY2017 to 86.6% in FY2020. It's average level of CAPEX/Revenue for the last three years was 146%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2017 at 683% and was declining since that time.
Return on investment
The company operates at low ROIC (5.8%) and ROE (6.6%). ROIC decreased on 5.7 pp from 11.5% to 5.8% in FY2020. ROE decreased on 8.1 pp from 14.7% to 6.6% in FY2020.
Leverage (Debt)
Debt surged on 16.8% while cash surged on 289%.
Gcp Student Living has no short term refinancing risk: cash is higher than short term debt (17,648.5%).
Financial and operational results
Gcp Student Living ($DIGS) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 22.482 | 28.611 | 35.790 | 44.410 | 47.762 | 7.5% |
| Gross Profit | 17.882 | 22.525 | 27.844 | 35.046 | 38.104 | 8.7% |
| SG&A | 5.712 | 6.072 | 7.434 | 8.808 | 9.861 | 12.0% |
| Net Income | 28.328 | 23.474 | 61.058 | 92.786 | 48.578 | -47.6% |
Balance Sheet
|
|---|
| Cash | 66.337 | 55.110 | 29.213 | 15.509 | 60.358 | 289.2% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.342 | |
| Long Term Debt | 128.174 | 217.469 | 232.771 | 249.111 | 290.722 | 16.7% |
Cash flow
|
|---|
| Capex | 54.469 | 195.469 | 72.673 | 66.199 | 41.370 | -37.5% |
Ratios
|
|---|
| Revenue growth | 95.4% | 27.3% | 25.1% | 24.1% | 7.5% | |
|
|---|
| Gross Margin | 79.5% | 78.7% | 77.8% | 78.9% | 79.8% | 0.9% |
| SG&A, % of revenue | 25.4% | 21.2% | 20.8% | 19.8% | 20.6% | 0.8% |
| Net Income Margin | 126.0% | 82.0% | 170.6% | 208.9% | 101.7% | -107.2% |
| CAPEX, % of revenue | 242.3% | 683.2% | 203.1% | 149.1% | 86.6% | -62.4% |
|
|---|
| ROIC | 10.1% | 4.8% | 9.1% | 11.5% | 5.8% | -5.7% |
| ROE | 11.4% | 5.7% | 11.7% | 14.7% | 6.6% | -8.1% |
Peers in Equity Investment Instruments
Below you can find Gcp Student Living benchmarking vs. other companies in Equity Investment Instruments 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 |
|---|
| Target Healthcare REIT ($THRL) | 23.0% | 39.6% | 20.4% | 20.8% | - |
| Ground Rents Income Fund ($GRIO) | -64.4% | 7.9% | 4.3% | 5.3% | - |
| Ediston Ppty Inv Co ($EPIC) | 91.9% | 7.3% | 119.5% | -21.9% | - |
| |
|---|
| Median (3 companies) | 13.4% | 7.9% | 12.3% | 5.3% | - |
|---|
| Gcp Student Living ($DIGS) | - | 27.3% | 25.1% | 24.1% | 7.5% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Target Healthcare REIT ($THRL) | 75.0% | 85.5% | 104.4% | 96.2% | - |
| |
|---|
| Median (1 company) | 75.0% | 85.5% | 104.4% | 96.2% | - |
|---|
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Target Healthcare REIT ($THRL) | 206.4% | 160.0% | 317.2% | 290.6% | - |
| Ediston Ppty Inv Co ($EPIC) | 389.8% | 225.9% | 569.8% | 16.4% | - |
| Ground Rents Income Fund ($GRIO) | 102.4% | 234.6% | 49.1% | 5.1% | - |
| |
|---|
| Median (3 companies) | 91.4% | 160.0% | 317.2% | 16.4% | - |
|---|
| Gcp Student Living ($DIGS) | 242.3% | 683.2% | 203.1% | 149.1% | 86.6% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Target Healthcare REIT ($THRL) | 5.7% | 7.1% | 8.2% | 7.0% | - |
| Ediston Ppty Inv Co ($EPIC) | 5.1% | 7.3% | 8.3% | 5.0% | - |
| Ground Rents Income Fund ($GRIO) | - | - | -7.1% | -1.2% | - |
| |
|---|
| Median (3 companies) | 8.5% | 10.6% | 8.2% | 5.0% | - |
|---|
| Gcp Student Living ($DIGS) | 10.1% | 4.8% | 9.1% | 11.5% | 5.8% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Target Healthcare REIT ($THRL) | -3.5x | 1.4x | 0.8x | 2.4x | - |
| |
|---|
| Median (1 company) | 3.4x | 1.9x | 0.8x | 2.4x | - |
|---|
