Hansard Global CAPEX jumped on 20% and Revenue increased on 2.1%
24 Sep 2020 • About Hansard Global (
$HSD) • By InTwits
Hansard Global reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hansard Global has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 1.4%.
- CAPEX is quite volatile: £3m in FY2020, £3m in FY2019, £1m in FY2018, £0m in FY2017, £0m in FY2016
- The company has business model with average profitability: ROIC is 10.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Hansard Global's Revenue increased on 2.1%. EBITDA Margin showed almost no change in FY2020. EBITDA Margin stuck to a declining trend at -1.9 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2020. Net Income margin declined at -1.9 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 6.1% in FY2020. The company showed CAPEX/Revenue growth of 5.3 pp from 0.76% in FY2017 to 6.1% in FY2020. It's average CAPEX/Revenue for the last three years was 4.3%. The company maintained rich investment policy and has spent a big chunk of EBITDA (83.3%) to CAPEX. CAPEX as a % of Revenue grew at 1.6 pp per annum in FY2016-FY2020.
Return on investment
The company operates at good ROE (16.9%) while ROIC is low (10.9%). ROIC showed almost no change in FY2020. ROE showed almost no change in FY2020.
Leverage (Debt)
The company has no debt. Cash decreased slightly on 1.5%.
Valuation and dividends
Hansard Global's trades at EV/EBITDA 2.3x and P/E 10.6x.
Financial and operational results
FY ended 30 Jun 2020
Hansard Global ($HSD) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 51.300 | 52.600 | 52.600 | 48.500 | 49.500 | 2.1% |
| EBITDA | 6.900 | 7.100 | 6.200 | 3.400 | 3.600 | 5.9% |
| Net Income | 8.300 | 7.700 | 6.800 | 4.600 | 4.500 | -2.2% |
Balance Sheet
|
|---|
| Cash | 60.900 | 57.200 | 53.600 | 40.200 | 39.600 | -1.5% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.200 | 0.400 | 0.900 | 2.500 | 3.000 | 20.0% |
Ratios
|
|---|
| Revenue growth | -8.9% | 2.5% | 0.0% | -7.8% | 2.1% | |
| EBITDA growth | -53.1% | 2.9% | -12.7% | -45.2% | 5.9% | |
|
|---|
| EBITDA Margin | 13.5% | 13.5% | 11.8% | 7.0% | 7.3% | 0.3% |
| Net Income Margin | 16.2% | 14.6% | 12.9% | 9.5% | 9.1% | -0.4% |
| CAPEX, % of revenue | 0.4% | 0.8% | 1.7% | 5.2% | 6.1% | 0.9% |
|
|---|
| ROIC | 16.8% | 19.7% | 19.3% | 10.8% | 10.9% | 0.2% |
| ROE | 21.8% | 22.7% | 22.6% | 16.5% | 16.9% | 0.4% |
| Net Debt/EBITDA | -8.8x | -8.1x | -8.6x | -11.8x | -11.0x | 0.8x |
Peers in Life Insurance
Below you can find Hansard Global benchmarking vs. other companies in Life Insurance 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 |
|---|
| Torchmark Corp ($TMK) | 4.5% | 5.6% | 3.6% | 5.2% | - |
| |
|---|
| Median (1 company) | 14.0% | 6.8% | 3.6% | 5.2% | - |
|---|
| Hansard Global ($HSD) | - | 2.5% | 0.0% | -7.8% | 2.1% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Torchmark Corp ($TMK) | 4.2% | 4.2% | 4.2% | 4.2% | - |
| |
|---|
| Median (1 company) | 0.6% | 0.8% | 4.2% | 4.2% | - |
|---|
| Hansard Global ($HSD) | 16.8% | 19.7% | 19.3% | 10.8% | 10.9% |
