Caribbean Investment Holdings Ltd reports 12.1% Net Income decline in 2020 and 1.7% Revenue decline
28 Sep 2020 • About Caribbean Investment Holdings Ltd (
$CIHL) • By InTwits
Caribbean Investment Holdings Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Caribbean Investment Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's a lot of higher than industry average of 4.1%.
- CAPEX is quite volatile: $2m in FY2020, $2m in FY2019, $4m in FY2018, $4m in FY2017, $2m in FY2016
- The company has business model with low profitability: ROIC is 8.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.5x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Caribbean Investment Holdings Ltd's Revenue decreased slightly on 1.7%.
Net Income margin decreased on 2.7 pp from 25.4% to 22.7% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.1% in FY2020. CAPEX/Revenue decreased on 3.2 pp from 7.3% in FY2017 to 4.1% in FY2020. For the last three years the average CAPEX/Revenue was 4.9%. During the last 5 years CAPEX as a % of Revenue topped in FY2017 at 7.3% and was declining since that time.
Return on investment
The company operates at low ROIC (8.2%) and ROE (10.3%). ROIC dropped on 10.2 pp from 18.4% to 8.2% in FY2020. ROE decreased on 2.6 pp from 12.9% to 10.3% in FY2020.
Leverage (Debt)
The company has no debt. Cash increased on 7.4%.
Financial and operational results
FY ended 31 Mar 2020
Caribbean Investment Holdings Ltd ($CIHL) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 50.800 | 53.100 | 61.000 | 42.100 | 41.400 | -1.7% |
| Net Income | 0.600 | -2.400 | 20.600 | 10.700 | 9.400 | -12.1% |
Balance Sheet
|
|---|
| Cash | 177.000 | 135.800 | 72.000 | 55.700 | 59.800 | 7.4% |
| 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 | 1.500 | 3.900 | 3.600 | 2.000 | 1.700 | -15.0% |
Ratios
|
|---|
| Revenue growth | -9.9% | 4.5% | 14.9% | -31.0% | -1.7% | |
|
|---|
| Net Income Margin | 1.2% | -4.5% | 33.8% | 25.4% | 22.7% | -2.7% |
| CAPEX, % of revenue | 3.0% | 7.3% | 5.9% | 4.8% | 4.1% | -0.6% |
|
|---|
| ROIC | 5.7% | 5.0% | 34.6% | 18.4% | 8.2% | -10.2% |
| ROE | 1.0% | -4.3% | 31.5% | 12.9% | 10.3% | -2.6% |
Peers in Regional Banks
Below we provide Caribbean Investment Holdings Ltd benchmarking against other companies in Regional Banks 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.
