Yougov Net Income dropped on 36.2% while Revenue jumped on 11.7%
06 Oct 2020 • About Yougov (
$YOU) • By InTwits
Yougov reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Yougov is a growth stock: FY2020 revenue growth was 11.7%, 5 year revenue CAGR was 14.9% at FY2020 ROIC 14.0%
- Yougov has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's in pair with industry average of 2.3%
- CAPEX is quite volatile: £1m in FY2020, £3m in FY2019, £1m in FY2018, £1m in FY2017, £1m in FY2016
- The company has highly profitable business model: ROIC is 14.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Yougov's Revenue surged on 11.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.53 pp from 6.7% to 6.2% in FY2020. EBITDA Margin stuck to a growing trend at 2.4 pp per annum in the last 5 years.
Gross Margin increased on 2.4 pp from 82.3% to 84.7% in FY2020. Gross Margin grew at 1.6 pp per annum in FY2016-FY2020. SG&A as a % of Revenue increased on 7.0 pp from 67.7% to 74.7% in FY2020.
Net Income margin decreased on 4.7 pp from 11.0% to 6.3% in FY2020. During FY2016-FY2020 Net Income margin topped in FY2019 at 11.0%.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 0.70%. CAPEX/Revenue showed almost no change from FY2017 to FY2020. For the last three years the average CAPEX/Revenue was 1.2%.
Return on investment
The company operates at good ROIC (14.0%) while ROE is low (8.7%). ROIC decreased on 7.1 pp from 21.1% to 14.0% in FY2020. ROE decreased on 6.2 pp from 14.9% to 8.7% in FY2020. During the last 5 years ROIC topped in FY2019 at 21.1%. During FY2016-FY2020 ROE topped in FY2019 at 14.9%.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.9x and Debt / EBITDA is 0.3x. Debt jumped while cash decreased on 6.9%.
Yougov has no short term refinancing risk: cash is higher than short term debt (1,417.5%).
Valuation and dividends
Yougov's trades at EV/EBITDA 31.8x and P/E 104.1x.
Financial and operational results
Yougov ($YOU) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 88.2 | 107.0 | 116.6 | 136.5 | 152.4 | 11.7% |
| Gross Profit | 68.7 | 85.7 | 95.1 | 112.3 | 129.1 | 14.9% |
| SG&A | | | | 92.5 | 113.9 | 23.1% |
| EBITDA | 10.7 | 15.2 | 20.0 | 30.1 | 30.5 | 1.2% |
| Net Income | 3.4 | 4.7 | 8.2 | 15.0 | 9.6 | -36.2% |
Balance Sheet
|
|---|
| Cash | 15.6 | 23.5 | 30.6 | 37.9 | 35.3 | -6.9% |
| Short Term Debt | 0.0 | 0.3 | 0.0 | 0.0 | 2.5 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 6.9 | |
Cash flow
|
|---|
| Capex | 1.0 | 0.8 | 1.0 | 2.7 | 1.1 | -60.7% |
Ratios
|
|---|
| Revenue growth | 15.9% | 21.4% | 8.9% | 17.1% | 11.7% | |
| EBITDA growth | 4.6% | 42.2% | 31.3% | 50.4% | 1.2% | |
|
|---|
| Gross Margin | 77.9% | 80.1% | 81.6% | 82.3% | 84.7% | 2.4% |
| EBITDA Margin | 12.2% | 14.2% | 17.2% | 22.1% | 20.0% | -2.1% |
| SG&A, % of revenue | | | | 67.7% | 74.7% | 7.0% |
| Net Income Margin | 3.9% | 4.4% | 7.0% | 11.0% | 6.3% | -4.7% |
| CAPEX, % of revenue | 1.1% | 0.8% | 0.8% | 2.0% | 0.7% | -1.3% |
|
|---|
| ROIC | 6.7% | 10.2% | 14.4% | 21.1% | 14.0% | -7.1% |
| ROE | 5.0% | 6.0% | 9.5% | 14.9% | 8.7% | -6.2% |
| Net Debt/EBITDA | -1.5x | -1.5x | -1.5x | -1.3x | -0.9x | 0.4x |
Peers in Media
Below we provide Yougov benchmarking against other companies in Media 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 |
|---|
| Ite Group ($ITE) | -1.0% | 13.5% | 15.1% | 25.6% | - |
| Reed Elsevier ($REL) | 15.4% | 6.6% | 2.1% | 5.1% | - |
| Dods(Group ($DODS) | - | 1.8% | 3.1% | 3.5% | 30.5% |
| Wilmington Group ($WIL) | - | 13.8% | 0.8% | 1.0% | -7.7% |
| Catalyst Media Group ($CMX) | 0.0% | 0.0% | 0.0% | 0.0% | - |
| |
|---|
| Median (6 companies) | 3.4% | 3.1% | 8.0% | 2.2% | 11.4% |
|---|
| Yougov ($YOU) | - | 21.4% | 8.9% | 17.1% | 11.7% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Reed Elsevier ($REL) | 63.9% | 64.2% | 64.7% | 65.0% | - |
| Ite Group ($ITE) | 43.6% | 38.9% | 38.7% | 39.6% | - |
| Dods(Group ($DODS) | 38.0% | 41.3% | 40.5% | 37.0% | 32.2% |
| Wilmington Group ($WIL) | 71.2% | 17.0% | 18.0% | 17.2% | 12.1% |
| |
|---|
| Median (4 companies) | 41.9% | 39.5% | 40.7% | 38.3% | 22.1% |
|---|
| Yougov ($YOU) | 77.9% | 80.1% | 81.6% | 82.3% | 84.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Reed Elsevier ($REL) | 33.9% | 34.4% | 34.5% | 34.8% | - |
| Wilmington Group ($WIL) | 5.9% | 21.7% | 10.6% | 20.2% | 16.5% |
| Ite Group ($ITE) | 7.0% | 4.5% | 3.7% | 16.3% | - |
| Daily Mail & General Trust ($DMGT) | 9.8% | -3.7% | 8.2% | 10.1% | - |
| Dods(Group ($DODS) | 12.3% | 15.9% | 12.3% | -15.3% | 6.3% |
| |
|---|
| Median (6 companies) | 7.0% | 6.8% | 8.8% | 13.2% | 11.4% |
|---|
| Yougov ($YOU) | 12.2% | 14.2% | 17.2% | 22.1% | 20.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Ite Group ($ITE) | 1.8% | 2.1% | 2.4% | 1.7% | - |
| Daily Mail & General Trust ($DMGT) | 1.4% | 1.3% | 20.0% | 1.2% | - |
| Wilmington Group ($WIL) | 0.6% | 1.1% | 2.5% | 1.1% | 0.5% |
| Reed Elsevier ($REL) | 0.7% | 0.7% | 0.7% | 0.6% | - |
| Dods(Group ($DODS) | 0.6% | 12.7% | 1.3% | 0.5% | 0.7% |
| |
|---|
| Median (6 companies) | 0.7% | 0.9% | 1.3% | 0.8% | 0.6% |
|---|
| Yougov ($YOU) | 1.1% | 0.8% | 0.8% | 2.0% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Reed Elsevier ($REL) | 21.4% | 21.4% | 21.0% | 21.6% | - |
| Wilmington Group ($WIL) | -1.4% | 17.9% | 4.3% | 18.8% | 8.9% |
| Daily Mail & General Trust ($DMGT) | 11.4% | -11.1% | 2.9% | 6.2% | - |
| Ite Group ($ITE) | -4.4% | -5.3% | -2.9% | 1.8% | - |
| Catalyst Media Group ($CMX) | -0.3% | -0.4% | -0.4% | -0.5% | - |
| |
|---|
| Median (6 companies) | 1.4% | 0.8% | 3.3% | 4.0% | 3.3% |
|---|
| Yougov ($YOU) | 6.7% | 10.2% | 14.4% | 21.1% | 14.0% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Ite Group ($ITE) | 6.3x | 7.3x | 12.7x | 3.1x | - |
| Reed Elsevier ($REL) | 2.2x | 2.0x | 2.4x | 2.3x | - |
| Wilmington Group ($WIL) | 5.5x | 1.5x | 3.1x | 1.4x | 2.2x |
| Daily Mail & General Trust ($DMGT) | 3.7x | - | -0.1x | -0.6x | - |
| |
|---|
| Median (4 companies) | 0.4x | 0.7x | 0.3x | 1.8x | 3.3x |
|---|
| Yougov ($YOU) | -1.5x | -1.5x | -1.5x | -1.3x | -0.9x |
