Santa Fe Financial Corp Net Debt / EBITDA jumped on 22.0x from 8.2x to 30.2x in 2020 and Debt increased slightly on 1.6%
09/09/2020 • About Santa Fe Financial Corp (
$SFEF) • By InTwits
Santa Fe Financial Corp reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Santa Fe Financial Corp is a company in decline: FY2020 revenue growth was -28.3%, 5 years revenue CAGR was -5.6%
- EBITDA Margin is quite volatile: 9.5% in FY2020, 23.6% in FY2019, 37.0% in FY2018, 22.7% in FY2017, 8.7% in FY2016
- Santa Fe Financial Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 3.0%
- CAPEX is quite volatile: $1m in FY2020, $1m in FY2019, $0m in FY2018, $0m in FY2017, $4m in FY2016
- The company has potentially unprofitable business model: ROIC is 3.4%
- It operates with high leverage: Net Debt/EBITDA is 30.2x while industry average is 28.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 28.3%. Revenue decline showed acceleration in FY20Q4 - it was 90.9% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.1 pp from 23.6% to 9.5% in FY2020. During FY2016-FY2020 EBITDA Margin topped in FY2018 at 37.0% and was declining since that time.
SG&A as a % of Revenue increased slightly on 0.84 pp from 2.3% to 3.2% in FY2020.
Net Income margin dropped on 12.3 pp from 5.4% to -6.9% in FY2020. During the last 5 years Net Income margin topped in FY2019 at 5.4%.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 3.0%. CAPEX/Revenue increased on 2.3 pp from 0.70% in FY2017 to 3.0% in FY2020. Average CAPEX/Revenue for the last three years was 1.9%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2018 at 0.47% and was growing since that time.
Leverage (Debt)
Debt level is 30.2x Net Debt / EBITDA and 31.3x Debt / EBITDA. Net Debt / EBITDA jumped on 22.0x from 8.2x to 30.2x in FY2020. Debt increased slightly on 1.6% while cash dropped on 51.8%. During the last 5 years Net Debt/EBITDA bottomed in FY2018 at 5.6x and was growing since that time.
Santa Fe Financial Corp has short term refinancing risk: cash is only 35.2% of short term debt.
Financial and operational results
FY ended 06/30/2020
Santa Fe Financial Corp ($SFEF) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 58.994 | 54.674 | 57.434 | 60.205 | 43.156 | -28.3% |
| SG&A | 1.072 | 1.030 | 1.706 | 1.397 | 1.364 | -2.4% |
| EBITDA | 5.114 | 12.431 | 21.231 | 14.180 | 4.092 | -71.1% |
| Net Income | -4.960 | -1.182 | 1.496 | 3.259 | -2.966 | -191.0% |
Balance Sheet
|
|---|
| Cash | 3.397 | 2.097 | 7.647 | 9.800 | 4.724 | -51.8% |
| Short Term Debt | 11.246 | 10.209 | 9.996 | 9.707 | 13.421 | 38.3% |
| Long Term Debt | 119.481 | 118.871 | 117.560 | 116.402 | 114.752 | -1.4% |
Cash flow
|
|---|
| Capex | 4.394 | 0.385 | 0.270 | 1.413 | 1.290 | -8.7% |
Ratios
|
|---|
| Revenue growth | 2.7% | -7.3% | 5.0% | 4.8% | -28.3% | |
| EBITDA growth | -43.4% | 143.1% | 70.8% | -33.2% | -71.1% | |
|
|---|
| EBITDA Margin | 8.7% | 22.7% | 37.0% | 23.6% | 9.5% | -14.1% |
| SG&A, % of revenue | 1.8% | 1.9% | 3.0% | 2.3% | 3.2% | 0.8% |
| Net Income Margin | -8.4% | -2.2% | 2.6% | 5.4% | -6.9% | -12.3% |
| CAPEX, % of revenue | 7.4% | 0.7% | 0.5% | 2.3% | 3.0% | 0.6% |
|
|---|
| ROIC | 3.6% | 17.7% | 35.8% | 21.7% | 3.4% | -18.3% |
| Net Debt/EBITDA | 24.9x | 10.2x | 5.6x | 8.2x | 30.2x | 22.0x |
Santa Fe Financial Corp ($SFEF) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 16 | 15 | 11 | 1 | | -2.4% | 6.4% | -27.1% | -90.9% |
| EBITDA | 4 | 3 | 1 | -3 | | -20.0% | 11.4% | -78.1% | -208.1% |
| Net Income | 0 | 0 | -1 | -2 | | -36.2% | - | -371.8% | -181.8% |
Balance Sheet
|
|---|
| Cash | 10 | 7 | 6 | 5 | | 6.8% | -19.0% | -34.7% | -51.8% |
| Short Term Debt | 9 | 9 | 9 | 13 | | -4.0% | -5.2% | -6.4% | 38.3% |
| Long Term Debt | 116 | 115 | 115 | 115 | | -1.6% | -1.6% | -1.6% | -1.4% |
Ratios
|
|---|
| EBITDA Margin | 24.5% | 19.1% | 7.2% | -253.8% | | -5.4% | 0.9% | -16.9% | -275.1% |
| Net Income Margin | 2.3% | 0.8% | -10.2% | -171.7% | | -1.2% | 4.5% | -13.0% | -190.7% |
Peers in Hotels, Resorts & Cruise Lines
Below you can find Santa Fe Financial Corp benchmarking vs. other companies in Hotels, Resorts & Cruise Lines 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 |
|---|
| Portsmouth Square Inc ($PRSI) | - | -7.2% | 5.1% | 4.9% | -28.5% |
| |
|---|
| Median (1 company) | - | -7.2% | 5.1% | 4.9% | -28.5% |
|---|
| Santa Fe Financial Corp ($SFEF) | - | -7.3% | 5.0% | 4.8% | -28.3% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Portsmouth Square Inc ($PRSI) | 8.9% | 23.5% | 37.9% | 24.1% | 10.7% |
| |
|---|
| Median (1 company) | 8.9% | 23.5% | 37.9% | 24.1% | 10.7% |
|---|
| Santa Fe Financial Corp ($SFEF) | 8.7% | 22.7% | 37.0% | 23.6% | 9.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Portsmouth Square Inc ($PRSI) | 7.2% | 0.6% | 0.4% | 2.3% | 3.0% |
| |
|---|
| Median (1 company) | 7.2% | 0.6% | 0.4% | 2.3% | 3.0% |
|---|
| Santa Fe Financial Corp ($SFEF) | 7.4% | 0.7% | 0.5% | 2.3% | 3.0% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Portsmouth Square Inc ($PRSI) | 5.0% | 21.9% | 42.3% | 25.8% | 5.4% |
| |
|---|
| Median (1 company) | 5.0% | 21.9% | 42.3% | 25.8% | 5.4% |
|---|
| Santa Fe Financial Corp ($SFEF) | 3.6% | 17.7% | 35.8% | 21.7% | 3.4% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Portsmouth Square Inc ($PRSI) | 23.8x | 9.7x | 5.4x | 7.8x | 26.3x |
| |
|---|
| Median (1 company) | 23.8x | 9.7x | 5.4x | 7.8x | 26.3x |
|---|
| Santa Fe Financial Corp ($SFEF) | 24.9x | 10.2x | 5.6x | 8.2x | 30.2x |
