The Intergroup Corporation Net Debt / EBITDA surged on 9.8x from 8.3x to 18.1x in 2020 while EBITDA dropped on 51.9%
09/09/2020 • About The Intergroup Corporation (
$INTG) • By InTwits
The Intergroup Corporation reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The Intergroup Corporation is a company in decline: FY2020 revenue growth was -22.4%, 5 years revenue CAGR was -4.4%
- EBITDA Margin is quite volatile: 16.6% in FY2020, 26.7% in FY2019, 36.8% in FY2018, 26.6% in FY2017, 14.7% in FY2016
- The Intergroup Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's in pair with industry average of 2.5%
- CAPEX is quite volatile: $2m in FY2020, $2m in FY2019, $1m in FY2018, $1m in FY2017, $7m in FY2016
- The company has potentially unprofitable business model: ROIC is 4.4%
- It operates with high leverage: Net Debt/EBITDA is 18.1x while industry average is 49.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The Intergroup Corporation's Revenue dropped on 22.4%. Revenue decline showed acceleration in FY20Q4 - it was 72.1% YoY. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 10.2 pp from 26.7% to 16.6% in FY2020. During the last 5 years EBITDA Margin topped in FY2018 at 36.8% and was declining since that time.
Net Income margin decreased on 8.5 pp from 1.9% to -6.5% in FY2020. During the last 5 years Net Income margin topped in FY2018 at 5.7% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 4.0%. CAPEX/Revenue increased on 2.3 pp from 1.7% in FY2017 to 4.0% in FY2020. It's average CAPEX/Revenue for the last three years was 2.8%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2018 at 1.3% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 18.1x and Debt / EBITDA is 19.6x. Net Debt / EBITDA surged on 9.8x from 8.3x to 18.1x in FY2020. Debt increased on 5.7% while cash jumped on 19.7%. During the last 5 years Net Debt/EBITDA bottomed in FY2018 at 6.5x and was growing since that time.
The Intergroup Corporation has no short term refinancing risk: cash is higher than short term debt (474.5%).
Management team
The company's CEO is John V Winfield. John V Winfield has 34 years tenure with the company.
Financial and operational results
FY ended 06/30/2020
The Intergroup Corporation ($INTG) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 72.898 | 69.005 | 71.579 | 74.753 | 58.017 | -22.4% |
| EBITDA | 10.744 | 18.385 | 26.341 | 19.973 | 9.606 | -51.9% |
| Net Income | -7.136 | -1.653 | 4.081 | 1.457 | -3.781 | -359.5% |
Balance Sheet
|
|---|
| Cash | 5.404 | 2.871 | 8.053 | 11.837 | 14.163 | 19.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 2.985 | 2.985 | 0.0% |
| Long Term Debt | 182.325 | 182.925 | 180.487 | 174.773 | 184.904 | 5.8% |
Cash flow
|
|---|
| Capex | 6.745 | 1.203 | 0.944 | 2.230 | 2.340 | 4.9% |
Ratios
|
|---|
| Revenue growth | 0.2% | -5.3% | 3.7% | 4.4% | -22.4% | |
| EBITDA growth | -26.5% | 71.1% | 43.3% | -24.2% | -51.9% | |
|
|---|
| EBITDA Margin | 14.7% | 26.6% | 36.8% | 26.7% | 16.6% | -10.2% |
| Net Income Margin | -9.8% | -2.4% | 5.7% | 1.9% | -6.5% | -8.5% |
| CAPEX, % of revenue | 9.3% | 1.7% | 1.3% | 3.0% | 4.0% | 1.1% |
|
|---|
| ROIC | 4.9% | 12.0% | 19.8% | 13.8% | 4.4% | -9.4% |
| Net Debt/EBITDA | 16.5x | 9.8x | 6.5x | 8.3x | 18.1x | 9.8x |
The Intergroup Corporation ($INTG) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 19 | 19 | 15 | 5 | | -1.8% | 5.6% | -21.8% | -72.1% |
| EBITDA | 5 | 4 | 2 | -2 | | -15.2% | 3.6% | -61.4% | -136.9% |
| Net Income | 0 | 0 | -3 | -2 | | -46.7% | - | -345.5% | -322.3% |
Balance Sheet
|
|---|
| Cash | 12 | 8 | 8 | 14 | | 21.9% | -5.8% | -30.4% | 19.7% |
| Short Term Debt | 3 | 3 | 3 | 3 | | - | - | - | 0.0% |
| Long Term Debt | 173 | 173 | 170 | 185 | | -4.3% | -2.4% | -4.7% | 5.8% |
Ratios
|
|---|
| EBITDA Margin | 26.6% | 23.0% | 13.0% | -34.2% | | -4.2% | -0.4% | -13.3% | -60.2% |
| Net Income Margin | 1.8% | 1.3% | -17.2% | -34.9% | | -1.5% | 7.1% | -22.7% | -39.3% |
Peers in Real Estate Operating Companies
Below you can find The Intergroup Corporation benchmarking vs. other companies in Real Estate Operating Companies 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 |
|---|
| J. W. Mays, Inc. ($MAYS) | - | 5.2% | -1.3% | 6.1% | -4.6% |
| |
|---|
| Median (1 company) | - | 5.2% | -1.3% | 6.1% | -4.6% |
|---|
| The Intergroup Corporation ($INTG) | - | -5.3% | 3.7% | 4.4% | -22.4% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| J. W. Mays, Inc. ($MAYS) | 22.3% | 24.1% | 18.8% | 18.5% | 2.2% |
| |
|---|
| Median (1 company) | 22.3% | 24.1% | 18.8% | 18.5% | 2.2% |
|---|
| The Intergroup Corporation ($INTG) | 14.7% | 26.6% | 36.8% | 26.7% | 16.6% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| J. W. Mays, Inc. ($MAYS) | 13.5% | 10.8% | 16.0% | 21.0% | 32.6% |
| |
|---|
| Median (1 company) | 13.5% | 10.8% | 16.0% | 21.0% | 32.6% |
|---|
| The Intergroup Corporation ($INTG) | 9.3% | 1.7% | 1.3% | 3.0% | 4.0% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| J. W. Mays, Inc. ($MAYS) | 4.3% | 5.0% | 3.0% | 2.8% | -1.5% |
| |
|---|
| Median (1 company) | 4.3% | 5.0% | 3.0% | 2.8% | -1.5% |
|---|
| The Intergroup Corporation ($INTG) | 4.9% | 12.0% | 19.8% | 13.8% | 4.4% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| J. W. Mays, Inc. ($MAYS) | 0.4x | 0.0x | 0.0x | 0.3x | 81.6x |
| |
|---|
| Median (1 company) | 0.4x | 0.0x | 0.0x | 0.3x | 81.6x |
|---|
| The Intergroup Corporation ($INTG) | 16.5x | 9.8x | 6.5x | 8.3x | 18.1x |
