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Samsonite International SA Debt jumped on 2,887% and Revenue surged on 15.5%

16/03/2017 • About Samsonite International SA ($1910) • By InTwits

Samsonite International SA reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Samsonite International SA is a growth stock: FY2016 revenue growth was 15.5%, 5 year revenue CAGR was 12.4% at FY2016 ROIC 12.2%
  • EBITDA Margin is relatively stable: 15.0% in FY2016 vs. 15.1% in FY2015 vs. 15.9% in FY2012
  • Samsonite International SA has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 38.3%.
  • CAPEX is quite volatile: 70.1 in FY2016, 34.4 in FY2015, 119 in FY2014, 25.5 in FY2013, 20.9 in FY2012
  • The company has highly profitable business model: ROIC is at 12.2%
  • It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is -0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Samsonite International SA ($1910) key annual financial indicators

mln. $201220132014201520162016/2015
P&L
Revenue1,7722,0382,3512,4322,81015.5%
Gross Profit9511,0881,2441,2791,52118.9%
SG&A7058039229521,14019.7%
EBITDA28232635136842014.1%
Net Income14817618619825629.4%
Balance Sheet
Cash151225140181369103.8%
Short Term Debt321465637011.3%
Long Term Debt00001,8063,167,550.9%
Cash flow
Capex38577068701.6%
Ratios
Revenue growth13.2%15.0%15.4%3.5%15.5%
EBITDA growth13.5%15.8%7.5%5.0%14.1%
Gross Margin53.7%53.4%52.9%52.6%54.1%1.5%
EBITDA Margin15.9%16.0%14.9%15.1%15.0%-0.2%
Net Income Margin8.4%8.6%7.9%8.1%9.1%1.0%
SG&A, % of revenue39.8%39.4%39.2%39.1%40.6%1.4%
CAPEX, % of revenue2.1%2.8%3.0%2.8%2.5%-0.3%
ROIC20.8%21.8%21.1%20.3%12.2%-8.1%
ROE15.1%15.7%15.1%15.0%18.1%3.1%
Net Debt/EBITDA-0.4x-0.6x-0.2x-0.3x3.6x3.9x

Revenue and profitability


Samsonite International SA's Revenue surged on 15.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.8 pp from 1.8% to -5.0% in FY2016.

Gross Margin increased slightly on 1.5 pp from 52.6% to 54.1% in FY2016. SG&A as a % of Revenue increased slightly on 1.4 pp from 39.1% to 40.6% in FY2016.

Net Income marign increased slightly on 0.97 pp from 8.1% to 9.1% in FY2016.

Capital expenditures (CAPEX) and working capital investments


In FY2016 Samsonite International SA had CAPEX/Revenue of 2.5%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 2.8%.

Return on investment


The company operates at good ROIC (12.16%) and ROE (18.09%). ROIC decreased on 8.1 pp from 20.3% to 12.2% in FY2016. ROE increased on 3.1 pp from 15.0% to 18.1% in FY2016.

Leverage (Debt)


Debt level is 3.6x Net Debt / EBITDA and 4.5x Debt / EBITDA. Net Debt / EBITDA jumped on 3.9x from -0.3x to 3.6x in FY2016. Debt surged on 2,887% while cash jumped on 104%.

Management team


Ramesh Dungarmal Tainwala is a Samsonite International SA's CEO. Ramesh Dungarmal Tainwala has spent 4 years at the company. Samsonite International SA's CFO Kyle Francis Gendreau has spent 9 years at the company.

Appendix 1: Peers in Household Products/Wares


Below you can find Samsonite International SA benchmarking vs. other companies in Household Products/Wares 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 5 FY2012 FY2013 FY2014 FY2015 FY2016
Lisi Group Holdings Ltd ($526)-23.5%160.0%47.9%-6.2%
Tempus Holdings Ltd ($6880)17.3%5.5%31.1%14.7%
Lerado Group Holding Co Ltd ($1225)4.1%-91.1%4.8%14.3%
Goodbaby International Holdings Ltd ($1086)15.5%-8.0%46.0%13.7%
King's Flair International Holdings Ltd ($6822)11.2%14.8%10.0%2.6%
 
Median (9 companies)11.5%3.6%10.0%2.6%-8.4%
Samsonite International SA ($1910)15.0%15.4%3.5%15.5%


Top companies by Gross margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Tempus Holdings Ltd ($6880)68.4%64.8%64.6%65.5%
Carpenter Tan Holdings Ltd ($837)66.9%67.0%65.8%64.5%
Biostime International Holdings Ltd ($1112)65.9%65.2%61.9%61.9%
Goodbaby International Holdings Ltd ($1086)19.1%22.9%25.0%29.5%
eForce Holdings Ltd ($943)21.2%24.3%25.6%28.5%
 
Median (9 companies)21.7%22.9%25.0%28.5%18.1%
Samsonite International SA ($1910)53.7%53.4%52.9%52.6%54.1%


Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Carpenter Tan Holdings Ltd ($837)49.0%48.1%48.6%46.7%
eForce Holdings Ltd ($943)-16.9%-13.0%-5.8%21.9%
Biostime International Holdings Ltd ($1112)30.4%27.6%24.3%14.8%
King's Flair International Holdings Ltd ($6822)8.3%7.9%9.7%14.6%
Lisi Group Holdings Ltd ($526)11.8%-0.3%4.4%10.0%-2.7%
 
Median (9 companies)9.9%7.4%4.9%10.0%-0.4%
Samsonite International SA ($1910)15.9%16.0%14.9%15.1%15.0%


Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Lerado Group Holding Co Ltd ($1225)3.0%75.4%18.8%60.0%
Lisi Group Holdings Ltd ($526)7.1%11.3%6.1%13.1%4.0%
Goodbaby International Holdings Ltd ($1086)2.9%2.8%2.6%2.6%
Tempus Holdings Ltd ($6880)0.9%4.0%2.8%2.4%
Biostime International Holdings Ltd ($1112)1.2%3.0%2.8%2.3%
 
Median (9 companies)1.4%2.8%2.6%2.3%3.0%
Samsonite International SA ($1910)2.1%2.8%3.0%2.8%2.5%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
King's Flair International Holdings Ltd ($6822)39.4%41.9%49.5%46.7%
Carpenter Tan Holdings Ltd ($837)30.3%24.6%20.7%17.6%
Biostime International Holdings Ltd ($1112)41.7%39.9%24.7%7.3%
eForce Holdings Ltd ($943)-6.4%-7.0%-5.1%7.0%
Goodbaby International Holdings Ltd ($1086)10.7%8.8%3.9%6.1%
 
Median (9 companies)10.7%6.7%2.5%6.1%-2.1%
Samsonite International SA ($1910)20.8%21.8%21.1%20.3%12.2%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Lisi Group Holdings Ltd ($526)3.4x36.8x9.6x
Biostime International Holdings Ltd ($1112)-0.4x-0.0x-0.0x8.8x
Goodbaby International Holdings Ltd ($1086)-1.3x-0.5x5.9x2.1x
eForce Holdings Ltd ($943)-1.2x
Carpenter Tan Holdings Ltd ($837)-2.5x-2.1x-0.9x-1.5x
 
Median (8 companies)-1.0x-1.2x-0.9x-1.3x-5.8x
Samsonite International SA ($1910)-0.4x-0.6x-0.2x-0.3x3.6x