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Dynam Japan Holdings Co Ltd Net Income surged on 16.1% and EBITDA Margin increased slightly on 1.3 pp from 18.0% to 19.3%

23/05/2018 • About Dynam Japan Holdings Co Ltd ($6889) • By InTwits

Dynam Japan Holdings Co Ltd reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Dynam Japan Holdings Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%.
  • CAPEX is quite volatile: 4,984 in FY2018, 9,925 in FY2017, 12,613 in FY2016, 16,008 in FY2015, 9,292 in FY2014
  • The company has business model with average profitability: ROIC is at 11.5%
  • It operates with high leverage: Net Debt/EBITDA is -1.1x while industry average is -3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Dynam Japan Holdings Co Ltd ($6889) key annual financial indicators

mln. JPY201420152016201720182018/2017
P&L
Revenue165,754154,556155,911156,869152,092-3.0%
SG&A4,0755,4565,7985,6225,049-10.2%
EBITDA40,83225,83730,18328,23629,2873.7%
Net Income21,32811,30310,5449,36010,87016.1%
Balance Sheet
Cash34,83029,23928,13448,49940,533-16.4%
Short Term Debt2,1343,4142,4557,5837,6070.3%
Long Term Debt3,3919,22618,52023,3431,547-93.4%
Cash flow
Capex9,29216,00812,6139,9254,984-49.8%
Ratios
Revenue growth1.1%-6.8%0.9%0.6%-3.0%
EBITDA growth-3.1%-36.7%16.8%-6.5%3.7%
EBITDA Margin24.6%16.7%19.4%18.0%19.3%1.3%
Net Income Margin12.9%7.3%6.8%6.0%7.1%1.2%
SG&A, % of revenue2.5%3.5%3.7%3.6%3.3%-0.3%
CAPEX, % of revenue5.6%10.4%8.1%6.3%3.3%-3.0%
ROIC21.8%10.5%12.6%10.3%11.5%1.1%
ROE15.9%8.1%7.9%6.9%7.9%1.0%
Net Debt/EBITDA-0.7x-0.6x-0.2x-0.6x-1.1x-0.4x

Revenue and profitability


Dynam Japan Holdings Co Ltd's Revenue decreased on 3.0%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.3 pp from 18.0% to 19.3% in FY2018.

SG&A as a % of Revenue showed almost no change in FY2018.

Net Income marign increased slightly on 1.2 pp from 6.0% to 7.1% in FY2018.

Capital expenditures (CAPEX) and working capital investments


Dynam Japan Holdings Co Ltd's CAPEX/Revenue was 3.3% in FY2018. Dynam Japan Holdings Co Ltd showed decline in CAPEX/Revenue of 7.1 pp from 10.4% in FY2015 to 3.3% in FY2018. Average CAPEX/Revenue for the last three years was 5.9%.

Return on investment


The company operates at low ROIC (11.48%) and ROE (7.92%). ROIC increased slightly on 1.1 pp from 10.3% to 11.5% in FY2018. ROE increased slightly on 0.98 pp from 6.9% to 7.9% in FY2018.

Leverage (Debt)


Debt level is -1.1x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from -0.6x to -1.1x in FY2018. Debt dropped on 70.4% while cash dropped on 16.4%.

Appendix 1: Peers in Entertainment


Below you can find Dynam Japan Holdings Co Ltd benchmarking vs. other companies in Entertainment 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.