Great Eastern Shipping Co reports 149% CAPEX growth and 11.8% Revenue growth
10-04-2015 • About Great Eastern Shipping Co (
$GESHIP) • By InTwits
Great Eastern Shipping Co reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Great Eastern Shipping Co has high CAPEX intensity: 5 year average CAPEX/Revenue was 54.1%. At the same time it's a lot of higher than industry average of 45.1%.
- CAPEX is quite volatile: 15,506 in FY2015, 6,228 in FY2014, 14,368 in FY2013, 14,979 in FY2012, 25,621 in FY2011
- The company has business model with low profitability: ROIC is at 7.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Great Eastern Shipping Co ($GESHIP) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24,329 | 29,343 | 29,821 | 30,492 | 34,080 | 11.8% |
| EBITDA | 8,938 | 10,897 | 11,624 | 14,357 | 15,237 | 6.1% |
| Net Income | 4,687 | 3,166 | 5,378 | 5,740 | 7,482 | 30.4% |
Balance Sheet
|
|---|
| Cash | 30,782 | 1 | 3 | 8,542 | 21,347 | 149.9% |
| Short Term Debt | 7,898 | 7,350 | 10,500 | 11,435 | 0 | -100.0% |
| Long Term Debt | 51,663 | 56,725 | 56,894 | 49,760 | 54,626 | 9.8% |
Cash flow
|
|---|
| Capex | 25,621 | 14,979 | 14,368 | 6,228 | 15,506 | 149.0% |
Ratios
|
|---|
| Revenue growth | -40.9% | 20.6% | 1.6% | 2.3% | 11.8% | |
| EBITDA growth | -23.2% | 21.9% | 6.7% | 23.5% | 6.1% | |
| EBITDA Margin | 36.7% | 37.1% | 39.0% | 47.1% | 44.7% | -2.4% |
| Net Income Margin | 19.3% | 10.8% | 18.0% | 18.8% | 22.0% | 3.1% |
| CAPEX, % of revenue | 105.3% | 51.0% | 48.2% | 20.4% | 45.5% | 25.1% |
| ROIC | 4.1% | 4.4% | 4.5% | 6.0% | 7.1% | 1.1% |
| ROE | 8.0% | 5.3% | 8.7% | 8.8% | 10.5% | 1.8% |
| Net Debt/EBITDA | 3.2x | 5.9x | 5.8x | 3.7x | 2.2x | -1.5x |
Revenue and profitability
Great Eastern Shipping Co's Revenue jumped on 11.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.3 pp from 14.2% to 23.5% in FY2015.
Net Income marign increased on 3.1 pp from 18.8% to 22.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 45.5%. Great Eastern Shipping Co showed decline in CAPEX/Revenue of 5.5 pp from 51.0% in FY2012 to 45.5% in FY2015. It's average CAPEX/Revenue for the last three years was 38.0%.To fuel this fast growth Great Eastern Shipping Co made large investments to CAPEX (102% of EBITDA).
Return on investment
The company operates at low ROIC (7.07%) and ROE (10.54%). ROIC increased slightly on 1.1 pp from 6.0% to 7.1% in FY2015. ROE increased slightly on 1.8 pp from 8.8% to 10.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is 3.6x. Net Debt / EBITDA dropped on 1.5x from 3.7x to 2.2x in FY2015. Debt dropped on 10.7% in FY2015 while cash jumped on 150% in FY2015.
Appendix 1: Peers in Shipping
Below we provide Great Eastern Shipping Co benchmarking against other companies in Shipping 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Offshore Services ($GLOBOFFS) | -55.7% | 14.0% | 2.9% | 52.2% | |
| Shreyas Shipping & Logistics ($SHREYAS) | -71.0% | 42.2% | 43.6% | 25.3% | |
| Shipping Corporation Of India ($SCI) | -32.7% | 7.8% | 8.7% | 0.0% | |
| |
|---|
| Median (3 companies) | -55.7% | 14.0% | 8.7% | 25.3% | |
|---|
| Great Eastern Shipping Co ($GESHIP) | | 20.6% | 1.6% | 2.3% | 11.8% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Offshore Services ($GLOBOFFS) | 42.7% | 42.1% | 62.4% | 48.3% | |
| Shipping Corporation Of India ($SCI) | 27.2% | 7.8% | 6.1% | 14.2% | |
| Shreyas Shipping & Logistics ($SHREYAS) | 16.2% | 9.0% | 10.7% | 9.4% | |
| |
|---|
| Median (3 companies) | 27.2% | 9.0% | 10.7% | 14.2% | |
|---|
| Great Eastern Shipping Co ($GESHIP) | 36.7% | 37.1% | 39.0% | 47.1% | 44.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Offshore Services ($GLOBOFFS) | | 39.6% | 140.1% | 106.2% | |
| Shipping Corporation Of India ($SCI) | 92.1% | 57.3% | 70.2% | 27.3% | |
| Shreyas Shipping & Logistics ($SHREYAS) | 2.7% | 7.5% | 17.9% | 1.3% | |
| |
|---|
| Median (3 companies) | 47.4% | 39.6% | 70.2% | 27.3% | |
|---|
| Great Eastern Shipping Co ($GESHIP) | 105.3% | 51.0% | 48.2% | 20.4% | 45.5% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shreyas Shipping & Logistics ($SHREYAS) | 8.9% | 4.8% | 9.4% | 9.8% | |
| Global Offshore Services ($GLOBOFFS) | 6.0% | 5.6% | 9.0% | 7.1% | |
| Shipping Corporation Of India ($SCI) | 4.8% | -2.5% | -3.6% | -1.8% | |
| |
|---|
| Median (3 companies) | 6.0% | 4.8% | 9.0% | 7.1% | |
|---|
| Great Eastern Shipping Co ($GESHIP) | 4.1% | 4.4% | 4.5% | 6.0% | 7.1% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shipping Corporation Of India ($SCI) | 2.3x | 16.3x | 27.2x | 12.3x | |
| Global Offshore Services ($GLOBOFFS) | 7.0x | 6.8x | 5.8x | 6.4x | |
| Shreyas Shipping & Logistics ($SHREYAS) | 1.9x | 3.0x | 3.0x | 2.3x | |
| |
|---|
| Median (3 companies) | 2.3x | 6.8x | 5.8x | 6.4x | |
|---|
| Great Eastern Shipping Co ($GESHIP) | 3.2x | 5.9x | 5.8x | 3.7x | 2.2x |
