Boyuan Construction Group Inc reports 46.9% EBITDA decline and 1.6 pp EBITDA Margin decline from 10.6% to 9.0%
28.09.2016 • About Boyuan Construction Group Inc (
$BOY) • By InTwits
Boyuan Construction Group Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Boyuan Construction Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 0.69 in FY2016, 0.12 in FY2015, 0.45 in FY2014, 0.51 in FY2013, 8.2 in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.6%
- It operates with high leverage: Net Debt/EBITDA is 5.7x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Boyuan Construction Group Inc ($BOY) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 189.3 | 209.2 | 275.4 | 320.9 | 201.0 | -37.4% |
| Gross Profit | 30.6 | 30.6 | 32.8 | 32.2 | 18.3 | -43.1% |
| SG&A | | | | 6.0 | 6.1 | 2.7% |
| EBITDA | 25.1 | 24.6 | 20.9 | 34.0 | 18.0 | -46.9% |
| Net Income | 9.4 | 7.9 | 6.1 | 12.4 | 5.2 | -57.9% |
Balance Sheet
|
|---|
| Cash | 3.1 | 4.6 | 6.6 | 9.8 | 1.6 | -83.4% |
| Short Term Debt | 74.8 | 69.2 | 68.9 | 103.6 | 99.4 | -4.0% |
| Long Term Debt | 2.4 | 12.2 | 16.1 | 5.3 | 4.4 | -17.7% |
Cash flow
|
|---|
| Capex | 8.2 | 0.5 | 0.5 | 0.1 | 0.7 | 479.8% |
Ratios
|
|---|
| Revenue growth | 1.7% | 10.5% | 31.6% | 16.5% | -37.4% | |
| EBITDA growth | -3.2% | -1.7% | -15.0% | 62.3% | -46.9% | |
| Gross Margin | 16.2% | 14.6% | 11.9% | 10.0% | 9.1% | -0.9% |
| EBITDA Margin | 13.2% | 11.8% | 7.6% | 10.6% | 9.0% | -1.6% |
| Net Income Margin | 4.9% | 3.8% | 2.2% | 3.9% | 2.6% | -1.3% |
| SG&A, % of revenue | | | | 1.9% | 3.0% | 1.2% |
| CAPEX, % of revenue | 4.3% | 0.2% | 0.2% | 0.0% | 0.3% | 0.3% |
| ROIC | 16.5% | 12.7% | 9.6% | 15.0% | 6.6% | -8.4% |
| ROE | 14.0% | 9.9% | 7.1% | 12.9% | 5.0% | -7.9% |
| Net Debt/EBITDA | 3.0x | 3.1x | 3.7x | 2.9x | 5.7x | 2.7x |
Boyuan Construction Group Inc ($BOY) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 61 | 63 | 45 | 32 | -7.5% | -13.8% | -50.3% | -64.9% |
| EBITDA | 7 | 8 | 6 | -3 | -8.9% | 19.7% | -51.7% | -132.6% |
| Net Income | 2 | 4 | 2 | -3 | -23.2% | 58.6% | -69.0% | |
Balance Sheet
|
|---|
| Cash | 4 | 10 | 2 | 2 | -1.9% | 281.0% | -51.5% | -83.4% |
| Short Term Debt | 95 | 92 | 99 | 99 | 25.1% | 10.6% | 1.0% | -4.0% |
| Long Term Debt | 5 | 4 | 4 | 4 | -68.0% | 156.2% | 318.2% | -17.7% |
Ratios
|
|---|
| Gross Margin | 9.1% | 12.3% | 8.7% | 3.4% | -1.5% | 2.8% | -4.3% | -3.7% |
| EBITDA Margin | 10.7% | 13.2% | 13.0% | -8.0% | -0.2% | 3.7% | -0.4% | -16.6% |
| Net Income Margin | 3.6% | 6.3% | 5.2% | -10.1% | -0.7% | 2.9% | -3.1% | -9.7% |
Revenue and profitability
The company's Revenue dropped on 37.4%. Revenue decline showed acceleration in FY16Q4 - it was 64.9% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 10.6% to 9.0% in FY2016.
Gross Margin decreased slightly on 0.92 pp from 10.0% to 9.1% in FY2016. SG&A as a % of Revenue increased slightly on 1.2 pp from 1.9% to 3.0% in FY2016.
Net Income marign decreased slightly on 1.3 pp from 3.9% to 2.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.35% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.18%.
Return on investment
The company operates at low ROIC (6.57%) and ROE (5.02%). ROIC decreased on 8.4 pp from 15.0% to 6.6% in FY2016. ROE decreased on 7.9 pp from 12.9% to 5.0% in FY2016.
Leverage (Debt)
Debt level is 5.7x Net Debt / EBITDA and 5.7x Debt / EBITDA. Net Debt / EBITDA surged on 2.7x from 2.9x to 5.7x in FY2016. Debt decreased on 4.7% while cash dropped on 83.4%.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Boyuan Construction Group Inc benchmarking vs. other companies in Consumer, Cyclical 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 |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
| Spin Master Corp ($TOY) | | 21.5% | 41.0% | 22.9% | 31.3% |
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| |
|---|
| Median (36 companies) | | 4.9% | 6.9% | 6.8% | 5.0% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| Canlan Ice Sports Corp ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (37 companies) | 36.1% | 31.6% | 32.5% | 31.5% | 34.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (39 companies) | 8.1% | 9.8% | 12.3% | 10.1% | 15.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | 9.3% |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | 22.4% |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Innova Gaming Group Inc ($IGG) | 20.6% | 26.7% | 15.9% | 15.6% | 15.1% |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (42 companies) | 2.7% | 3.1% | 3.4% | 3.4% | 4.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($TOY) | | 19.2% | 56.9% | 48.2% | 44.5% |
| Magna International Inc ($MG) | 16.3% | 18.6% | 25.2% | 21.9% | 21.2% |
| Linamar Corp ($LNR) | 12.9% | 17.0% | 21.7% | 23.7% | 19.8% |
| Sleep Country Canada Holdings Inc ($ZZZ) | | | 9.7% | 12.7% | 19.0% |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (42 companies) | 10.5% | 12.5% | 10.8% | 10.6% | 11.2% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (35 companies) | 1.9x | 2.8x | 2.4x | 2.5x | 2.1x |
|---|
