NagaCorp Ltd demonstrated fast growth in recent years. Will the growth continue?
11/02/2015 • About NagaCorp Ltd (
$3918) • By InTwits
Pay attention to NagaCorp Ltd as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
NagaCorp Ltd showed fast growth in the last financial year. NagaCorp Ltd's revenue surged on 17.2% in FY2014. At the same time NagaCorp Ltd well managed its profitability and also showed EBITDA growth of 0.127% for the same period.
If we look for the longer period NagaCorp Ltd showed fast revenue growth of 21.8% from 2011 to 2014 annualy. EBITDA surged on 16.2% from 2011 to 2014 annualy.
NagaCorp Ltd ($3918) financials for the last 5 years
| mln. $ | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 151 | 224 | 279 | 345 | 404 |
|---|
| Revenue growth, % | | 48.7% | 24.6% | 23.7% | 17.2% |
|---|
| Gross margin, % | 70.9% | 73.2% | 72.9% | 72.1% | 67.4% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 61 | 110 | 139 | 173 | 173 |
|---|
| EBITDA growth, % | | 79.1% | 26.1% | 24.3% | 0.1% |
|---|
| EBITDA margin, % | 40.8% | 49.2% | 49.8% | 50.1% | 42.8% |
|---|
| Net Income | 44 | 92 | 113 | 140 | 136 |
|---|
| Net Income margin, % | 29.3% | 41.1% | 40.6% | 40.7% | 33.7% |
|---|
| |
| CAPEX | 24 | 45 | 72 | 59 | 97 |
|---|
| CAPEX/Revenue, % | 15.6% | 20.3% | 25.9% | 17.2% | 24.0% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 44 | 65 | 73 | 252 | 178 |
|---|
| Net Debt/EBITDA | -0.7x | -0.6x | -0.5x | -1.5x | -1.0x |
|---|
| |
| ROIC, % | 15.5% | 27.6% | 30.6% | 28.9% | 22.6% |
|---|
| ROE, % | 14.8% | 27.8% | 30.0% | 28.0% | 22.2% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined noticeably from 50.1% in FY2013 to 42.8% in FY2014. If we look for the longer period EBITDA margin dropped on 6.40 pp from 49.2% in 2011 to 42.8% in 2014.
NagaCorp Ltd shows attractive ROIC at 22.6% for the last 12 months which assumes stable development model. Three years ago it was a bit higher at 27.6%. It's average level of ROIC for the last three years was 27.4%.
NagaCorp Ltd's Net Income margin dropped on 7 pp from 40.7% to 33.7% in 2014. In the last 3 years NagaCorp Ltd showed big decline in Net Income margin of 7.40 pp from 41.1% in 2011 to 33.7% in 2014.
NagaCorp Ltd operates at ROE of 22.2%. Average ROE for the last three years was 26.7%.
Capital expenditures (CAPEX)
To fuel this fast growth NagaCorp Ltd had to invest in CAPEX.NagaCorp Ltd's CAPEX/Revenue was 24.0% in FY2014. The company showed fast CAPEX/Revenue growth of 3.67 pp from 20.3% in 2011 to 24.0% in 2014. Average CAPEX/Revenue for the last three years was 22.4%.
Leverage (Debt)
NagaCorp Ltd has negative net debt at -1.0x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period the company showed fast leverage growth of 0.44x from -0.59x in 2011 to -1.03x in 2014.
Peers in Lodging
Below we provide NagaCorp Ltd benchmarking against other companies in Lodging 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Carrianna Group Holdings Co Ltd ($126) | | 13.0% | 69.3% | -36.2% | 35.4% |
| Emperor Entertainment Hotel Ltd ($296) | | 32.5% | 35.9% | 13.8% | 11.7% |
| Far East Consortium International Ltd/HK ($35) | | -29.4% | 6.4% | 111.9% | 9.0% |
| Asia Standard Hotel Group Ltd ($292) | | 17.1% | 18.2% | -21.4% | 0.7% |
| Sino Hotels Holdings Ltd ($1221) | | 32.7% | 19.4% | -2.4% | -0.8% |
| |
|---|
| Median (5 companies) | | 17.1% | 19.4% | -2.4% | 9.0% |
|---|
| NagaCorp Ltd ($3918) | | 48.7% | 24.6% | 23.7% | 17.2% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Emperor Entertainment Hotel Ltd ($296) | 69.3% | 70.9% | 77.1% | 75.6% | 76.8% |
| Asia Standard Hotel Group Ltd ($292) | 49.2% | 52.5% | 60.7% | 73.4% | 72.1% |
| Sino Hotels Holdings Ltd ($1221) | 66.2% | 69.7% | 71.3% | 70.4% | 68.9% |
| Carrianna Group Holdings Co Ltd ($126) | 46.1% | 42.4% | 40.5% | 46.3% | 44.7% |
| Far East Consortium International Ltd/HK ($35) | 34.1% | 45.7% | 48.1% | 27.5% | 38.2% |
| |
|---|
| Median (5 companies) | 49.2% | 52.5% | 60.7% | 70.4% | 68.9% |
|---|
| NagaCorp Ltd ($3918) | 70.9% | 73.2% | 72.9% | 72.1% | 67.4% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Asia Standard Hotel Group Ltd ($292) | 97.0% | 69.1% | -23.9% | 65.2% | 49.9% |
| Emperor Entertainment Hotel Ltd ($296) | 39.3% | 38.7% | 44.9% | 46.4% | 46.9% |
| Sino Hotels Holdings Ltd ($1221) | 37.8% | 42.8% | 46.5% | 45.9% | 43.1% |
| Far East Consortium International Ltd/HK ($35) | 27.7% | 50.1% | 57.2% | 34.5% | 43.0% |
| Carrianna Group Holdings Co Ltd ($126) | 13.4% | 13.0% | 18.6% | 11.9% | 20.5% |
| |
|---|
| Median (5 companies) | 37.8% | 42.8% | 44.9% | 45.9% | 43.1% |
|---|
| NagaCorp Ltd ($3918) | 40.8% | 49.2% | 49.8% | 50.1% | 42.8% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Far East Consortium International Ltd/HK ($35) | 43.8% | 24.5% | 46.8% | 27.9% | 23.5% |
| Asia Standard Hotel Group Ltd ($292) | 9.0% | 4.2% | 0.9% | 33.7% | 21.7% |
| Emperor Entertainment Hotel Ltd ($296) | 5.4% | 6.3% | 6.3% | 8.9% | 16.5% |
| Sino Hotels Holdings Ltd ($1221) | 3.5% | 2.5% | 2.1% | 2.2% | 5.5% |
| Carrianna Group Holdings Co Ltd ($126) | 4.9% | 9.6% | 3.8% | 3.6% | 3.9% |
| |
|---|
| Median (5 companies) | 5.4% | 6.3% | 3.8% | 8.9% | 16.5% |
|---|
| NagaCorp Ltd ($3918) | 15.6% | 20.3% | 25.9% | 17.2% | 24.0% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Emperor Entertainment Hotel Ltd ($296) | 9.6% | 13.0% | 22.2% | 21.1% | 18.4% |
| Far East Consortium International Ltd/HK ($35) | 5.0% | 5.2% | 5.7% | 6.7% | 8.1% |
| Asia Standard Hotel Group Ltd ($292) | 13.9% | 9.2% | -6.6% | 7.7% | 5.0% |
| Carrianna Group Holdings Co Ltd ($126) | 1.0% | 1.1% | 3.5% | 1.0% | 3.2% |
| Sino Hotels Holdings Ltd ($1221) | 1.2% | 2.1% | 3.2% | 3.0% | 2.7% |
| |
|---|
| Median (5 companies) | 5.0% | 5.2% | 3.5% | 6.7% | 5.0% |
|---|
| NagaCorp Ltd ($3918) | 15.5% | 27.6% | 30.6% | 28.9% | 22.6% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Asia Standard Hotel Group Ltd ($292) | 2.4x | 3.5x | | 3.7x | 5.2x |
| Far East Consortium International Ltd/HK ($35) | 7.0x | 4.8x | 5.0x | 4.0x | 4.5x |
| Carrianna Group Holdings Co Ltd ($126) | 7.2x | 7.7x | 3.9x | 6.6x | 2.6x |
| Emperor Entertainment Hotel Ltd ($296) | -0.8x | -1.2x | -0.8x | -1.9x | 0.5x |
| Sino Hotels Holdings Ltd ($1221) | 8.7x | 4.9x | 0.1x | -1.2x | -3.0x |
| |
|---|
| Median (5 companies) | 7.0x | 4.8x | 2.0x | 3.7x | 2.6x |
|---|
| NagaCorp Ltd ($3918) | -0.7x | -0.6x | -0.5x | -1.5x | -1.0x |
