Samsonite International SA is an attractive growth stock
24/03/2015 • About Samsonite International SA (
$1910) • By InTwits
Samsonite International SA is an attractive growth stock in Household Products/Wares industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Samsonite International SA showed fast growth in the last financial year. Samsonite International SA's revenue surged on 15.4% in FY2014. Together with revenue growth Samsonite International SA also managed to keep EBITDA growth. EBITDA grew 7.53% for the same period.
In the longer period Samsonite International SA showed fast revenue growth of 14.5% from 2011 to 2014 annualy. EBITDA surged on 12.2% from 2011 to 2014 annualy.
Samsonite International SA ($1910) financials for the last 5 years
| mln. $ | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 1,215 | 1,565 | 1,772 | 2,038 | 2,351 |
|---|
| Revenue growth, % | | 28.8% | 13.2% | 15.0% | 15.4% |
|---|
| Gross margin, % | 56.7% | 54.8% | 53.7% | 53.4% | 52.9% |
|---|
| SG&A, % | 42.7% | 41.4% | 39.8% | 39.4% | 39.2% |
|---|
| EBITDA | 564 | 248 | 282 | 326 | 351 |
|---|
| EBITDA growth, % | | -56.0% | 13.5% | 15.8% | 7.5% |
|---|
| EBITDA margin, % | 46.4% | 15.9% | 15.9% | 16.0% | 14.9% |
|---|
| Net Income | 355 | 87 | 148 | 176 | 186 |
|---|
| Net Income margin, % | 29.2% | 5.54% | 8.38% | 8.64% | 7.92% |
|---|
| |
| CAPEX | 30 | 37 | 38 | 57 | 70 |
|---|
| CAPEX/Revenue, % | 2.43% | 2.37% | 2.14% | 2.81% | 2.96% |
|---|
| Debt | 259 | 12 | 32 | 14 | 65 |
|---|
| Cash | 286 | 141 | 151 | 225 | 140 |
|---|
| Net Debt/EBITDA | -0.0x | -0.5x | -0.4x | -0.6x | -0.2x |
|---|
| |
| ROIC, % | 58.2% | 18.5% | 20.8% | 21.8% | 21.1% |
|---|
| ROE, % | 62.7% | 10.5% | 15.1% | 15.7% | 15.1% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 16% in FY2013 to 14.9% in FY2014. If we look for the longer period Samsonite International SA showed decline of 1 pp from 15.9% in 2011 to 14.9% in 2014.
We call Samsonite International SA an attractive growth stock as together with the growth it delivers high ROIC at 21.1%. During the last three years it surged - it was 18.5% in FY2011. It's average ROIC for the last three years was 21.2%.
Samsonite International SA's Net Income margin decreased on 0.700 pp from 8.60% to 7.90% in 2014. In the longer period Samsonite International SA's Net Income margin surged on 2.40 pp from 5.50% in 2011 to 7.90% in 2014.
Samsonite International SA operates at ROE of 15.1%. Average ROE for the last three years was 15.3%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 2.96% in FY2014. Samsonite International SA showed fast CAPEX/Revenue growth of 0.587 pp from 2.37% in 2011 to 2.96% in 2014. It's average level of CAPEX/Revenue for the last three years was 2.64%.
Leverage (Debt)
Samsonite International SA has negative net debt at -0.2x Net Debt/EBITDA - at the same time with high growth. In the last 3 years leverage surged on 0.31x from -0.52x in 2011 to -0.21x in 2014.
Management team
Ramesh Dungarmal Tainwala runs Samsonite International SA as a CEO and Kyle Francis Gendreau is a CFO.
Peers in Household Products/Wares
Below we provide Samsonite International SA benchmarking against other companies in Household Products/Wares 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 |
|---|
| Lisi Group Holdings Ltd ($526) | | 52.0% | 2.5% | -23.5% | 160.0% |
| Tempus Holdings Ltd ($6880) | | -27.6% | 17.3% | 5.5% | 31.1% |
| Kenford Group Holdings Ltd ($464) | | 7.9% | -3.2% | 3.6% | -6.1% |
| |
|---|
| Median (3 companies) | | 7.9% | 2.5% | 3.6% | 31.1% |
|---|
| Samsonite International SA ($1910) | | 28.8% | 13.2% | 15.0% | 15.4% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Tempus Holdings Ltd ($6880) | 71.6% | 71.5% | 68.4% | 64.8% | 64.6% |
| Lisi Group Holdings Ltd ($526) | 22.1% | 22.4% | 24.5% | 20.0% | 19.6% |
| Kenford Group Holdings Ltd ($464) | 20.9% | 20.6% | 18.0% | 16.1% | 7.7% |
| |
|---|
| Median (3 companies) | 22.1% | 22.4% | 24.5% | 20.0% | 19.6% |
|---|
| Samsonite International SA ($1910) | 56.7% | 54.8% | 53.7% | 53.4% | 52.9% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Lisi Group Holdings Ltd ($526) | 10.9% | 11.7% | 11.8% | -0.3% | 4.4% |
| Tempus Holdings Ltd ($6880) | 28.2% | 22.4% | 16.3% | 2.8% | 4.1% |
| Kenford Group Holdings Ltd ($464) | 13.4% | 14.5% | 9.9% | 7.1% | -3.1% |
| |
|---|
| Median (3 companies) | 13.4% | 14.5% | 11.8% | 2.8% | 4.1% |
|---|
| Samsonite International SA ($1910) | 46.4% | 15.9% | 15.9% | 16.0% | 14.9% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Lisi Group Holdings Ltd ($526) | 4.5% | 7.9% | 7.1% | 11.3% | 6.1% |
| Tempus Holdings Ltd ($6880) | 0.3% | 1.0% | 0.9% | 4.0% | 2.8% |
| Kenford Group Holdings Ltd ($464) | 2.4% | 2.2% | 1.4% | 2.3% | 1.9% |
| |
|---|
| Median (3 companies) | 2.4% | 2.2% | 1.4% | 4.0% | 2.8% |
|---|
| Samsonite International SA ($1910) | 2.4% | 2.4% | 2.1% | 2.8% | 3.0% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Tempus Holdings Ltd ($6880) | 93.8% | 34.9% | 18.2% | 1.3% | 2.5% |
| Lisi Group Holdings Ltd ($526) | 6.7% | 8.0% | 6.4% | -4.7% | 0.1% |
| Kenford Group Holdings Ltd ($464) | 17.6% | 19.0% | 10.6% | 6.7% | -7.6% |
| |
|---|
| Median (3 companies) | 17.6% | 19.0% | 10.6% | 1.3% | 0.1% |
|---|
| Samsonite International SA ($1910) | 58.2% | 18.5% | 20.8% | 21.8% | 21.1% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Lisi Group Holdings Ltd ($526) | 5.0x | 2.9x | 3.4x | | 36.8x |
| Tempus Holdings Ltd ($6880) | -1.1x | -2.0x | -5.2x | -25.8x | -14.3x |
| |
|---|
| Median (2 companies) | -0.6x | -0.6x | -0.8x | -13.6x | 11.3x |
|---|
| Samsonite International SA ($1910) | -0.0x | -0.5x | -0.4x | -0.6x | -0.2x |
