Technovator International Ltd demonstrates fast growth in fundamentals
25/03/2015 • About Technovator International Ltd (
$1206) • By InTwits
Technovator International Ltd is a fast-growing stock in Electronics industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Technovator International Ltd showed growth in the last financial year. Technovator International Ltd's revenue surged on 35.9% in FY2014. At the same time the company well managed its profitability and showed even faster growth in EBITDA of 48.5% for the same period.
In the longer period Technovator International Ltd showed fast revenue growth of 32.4% from 2011 to 2014 annualy. EBITDA surged on 35.9% from 2011 to 2014 annualy.
Technovator International Ltd ($1206) financials for the last 5 years
| mln. $ | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 74 | 98 | 124 | 167 | 226 |
|---|
| Revenue growth, % | | 31.6% | 27.4% | 34.1% | 35.9% |
|---|
| Gross margin, % | 34.0% | 37.3% | 35.8% | 33.8% | 26.6% |
|---|
| SG&A, % | | | 18.3% | 17.5% | 12.7% |
|---|
| EBITDA | 12 | 19 | 24 | 32 | 47 |
|---|
| EBITDA growth, % | | 58.7% | 26.2% | 34.0% | 48.5% |
|---|
| EBITDA margin, % | 15.9% | 19.2% | 19.0% | 19.0% | 20.8% |
|---|
| Net Income | 7 | 10 | 13 | 16 | 30 |
|---|
| Net Income margin, % | 9.51% | 10.7% | 10.8% | 9.35% | 13.2% |
|---|
| |
| CAPEX | 1 | 1 | 5 | 30 | 10 |
|---|
| CAPEX/Revenue, % | 1.34% | 1.45% | 3.69% | 18.1% | 4.42% |
|---|
| Debt | 11 | 7 | 15 | 68 | 101 |
|---|
| Cash | 15 | 28 | 41 | 69 | 73 |
|---|
| Net Debt/EBITDA | -0.4x | -1.1x | -1.1x | -0.0x | 0.6x |
|---|
| |
| ROIC, % | 18.2% | 21.1% | 21.2% | 16.9% | 14.2% |
|---|
| ROE, % | 19.0% | 19.2% | 18.7% | 17.3% | 20.9% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The company's EBITDA margin increased on 1.80 pp from 19% to 20.8% in 2014. In the longer period the company showed EBITDA margin growth of 1.60 pp from 19.2% in 2011 to 20.8% in 2014.
We call Technovator International Ltd an attractive growth stock as together with the growth it delivers high ROIC at 14.2%. During the last three years it dropped - it was 21.1% in FY2011. Average ROIC for the last three years was 17.4%.
Net Income margin surged on 3.80 pp from 9.40% to 13.2% in 2014. In the last 3 years Technovator International Ltd's Net Income margin surged on 2.50 pp from 10.7% in 2011 to 13.2% in 2014.
Technovator International Ltd operates at ROE of 20.9%. It's average ROE for the last three years was 19.0%.
Capital expenditures (CAPEX)
In FY2014 Technovator International Ltd had CAPEX/Revenue of 4.42%. CAPEX/Revenue surged on 2.97 pp from 1.45% in 2011 to 4.42% in 2014. It's average level of CAPEX/Revenue for the last three years was 8.75%.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.6x Net Debt/EBITDA. If we look for the longer period Technovator International Ltd showed fast leverage growth of 1.70x from -1.12x in 2011 to 0.59x in 2014.
Peers in Electronics
Below you can find Technovator International Ltd benchmarking vs. other companies in Electronics 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Tongda Group Holdings Ltd ($698) | | 34.0% | 8.3% | 6.4% | 32.1% |
| Advanced Card Systems Holdings Ltd ($8210) | | 25.3% | 36.9% | 20.8% | 26.7% |
| QPL International Holdings Ltd ($243) | | 8.9% | -21.1% | -22.2% | 21.0% |
| Sandmartin International Holdings Ltd ($482) | | 2.8% | -16.3% | 4.1% | 19.0% |
| Hi Sun Technology China Ltd ($818) | | -7.0% | 3.5% | 49.1% | 18.1% |
| |
|---|
| Median (24 companies) | | 16.1% | -10.1% | -4.9% | 9.9% |
|---|
| Technovator International Ltd ($1206) | | 31.6% | 27.4% | 34.1% | 35.9% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 54.0% | 51.4% | 54.0% | 58.1% | 49.5% |
| TeleEye Holdings Ltd ($8051) | 51.4% | 51.6% | 44.0% | 42.1% | 38.5% |
| Hi Sun Technology China Ltd ($818) | 18.9% | 20.8% | 28.1% | 37.4% | 33.3% |
| Kingwell Group Ltd ($1195) | -1.6% | 8.7% | 4.4% | 13.5% | 24.1% |
| Tongda Group Holdings Ltd ($698) | 17.4% | 19.2% | 21.4% | 22.0% | 23.9% |
| |
|---|
| Median (23 companies) | 13.2% | 12.5% | 13.3% | 13.3% | 13.1% |
|---|
| Technovator International Ltd ($1206) | 34.0% | 37.3% | 35.8% | 33.8% | 26.6% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Tongda Group Holdings Ltd ($698) | 14.9% | 15.3% | 17.1% | 16.8% | 18.4% |
| Advanced Card Systems Holdings Ltd ($8210) | 14.5% | 14.2% | 19.6% | 21.7% | 17.8% |
| Kingboard Laminates Holdings Ltd ($1888) | 26.1% | 17.6% | 15.5% | 15.6% | 15.0% |
| GCL New Energy Holdings Ltd ($451) | 13.8% | 12.1% | 10.8% | 11.1% | 12.6% |
| Man Yue Technology Holdings Ltd ($894) | 15.7% | 15.1% | 14.6% | 13.1% | 12.0% |
| |
|---|
| Median (24 companies) | 8.9% | 4.1% | 2.7% | 3.1% | 3.4% |
|---|
| Technovator International Ltd ($1206) | 15.9% | 19.2% | 19.0% | 19.0% | 20.8% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Irico Group Electronics Co Ltd ($438) | 156.7% | 92.0% | 39.9% | 30.4% | 17.4% |
| Tongda Group Holdings Ltd ($698) | 8.6% | 5.7% | 7.8% | 4.9% | 11.4% |
| Truly International Holdings Ltd ($732) | 6.8% | 7.3% | 6.5% | 5.7% | 10.2% |
| Yeebo International Hldg ($259) | 0.9% | 7.5% | 4.1% | 3.4% | 8.3% |
| Elec & Eltek International Co Ltd ($1151) | 6.3% | 12.8% | 6.0% | 9.4% | 8.0% |
| |
|---|
| Median (24 companies) | 4.1% | 3.3% | 3.6% | 3.2% | 5.0% |
|---|
| Technovator International Ltd ($1206) | 1.3% | 1.4% | 3.7% | 18.1% | 4.4% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 13.9% | 15.5% | 26.7% | 24.7% | 20.2% |
| Tongda Group Holdings Ltd ($698) | 12.1% | 14.3% | 15.2% | 13.5% | 16.5% |
| Suga International Holdings Ltd ($912) | 18.3% | 23.0% | 19.4% | 11.9% | 14.2% |
| Truly International Holdings Ltd ($732) | 9.5% | 10.2% | 12.7% | 21.1% | 13.6% |
| GCL New Energy Holdings Ltd ($451) | 3.6% | 5.2% | 4.1% | 3.0% | 7.9% |
| |
|---|
| Median (24 companies) | 4.8% | 4.4% | 1.9% | 2.5% | 2.1% |
|---|
| Technovator International Ltd ($1206) | 18.2% | 21.1% | 21.2% | 16.9% | 14.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| National Electronic Hldgs ($213) | 24.3x | 43.0x | 16.3x | 30.2x | 84.8x |
| Willas-Array Electronics Holdings Ltd ($854) | 2.9x | 2.8x | 2.2x | 2.6x | 5.7x |
| Pine Technology Holdings Ltd ($1079) | 2.5x | | 8.0x | 3.3x | 4.9x |
| Man Yue Technology Holdings Ltd ($894) | 1.1x | 1.7x | 2.1x | 2.7x | 3.3x |
| Daiwa Associate Holdings ($1037) | 7.1x | 6.2x | 10.4x | 2.6x | 2.8x |
| |
|---|
| Median (17 companies) | 0.9x | 0.8x | 1.1x | 1.2x | 1.5x |
|---|
| Technovator International Ltd ($1206) | -0.4x | -1.1x | -1.1x | -0.0x | 0.6x |
