Looking for a profitable fast-growing stock? Look at Playmates Toys Ltd
27/03/2015 • About Playmates Toys Ltd (
$869) • By InTwits
Playmates Toys Ltd is a growth stock in Toys/Games/Hobbies industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Playmates Toys Ltd showed growth in the last financial year. Playmates Toys Ltd's revenue surged on 30.2% in FY2014. Together with revenue growth Playmates Toys Ltd also managed to keep EBITDA growth. EBITDA grew 19.1% for the same period.
In the last 3 years Playmates Toys Ltd showed fast revenue growth of 264% from 2011 to 2014 annualy. EBITDA surged on nan% from 2011 to 2014 annualy.
Playmates Toys Ltd ($869) financials for the last 5 years
| mln. HKD | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 148 | 45 | 372 | 1,659 | 2,160 |
|---|
| Revenue growth, % | | -69.7% | 726.8% | 346.3% | 30.2% |
|---|
| Gross margin, % | 41.9% | 28.6% | 60.3% | 62.8% | 61.9% |
|---|
| SG&A, % | | | 46.2% | 29.9% | 31.9% |
|---|
| EBITDA | -86 | -84 | 56 | 547 | 652 |
|---|
| EBITDA growth, % | | -3.0% | -167.0% | 874.4% | 19.1% |
|---|
| EBITDA margin, % | -58.3% | -186% | 15.1% | 33.0% | 30.2% |
|---|
| Net Income | -96 | -91 | 43 | 533 | 491 |
|---|
| Net Income margin, % | -64.6% | -201% | 11.7% | 32.2% | 22.7% |
|---|
| |
| CAPEX | 2 | 0 | 0 | 1 | 4 |
|---|
| CAPEX/Revenue, % | 1.06% | 0.885% | 0.0492% | 0.0374% | 0.190% |
|---|
| Debt | 0 | 74 | 0 | 0 | 0 |
|---|
| Cash | 173 | 209 | 161 | 520 | 786 |
|---|
| Net Debt/EBITDA | 2.0x | 1.6x | -2.9x | -0.9x | -1.2x |
|---|
| |
| ROIC, % | -62.6% | -48.9% | 30.7% | 121.1% | 73.0% |
|---|
| ROE, % | -104.0% | -66.3% | 30.4% | 113.1% | 54.9% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 33% in FY2013 to 30.2% in FY2014. In the longer period EBITDA margin surged on 217 pp from -186% in 2011 to 30.2% in 2014.
Playmates Toys Ltd shows attractive ROIC at 73.0% for the last 12 months which assumes stable development model. Three years ago it was considerably lower at -48.9%. It's average level of ROIC for the last three years was 74.9%.
Net Income margin dropped on 9.50 pp from 32.2% to 22.7% in 2014. If we look for the longer period the company's Net Income margin surged on 224 pp from -201% in 2011 to 22.7% in 2014.
Playmates Toys Ltd operates at ROE of 54.9%. Average ROE for the last three years was 66.1%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 0.190% in FY2014. Playmates Toys Ltd's CAPEX/Revenue dropped on 0.695 pp from 0.885% in 2011 to 0.190% in 2014. It's average CAPEX/Revenue for the last three years was 0.0924%.
Leverage (Debt)
The company has negative net debt at -1.2x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period Playmates Toys Ltd's leverage dropped on 2.81x from 1.60x in 2011 to -1.21x in 2014.
Valuation vs. comparable companies
The market closed today at 2.0x EV/EBITDA for Playmates Toys Ltd which is 91.4% lower than 23.2x Toys/Games/Hobbies peer group avearge calculated on the basis of 10 companies. The market closed today at 4.3x P/E for Playmates Toys Ltd which is 34.1% lower than 6.5x Toys/Games/Hobbies peer group avearge calculated on the basis of 4 companies.
Peers in Toys/Games/Hobbies
Below you can find Playmates Toys Ltd benchmarking vs. other companies in Toys/Games/Hobbies 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 |
|---|
| Playmates Holdings Ltd ($635) | | -38.2% | 200.7% | 283.5% | 27.5% |
| Matrix Holdings Ltd ($1005) | | 0.2% | -0.2% | 17.5% | 12.2% |
| Kin Yat Holdings Ltd ($638) | | 19.1% | -5.9% | 8.8% | 5.0% |
| Quali-Smart Holdings Ltd ($1348) | | -9.2% | 20.1% | -9.4% | -2.6% |
| |
|---|
| Median (4 companies) | | -4.5% | 10.0% | 13.1% | 8.6% |
|---|
| Playmates Toys Ltd ($869) | | -69.7% | 726.8% | 346.3% | 30.2% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Playmates Holdings Ltd ($635) | 60.6% | 68.1% | 65.7% | 66.1% | 64.7% |
| Matrix Holdings Ltd ($1005) | 37.4% | 35.2% | 34.3% | 37.1% | 38.4% |
| Kin Yat Holdings Ltd ($638) | 23.5% | 16.4% | 9.9% | 12.8% | 12.6% |
| Quali-Smart Holdings Ltd ($1348) | 11.2% | 10.8% | 11.3% | 12.3% | 11.3% |
| |
|---|
| Median (4 companies) | 30.5% | 25.8% | 22.8% | 25.0% | 25.5% |
|---|
| Playmates Toys Ltd ($869) | 41.9% | 28.6% | 60.3% | 62.8% | 61.9% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Playmates Holdings Ltd ($635) | -11.3% | -14.7% | 22.0% | 36.7% | 33.5% |
| Matrix Holdings Ltd ($1005) | 14.2% | 11.0% | 10.2% | 13.2% | 15.0% |
| Kin Yat Holdings Ltd ($638) | 18.7% | 12.3% | 4.8% | 8.4% | 8.8% |
| Quali-Smart Holdings Ltd ($1348) | 4.7% | 5.1% | 6.6% | 5.6% | 4.9% |
| |
|---|
| Median (4 companies) | 9.5% | 8.0% | 8.4% | 10.8% | 11.9% |
|---|
| Playmates Toys Ltd ($869) | -58.3% | -186.4% | 15.1% | 33.0% | 30.2% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Quali-Smart Holdings Ltd ($1348) | 0.4% | 1.7% | 1.5% | 2.2% | 12.7% |
| Kin Yat Holdings Ltd ($638) | 3.2% | 7.9% | 9.8% | 4.6% | 7.5% |
| Matrix Holdings Ltd ($1005) | 1.9% | 5.8% | 4.7% | 3.2% | 2.8% |
| Playmates Holdings Ltd ($635) | 7.7% | 44.9% | 11.5% | 4.5% | 2.0% |
| |
|---|
| Median (4 companies) | 2.5% | 6.8% | 7.3% | 3.8% | 5.1% |
|---|
| Playmates Toys Ltd ($869) | 1.1% | 0.9% | 0.0% | 0.0% | 0.2% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Matrix Holdings Ltd ($1005) | 10.1% | 5.8% | 5.9% | 13.1% | 18.6% |
| Playmates Holdings Ltd ($635) | -1.5% | -1.0% | 2.4% | 12.6% | 12.0% |
| Quali-Smart Holdings Ltd ($1348) | | 24.2% | 31.3% | 16.2% | 9.1% |
| Kin Yat Holdings Ltd ($638) | 19.5% | 11.4% | -0.7% | 4.5% | 4.9% |
| |
|---|
| Median (4 companies) | 10.1% | 8.6% | 4.1% | 12.9% | 10.5% |
|---|
| Playmates Toys Ltd ($869) | -62.6% | -48.9% | 30.7% | 121.1% | 73.0% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Quali-Smart Holdings Ltd ($1348) | -0.1x | 1.2x | 0.6x | -0.7x | 0.9x |
| Kin Yat Holdings Ltd ($638) | -0.7x | 0.0x | 1.6x | 0.3x | 0.4x |
| Matrix Holdings Ltd ($1005) | 0.2x | 0.5x | 0.6x | 0.0x | -0.2x |
| Playmates Holdings Ltd ($635) | | | 0.6x | -0.4x | -1.0x |
| |
|---|
| Median (4 companies) | -0.1x | 0.5x | 0.6x | -0.2x | 0.1x |
|---|
| Playmates Toys Ltd ($869) | | | -2.9x | -0.9x | -1.2x |
