Looking for fundamental growth story? Pay attention to Phoenix Healthcare Group Co Ltd
01/04/2015 • About Phoenix Healthcare Group Co Ltd (
$1515) • By InTwits
Pay attention to Phoenix Healthcare Group Co Ltd as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Phoenix Healthcare Group Co Ltd showed growth in the last financial year. The company's revenue surged on 35.9% in FY2014. At the same time Phoenix Healthcare Group Co Ltd well managed its profitability and also showed EBITDA growth of 32.1% for the same period.
In the last 3 years Phoenix Healthcare Group Co Ltd showed fast revenue growth of 33.3% from 2011 to 2014 annualy. EBITDA surged on 41.0% from 2011 to 2014 annualy.
Phoenix Healthcare Group Co Ltd ($1515) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 394 | 509 | 758 | 887 | 1,206 |
|---|
| Revenue growth, % | | 29.3% | 48.8% | 17.1% | 35.9% |
|---|
| Gross margin, % | 23.6% | 24.1% | 24.4% | 24.0% | 24.7% |
|---|
| SG&A, % | 6.72% | 6.43% | 6.58% | 8.35% | 7.10% |
|---|
| EBITDA | 85 | 111 | 201 | 236 | 311 |
|---|
| EBITDA growth, % | | 31.1% | 80.9% | 17.2% | 32.1% |
|---|
| EBITDA margin, % | 21.5% | 21.8% | 26.5% | 26.5% | 25.8% |
|---|
| Net Income | 43 | 48 | 101 | 90 | 230 |
|---|
| Net Income margin, % | 10.9% | 9.45% | 13.3% | 10.1% | 19.1% |
|---|
| |
| CAPEX | 17 | 34 | 28 | 21 | 36 |
|---|
| CAPEX/Revenue, % | 4.35% | 6.74% | 3.71% | 2.40% | 3.01% |
|---|
| Debt | 200 | 200 | 239 | 200 | 0 |
|---|
| Cash | 75 | 331 | 113 | 1,106 | 996 |
|---|
| Net Debt/EBITDA | 1.5x | -1.2x | 0.6x | -3.8x | -3.2x |
|---|
| |
| ROIC, % | | 11.9% | 17.9% | 14.3% | 14.6% |
|---|
| ROE, % | | 11.0% | 18.8% | 8.6% | 14.2% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 26.5% in FY2013 to 25.8% in FY2014. In the longer period the company showed fast EBITDA margin growth of 4 pp from 21.8% in 2011 to 25.8% in 2014.
We call Phoenix Healthcare Group Co Ltd an attractive growth stock as together with the growth it delivers high ROIC at 14.6%. Three years ago it was a bit lower at 11.9%. It's average level of ROIC for the last three years was 15.6%.
Phoenix Healthcare Group Co Ltd's Net Income margin surged on 9 pp from 10.1% to 19.1% in 2014. In the longer period Net Income margin surged on 9.70 pp from 9.40% in 2011 to 19.1% in 2014.
Phoenix Healthcare Group Co Ltd operates at ROE of 14.2%. It's average ROE for the last three years was 13.8%.
Capital expenditures (CAPEX)
In FY2014 Phoenix Healthcare Group Co Ltd had CAPEX/Revenue of 3.01%. Phoenix Healthcare Group Co Ltd showed big decline in CAPEX/Revenue of 3.74 pp from 6.74% in 2011 to 3.01% in 2014. Average CAPEX/Revenue for the last three years was 3.04%.
Leverage (Debt)
The company has negative net debt at -3.2x Net Debt/EBITDA - at the same time with high growth. In the last 3 years leverage surged on 2.02x from -1.18x in 2011 to -3.20x in 2014.
Peers in Healthcare-Services
Below we provide Phoenix Healthcare Group Co Ltd benchmarking against other companies in Healthcare-Services 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 |
|---|
| China Natural Investment Co Ltd ($8250) | | 790.8% | 22.3% | -13.8% | 509.5% |
| Hua Xia Healthcare Holdings Ltd ($8143) | | 714.2% | 25.4% | 10.1% | 11.0% |
| |
|---|
| Median (2 companies) | | 752.5% | 23.9% | -1.8% | 260.2% |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | | 29.3% | 48.8% | 17.1% | 35.9% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 35.8% | 13.0% | 12.8% | 11.8% | 12.0% |
| China Natural Investment Co Ltd ($8250) | 51.5% | 45.6% | 38.1% | 32.4% | 10.6% |
| |
|---|
| Median (2 companies) | 43.7% | 29.3% | 25.5% | 22.1% | 11.3% |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 23.6% | 24.1% | 24.4% | 24.0% | 24.7% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 1.3% | 5.9% | 5.5% | 4.6% | 5.2% |
| China Natural Investment Co Ltd ($8250) | -527.5% | -24.9% | -33.3% | -39.5% | -7.2% |
| |
|---|
| Median (2 companies) | -263.1% | -9.5% | -13.9% | -17.5% | -1.0% |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 21.5% | 21.8% | 26.5% | 26.5% | 25.8% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| China Natural Investment Co Ltd ($8250) | 1,300.6% | 197.7% | 36.8% | 16.8% | 2.1% |
| Hua Xia Healthcare Holdings Ltd ($8143) | 4.1% | 0.3% | 0.9% | 0.5% | 0.5% |
| |
|---|
| Median (2 companies) | 652.3% | 99.0% | 18.8% | 8.6% | 1.3% |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 4.4% | 6.7% | 3.7% | 2.4% | 3.0% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | -1.4% | 6.7% | 7.5% | 6.5% | 8.1% |
| China Natural Investment Co Ltd ($8250) | -21.7% | -5.4% | -6.4% | -4.9% | -4.5% |
| |
|---|
| Median (2 companies) | -11.5% | 0.7% | 0.6% | 0.8% | 1.8% |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | | 11.9% | 17.9% | 14.3% | 14.6% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Hua Xia Healthcare Holdings Ltd ($8143) | 111.3x | 2.3x | 1.7x | 1.9x | 0.9x |
| |
|---|
| Median (1 company) | 111.3x | 2.3x | 1.7x | 1.9x | 0.9x |
|---|
| Phoenix Healthcare Group Co Ltd ($1515) | 1.5x | -1.2x | 0.6x | -3.8x | -3.2x |
