CSR Corp Ltd is an attractive growth stock: revenue grew 40.1% and EBITDA 42.5% annually over the last three years
06/04/2015 • About CSR Corp Ltd (
$1766) • By InTwits
CSR Corp Ltd is a fast-growing stock in Miscellaneous Manufactur industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
CSR Corp Ltd showed growth in the last financial year. The company's revenue surged on 124% in FY2014. In addition to revenue CSR Corp Ltd also keeps delivering EBITDA growth. It was 158% in FY2014
If we look for the longer period the company showed fast revenue growth of 40.1% from 2011 to 2014 annualy. EBITDA surged on 42.5% from 2011 to 2014 annualy.
CSR Corp Ltd ($1766) financials for the last 5 years
| mln. CNY | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 64,132 | 79,517 | 89,019 | 97,655 | 218,451 |
|---|
| Revenue growth, % | | 24.0% | 12.0% | 9.7% | 123.7% |
|---|
| Gross margin, % | 17.1% | 18.7% | 17.7% | 17.2% | 19.6% |
|---|
| SG&A, % | 12.1% | 12.3% | 12.2% | 12.1% | 12.4% |
|---|
| EBITDA | 4,625 | 7,151 | 7,252 | 8,023 | 20,689 |
|---|
| EBITDA growth, % | | 54.6% | 1.4% | 10.6% | 157.9% |
|---|
| EBITDA margin, % | 7.21% | 8.99% | 8.15% | 8.22% | 9.47% |
|---|
| Net Income | 2,526 | 3,864 | 4,009 | 4,165 | 10,816 |
|---|
| Net Income margin, % | 3.94% | 4.86% | 4.50% | 4.26% | 4.95% |
|---|
| |
| CAPEX | 5,718 | 6,099 | 4,795 | 5,710 | 9,629 |
|---|
| CAPEX/Revenue, % | 8.92% | 7.67% | 5.39% | 5.85% | 4.41% |
|---|
| Debt | 10,016 | 20,424 | 9,319 | 10,243 | 39,589 |
|---|
| Cash | 13,782 | 23,092 | 14,497 | 14,974 | 43,837 |
|---|
| Net Debt/EBITDA | -0.8x | -0.4x | -0.7x | -0.6x | -0.2x |
|---|
| |
| ROIC, % | 11.1% | 13.4% | 11.1% | 11.2% | 15.3% |
|---|
| ROE, % | 13.8% | 18.5% | 14.5% | 11.9% | 17.1% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. EBITDA margin surged on 1.30 pp from 8.20% to 9.50% in 2014. In the last 3 years EBITDA margin increased on 0.500 pp from 9% in 2011 to 9.50% in 2014.
We call CSR Corp Ltd an attractive growth stock as together with the growth it delivers high ROIC at 15.3%. During the last three years it surged - it was 13.4% in FY2011. Average ROIC for the last three years was 12.5%.
The company showed fast Net Income margin growth of 0.700 pp from 4.30% to 5% in 2014. In the longer period the company showed small growth in Net Income margin of 0.100 pp from 4.90% in 2011 to 5% in 2014.
CSR Corp Ltd operates at ROE of 17.1%. For the last three years the average ROE was 14.5%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 4.41% in FY2014. CSR Corp Ltd showed big decline in CAPEX/Revenue of 3.26 pp from 7.67% in 2011 to 4.41% in 2014. For the last three years the average CAPEX/Revenue was 5.21%.
Leverage (Debt)
Having such a fast growth profile CSR Corp Ltd keeps negative net debt at -0.2x Net Debt/EBITDA. If we look for the longer period CSR Corp Ltd showed fast leverage growth of 0.17x from -0.37x in 2011 to -0.21x in 2014.
Peers in Miscellaneous Manufactur
Below you can find CSR Corp Ltd benchmarking vs. other companies in Miscellaneous Manufactur 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 |
|---|
| Sunny Optical Technology Group Co Ltd ($2382) | | 37.4% | 59.5% | 45.9% | 45.0% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | | 21.4% | 1.5% | 22.2% | 43.2% |
| Time Watch Investments Ltd ($2033) | | 29.3% | 28.2% | 25.4% | 25.6% |
| China International Marine Containers Group Co Ltd ($2039) | | 23.4% | -15.6% | 6.6% | 21.4% |
| Singamas Container Holdings Ltd ($716) | | 32.4% | -15.5% | -16.5% | 20.5% |
| |
|---|
| Median (22 companies) | | 17.7% | -4.5% | -0.3% | 4.2% |
|---|
| CSR Corp Ltd ($1766) | | 24.0% | 12.0% | 9.7% | 123.7% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Time Watch Investments Ltd ($2033) | 48.4% | 58.5% | 60.2% | 60.6% | 65.0% |
| Man Sang International Ltd ($938) | 18.5% | 34.7% | 42.4% | 32.8% | 60.3% |
| Lee & Man Chemical Co Ltd ($746) | 44.7% | 46.7% | 34.3% | 35.7% | 41.9% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 36.9% | 35.0% | 33.2% | 35.1% | 37.4% |
| KEE Holdings Co Ltd ($2011) | 40.4% | 32.8% | 27.7% | 30.4% | 30.1% |
| |
|---|
| Median (21 companies) | 22.2% | 21.0% | 19.8% | 20.9% | 24.9% |
|---|
| CSR Corp Ltd ($1766) | 17.1% | 18.7% | 17.7% | 17.2% | 19.6% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 40.7% | 42.8% | 30.4% | 31.3% | 38.4% |
| Man Sang International Ltd ($938) | -8.9% | 18.7% | 24.9% | 15.4% | 37.0% |
| IPE Group Ltd ($929) | 29.8% | 24.9% | 25.6% | 22.5% | 29.5% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 18.6% | 19.5% | 18.4% | 19.8% | 20.6% |
| Time Watch Investments Ltd ($2033) | 11.6% | 16.8% | 17.6% | 16.8% | 19.4% |
| |
|---|
| Median (22 companies) | 11.9% | 10.4% | 8.5% | 9.4% | 8.6% |
|---|
| CSR Corp Ltd ($1766) | 7.2% | 9.0% | 8.1% | 8.2% | 9.5% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 8.7% | 1.4% | 5.8% | 51.1% | 33.7% |
| KEE Holdings Co Ltd ($2011) | 10.0% | 20.9% | 21.8% | 43.7% | 24.9% |
| China International Marine Containers Group Co Ltd ($2039) | 4.1% | 4.7% | 3.9% | 12.1% | 18.5% |
| China Environmental Energy Investment Ltd ($986) | 2.8% | 77.7% | 6.1% | 0.4% | 17.9% |
| TK Group Holdings Ltd ($2283) | 15.2% | 8.9% | 13.3% | 8.1% | 13.7% |
| |
|---|
| Median (22 companies) | 3.7% | 4.3% | 4.7% | 4.2% | 3.9% |
|---|
| CSR Corp Ltd ($1766) | 8.9% | 7.7% | 5.4% | 5.8% | 4.4% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| TK Group Holdings Ltd ($2283) | | 34.0% | 36.8% | 31.1% | 29.4% |
| Time Watch Investments Ltd ($2033) | | 30.5% | 34.5% | 27.1% | 27.8% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 20.5% | 21.4% | 16.9% | 17.7% | 20.0% |
| Sunny Optical Technology Group Co Ltd ($2382) | 9.3% | 12.2% | 19.7% | 17.8% | 16.5% |
| Lee & Man Chemical Co Ltd ($746) | 26.9% | 29.8% | 11.7% | 8.2% | 10.9% |
| |
|---|
| Median (22 companies) | 4.4% | 5.4% | 4.5% | 4.0% | 4.2% |
|---|
| CSR Corp Ltd ($1766) | 11.1% | 13.4% | 11.1% | 11.2% | 15.3% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| South China China Ltd ($413) | 2.5x | 2.3x | | 37.5x | 2,842.3x |
| Continental Holdings Ltd ($513) | | 8.3x | | 20.1x | 92.9x |
| China International Marine Containers Group Co Ltd ($2039) | 2.6x | 2.8x | 4.0x | 4.7x | 5.8x |
| VS International Group Ltd ($1002) | 5.8x | 8.6x | 5.1x | 6.5x | 4.4x |
| Lee & Man Chemical Co Ltd ($746) | 0.2x | -0.3x | -0.2x | 1.5x | 2.2x |
| |
|---|
| Median (19 companies) | 0.4x | -0.3x | -0.3x | -0.5x | -0.2x |
|---|
| CSR Corp Ltd ($1766) | -0.8x | -0.4x | -0.7x | -0.6x | -0.2x |
