Johnson Electric Holdings Ltd CAPEX jumped on 30.1% in 2015 and Revenue increased slightly on 1.8%
13/05/2015 • About Johnson Electric Holdings Ltd (
$179) • By InTwits
Johnson Electric Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 15.4% in FY2015 vs. 15.5% in FY2014 vs. 14.9% in FY2011
- Johnson Electric Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.5%. At the same time it's a lot of higher than industry average of 3.8%.
- CAPEX is quite volatile: 6.3 in 2015, 11.9 in 2014, 18.7 in 2013, 59.8 in 2012, 58.7 in 2011
- The company has business model with average profitability: ROIC is at 11.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Johnson Electric Holdings Ltd ($179) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,104 | 2,141 | 2,060 | 2,098 | 2,136 | 1.8% |
| Gross Profit | 580 | 584 | 578 | 619 | 632 | 2.2% |
| SG&A | 345 | 371 | 387 | 394 | 405 | 2.8% |
| EBITDA | 313 | 303 | 298 | 326 | 328 | 0.8% |
| Net Income | 182 | 187 | 191 | 208 | 211 | 1.5% |
Balance Sheet
|
|---|
| Cash | 355 | 385 | 481 | 644 | 773 | 20.1% |
| Short Term Debt | 134 | 203 | 123 | 115 | 66 | -43.0% |
| Long Term Debt | 179 | 2 | 2 | 1 | 226 | 16,080.7% |
Cash flow
|
|---|
| Capex | 86 | 91 | 83 | 92 | 120 | 30.1% |
Ratios
|
|---|
| Revenue growth | 20.9% | 1.7% | -3.8% | 1.8% | 1.8% | |
| EBITDA growth | 55.0% | -3.2% | -1.6% | 9.1% | 0.8% | |
| Gross Margin | 27.5% | 27.3% | 28.0% | 29.5% | 29.6% | 0.1% |
| EBITDA Margin | 14.9% | 14.2% | 14.5% | 15.5% | 15.4% | -0.2% |
| Net Income Margin | 8.6% | 8.7% | 9.3% | 9.9% | 9.9% | -0.0% |
| SG&A, % of revenue | 16.4% | 17.3% | 18.8% | 18.8% | 19.0% | 0.2% |
| CAPEX, % of revenue | 4.1% | 4.3% | 4.0% | 4.4% | 5.6% | 1.2% |
| ROIC | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% | -1.5% |
| ROE | 14.6% | 13.2% | 12.6% | 12.6% | 11.7% | -0.9% |
| Net Debt/EBITDA | -0.1x | -0.6x | -1.2x | -1.6x | -1.5x | 0.2x |
Revenue and profitability
Johnson Electric Holdings Ltd's Revenue increased slightly on 1.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.8 pp from 21.6% to 23.4% in 2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Johnson Electric Holdings Ltd had CAPEX/Revenue of 5.6%. CAPEX/Revenue increased slightly on 1.3 pp from 4.3% in FY2012 to 5.6% in FY2015. It's average level of CAPEX/Revenue for the last three years was 4.7%.
Return on investment
The company operates at low ROIC (11.20%) and ROE (11.73%). ROIC decreased slightly on 1.5 pp from 12.7% to 11.2% in FY2015. ROE decreased slightly on 0.86 pp from 12.6% to 11.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.5x and Debt / EBITDA is 0.9x. Net Debt / EBITDA surged on 0.2x from -1.6x to -1.5x in FY2015. Debt jumped on 149% in FY2015 while cash jumped on 20.1% in FY2015.
Management team
Johnson Electric Holdings Ltd's CEO Wang Shui Chung "Patrick" has spent 22 years at the company.
Appendix 1: Peers in Electrical Compo&Equip
Below we provide Johnson Electric Holdings Ltd benchmarking against other companies in Electrical Compo&Equip 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Enterprise Development Holdings Ltd ($1808) | 225.9% | 2.5% | 37.3% | 83.9% | |
| FDG Electric Vehicles Ltd ($729) | 2,481.8% | -23.1% | -7.0% | 54.0% | |
| Boer Power Holdings Ltd ($1685) | 11.4% | 20.4% | 10.9% | 51.3% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | -27.0% | -12.0% | 8.7% | 44.1% | |
| CEC International Holdings Ltd ($759) | 19.5% | 23.9% | 60.8% | 43.0% | |
| |
|---|
| Median (30 companies) | 13.4% | -6.0% | 8.9% | 16.2% | |
|---|
| Johnson Electric Holdings Ltd ($179) | | 1.7% | -3.8% | 1.8% | 1.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 37.1% | 36.8% | 36.0% | 35.3% | |
| China Titans Energy Technology Group Co Ltd ($2188) | 45.4% | 41.4% | 27.3% | 33.7% | |
| Sun King Power Electronics Group ($580) | 16.2% | 25.4% | 30.0% | 30.8% | |
| CEC International Holdings Ltd ($759) | 18.5% | 23.6% | 27.9% | 29.9% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 16.1% | 14.2% | 20.1% | 26.0% | |
| |
|---|
| Median (29 companies) | 20.3% | 18.4% | 16.0% | 15.6% | |
|---|
| Johnson Electric Holdings Ltd ($179) | 27.5% | 27.3% | 28.0% | 29.5% | 29.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shougang Concord Technology Holdings ($521) | 22.7% | 12.3% | 28.1% | 31.9% | |
| Boer Power Holdings Ltd ($1685) | 28.1% | 26.3% | 27.8% | 28.5% | |
| China High Speed Transmission Equipment Group Co Ltd ($658) | 21.0% | 20.2% | 19.2% | 20.8% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 9.2% | 5.7% | 7.4% | 16.9% | |
| Guodian Technology & Environment Group Corp Ltd ($1296) | 9.4% | 11.2% | 10.8% | 13.5% | |
| |
|---|
| Median (31 companies) | 10.2% | 7.8% | 6.6% | 3.8% | |
|---|
| Johnson Electric Holdings Ltd ($179) | 14.9% | 14.2% | 14.5% | 15.5% | 15.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Applied Development Holdings Ltd ($519) | 46.4% | 79.7% | | 1,285.3% | |
| FDG Electric Vehicles Ltd ($729) | 177.5% | 374.3% | 82.3% | 71.1% | |
| Sun King Power Electronics Group ($580) | 9.2% | 16.5% | 7.7% | 15.5% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 23.7% | 23.1% | 50.7% | 13.5% | |
| Coslight Technology International Group Co Ltd ($1043) | 11.0% | 9.3% | 11.4% | 11.5% | |
| |
|---|
| Median (31 companies) | 9.4% | 6.7% | 5.4% | 3.6% | |
|---|
| Johnson Electric Holdings Ltd ($179) | 4.1% | 4.3% | 4.0% | 4.4% | 5.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boer Power Holdings Ltd ($1685) | 18.2% | 18.0% | 17.0% | 21.2% | |
| Jiangnan Group Ltd ($1366) | 17.0% | 14.9% | 14.1% | 13.5% | |
| Xinjiang Goldwind Science & Technology Co Ltd ($2208) | 5.1% | 1.8% | 3.0% | 10.4% | |
| Hengxin Technology Ltd ($1085) | 13.9% | 8.1% | 9.3% | 9.0% | |
| Enterprise Development Holdings Ltd ($1808) | 1.0% | -3.5% | 12.3% | 8.3% | |
| |
|---|
| Median (31 companies) | 5.1% | 2.8% | 2.8% | 0.7% | |
|---|
| Johnson Electric Holdings Ltd ($179) | 13.1% | 11.7% | 11.6% | 12.7% | 11.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tianneng Power International Ltd ($819) | 0.7x | 1.8x | 4.0x | 162.7x | |
| Coslight Technology International Group Co Ltd ($1043) | 11.2x | 51.9x | 8.7x | 54.7x | |
| China Titans Energy Technology Group Co Ltd ($2188) | 0.2x | 1.5x | | 16.9x | |
| Shougang Concord Technology Holdings ($521) | 12.7x | 16.3x | 4.9x | 13.8x | |
| Sun King Power Electronics Group ($580) | | 1.7x | 1.4x | 10.0x | |
| |
|---|
| Median (24 companies) | 0.5x | 1.6x | 1.8x | 2.5x | |
|---|
| Johnson Electric Holdings Ltd ($179) | -0.1x | -0.6x | -1.2x | -1.6x | -1.5x |
