Willas-Array Electronics Holdings Ltd EBITDA jumped on 29.7% in 2015 and Revenue increased on 6.1%
29/05/2015 • About Willas-Array Electronics Holdings Ltd (
$854) • By InTwits
Willas-Array Electronics 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: 2.2% in FY2015 vs. 1.8% in FY2014 vs. 3.4% in FY2011
- Willas-Array Electronics Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is at 5.0%
- It operates with high leverage: Net Debt/EBITDA is 5.4x while industry average is 3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Willas-Array Electronics Holdings Ltd ($854) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,797 | 3,262 | 3,158 | 3,196 | 3,392 | 6.1% |
| Gross Profit | 386 | 303 | 306 | 328 | 310 | -5.5% |
| EBITDA | 129 | 77 | 78 | 59 | 76 | 29.7% |
| Net Income | 86 | 45 | 46 | 29 | 32 | 10.2% |
Balance Sheet
|
|---|
| Cash | 420 | 333 | 390 | 219 | 306 | 39.7% |
| Short Term Debt | 721 | 435 | 590 | 553 | 717 | 29.6% |
| Long Term Debt | 55 | 66 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 88 | 12 | 2 | 4 | 6 | 65.0% |
Ratios
|
|---|
| Revenue growth | 29.1% | -14.1% | -3.2% | 1.2% | 6.1% | |
| EBITDA growth | 49.0% | -40.1% | 0.7% | -24.5% | 29.7% | |
| Gross Margin | 10.2% | 9.3% | 9.7% | 10.3% | 9.1% | -1.1% |
| EBITDA Margin | 3.4% | 2.4% | 2.5% | 1.8% | 2.2% | 0.4% |
| Net Income Margin | 2.3% | 1.4% | 1.5% | 0.9% | 0.9% | 0.0% |
| CAPEX, % of revenue | 2.3% | 0.4% | 0.1% | 0.1% | 0.2% | 0.1% |
| ROIC | 9.9% | 5.5% | 5.8% | 4.1% | 5.0% | 1.0% |
| ROE | 19.5% | 8.9% | 8.5% | 5.2% | 5.2% | -0.0% |
| Net Debt/EBITDA | 2.8x | 2.2x | 2.6x | 5.7x | 5.4x | -0.3x |
Revenue and profitability
The company's Revenue increased on 6.1% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.1 pp from 42.3% to 45.4% in FY2015.
Gross Margin decreased slightly on 1.1 pp from 10.3% to 9.1% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Willas-Array Electronics Holdings Ltd had CAPEX/Revenue of 0.19%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.13%.
Return on investment
The company operates at low ROIC (5.02%) and ROE (5.24%). ROIC increased slightly on 0.95 pp from 4.1% to 5.0% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 5.4x Net Debt / EBITDA and 9.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 5.7x to 5.4x in FY2015. Debt surged on 29.6% in FY2015 while cash jumped on 39.7% in FY2015.
Appendix 1: Peers in Electronics
Below you can find Willas-Array Electronics Holdings 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Netcom Technology Holdings Ltd ($8071) | -22.0% | 11.6% | -23.0% | 104.1% | |
| Technovator International Ltd ($1206) | 31.6% | 27.4% | 34.1% | 35.9% | |
| 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% | |
| Alltronics Holdings Ltd ($833) | 33.9% | -1.6% | -1.6% | 23.4% | |
| |
|---|
| Median (47 companies) | 9.4% | -0.3% | 3.1% | 6.2% | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | | -14.1% | -3.2% | 1.2% | 6.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 51.4% | 54.0% | 58.1% | 49.5% | |
| AAC Technologies Holdings Inc ($2018) | 44.0% | 44.2% | 42.7% | 41.4% | |
| TeleEye Holdings Ltd ($8051) | 51.6% | 44.0% | 42.1% | 38.5% | |
| Wasion Group Holdings Ltd ($3393) | 30.3% | 32.8% | 35.1% | 34.2% | |
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | |
| |
|---|
| Median (45 companies) | 13.6% | 14.6% | 13.8% | 14.0% | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | 10.2% | 9.3% | 9.7% | 10.3% | 9.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.2% | 35.8% | 35.8% | 34.9% | |
| Nanjing Sample Technology Co Ltd ($1708) | 31.5% | 26.8% | 21.1% | 22.3% | |
| Wasion Group Holdings Ltd ($3393) | 18.9% | 18.8% | 21.2% | 22.0% | |
| Technovator International Ltd ($1206) | 19.2% | 19.0% | 19.0% | 20.8% | |
| Trigiant Group Ltd ($1300) | 17.0% | 17.6% | 18.2% | 18.5% | |
| |
|---|
| Median (47 companies) | 9.3% | 7.2% | 4.4% | 5.3% | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | 3.4% | 2.4% | 2.5% | 1.8% | 2.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AKM Industrial Co Ltd ($1639) | 7.4% | 5.0% | 17.4% | 25.2% | |
| AAC Technologies Holdings Inc ($2018) | 25.9% | 18.7% | 8.7% | 19.6% | |
| Irico Group Electronics Co Ltd ($438) | 92.0% | 39.9% | 30.4% | 17.4% | |
| Tech Pro Technology Development Ltd ($3823) | 32.8% | 7.6% | 13.1% | 15.4% | |
| Nanjing Sample Technology Co Ltd ($1708) | 3.7% | 23.9% | 15.5% | 12.0% | |
| |
|---|
| Median (47 companies) | 3.7% | 3.8% | 3.3% | 4.2% | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | 2.3% | 0.4% | 0.1% | 0.1% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 22.3% | 29.1% | 30.0% | 26.0% | |
| Advanced Card Systems Holdings Ltd ($8210) | 15.5% | 26.7% | 24.7% | 20.2% | |
| Alltronics Holdings Ltd ($833) | 19.3% | 13.1% | 15.2% | 19.8% | |
| Tongda Group Holdings Ltd ($698) | 14.3% | 15.2% | 13.5% | 16.5% | |
| Trigiant Group Ltd ($1300) | 17.9% | 17.8% | 18.3% | 15.2% | |
| |
|---|
| Median (47 companies) | 5.4% | 4.1% | 3.1% | 2.9% | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | 9.9% | 5.5% | 5.8% | 4.1% | 5.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Electronic Hldgs ($213) | 43.0x | 16.3x | 30.2x | 84.8x | |
| Sino-Tech International Holdings Ltd ($724) | | | 15.7x | 24.7x | |
| Eyang Holdings Group Co Ltd ($117) | 4.2x | 3.3x | 3.7x | 17.9x | |
| SAS Dragon Hldg Ltd ($1184) | 2.8x | 7.1x | 2.0x | 6.4x | |
| Pine Technology Holdings Ltd ($1079) | | 8.0x | 3.3x | 4.9x | |
| |
|---|
| Median (34 companies) | 0.7x | 1.0x | 1.1x | 1.0x | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | 2.8x | 2.2x | 2.6x | 5.7x | 5.4x |
