Quam Ltd Net Debt / EBITDA jumped on 10.7x from 4.1x to 14.8x in 2015 and Debt jumped on 195%
18/06/2015 • About Quam Ltd (
$952) • By InTwits
Quam Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 16.9% in FY2015 vs. 13.2% in FY2014 vs. 7.8% in FY2011
- EBITDA Margin is quite volatile: 16.9% in FY2015, 13.2% in FY2014, 5.5% in FY2013, 1.0% in FY2012, 7.8% in FY2011
- Quam Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 25.6%.
- CAPEX is quite volatile: 10.9 in 2015, 13.6 in 2014, 8.9 in 2013, 4.1 in 2012, 7.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.5%
- It operates with high leverage: Net Debt/EBITDA is 14.8x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Quam Ltd ($952) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 317.6 | 358.8 | 337.1 | 413.7 | 432.3 | 4.5% |
| EBITDA | 24.7 | 3.5 | 18.5 | 54.8 | 73.0 | 33.2% |
| Net Income | 7.7 | -24.5 | -18.9 | 31.6 | 36.0 | 14.0% |
Balance Sheet
|
|---|
| Cash | 122.5 | 60.0 | 66.2 | 162.9 | 67.1 | -58.8% |
| Short Term Debt | 244.1 | 265.9 | 319.5 | 387.5 | 1,050.7 | 171.1% |
| Long Term Debt | 0.1 | 0.0 | 39.9 | 0.5 | 95.6 | 20,913.6% |
Cash flow
|
|---|
| Capex | 6.7 | 6.6 | 8.8 | 4.4 | 5.1 | 15.0% |
Ratios
|
|---|
| Revenue growth | 1.0% | 13.0% | -6.0% | 22.7% | 4.5% | |
| EBITDA growth | -13.7% | -85.9% | 429.2% | 196.3% | 33.2% | |
| EBITDA Margin | 7.8% | 1.0% | 5.5% | 13.2% | 16.9% | 3.6% |
| Net Income Margin | 2.4% | -6.8% | -5.6% | 7.6% | 8.3% | 0.7% |
| CAPEX, % of revenue | 2.1% | 1.8% | 2.6% | 1.1% | 1.2% | 0.1% |
| ROIC | 3.2% | -1.6% | 0.4% | 5.0% | 3.5% | -1.5% |
| ROE | 2.2% | -6.6% | -5.1% | 8.5% | 8.9% | 0.4% |
| Net Debt/EBITDA | 4.9x | 58.9x | 15.9x | 4.1x | 14.8x | 10.7x |
Revenue and profitability
The company's Revenue increased on 4.5% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.6 pp from 13.2% to 16.9% in FY2015.
Net Income marign increased slightly on 0.70 pp from 7.6% to 8.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.2%. The company's CAPEX/Revenue decreased slightly on 0.66 pp from 1.8% in FY2012 to 1.2% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at low ROIC (3.49%) and ROE (8.89%). ROIC decreased slightly on 1.5 pp from 5.0% to 3.5% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 14.8x Net Debt / EBITDA and 15.7x Debt / EBITDA. Net Debt / EBITDA surged on 10.7x from 4.1x to 14.8x in FY2015. Debt jumped on 195% in FY2015 while cash dropped on 58.8% in FY2015.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Quam Ltd benchmarking vs. other companies in Diversified Finan Serv 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 New Energy Power Group Ltd ($1041) | | 100.0% | 0.0% | 64,246.0% | |
| ReOrient Group Ltd ($376) | 63.3% | 112.8% | 75.1% | 1,106.9% | |
| Global Strategic Group Ltd ($8007) | 2.2% | -3.9% | 2.1% | 806.3% | |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (62 companies) | 6.8% | 0.9% | 14.7% | 26.5% | 21.4% |
|---|
| Quam Ltd ($952) | | 13.0% | -6.0% | 22.7% | 4.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 98.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | |
| |
|---|
| Median (63 companies) | 30.3% | 16.4% | 36.2% | 47.2% | 44.7% |
|---|
| Quam Ltd ($952) | 7.8% | 1.0% | 5.5% | 13.2% | 16.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| |
|---|
| Median (63 companies) | 2.3% | 1.9% | 1.7% | 1.1% | 0.2% |
|---|
| Quam Ltd ($952) | 2.1% | 1.8% | 2.6% | 1.1% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| |
|---|
| Median (65 companies) | 4.9% | 3.9% | 4.0% | 4.7% | 9.7% |
|---|
| Quam Ltd ($952) | 3.2% | -1.6% | 0.4% | 5.0% | 3.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (45 companies) | -1.1x | -1.3x | -0.0x | -0.1x | 2.2x |
|---|
| Quam Ltd ($952) | 4.9x | 58.9x | 15.9x | 4.1x | 14.8x |
