Timeless Software Ltd reports 72.4% CAPEX decline while 11.7% Revenue growth
25/06/2015 • About Timeless Software Ltd (
$8028) • By InTwits
Timeless Software Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Timeless Software Ltd is a growth stock: FY2015 revenue growth was 11.7%, 5 year revenue CAGR was 53.6% at FY2015 ROIC 11.6%
- Timeless Software Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.1%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 7.8 in FY2015, 28.3 in FY2014, 17.2 in FY2013, 1.7 in FY2012, 0.74 in FY2011
- The company has business model with average profitability: ROIC is at 11.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Timeless Software Ltd ($8028) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 25.1 | 25.8 | 204.9 | 128.0 | 143.0 | 11.7% |
| Gross Profit | 4.8 | 4.6 | 99.5 | 37.7 | 60.2 | 59.8% |
| EBITDA | -17.8 | -29.2 | 50.7 | -17.6 | 66.0 | -475.0% |
| Net Income | -11.5 | -11.1 | -27.6 | -56.9 | -33.4 | -41.2% |
Balance Sheet
|
|---|
| Cash | 68.6 | 63.0 | 55.2 | 33.7 | 51.0 | 51.4% |
| Short Term Debt | 0.0 | 0.0 | 11.3 | 33.3 | 20.4 | -38.9% |
| Long Term Debt | 0.0 | 0.0 | 49.8 | 39.9 | 29.9 | -25.0% |
Cash flow
|
|---|
| Capex | 0.7 | 1.7 | 17.2 | 28.3 | 7.8 | -72.4% |
Ratios
|
|---|
| Revenue growth | 50.2% | 2.8% | 694.5% | -37.5% | 11.7% | |
| EBITDA growth | 79.2% | 64.2% | -273.8% | -134.7% | -475.0% | |
| Gross Margin | 19.2% | 17.7% | 48.5% | 29.4% | 42.1% | 12.7% |
| EBITDA Margin | -70.8% | -113.1% | 24.7% | -13.7% | 46.1% | 59.9% |
| Net Income Margin | -45.9% | -42.9% | -13.5% | -44.5% | -23.4% | 21.1% |
| CAPEX, % of revenue | 2.9% | 6.4% | 8.4% | 22.1% | 5.5% | -16.6% |
| ROIC | -18.0% | -29.1% | 7.3% | -4.6% | 11.6% | 16.2% |
| ROE | -11.5% | -10.8% | -22.7% | -51.9% | -38.9% | 13.0% |
| Net Debt/EBITDA | | | 0.1x | | -0.0x | -0.0x |
Revenue and profitability
The company's Revenue surged on 11.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 21.3 pp from 12.9% to -8.3% in 2015.
Gross Margin surged on 12.7 pp from 29.4% to 42.1% in FY2015.
Net Income marign surged on 21.1 pp from -44.5% to -23.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 5.5%. Timeless Software Ltd's CAPEX/Revenue decreased slightly on 0.99 pp from 6.4% in FY2012 to 5.5% in FY2015. Average CAPEX/Revenue for the last three years was 12.0%.
Return on investment
The company operates at low but positive ROIC (11.58%) and negative ROE (-38.87%). ROIC surged on 16.2 pp from -4.6% to 11.6% in FY2015. ROE surged on 13.0 pp from -51.9% to -38.9% in FY2015.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA decreased slightly0.012x from to -0.012x in FY2015. Debt dropped on 31.4% in FY2015 while cash jumped on 51.4% in FY2015.
Appendix 1: Peers in Mining
Below you can find Timeless Software Ltd benchmarking vs. other companies in Mining 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 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 24.0% | 4.8% | -44.7% | 303.0% | |
| Huili Resources Group Ltd ($1303) | -47.8% | -33.6% | -91.6% | 219.4% | |
| North Mining Shares Co Ltd ($433) | 1.7% | -5.5% | -57.1% | 187.0% | |
| China Kingstone Mining Holdings Ltd ($1380) | 4,275.3% | -94.5% | -55.6% | 155.2% | |
| Ding He Mining Holdings Ltd ($705) | 31.6% | 29.9% | 43.8% | 89.8% | |
| |
|---|
| Median (45 companies) | 31.0% | 6.4% | 2.4% | -5.3% | 0.8% |
|---|
| Timeless Software Ltd ($8028) | | 2.8% | 694.5% | -37.5% | 11.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% |
| China Polymetallic Mining Ltd ($2133) | 76.9% | 81.8% | 74.2% | 51.8% | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 64.7% | 63.9% | 54.9% | 51.2% | |
| Hengshi Mining Investments Ltd ($1370) | 54.6% | 32.4% | 55.3% | 50.1% | |
| China Kingstone Mining Holdings Ltd ($1380) | 60.1% | 67.1% | 50.7% | 49.8% | |
| |
|---|
| Median (45 companies) | 19.1% | 13.4% | 14.0% | 15.3% | 18.5% |
|---|
| Timeless Software Ltd ($8028) | 19.2% | 17.7% | 48.5% | 29.4% | 42.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | |
| China Polymetallic Mining Ltd ($2133) | -322.0% | 62.8% | 58.5% | 54.1% | |
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | |
| China Gold International Resources Corp Ltd ($2099) | | 41.7% | 38.3% | 47.3% | 33.7% |
| Hengshi Mining Investments Ltd ($1370) | 45.7% | 22.8% | 52.0% | 45.4% | |
| |
|---|
| Median (45 companies) | 6.4% | 4.9% | 8.3% | 5.5% | -43.1% |
|---|
| Timeless Software Ltd ($8028) | -70.8% | -113.1% | 24.7% | -13.7% | 46.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% |
| Huili Resources Group Ltd ($1303) | 3.9% | 181.0% | 1,508.6% | 279.5% | |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | |
| China Gold International Resources Corp Ltd ($2099) | | 64.7% | 156.1% | 95.6% | 81.4% |
| IRC Ltd ($1029) | 129.7% | 102.1% | 70.6% | 82.5% | |
| |
|---|
| Median (45 companies) | 17.1% | 17.4% | 16.0% | 11.1% | 23.3% |
|---|
| Timeless Software Ltd ($8028) | 2.9% | 6.4% | 8.4% | 22.1% | 5.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Silver Group Ltd ($815) | 48.0% | 57.6% | 31.6% | 35.8% | |
| Hengshi Mining Investments Ltd ($1370) | 153.0% | 50.1% | 60.1% | 20.7% | |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | |
| China Nonferrous Mining Corp Ltd ($1258) | 10.9% | 14.7% | 10.8% | 11.8% | |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | |
| |
|---|
| Median (46 companies) | 3.8% | 2.5% | 3.1% | 2.1% | -3.6% |
|---|
| Timeless Software Ltd ($8028) | -18.0% | -29.1% | 7.3% | -4.6% | 11.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 0.9x | 8.4x | 39.4x | 10.3x | |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | |
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | |
| Midas Holdings Ltd ($1021) | 1.4x | 4.3x | 6.5x | 8.7x | |
| Lingbao Gold Co Ltd ($3330) | 3.5x | 5.3x | | 8.3x | |
| |
|---|
| Median (27 companies) | 0.9x | 1.5x | 2.0x | 4.4x | 3.0x |
|---|
