EverChina International Holdings Co Ltd Net Income dropped on 328% in 2015 while Revenue jumped on 26.4%
26/06/2015 • About EverChina International Holdings Co Ltd (
$202) • By InTwits
EverChina International Holdings Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EverChina International Holdings Co Ltd doesn't have a profitable business model yet: FY2015 ROIC is -0.2%
- The company operates at negative EBITDA Margin: -8.2%
- EverChina International Holdings Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -14.9%0
- EverChina International Holdings Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 30.0%. At the same time it's in pair with industry average of 25.6%.
- CAPEX is quite volatile: 0.53 in FY2015, 6.6 in FY2014, 59.5 in FY2013, 193 in FY2012, 286 in FY2011
- The company has unprofitable business model: ROIC is at -0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
EverChina International Holdings Co Ltd ($202) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 413.5 | 405.5 | 370.6 | 40.8 | 51.5 | 26.4% |
| Gross Profit | 166.0 | 210.2 | 198.0 | 38.9 | 49.2 | 26.4% |
| SG&A | | | | | 51.2 | |
| EBITDA | -52.2 | 47.5 | -101.7 | -80.3 | -4.2 | -94.7% |
| Net Income | -101.7 | -356.4 | 942.3 | 177.1 | -403.2 | -327.6% |
Balance Sheet
|
|---|
| Cash | 1,073.0 | 398.8 | 975.3 | 321.8 | 468.9 | 45.7% |
| Short Term Debt | 886.2 | 1,866.2 | 954.1 | 442.6 | 734.0 | 65.8% |
| Long Term Debt | 1,021.0 | 127.1 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 286.0 | 193.0 | 59.5 | 6.6 | 0.5 | -92.1% |
Ratios
|
|---|
| Revenue growth | 69.6% | -1.9% | -8.6% | -89.0% | 26.4% | |
| EBITDA growth | 138.7% | -191.0% | -314.3% | -21.1% | -94.7% | |
| Gross Margin | 40.2% | 51.8% | 53.4% | 95.3% | 95.4% | 0.1% |
| EBITDA Margin | -12.6% | 11.7% | -27.5% | -196.9% | -8.2% | 188.7% |
| Net Income Margin | -24.6% | -87.9% | 254.3% | 434.3% | -782.2% | -1,216.5% |
| SG&A, % of revenue | | | | | 99.3% | 99.3% |
| CAPEX, % of revenue | 69.2% | 47.6% | 16.1% | 16.2% | 1.0% | -15.2% |
| ROIC | -1.7% | -0.4% | -2.5% | -1.4% | -0.2% | 1.2% |
| ROE | -3.6% | -10.4% | 22.9% | 3.6% | -8.3% | -11.8% |
| Net Debt/EBITDA | | 33.6x | | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 26.4% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 189 pp from -197% to -8.2% in FY2015.
Gross Margin showed almost no change in FY2015.
Net Income marign dropped on 1,216 pp from 434% to -782% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.0% in FY2015. CAPEX/Revenue dropped on 46.6 pp from 47.6% in FY2012 to 1.0% in FY2015. Average CAPEX/Revenue for the last three years was 11.1%.
Return on investment
The company operates at negative ROIC (-0.19%) and ROE (-8.27%). ROIC increased slightly on 1.2 pp from -1.4% to -0.19% in FY2015. ROE dropped on 11.8 pp from 3.6% to -8.3% in FY2015.
Leverage (Debt)
Debt level is -5.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2015. Debt jumped on 65.8% in FY2015 while cash surged on 45.7% in FY2015.
Appendix 1: Peers in Environmental Control
Below we provide EverChina International Holdings Co Ltd benchmarking against other companies in Environmental Control 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 |
|---|
| China Environmental Technology Holdings Ltd ($646) | -58.7% | 138.4% | -89.9% | 509.7% | |
| Capital Environment Holdings Ltd ($3989) | -89.7% | -12.6% | 1,503.8% | 241.2% | |
| CT Environmental Group Ltd ($1363) | 21.9% | -18.7% | 23.1% | 112.9% | |
| Asia Energy Logistics Group Ltd ($351) | | | | 92.2% | |
| Green Energy Group Ltd ($979) | 57.8% | -75.7% | 92.3% | 43.5% | |
| |
|---|
| Median (18 companies) | 9.8% | -13.1% | 12.6% | 11.5% | -13.5% |
|---|
| EverChina International Holdings Co Ltd ($202) | | -1.9% | -8.6% | -89.0% | 26.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Environmental Resources Group Ltd ($1130) | 12.3% | 17.2% | 11.3% | 73.7% | |
| CT Environmental Group Ltd ($1363) | 57.7% | 65.8% | 63.1% | 56.4% | |
| China Everbright International Ltd ($257) | 41.3% | 49.4% | 44.7% | 46.7% | |
| New Universe International Group Ltd ($8068) | 51.9% | 47.9% | 47.7% | 45.0% | |
| China Water Affairs Group Ltd ($855) | 42.7% | 44.0% | 43.1% | 41.8% | |
| |
|---|
| Median (17 companies) | 34.1% | 20.4% | 30.1% | 27.1% | 9.7% |
|---|
| EverChina International Holdings Co Ltd ($202) | 40.2% | 51.8% | 53.4% | 95.3% | 95.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CT Environmental Group Ltd ($1363) | 52.2% | 63.6% | 62.8% | 58.7% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 55.9% | 57.5% | 56.6% | 57.8% | |
| China Everbright International Ltd ($257) | 37.3% | 44.6% | 40.7% | 43.6% | |
| New Universe International Group Ltd ($8068) | 42.0% | 40.2% | 37.8% | 39.3% | |
| China Water Affairs Group Ltd ($855) | 38.8% | 38.2% | 38.1% | 37.1% | |
| |
|---|
| Median (18 companies) | 6.2% | 2.1% | 2.0% | -1.7% | -469.4% |
|---|
| EverChina International Holdings Co Ltd ($202) | -12.6% | 11.7% | -27.5% | -196.9% | -8.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CT Environmental Group Ltd ($1363) | 31.8% | 65.0% | 27.1% | 51.4% | |
| New Universe International Group Ltd ($8068) | 103.4% | 16.4% | 16.6% | 44.9% | |
| Green Energy Group Ltd ($979) | 7.5% | 169.0% | 270.8% | 41.9% | |
| Integrated Waste Solutions Group Holdings Ltd ($923) | 25.4% | 13.2% | 10.6% | 41.7% | 88.1% |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 42.2% | 43.1% | 46.5% | 38.6% | |
| |
|---|
| Median (18 companies) | 11.2% | 14.8% | 16.0% | 13.1% | 94.5% |
|---|
| EverChina International Holdings Co Ltd ($202) | 69.2% | 47.6% | 16.1% | 16.2% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CT Environmental Group Ltd ($1363) | 34.4% | 25.9% | 20.5% | 20.8% | |
| China Everbright International Ltd ($257) | 11.1% | 10.4% | 11.2% | 10.5% | |
| Dongjiang Environmental Co Ltd ($895) | 17.0% | 14.3% | 7.4% | 9.4% | |
| New Universe International Group Ltd ($8068) | 5.8% | 6.3% | 6.8% | 8.9% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 7.4% | 7.1% | 6.8% | 7.8% | |
| |
|---|
| Median (18 companies) | 3.8% | -1.7% | -0.1% | -3.3% | -7.0% |
|---|
| EverChina International Holdings Co Ltd ($202) | -1.7% | -0.4% | -2.5% | -1.4% | -0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Water Affairs Group Ltd ($855) | 2.8x | 2.6x | 2.7x | 3.2x | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 4.1x | 4.2x | 3.1x | 2.9x | |
| CT Environmental Group Ltd ($1363) | 1.8x | 2.4x | 0.5x | 1.9x | |
| China Everbright International Ltd ($257) | 2.8x | 2.1x | 0.5x | 1.5x | |
| Dongjiang Environmental Co Ltd ($895) | 1.0x | -1.7x | -1.5x | 0.9x | |
| |
|---|
| Median (9 companies) | 1.4x | 2.2x | 0.1x | 0.9x | |
|---|
