IDT International Ltd reports 18.6% revenue decline in FY2015 and 4.9 pp EBITDA Margin decline from -1.4% to -6.3%
26/06/2015 • About IDT International Ltd (
$167) • By InTwits
IDT International Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- IDT International Ltd is a company in decline: FY2015 revenue growth was -18.6%, 5 years revenue CAGR was -4.6%
- The company operates at negative EBITDA Margin: -6.3%
- EBITDA Margin is quite volatile: -6.3% in FY2015, -1.4% in FY2014, 0.2% in FY2013, 4.3% in FY2012, 6.0% in FY2011
- IDT International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 8.6%.
- CAPEX is quite volatile: 102 in 2015, 36.5 in 2014, 37.9 in 2013, 32.7 in 2012, 93.9 in 2011
- The company has unprofitable business model: ROIC is at -20.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
IDT International Ltd ($167) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,624 | 1,597 | 1,578 | 1,352 | 1,100 | -18.6% |
| Gross Profit | 533 | 484 | 442 | 336 | 229 | -32.0% |
| SG&A | | | 169 | 157 | 155 | -1.2% |
| EBITDA | 98 | 69 | 3 | -19 | -69 | 265.6% |
| Net Income | -50 | -30 | -29 | -69 | -67 | -2.6% |
Balance Sheet
|
|---|
| Cash | 341 | 288 | 312 | 237 | 185 | -21.8% |
| Short Term Debt | 312 | 103 | 262 | 97 | 19 | -80.5% |
| Long Term Debt | 0 | 91 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 28 | 16 | 16 | 16 | 15 | -6.8% |
Ratios
|
|---|
| Revenue growth | 16.4% | -1.6% | -1.2% | -14.3% | -18.6% | |
| EBITDA growth | 370.2% | -29.9% | -95.6% | -730.0% | 265.6% | |
| Gross Margin | 32.8% | 30.3% | 28.0% | 24.9% | 20.8% | -4.1% |
| EBITDA Margin | 6.0% | 4.3% | 0.2% | -1.4% | -6.3% | -4.9% |
| Net Income Margin | -3.1% | -1.9% | -1.8% | -5.1% | -6.1% | -1.0% |
| SG&A, % of revenue | | | 10.7% | 11.6% | 14.1% | 2.5% |
| CAPEX, % of revenue | 1.7% | 1.0% | 1.0% | 1.2% | 1.4% | 0.2% |
| ROIC | -0.1% | -1.7% | -6.8% | -10.6% | -20.3% | -9.7% |
| ROE | -8.0% | -5.1% | -5.2% | -13.5% | -15.1% | -1.6% |
| Net Debt/EBITDA | -0.3x | -1.4x | -16.4x | | | 0.0x |
Revenue and profitability
IDT International Ltd's Revenue dropped on 18.6% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.9 pp from -1.4% to -6.3% in FY2015.
Gross Margin decreased on 4.1 pp from 24.9% to 20.8% in FY2015. SG&A as a % of Revenue increased on 2.5 pp from 11.6% to 14.1% in FY2015.
Net Income marign decreased slightly on 1.0 pp from -5.1% to -6.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.4%. CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at negative ROIC (-20.32%) and ROE (-15.06%). ROIC decreased on 9.7 pp from -10.6% to -20.3% in FY2015. ROE decreased slightly on 1.6 pp from -13.5% to -15.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt dropped on 80.5% in FY2015 while cash dropped on 21.8% in FY2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide IDT International Ltd benchmarking against other companies in Miscellaneous Manufactur 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 |
|---|
| CSR Corp Ltd ($1766) | 24.0% | 12.0% | 9.7% | 123.7% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 37.4% | 59.5% | 45.9% | 45.0% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 1.5% | 22.2% | 43.2% | |
| Time Watch Investments Ltd ($2033) | 29.3% | 28.2% | 25.4% | 25.6% | |
| China International Marine Containers Group Co Ltd ($2039) | 23.4% | -15.6% | 6.6% | 21.4% | |
| |
|---|
| Median (25 companies) | 20.0% | -7.1% | 0.1% | 8.2% | -11.5% |
|---|
| IDT International Ltd ($167) | | -1.6% | -1.2% | -14.3% | -18.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | |
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | |
| Launch Tech Co Ltd ($2488) | 39.2% | 27.4% | 33.6% | 33.6% | |
| |
|---|
| Median (24 companies) | 20.6% | 19.7% | 19.7% | 23.4% | 78.6% |
|---|
| IDT International Ltd ($167) | 32.8% | 30.3% | 28.0% | 24.9% | 20.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | |
| |
|---|
| Median (25 companies) | 10.7% | 8.1% | 9.8% | 9.8% | 33.8% |
|---|
| IDT International Ltd ($167) | 6.0% | 4.3% | 0.2% | -1.4% | -6.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | |
| KEE Holdings Co Ltd ($2011) | 20.9% | 21.8% | 43.7% | 24.9% | |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | |
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | |
| TK Group Holdings Ltd ($2283) | 8.9% | 13.3% | 8.1% | 13.7% | |
| |
|---|
| Median (25 companies) | 5.2% | 4.9% | 4.3% | 4.4% | 4.2% |
|---|
| IDT International Ltd ($167) | 1.7% | 1.0% | 1.0% | 1.2% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | |
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | |
| CSR Corp Ltd ($1766) | 13.4% | 11.1% | 11.2% | 15.3% | |
| |
|---|
| Median (25 companies) | 8.0% | 4.4% | 4.4% | 4.4% | 1.3% |
|---|
| IDT International Ltd ($167) | -0.1% | -1.7% | -6.8% | -10.6% | -20.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | |
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | |
| |
|---|
| Median (22 companies) | 0.1x | -0.2x | -0.2x | -0.1x | -3.6x |
|---|
