Integrated Waste Solutions Group Holdings Ltd reports 95.1% CAPEX growth while 7.7% Revenue decline
26/06/2015 • About Integrated Waste Solutions Group Holdings Ltd (
$923) • By InTwits
Integrated Waste Solutions Group Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Integrated Waste Solutions Group Holdings Ltd is a company in decline: FY2015 revenue growth was -7.7%, 5 years revenue CAGR was -20.8%
- The company operates at negative EBITDA Margin: -24.1%
- Integrated Waste Solutions Group Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 35.8%. At the same time it's a lot of higher than industry average of 25.6%.
- CAPEX is quite volatile: 391 in FY2015, 200 in FY2014, 61.0 in FY2013, 98.7 in FY2012, 540 in FY2011
- The company has unprofitable business model: ROIC is at -11.8%
- It operates with high leverage: Net Debt/EBITDA is 0.9x while industry average is -0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Integrated Waste Solutions Group Holdings Ltd ($923) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,126 | 750 | 573 | 481 | 444 | -7.7% |
| Gross Profit | 757 | 77 | 90 | 41 | 24 | -40.4% |
| SG&A | 210 | 95 | 111 | 126 | 149 | 18.0% |
| EBITDA | 622 | -24 | -8 | -48 | -107 | 122.4% |
| Net Income | 467 | -2,153 | -6 | -485 | -150 | -69.1% |
Balance Sheet
|
|---|
| Cash | 1,494 | 748 | 548 | 276 | 456 | 65.0% |
| Short Term Debt | 117 | 30 | 0 | 0 | 0 | |
| Long Term Debt | 14 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 540 | 99 | 61 | 200 | 391 | 95.1% |
Ratios
|
|---|
| Revenue growth | 49.5% | -64.7% | -23.6% | -16.2% | -7.7% | |
| EBITDA growth | 51.9% | -103.9% | -68.7% | 528.1% | 122.4% | |
| Gross Margin | 35.6% | 10.2% | 15.6% | 8.5% | 5.5% | -3.0% |
| EBITDA Margin | 29.3% | -3.3% | -1.3% | -10.0% | -24.1% | -14.1% |
| Net Income Margin | 22.0% | -286.9% | -1.0% | -100.9% | -33.7% | 67.2% |
| SG&A, % of revenue | 9.9% | 12.7% | 19.4% | 26.2% | 33.5% | 7.3% |
| CAPEX, % of revenue | 25.4% | 13.2% | 10.6% | 41.7% | 88.1% | 46.4% |
| ROIC | 16.5% | -1.3% | -1.2% | -5.4% | -11.8% | -6.4% |
| ROE | 15.6% | -82.5% | -0.4% | -41.4% | -13.7% | 27.7% |
| Net Debt/EBITDA | -2.2x | | | | | 0.0x |
Revenue and profitability
Integrated Waste Solutions Group Holdings Ltd's Revenue decreased on 7.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 14.9 pp from -20.7% to -5.8% in 2015.
Gross Margin decreased on 3.0 pp from 8.5% to 5.5% in FY2015. SG&A as a % of Revenue increased on 7.3 pp from 26.2% to 33.5% in FY2015.
Net Income marign surged on 67.2 pp from -101% to -33.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Integrated Waste Solutions Group Holdings Ltd had CAPEX/Revenue of 88.1%. The company showed fast CAPEX/Revenue growth of 74.9 pp from 13.2% in FY2012 to 88.1% in FY2015. Average CAPEX/Revenue for the last three years was 46.8%.
Return on investment
The company operates at negative ROIC (-11.79%) and ROE (-13.69%). ROIC decreased on 6.4 pp from -5.4% to -11.8% in FY2015. ROE jumped on 27.7 pp from -41.4% to -13.7% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 65.0% in FY2015.
Appendix 1: Peers in Environmental Control
Below you can find Integrated Waste Solutions Group Holdings Ltd benchmarking vs. other companies in Environmental Control 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 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% | -7.4% | 12.6% | 11.5% | 3.5% |
|---|
| Integrated Waste Solutions Group Holdings Ltd ($923) | | -64.7% | -23.6% | -16.2% | -7.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| EverChina International Holdings Co Ltd ($202) | 40.2% | 51.8% | 53.4% | 95.3% | 95.4% |
| 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% | |
| |
|---|
| Median (17 companies) | 34.1% | 36.3% | 30.5% | 32.2% | 54.7% |
|---|
| Integrated Waste Solutions Group Holdings Ltd ($923) | 35.6% | 10.2% | 15.6% | 8.5% | 5.5% |
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) | 4.9% | 4.2% | 2.0% | -1.7% | -461.5% |
|---|
| Integrated Waste Solutions Group Holdings Ltd ($923) | 29.3% | -3.3% | -1.3% | -10.0% | -24.1% |
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% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 42.2% | 43.1% | 46.5% | 38.6% | |
| China Water Affairs Group Ltd ($855) | 31.4% | 40.5% | 39.1% | 30.1% | |
| |
|---|
| Median (18 companies) | 11.2% | 17.2% | 16.4% | 12.7% | 51.0% |
|---|
| Integrated Waste Solutions Group Holdings Ltd ($923) | 25.4% | 13.2% | 10.6% | 41.7% | 88.1% |
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) | 1.7% | -1.5% | -0.3% | -2.1% | -1.2% |
|---|
| Integrated Waste Solutions Group Holdings Ltd ($923) | 16.5% | -1.3% | -1.2% | -5.4% | -11.8% |
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) | 1.6x | 2.3x | 0.1x | 0.9x | |
|---|
