Tempus Holdings Ltd reports 46.5% EBITDA growth and 14.7% Revenue growth
30/06/2015 • About Tempus Holdings Ltd (
$6880) • By InTwits
Tempus Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 5.2% in FY2015, 4.1% in FY2014, 2.8% in FY2013, 16.3% in FY2012, 22.4% in FY2011
- Tempus Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 4.1%.
- CAPEX is quite volatile: 9.3 in FY2015, 9.5 in FY2014, 10.4 in FY2013, 2.2 in FY2012, 2.1 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tempus Holdings Ltd ($6880) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 209.4 | 245.7 | 259.2 | 339.7 | 389.7 | 14.7% |
| Gross Profit | 149.6 | 168.0 | 168.0 | 219.4 | 255.1 | 16.3% |
| EBITDA | 47.0 | 40.0 | 7.3 | 13.8 | 20.2 | 46.5% |
| Net Income | 37.2 | 15.4 | 2.0 | 8.7 | 12.1 | 39.2% |
Balance Sheet
|
|---|
| Cash | 108.2 | 221.2 | 200.0 | 211.6 | 221.0 | 4.4% |
| Short Term Debt | 13.1 | 13.9 | 12.2 | 15.0 | 26.0 | 73.2% |
| Long Term Debt | 0.0 | 0.2 | 0.3 | 0.2 | 0.3 | 89.6% |
Cash flow
|
|---|
| Capex | 2.1 | 2.2 | 10.4 | 9.5 | 9.3 | -1.8% |
Ratios
|
|---|
| Revenue growth | -27.6% | 17.3% | 5.5% | 31.1% | 14.7% | |
| EBITDA growth | -42.5% | -14.8% | -81.9% | 89.9% | 46.5% | |
| Gross Margin | 71.5% | 68.4% | 64.8% | 64.6% | 65.5% | 0.9% |
| EBITDA Margin | 22.4% | 16.3% | 2.8% | 4.1% | 5.2% | 1.1% |
| Net Income Margin | 17.8% | 6.3% | 0.8% | 2.6% | 3.1% | 0.5% |
| CAPEX, % of revenue | 1.0% | 0.9% | 4.0% | 2.8% | 2.4% | -0.4% |
| ROIC | 34.9% | 18.2% | 1.3% | 2.5% | 4.2% | 1.7% |
| ROE | 33.3% | 7.8% | 0.8% | 3.3% | 4.4% | 1.2% |
| Net Debt/EBITDA | -2.0x | -5.2x | -25.8x | -14.3x | -9.6x | 4.6x |
Revenue and profitability
Tempus Holdings Ltd's Revenue jumped on 14.7% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.1 pp from 4.1% to 5.2% in FY2015.
Gross Margin increased slightly on 0.87 pp from 64.6% to 65.5% in FY2015.
Net Income marign increased slightly on 0.55 pp from 2.6% to 3.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Tempus Holdings Ltd's CAPEX/Revenue was 2.4% in FY2015. CAPEX/Revenue increased slightly on 1.5 pp from 0.91% in FY2012 to 2.4% in FY2015. Average CAPEX/Revenue for the last three years was 3.1%.
Return on investment
The company operates at low ROIC (4.16%) and ROE (4.43%). ROIC increased slightly on 1.7 pp from 2.5% to 4.2% in FY2015. ROE increased slightly on 1.2 pp from 3.3% to 4.4% in FY2015.
Leverage (Debt)
Debt level is -9.6x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA surged on 4.6x from -14.3x to -9.6x in FY2015. Debt jumped on 73.4% in FY2015 while cash increased on 4.4% in FY2015.
Appendix 1: Peers in Household Products/Wares
Below you can find Tempus Holdings Ltd benchmarking vs. other companies in Household Products/Wares 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 |
|---|
| Lisi Group Holdings Ltd ($526) | | 2.5% | -23.5% | 160.0% | 47.9% |
| Goodbaby International Holdings Ltd ($1086) | 5.9% | 15.5% | -8.0% | 46.0% | |
| Samsonite International SA ($1910) | 28.8% | 13.2% | 15.0% | 15.4% | |
| eForce Holdings Ltd ($943) | -3.2% | 9.1% | 11.0% | 11.3% | |
| Carpenter Tan Holdings Ltd ($837) | 28.8% | 11.5% | 3.3% | 6.2% | |
| |
|---|
| Median (8 companies) | 17.3% | 10.3% | 3.5% | 8.7% | 21.3% |
|---|
| Tempus Holdings Ltd ($6880) | | 17.3% | 5.5% | 31.1% | 14.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 68.4% | 66.9% | 67.0% | 65.8% | |
| Biostime International Holdings Ltd ($1112) | 66.5% | 65.9% | 65.2% | 61.9% | |
| Samsonite International SA ($1910) | 54.8% | 53.7% | 53.4% | 52.9% | |
| eForce Holdings Ltd ($943) | 14.0% | 21.2% | 24.3% | 25.6% | |
| Goodbaby International Holdings Ltd ($1086) | 17.1% | 19.1% | 22.9% | 25.0% | |
| |
|---|
| Median (8 companies) | 21.5% | 23.1% | 23.6% | 25.3% | 18.1% |
|---|
| Tempus Holdings Ltd ($6880) | 71.5% | 68.4% | 64.8% | 64.6% | 65.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Carpenter Tan Holdings Ltd ($837) | 52.8% | 49.0% | 48.1% | 48.6% | |
| Biostime International Holdings Ltd ($1112) | 30.0% | 30.4% | 27.6% | 24.3% | |
| Lerado Group Holding Co Ltd ($1225) | 6.6% | 8.6% | 25.2% | 20.9% | |
| Samsonite International SA ($1910) | 15.9% | 15.9% | 16.0% | 14.9% | |
| Goodbaby International Holdings Ltd ($1086) | 5.8% | 7.1% | 7.4% | 4.9% | |
| |
|---|
| Median (8 companies) | 13.1% | 10.8% | 11.7% | 9.9% | 6.8% |
|---|
| Tempus Holdings Ltd ($6880) | 22.4% | 16.3% | 2.8% | 4.1% | 5.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lerado Group Holding Co Ltd ($1225) | 4.3% | 3.0% | 75.4% | 18.8% | |
| Lisi Group Holdings Ltd ($526) | 7.9% | 7.1% | 11.3% | 6.1% | 13.1% |
| Samsonite International SA ($1910) | 2.4% | 2.1% | 2.8% | 3.0% | |
| Biostime International Holdings Ltd ($1112) | 1.8% | 1.2% | 3.0% | 2.8% | |
| Goodbaby International Holdings Ltd ($1086) | 3.9% | 2.9% | 2.8% | 2.6% | |
| |
|---|
| Median (8 companies) | 3.1% | 2.5% | 2.8% | 2.7% | 7.4% |
|---|
| Tempus Holdings Ltd ($6880) | 1.0% | 0.9% | 4.0% | 2.8% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biostime International Holdings Ltd ($1112) | 34.3% | 41.7% | 39.9% | 24.7% | |
| Samsonite International SA ($1910) | 18.5% | 20.8% | 21.8% | 21.1% | |
| Carpenter Tan Holdings Ltd ($837) | 35.2% | 30.3% | 24.6% | 20.7% | |
| Goodbaby International Holdings Ltd ($1086) | 7.3% | 10.7% | 8.8% | 3.9% | |
| Lisi Group Holdings Ltd ($526) | 8.0% | 6.4% | -4.7% | 0.1% | 1.8% |
| |
|---|
| Median (8 companies) | 13.2% | 10.7% | 7.7% | 2.0% | 1.5% |
|---|
| Tempus Holdings Ltd ($6880) | 34.9% | 18.2% | 1.3% | 2.5% | 4.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lisi Group Holdings Ltd ($526) | 2.9x | 3.4x | | 36.8x | 9.6x |
| Goodbaby International Holdings Ltd ($1086) | -2.0x | -1.3x | -0.5x | 5.9x | |
| Biostime International Holdings Ltd ($1112) | -2.3x | -0.4x | -0.0x | -0.0x | |
| Samsonite International SA ($1910) | -0.5x | -0.4x | -0.6x | -0.2x | |
| Carpenter Tan Holdings Ltd ($837) | -1.9x | -2.5x | -2.1x | -0.9x | |
| |
|---|
| Median (6 companies) | -0.8x | -0.4x | -0.6x | -0.1x | 3.6x |
|---|
| Tempus Holdings Ltd ($6880) | -2.0x | -5.2x | -25.8x | -14.3x | -9.6x |
