Pegasus Entertainment Holdings Ltd reports 30,918% CAPEX growth and 15.2% Revenue growth
28/09/2015 • About Pegasus Entertainment Holdings Ltd (
$1326) • By InTwits
Pegasus Entertainment Holdings Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pegasus Entertainment Holdings Ltd doesn't have a profitable business model yet: FY2015 ROIC is -21.3%
- EBITDA Margin is quite volatile: -41.9% in FY2015, 19.5% in FY2014, 12.4% in FY2013, 24.0% in FY2012, 29.8% in FY2011
- Pegasus Entertainment Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's a lot of higher than industry average of 0.7%.
- CAPEX is quite volatile: 47.5 in FY2015, 0.15 in FY2014, 1.4 in FY2013, 0.19 in FY2012, 0.26 in FY2011
- The company has unprofitable business model: ROIC is at -21.3%
- It operates with high leverage: Net Debt/EBITDA is 62.5x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pegasus Entertainment Holdings Ltd ($1326) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 71.2 | 137.2 | 192.6 | 134.8 | 155.2 | 15.2% |
| Gross Profit | 34.4 | 56.1 | 65.3 | 59.7 | 46.8 | -21.6% |
| SG&A | | | 38.8 | 37.1 | 117.9 | 217.5% |
| EBITDA | 21.2 | 32.9 | 23.9 | 26.3 | -65.0 | -346.9% |
| Net Income | 17.6 | 21.0 | 19.1 | 26.4 | -215.3 | -915.8% |
Balance Sheet
|
|---|
| Cash | 8.7 | 15.9 | 30.0 | 36.3 | 81.8 | 124.9% |
| Short Term Debt | 2.8 | 2.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.3 | 0.2 | 1.4 | 0.2 | 47.5 | 30,918.3% |
Ratios
|
|---|
| Revenue growth | 109.2% | 92.7% | 40.4% | -30.0% | 15.2% | |
| EBITDA growth | 512.7% | 55.2% | -27.4% | 10.1% | -346.9% | |
| Gross Margin | 48.3% | 40.9% | 33.9% | 44.3% | 30.2% | -14.1% |
| EBITDA Margin | 29.8% | 24.0% | 12.4% | 19.5% | -41.9% | -61.4% |
| Net Income Margin | 24.7% | 15.3% | 9.9% | 19.6% | -138.7% | -158.2% |
| SG&A, % of revenue | | | 20.1% | 27.6% | 76.0% | 48.4% |
| CAPEX, % of revenue | 0.4% | 0.1% | 0.7% | 0.1% | 30.6% | 30.5% |
| ROIC | 94.5% | 82.1% | 18.5% | 10.3% | -21.3% | -31.6% |
| ROE | 155.3% | 68.6% | 16.3% | 10.9% | -66.4% | -77.3% |
| Net Debt/EBITDA | -0.3x | -0.4x | -1.3x | -1.4x | | 1.4x |
Revenue and profitability
Pegasus Entertainment Holdings Ltd's Revenue jumped on 15.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 11.5 pp from -10.3% to 1.3% in 2015.
Gross Margin dropped on 14.1 pp from 44.3% to 30.2% in FY2015. SG&A as a % of Revenue jumped on 48.4 pp from 27.6% to 76.0% in FY2015.
Net Income marign dropped on 158 pp from 19.6% to -139% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Pegasus Entertainment Holdings Ltd had CAPEX/Revenue of 30.6%. Pegasus Entertainment Holdings Ltd's CAPEX/Revenue surged on 30.4 pp from 0.14% in FY2012 to 30.6% in FY2015. Average CAPEX/Revenue for the last three years was 10.5%.
Return on investment
The company operates at negative ROIC (-21.28%) and ROE (-66.39%). ROIC dropped on 31.6 pp from 10.3% to -21.3% in FY2015. ROE dropped on 77.3 pp from 10.9% to -66.4% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 125% in FY2015.
Appendix 1: Peers in Entertainment
Below we provide Pegasus Entertainment Holdings Ltd benchmarking against other companies in Entertainment 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 3D Digital Entertainment Ltd ($8078) | -41.9% | -67.2% | 295.2% | 185.2% | |
| Universe International Holdings Ltd ($1046) | 10.2% | -42.2% | 4.3% | 159.4% | |
| China Vanguard Group Ltd ($8156) | 15.6% | -7.0% | -62.7% | 145.0% | |
| China LotSynergy Holdings Ltd ($1371) | 86.9% | 15.0% | 22.5% | 39.1% | |
| Nan Hai Corp Ltd ($680) | 20.7% | -16.3% | 18.7% | 36.0% | |
| |
|---|
| Median (26 companies) | 19.2% | -0.7% | 11.0% | 1.2% | -5.5% |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | | 92.7% | 40.4% | -30.0% | 15.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amax International Holdings Ltd ($959) | | | 92.1% | 98.6% | 96.6% |
| China Vanguard Group Ltd ($8156) | 65.0% | 63.8% | 88.2% | 93.8% | |
| Cheung Wo International Holdings Ltd ($9) | 49.4% | -17.5% | 71.4% | 77.7% | |
| REXLot Holdings Ltd ($555) | 63.0% | 70.2% | 73.1% | 73.4% | |
| China LotSynergy Holdings Ltd ($1371) | 81.7% | 79.5% | 73.1% | 70.1% | |
| |
|---|
| Median (22 companies) | 43.8% | 44.9% | 56.8% | 43.5% | 57.4% |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 48.3% | 40.9% | 33.9% | 44.3% | 30.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cheung Wo International Holdings Ltd ($9) | 7.8% | -62.7% | -217.3% | 104.5% | |
| Neptune Group Ltd ($70) | 101.1% | 98.6% | 98.6% | 86.6% | 99.0% |
| Universe International Holdings Ltd ($1046) | 62.2% | 36.6% | 44.6% | 74.6% | |
| China LotSynergy Holdings Ltd ($1371) | 61.2% | 53.3% | 60.9% | 56.1% | |
| Haichang Holdings Ltd ($2255) | 46.9% | 55.0% | 44.5% | 46.3% | |
| |
|---|
| Median (26 companies) | 10.3% | 19.7% | 19.7% | 14.9% | -5.7% |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 29.8% | 24.0% | 12.4% | 19.5% | -41.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Arts Entertainment and Culture Group Ltd ($8228) | 536.1% | 1,237.1% | 771.1% | 799.0% | |
| Cheung Wo International Holdings Ltd ($9) | 44.7% | 90.3% | 465.2% | 383.2% | |
| Alibaba Pictures Group Ltd ($1060) | 0.5% | 16.1% | 17.2% | 34.8% | |
| Mei Ah Entertainment Group Ltd ($391) | 2.5% | 6.8% | 3.6% | 25.4% | 1.8% |
| Nan Hai Corp Ltd ($680) | 29.1% | 19.2% | 35.2% | 18.2% | |
| |
|---|
| Median (26 companies) | 7.3% | 9.7% | 9.0% | 5.0% | 6.2% |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 0.4% | 0.1% | 0.7% | 0.1% | 30.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dynam Japan Holdings Co Ltd ($6889) | 22.5% | 23.8% | 25.4% | 21.8% | 10.5% |
| Neptune Group Ltd ($70) | 22.0% | 22.8% | 23.8% | 21.1% | 18.1% |
| China LotSynergy Holdings Ltd ($1371) | 18.0% | 15.5% | 16.9% | 14.8% | |
| SMI Holdings Group Ltd ($198) | 5.8% | 1.3% | 8.4% | 9.9% | |
| Haichang Holdings Ltd ($2255) | 6.2% | 7.1% | 8.1% | 8.6% | |
| |
|---|
| Median (27 companies) | 1.1% | -1.1% | 1.3% | -0.9% | -0.4% |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 94.5% | 82.1% | 18.5% | 10.3% | -21.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nan Hai Corp Ltd ($680) | 25.2x | 80.8x | 3.5x | 20.8x | |
| Cheung Wo International Holdings Ltd ($9) | 28.3x | | | 19.1x | |
| REXLot Holdings Ltd ($555) | 0.4x | -0.0x | -0.2x | 7.2x | |
| Orange Sky Golden Harvest Entertainment Holdings Ltd ($1132) | -0.8x | 1.1x | 4.2x | 2.7x | |
| China 3D Digital Entertainment Ltd ($8078) | -11.9x | | -0.5x | 2.3x | |
| |
|---|
| Median (19 companies) | 0.0x | -0.1x | -0.5x | -0.0x | -0.6x |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | -0.3x | -0.4x | -1.3x | -1.4x | |
