NagaCorp Ltd CAPEX surged on 44.5% in 2015 and Revenue surged on 24.6%
01/02/2016 • About NagaCorp Ltd (
$3918) • By InTwits
NagaCorp Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- NagaCorp Ltd is a fast growth stock: 2015 revenue growth was 24.6%, 5 year revenue CAGR was 27.3% at 2015 ROIC 28.6%
- NagaCorp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.1%. At the same time it's a lot of higher than industry average of 17.7%.
- CAPEX is quite volatile: 140 in 2015, 97.1 in 2014, 59.4 in 2013, 72.2 in 2012, 45.5 in 2011
- The company has highly profitable business model: ROIC is at 28.6%
- It operates with high leverage: Net Debt/EBITDA is -0.6x while industry average is -29.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
NagaCorp Ltd ($3918) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 223.8 | 278.8 | 344.9 | 404.3 | 503.7 | 24.6% |
| Gross Profit | 163.8 | 203.2 | 248.6 | 272.7 | 327.8 | 20.2% |
| SG&A | | | | | 47.2 | |
| EBITDA | 110.1 | 138.9 | 172.7 | 172.9 | 228.3 | 32.1% |
| Net Income | 92.0 | 113.1 | 140.3 | 136.1 | 172.6 | 26.8% |
Balance Sheet
|
|---|
| Cash | 64.8 | 73.2 | 252.1 | 178.2 | 143.1 | -19.7% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 45.5 | 72.2 | 59.4 | 97.1 | 140.2 | 44.5% |
Ratios
|
|---|
| Revenue growth | 48.7% | 24.6% | 23.7% | 17.2% | 24.6% | |
| EBITDA growth | 79.1% | 26.1% | 24.3% | 0.1% | 32.1% | |
| Gross Margin | 73.2% | 72.9% | 72.1% | 67.4% | 65.1% | -2.4% |
| EBITDA Margin | 49.2% | 49.8% | 50.1% | 42.8% | 45.3% | 2.6% |
| Net Income Margin | 41.1% | 40.6% | 40.7% | 33.7% | 34.3% | 0.6% |
| SG&A, % of revenue | | | | | 9.4% | 9.4% |
| CAPEX, % of revenue | 20.3% | 25.9% | 17.2% | 24.0% | 27.8% | 3.8% |
| ROIC | 27.6% | 30.6% | 28.9% | 22.6% | 28.6% | 6.0% |
| ROE | 27.8% | 30.0% | 28.0% | 22.2% | 26.3% | 4.1% |
| Net Debt/EBITDA | -0.6x | -0.5x | -1.5x | -1.0x | -0.6x | 0.4x |
Revenue and profitability
NagaCorp Ltd's Revenue surged on 24.6% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.0 pp from -13.3% to -9.3% in 2015.
Gross Margin decreased on 2.4 pp from 67.4% to 65.1% in 2015.
Net Income marign increased slightly on 0.61 pp from 33.7% to 34.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 27.8% in 2015. CAPEX/Revenue increased slightly on 1.9 pp from 25.9% in 2012 to 27.8% in 2015. It's average level of CAPEX/Revenue for the last three years was 23.0%.To fuel this fast growth the company invested a large share of EBITDA (61.4%) to CAPEX.
Return on investment
The company operates at high and attractive ROIC (28.65%) and ROE (26.31%). ROIC increased on 6.0 pp from 22.6% to 28.6% in 2015. ROE increased on 4.1 pp from 22.2% to 26.3% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 19.7% in 2015.
Appendix 1: Peers in Lodging
Below you can find NagaCorp Ltd benchmarking vs. other companies in Lodging 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 |
|---|
| Zhuhai Holdings Investment Group Ltd ($908) | 13.4% | 229.8% | 14.5% | 57.0% | |
| Carrianna Group Holdings Co Ltd ($126) | | 69.3% | -36.2% | 35.4% | -33.8% |
| Emperor Entertainment Hotel Ltd ($296) | | 35.9% | 13.8% | 11.7% | -10.2% |
| Far East Consortium International Ltd/HK ($35) | | 6.4% | 111.9% | 9.0% | 25.7% |
| Galaxy Entertainment Group Ltd ($27) | 113.8% | 37.8% | 16.4% | 8.7% | |
| |
|---|
| Median (21 companies) | 31.7% | 14.4% | 10.2% | 0.7% | -3.5% |
|---|
| NagaCorp Ltd ($3918) | | 24.6% | 23.7% | 17.2% | 24.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SJM Holdings Ltd ($880) | 99.7% | 99.7% | 99.7% | 99.7% | |
| Wynn Macau Ltd ($1128) | 97.6% | 97.9% | 98.3% | 98.5% | |
| Emperor Entertainment Hotel Ltd ($296) | 70.9% | 77.1% | 75.6% | 76.8% | 70.9% |
| Asia Standard Hotel Group Ltd ($292) | 52.5% | 60.7% | 73.4% | 72.1% | 67.6% |
| Sino Hotels Holdings Ltd ($1221) | 69.7% | 71.3% | 70.4% | 68.9% | 65.8% |
| |
|---|
| Median (15 companies) | 45.7% | 50.4% | 46.3% | 48.0% | 65.8% |
|---|
| NagaCorp Ltd ($3918) | 73.2% | 72.9% | 72.1% | 67.4% | 65.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Asia Standard Hotel Group Ltd ($292) | 69.1% | -23.9% | 65.2% | 49.9% | 40.4% |
| Emperor Entertainment Hotel Ltd ($296) | 38.7% | 44.9% | 46.4% | 46.9% | 43.1% |
| Sino Hotels Holdings Ltd ($1221) | 42.8% | 46.5% | 45.9% | 43.1% | 39.6% |
| Far East Consortium International Ltd/HK ($35) | 50.1% | 57.2% | 34.5% | 43.0% | 36.4% |
| Macau Legend Development Ltd ($1680) | 56.6% | 48.6% | 39.8% | 41.8% | |
| |
|---|
| Median (21 companies) | 23.7% | 25.0% | 24.5% | 25.8% | 39.6% |
|---|
| NagaCorp Ltd ($3918) | 49.2% | 49.8% | 50.1% | 42.8% | 45.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Macau Legend Development Ltd ($1680) | 1.3% | 5.0% | 24.2% | 73.0% | |
| Regal Hotels International Holdings Ltd ($78) | 4.9% | 7.4% | 7.2% | 60.4% | |
| Shangri-La Asia Ltd ($69) | 26.5% | 48.5% | 33.1% | 41.2% | |
| Wynn Macau Ltd ($1128) | 3.2% | 5.2% | 11.0% | 28.2% | |
| Far East Consortium International Ltd/HK ($35) | 24.5% | 46.8% | 27.9% | 23.5% | 7.9% |
| |
|---|
| Median (21 companies) | 6.3% | 6.3% | 8.9% | 10.8% | 7.9% |
|---|
| NagaCorp Ltd ($3918) | 20.3% | 25.9% | 17.2% | 24.0% | 27.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| MGM China Holdings Ltd ($2282) | 47.3% | 46.2% | 53.8% | 54.5% | |
| Wynn Macau Ltd ($1128) | 66.1% | 53.9% | 42.3% | 29.9% | |
| Galaxy Entertainment Group Ltd ($27) | 14.7% | 25.2% | 30.0% | 27.5% | |
| Sands China Ltd ($1928) | 14.5% | 14.2% | 24.4% | 26.7% | |
| SJM Holdings Ltd ($880) | 26.2% | 29.7% | 31.0% | 24.8% | |
| |
|---|
| Median (21 companies) | 5.2% | 7.6% | 5.7% | 3.9% | 3.9% |
|---|
| NagaCorp Ltd ($3918) | 27.6% | 30.6% | 28.9% | 22.6% | 28.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Regal Hotels International Holdings Ltd ($78) | | 5.0x | 8.7x | 11.8x | |
| Century City International Holdings Ltd ($355) | -58.1x | 6.5x | 9.3x | 11.2x | |
| Shangri-La Asia Ltd ($69) | 4.0x | 6.0x | 6.8x | 6.9x | |
| Zhuhai Holdings Investment Group Ltd ($908) | -3.7x | -4.1x | 11.1x | 6.7x | |
| Asia Standard Hotel Group Ltd ($292) | 3.5x | | 3.7x | 5.2x | 5.5x |
| |
|---|
| Median (20 companies) | 0.6x | 0.5x | 0.6x | 0.7x | 4.0x |
|---|
| NagaCorp Ltd ($3918) | -0.6x | -0.5x | -1.5x | -1.0x | -0.6x |
