Clear Media Ltd CAPEX surged on 4,642% in 2015 and Revenue increased on 4.1%
03/02/2016 • About Clear Media Ltd (
$100) • By InTwits
Clear Media Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Clear Media Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.1%. At the same time it's in pair with industry average of 5.6%.
- CAPEX is quite volatile: 513 in 2015, 10.8 in 2014, 8.9 in 2013, 8.5 in 2012, 12.0 in 2011
- The company has highly profitable business model: ROIC is at 14.4%
- It operates with high leverage: Net Debt/EBITDA is -0.9x while industry average is -2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Clear Media Ltd ($100) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,486 | 1,522 | 1,647 | 1,761 | 1,833 | 4.1% |
| Gross Profit | 552 | 583 | 666 | 726 | 804 | 10.8% |
| SG&A | | 264 | 306 | 344 | 362 | 5.3% |
| EBITDA | 567 | 624 | 674 | 727 | 806 | 11.0% |
| Net Income | 188 | 219 | 201 | 240 | 281 | 16.8% |
Balance Sheet
|
|---|
| Cash | 973 | 1,290 | 893 | 1,050 | 689 | -34.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 12 | 8 | 9 | 11 | 513 | 4,642.2% |
Ratios
|
|---|
| Revenue growth | 17.8% | 2.4% | 8.2% | 6.9% | 4.1% | |
| EBITDA growth | 17.5% | 10.0% | 8.0% | 7.9% | 11.0% | |
| Gross Margin | 37.2% | 38.3% | 40.4% | 41.2% | 43.9% | 2.6% |
| EBITDA Margin | 38.2% | 41.0% | 40.9% | 41.3% | 44.0% | 2.7% |
| Net Income Margin | 12.6% | 14.4% | 12.2% | 13.6% | 15.3% | 1.7% |
| SG&A, % of revenue | | 17.4% | 18.6% | 19.5% | 19.7% | 0.2% |
| CAPEX, % of revenue | 0.8% | 0.6% | 0.5% | 0.6% | 28.0% | 27.4% |
| ROIC | 9.4% | 9.2% | 10.8% | 12.4% | 14.4% | 2.0% |
| ROE | 6.4% | 6.9% | 6.6% | 8.4% | 10.0% | 1.6% |
| Net Debt/EBITDA | -1.7x | -2.1x | -1.3x | -1.4x | -0.9x | 0.6x |
Revenue and profitability
Clear Media Ltd's Revenue increased on 4.1% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.7 pp from 41.3% to 44.0% in 2015.
Gross Margin increased on 2.6 pp from 41.2% to 43.9% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.7 pp from 13.6% to 15.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Clear Media Ltd had CAPEX/Revenue of 28.0%. CAPEX/Revenue jumped on 27.4 pp from 0.56% in 2012 to 28.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 9.7%.The company maintained rich investment policy and has spent a big chunk of EBITDA (63.6%) to CAPEX.
Return on investment
The company operates at good ROIC (14.39%) while ROE is low (10.01%). ROIC increased slightly on 2.0 pp from 12.4% to 14.4% in 2015. ROE increased slightly on 1.6 pp from 8.4% to 10.0% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 34.3% in 2015.
Appendix 1: Peers in Advertising
Below you can find Clear Media Ltd benchmarking vs. other companies in Advertising 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 |
|---|
| Branding China Group Ltd ($8219) | 57.7% | 11.3% | 84.6% | 12.0% | |
| Roadshow Holdings Ltd ($888) | 14.2% | 13.4% | 9.7% | -0.5% | |
| Dahe Media Co Ltd ($8243) | 4.0% | 5.8% | -5.7% | -1.6% | |
| SinoMedia Holding Ltd ($623) | 17.8% | 1.5% | 7.6% | -7.5% | |
| SEEC Media Group Ltd ($205) | 36.9% | 7.1% | -4.6% | -10.0% | |
| |
|---|
| Median (7 companies) | 23.7% | 7.1% | 7.6% | -7.5% | |
|---|
| Clear Media Ltd ($100) | | 2.4% | 8.2% | 6.9% | 4.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cinderella Media Group Ltd ($550) | 24.5% | 26.3% | 26.7% | 72.1% | |
| China Chuanglian Education Group Ltd ($2371) | -114.2% | -2,833.2% | 74.2% | 68.5% | |
| SEEC Media Group Ltd ($205) | 66.6% | 61.7% | 58.4% | 52.0% | |
| Dahe Media Co Ltd ($8243) | 34.4% | 35.3% | 36.7% | 40.7% | |
| SinoMedia Holding Ltd ($623) | 31.0% | 34.8% | 36.5% | 29.3% | |
| |
|---|
| Median (6 companies) | 32.7% | 35.0% | 36.6% | 46.3% | |
|---|
| Clear Media Ltd ($100) | 37.2% | 38.3% | 40.4% | 41.2% | 43.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cinderella Media Group Ltd ($550) | 16.6% | 18.2% | 18.3% | 43.6% | |
| China Chuanglian Education Group Ltd ($2371) | -146.2% | -2,821.1% | 50.5% | 36.2% | |
| SinoMedia Holding Ltd ($623) | 23.4% | 27.3% | 30.5% | 24.9% | |
| Roadshow Holdings Ltd ($888) | 19.6% | 22.6% | 26.3% | 20.5% | |
| Dahe Media Co Ltd ($8243) | 18.1% | 16.0% | 15.3% | 19.4% | |
| |
|---|
| Median (7 companies) | 18.1% | 18.2% | 26.2% | 20.5% | |
|---|
| Clear Media Ltd ($100) | 38.2% | 41.0% | 40.9% | 41.3% | 44.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cinderella Media Group Ltd ($550) | 2.9% | 1.5% | 5.1% | 6.8% | |
| SinoMedia Holding Ltd ($623) | 0.6% | 0.3% | 0.4% | 5.3% | |
| Roadshow Holdings Ltd ($888) | 7.3% | 2.1% | 2.8% | 1.5% | |
| Dahe Media Co Ltd ($8243) | 2.8% | 9.7% | 2.8% | 1.3% | |
| SEEC Media Group Ltd ($205) | 1.2% | 0.9% | 0.4% | 1.1% | |
| |
|---|
| Median (7 companies) | 2.8% | 1.2% | 2.8% | 1.3% | |
|---|
| Clear Media Ltd ($100) | 0.8% | 0.6% | 0.5% | 0.6% | 28.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| SinoMedia Holding Ltd ($623) | 35.1% | 34.8% | 33.8% | 20.8% | |
| Branding China Group Ltd ($8219) | 71.5% | 29.0% | 23.6% | 13.7% | |
| Roadshow Holdings Ltd ($888) | 9.1% | 12.9% | 16.4% | 11.8% | |
| Dahe Media Co Ltd ($8243) | 8.1% | 6.9% | 5.3% | 6.9% | |
| Cinderella Media Group Ltd ($550) | 24.7% | 24.6% | 6.7% | 2.3% | |
| |
|---|
| Median (7 companies) | 9.4% | 12.9% | 12.3% | 6.9% | |
|---|
| Clear Media Ltd ($100) | 9.4% | 9.2% | 10.8% | 12.4% | 14.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dahe Media Co Ltd ($8243) | 1.1x | 1.3x | 1.7x | 2.3x | |
| Branding China Group Ltd ($8219) | -1.1x | -1.8x | -1.4x | -1.6x | |
| SinoMedia Holding Ltd ($623) | -2.4x | -3.2x | -2.0x | -1.6x | |
| China Chuanglian Education Group Ltd ($2371) | | | -0.7x | -2.8x | |
| Roadshow Holdings Ltd ($888) | -2.1x | -1.6x | -3.0x | -4.7x | |
| |
|---|
| Median (6 companies) | -1.1x | -1.4x | -1.4x | -2.2x | |
|---|
| Clear Media Ltd ($100) | -1.7x | -2.1x | -1.3x | -1.4x | -0.9x |
