Global Strategic Group Ltd revenue growth decelerated from 806% in 2014 to 681% in 2015
19/02/2016 • About Global Strategic Group Ltd (
$8007) • By InTwits
Global Strategic Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Global Strategic Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -138.5%
- The company operates at negative EBITDA Margin: -36.6%
- Global Strategic Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -38.9%0
- Global Strategic Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's in pair with industry average of 3.7%.
- CAPEX is quite volatile: 12.0 in 2015, 0 in 2014, 0 in 2013, 0 in 2012, 0 in 2011
- The company has unprofitable business model: ROIC is at -138.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Global Strategic Group Ltd ($8007) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.1 | 3.0 | 3.1 | 27.8 | 217.1 | 681.2% |
| Gross Profit | | | | 2.9 | 0.3 | -89.9% |
| SG&A | 2.3 | 2.2 | 2.3 | 5.7 | 31.3 | 453.5% |
| EBITDA | -2.6 | -2.8 | -2.7 | -11.5 | -79.4 | 591.9% |
| Net Income | -2.6 | -2.8 | -2.7 | -11.5 | -81.5 | 607.8% |
Balance Sheet
|
|---|
| Cash | 11.7 | 10.2 | 6.5 | 32.5 | 24.9 | -23.4% |
| 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 | 0.0 | 0.0 | 0.0 | 0.0 | 12.0 | |
Ratios
|
|---|
| Revenue growth | 2.2% | -3.9% | 2.1% | 806.3% | 681.2% | |
| EBITDA growth | 3.7% | 7.3% | -3.3% | 331.1% | 591.9% | |
| Gross Margin | | | | 10.4% | 0.1% | -10.3% |
| EBITDA Margin | -82.1% | -91.6% | -86.8% | -41.3% | -36.6% | 4.7% |
| Net Income Margin | -82.1% | -91.6% | -86.8% | -41.4% | -37.5% | 3.9% |
| SG&A, % of revenue | 73.5% | 74.4% | 74.8% | 20.4% | 14.4% | -5.9% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 0.0% | 5.5% | 5.5% |
| ROIC | -20.8% | -28.4% | -38.1% | -53.8% | -138.5% | -84.8% |
| ROE | -20.7% | -28.4% | -38.0% | -53.8% | -138.5% | -84.7% |
Revenue and profitability
The company's Revenue surged on 681% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.9 pp from -5.8% to -1.9% in FY2015.
Gross Margin dropped on 10.3 pp from 10.4% to 0.13% in 2015. SG&A as a % of Revenue decreased on 5.9 pp from 20.4% to 14.4% in 2015.
Net Income marign increased on 3.9 pp from -41.4% to -37.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.5% in 2015. Global Strategic Group Ltd's CAPEX/Revenue increased5.5 pp from 0% in 2012 to 5.5% in 2015.
Return on investment
The company operates at negative ROIC (-138.53%) and ROE (-138.46%). ROIC dropped on 84.8 pp from -53.8% to -139% in 2015. ROE dropped on 84.7 pp from -53.8% to -138% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 23.4% in 2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Global Strategic Group Ltd benchmarking against other companies in Diversified Finan Serv 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 New Energy Power Group Ltd ($1041) | | 100.0% | 0.0% | 64,246.0% | |
| ReOrient Group Ltd ($376) | | 112.8% | 75.1% | 1,106.9% | -90.8% |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| Freeman Financial Corp Ltd ($279) | | -89.3% | 764.3% | 200.8% | |
| |
|---|
| Median (62 companies) | 5.3% | 1.2% | 14.7% | 24.9% | 23.1% |
|---|
| Global Strategic Group Ltd ($8007) | | -3.9% | 2.1% | 806.3% | 681.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Roma Group Ltd ($8072) | | | | 99.4% | 98.7% |
| Freeman Financial Corp Ltd ($279) | 97.1% | 52.3% | 99.3% | 98.5% | |
| Chinese Strategic Holdings Ltd ($8089) | 97.9% | 99.1% | 97.9% | 97.0% | |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (12 companies) | 80.8% | 64.2% | 75.1% | 89.9% | 90.3% |
|---|
| Global Strategic Group Ltd ($8007) | | | | 10.4% | 0.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Styland Holdings Ltd ($211) | 68.6% | 198.6% | 91.5% | 161.0% | 17.9% |
| Roma Group Ltd ($8072) | 81.4% | 18.1% | 36.8% | 143.0% | 44.7% |
| First China Financial Network Holdings Ltd ($8123) | -231.6% | -329.2% | -211.2% | 124.3% | |
| Willie International Holdings Ltd ($273) | | | 75.3% | 95.2% | |
| Get Nice Holdings Ltd ($64) | 28.4% | 2.6% | 153.4% | 92.7% | 83.9% |
| |
|---|
| Median (63 companies) | 30.3% | 16.4% | 36.2% | 47.2% | 31.6% |
|---|
| Global Strategic Group Ltd ($8007) | -82.1% | -91.6% | -86.8% | -41.3% | -36.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gemini Investments Holdings Ltd ($174) | 14.9% | 479.1% | 37.3% | 216.0% | |
| China Assurance Finance Group Ltd ($8090) | | 94.7% | 68.9% | 53.3% | |
| Chinese Strategic Holdings Ltd ($8089) | 93.2% | 376.0% | 5.7% | 32.6% | |
| AID Partners Capital Holdings Ltd ($8088) | 196.3% | 4.1% | 2.9% | 28.4% | |
| Asian Capital Holdings Ltd ($8295) | 2.3% | 0.1% | 0.2% | 15.6% | |
| |
|---|
| Median (63 companies) | 2.3% | 1.9% | 1.8% | 1.1% | 1.6% |
|---|
| Global Strategic Group Ltd ($8007) | 0.0% | 0.0% | 0.0% | 0.0% | 5.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ReOrient Group Ltd ($376) | -24.9% | -45.6% | -53.5% | 128.6% | -2.8% |
| Roma Group Ltd ($8072) | | 19.6% | 43.7% | 107.8% | 13.3% |
| Convoy Financial Holdings Ltd ($1019) | 31.1% | 3.4% | 39.3% | 47.3% | |
| Willie International Holdings Ltd ($273) | -28.1% | -9.5% | 4.7% | 30.9% | |
| Value Partners Group Ltd ($806) | 8.7% | 16.8% | 16.5% | 26.8% | |
| |
|---|
| Median (65 companies) | 4.9% | 3.9% | 4.0% | 4.8% | 2.6% |
|---|
| Global Strategic Group Ltd ($8007) | -20.8% | -28.4% | -38.1% | -53.8% | -138.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | |
| Far East Horizon Ltd ($3360) | 17.8x | 16.9x | 21.7x | 20.0x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 7.3x | 2.1x | 10.3x | 9.3x | 39.3x |
| China Cinda Asset Management Co Ltd ($1359) | 2.1x | 5.0x | 7.7x | 8.4x | |
| Aeon Credit Service Asia Co Ltd ($900) | 6.3x | 5.2x | 6.0x | 6.9x | 5.5x |
| |
|---|
| Median (46 companies) | -1.1x | -1.0x | 0.1x | -0.0x | -1.5x |
|---|
