Elec & Eltek International Co Ltd CAPEX dropped on 36.4% in 2015 and Revenue dropped on 12.4%
28/02/2016 • About Elec & Eltek International Co Ltd (
$1151) • By InTwits
Elec & Eltek International Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Elec & Eltek International Co Ltd is a company in decline: 2015 revenue growth was -12.4%, 5 years revenue CAGR was -5.4%
- Elec & Eltek International Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.4%. At the same time it's a lot of higher than industry average of 6.2%.
- CAPEX is quite volatile: 26.3 in 2015, 41.3 in 2014, 47.6 in 2013, 32.0 in 2012, 78.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.7x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Elec & Eltek International Co Ltd ($1151) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 612.5 | 530.1 | 504.9 | 517.1 | 453.0 | -12.4% |
| Gross Profit | 100.0 | 72.1 | 49.8 | 44.8 | 36.4 | -18.7% |
| SG&A | | | | | 38.0 | |
| EBITDA | 98.1 | 75.9 | 56.7 | 48.4 | 41.0 | -15.3% |
| Net Income | 51.2 | 34.8 | 13.7 | 3.8 | -4.8 | -227.6% |
Balance Sheet
|
|---|
| Cash | 57.3 | 43.1 | 20.4 | 22.3 | 11.0 | -50.9% |
| Short Term Debt | 70.1 | 48.3 | 50.4 | 49.7 | 48.1 | -3.3% |
| Long Term Debt | 67.3 | 40.6 | 31.1 | 43.7 | 34.3 | -21.4% |
Cash flow
|
|---|
| Capex | 78.2 | 32.0 | 47.6 | 41.3 | 26.3 | -36.4% |
Ratios
|
|---|
| Revenue growth | 2.3% | -13.4% | -4.8% | 2.4% | -12.4% | |
| EBITDA growth | -26.1% | -22.7% | -25.3% | -14.6% | -15.3% | |
| Gross Margin | 16.3% | 13.6% | 9.9% | 8.7% | 8.0% | -0.6% |
| EBITDA Margin | 16.0% | 14.3% | 11.2% | 9.4% | 9.1% | -0.3% |
| Net Income Margin | 8.4% | 6.6% | 2.7% | 0.7% | -1.1% | -1.8% |
| SG&A, % of revenue | | | | | 8.4% | 8.4% |
| CAPEX, % of revenue | 12.8% | 6.0% | 9.4% | 8.0% | 5.8% | -2.2% |
| ROIC | 10.4% | 6.2% | 2.6% | 1.0% | 0.3% | -0.8% |
| ROE | 13.4% | 9.4% | 3.8% | 1.1% | -1.4% | -2.5% |
| Net Debt/EBITDA | 0.8x | 0.6x | 1.1x | 1.5x | 1.7x | 0.3x |
Revenue and profitability
The company's Revenue dropped on 12.4% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin decreased slightly on 0.62 pp from 8.7% to 8.0% in 2015.
Net Income marign decreased slightly on 1.8 pp from 0.73% to -1.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.8% in 2015. Elec & Eltek International Co Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 7.7%.Elec & Eltek International Co Ltd invested a big chunk of EBITDA (64.1%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (0.27%) and negative ROE (-1.39%). ROIC decreased slightly on 0.77 pp from 1.0% to 0.27% in 2015. ROE decreased on 2.5 pp from 1.1% to -1.4% in 2015.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA jumped on 0.3x from 1.5x to 1.7x in 2015. Debt dropped on 11.7% in 2015 while cash dropped on 50.9% in 2015.
Appendix 1: Peers in Electronics
Below we provide Elec & Eltek International Co Ltd benchmarking against other companies in Electronics 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 Netcom Technology Holdings Ltd ($8071) | -22.0% | 11.6% | -23.0% | 104.1% | |
| Technovator International Ltd ($1206) | 31.6% | 27.4% | 34.1% | 35.9% | |
| Tongda Group Holdings Ltd ($698) | 34.0% | 8.3% | 6.4% | 32.1% | |
| Advanced Card Systems Holdings Ltd ($8210) | 25.3% | 36.9% | 20.8% | 26.7% | |
| Alltronics Holdings Ltd ($833) | 33.9% | -1.6% | -1.6% | 23.4% | |
| |
|---|
| Median (48 companies) | 7.6% | -1.0% | 3.6% | 5.0% | 0.9% |
|---|
| Elec & Eltek International Co Ltd ($1151) | | -13.4% | -4.8% | 2.4% | -12.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 51.4% | 54.0% | 58.1% | 49.5% | |
| AAC Technologies Holdings Inc ($2018) | 44.0% | 44.2% | 42.7% | 41.4% | |
| TeleEye Holdings Ltd ($8051) | 51.6% | 44.0% | 42.1% | 38.5% | 37.0% |
| Wasion Group Holdings Ltd ($3393) | 30.3% | 32.8% | 35.1% | 34.2% | |
| Datronix Holdings Ltd ($889) | 41.3% | 32.9% | 32.0% | 34.1% | |
| |
|---|
| Median (46 companies) | 13.6% | 14.6% | 13.8% | 14.1% | 15.0% |
|---|
| Elec & Eltek International Co Ltd ($1151) | 16.3% | 13.6% | 9.9% | 8.7% | 8.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.2% | 35.8% | 35.8% | 34.9% | |
| Nanjing Sample Technology Co Ltd ($1708) | 31.5% | 26.8% | 21.1% | 22.3% | |
| Wasion Group Holdings Ltd ($3393) | 18.9% | 18.8% | 21.2% | 22.0% | |
| Technovator International Ltd ($1206) | 19.2% | 19.0% | 19.0% | 20.8% | |
| Trigiant Group Ltd ($1300) | 17.0% | 17.6% | 18.2% | 18.5% | |
| |
|---|
| Median (48 companies) | 9.0% | 5.9% | 4.1% | 3.4% | 2.2% |
|---|
| Elec & Eltek International Co Ltd ($1151) | 16.0% | 14.3% | 11.2% | 9.4% | 9.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AKM Industrial Co Ltd ($1639) | 7.4% | 5.0% | 17.4% | 25.2% | |
| AAC Technologies Holdings Inc ($2018) | 25.9% | 18.7% | 8.7% | 19.6% | |
| Irico Group Electronics Co Ltd ($438) | 92.0% | 39.9% | 30.4% | 17.4% | |
| Tech Pro Technology Development Ltd ($3823) | 32.8% | 7.6% | 13.1% | 15.4% | |
| Nanjing Sample Technology Co Ltd ($1708) | 3.7% | 23.9% | 15.5% | 12.0% | |
| |
|---|
| Median (48 companies) | 3.3% | 3.7% | 3.0% | 3.7% | 1.7% |
|---|
| Elec & Eltek International Co Ltd ($1151) | 12.8% | 6.0% | 9.4% | 8.0% | 5.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| AAC Technologies Holdings Inc ($2018) | 22.3% | 29.1% | 30.0% | 26.0% | |
| Advanced Card Systems Holdings Ltd ($8210) | 15.5% | 26.7% | 24.7% | 20.2% | |
| Alltronics Holdings Ltd ($833) | 19.3% | 13.1% | 15.2% | 19.8% | |
| Tongda Group Holdings Ltd ($698) | 14.3% | 15.2% | 13.5% | 16.5% | |
| Trigiant Group Ltd ($1300) | 17.9% | 17.8% | 18.3% | 15.2% | |
| |
|---|
| Median (48 companies) | 5.4% | 4.1% | 3.5% | 3.0% | 1.2% |
|---|
| Elec & Eltek International Co Ltd ($1151) | 10.4% | 6.2% | 2.6% | 1.0% | 0.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Electronic Hldgs ($213) | 43.0x | 16.3x | 30.2x | 84.8x | 19.9x |
| Sino-Tech International Holdings Ltd ($724) | | | 15.7x | 24.7x | |
| Eyang Holdings Group Co Ltd ($117) | 4.2x | 3.3x | 3.7x | 17.9x | |
| SAS Dragon Hldg Ltd ($1184) | 2.8x | 7.1x | 2.0x | 6.4x | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.8x | 2.2x | 2.6x | 5.7x | 5.4x |
| |
|---|
| Median (34 companies) | 0.6x | 1.1x | 1.1x | 1.0x | 0.1x |
|---|
| Elec & Eltek International Co Ltd ($1151) | 0.8x | 0.6x | 1.1x | 1.5x | 1.7x |
