PAX Global Technology Ltd's three year revenue growth was 29.8% and EBITDA growth was 44.4% per year
15/03/2016 • About PAX Global Technology Ltd (
$327) • By InTwits
PAX Global Technology Ltd is a fast-growing stock in Computers industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
PAX Global Technology Ltd showed fast growth in the last financial year. The company's revenue surged on 21.0% in FY2015. In addition to revenue PAX Global Technology Ltd also keeps delivering EBITDA growth. It was 45.6% in FY2015
If we look for the longer period PAX Global Technology Ltd showed fast revenue growth of 29.8% from 2012 to 2015 annualy. EBITDA surged on 44.4% from 2012 to 2015 annualy.
PAX Global Technology Ltd ($327) financials for the last 5 years
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 1,103 | 1,313 | 1,472 | 2,373 | 2,871 |
|---|
| Revenue growth, % | | 19.0% | 12.1% | 61.2% | 21.0% |
|---|
| Gross margin, % | 35.5% | 35.3% | 36.7% | 36.4% | 38.1% |
|---|
| SG&A, % | 15.0% | 14.2% | 15.4% | 14.8% | 12.9% |
|---|
| EBITDA | 209 | 216 | 256 | 447 | 651 |
|---|
| EBITDA growth, % | | 3.4% | 18.5% | 74.6% | 45.6% |
|---|
| EBITDA margin, % | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
|---|
| Net Income | 182 | 183 | 227 | 392 | 621 |
|---|
| Net Income margin, % | 16.5% | 13.9% | 15.4% | 16.5% | 21.6% |
|---|
| |
| CAPEX | 2 | 3 | 1 | 7 | 5 |
|---|
| CAPEX/Revenue, % | 0.214% | 0.210% | 0.0955% | 0.316% | 0.183% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 1,152 | 1,358 | 1,698 | 1,919 | 2,144 |
|---|
| Net Debt/EBITDA | -5.5x | -6.3x | -6.6x | -4.3x | -3.3x |
|---|
| |
| ROIC, % | 14.1% | 12.3% | 12.8% | 18.7% | 22.4% |
|---|
| ROE, % | 12.6% | 10.7% | 11.6% | 16.9% | 22.1% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. PAX Global Technology Ltd showed fast EBITDA margin growth of 3.90 pp from 18.8% to 22.7% in 2015. If we look for the longer period EBITDA margin surged on 6.20 pp from 16.5% in 2012 to 22.7% in 2015.
PAX Global Technology Ltd shows attractive ROIC at 22.4% for the last 12 months which assumes stable development model. Three years ago it was considerably lower at 12.3%. For the last three years the average ROIC was 18.0%.
Net Income margin surged on 5.10 pp from 16.5% to 21.6% in 2015. If we look for the longer period Net Income margin surged on 7.70 pp from 13.9% in 2012 to 21.6% in 2015.
PAX Global Technology Ltd operates at ROE of 22.1%. It's average level of ROE for the last three years was 16.9%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 0.183% in FY2015. PAX Global Technology Ltd showed big decline in CAPEX/Revenue of 0.0275 pp from 0.210% in 2012 to 0.183% in 2015. Average CAPEX/Revenue for the last three years was 0.198%.
Leverage (Debt)
PAX Global Technology Ltd has negative net debt at -3.3x Net Debt/EBITDA - at the same time with high growth. In the longer period the company showed fast leverage growth of 2.99x from -6.28x in 2012 to -3.30x in 2015.
Valuation vs. comparable companies
The company trades at 9.4x EV/EBITDA which is 71.9% lower than 33.4x Computers industry avearge calculated based on 29 companies. The company trades at 13.3x P/E which is 61.3% lower than 34.4x Computers industry avearge calculated based on 7 companies.
Peers in Computers
Below we provide PAX Global Technology Ltd benchmarking against other companies in Computers 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Peking University Resources Holdings Co Ltd ($618) | 16.2% | -49.6% | 11.2% | 106.0% | |
| Alibaba Health Information Technology Ltd ($241) | | 29.4% | -96.7% | 73.0% | 35.3% |
| Thiz Technology Group Ltd ($8119) | | -4.1% | -95.1% | 72.2% | 31.9% |
| Universal Technologies Holdings Ltd ($1026) | 95.5% | -47.3% | 49.8% | 67.1% | |
| EVOC Intelligent Technology Co Ltd ($2308) | -13.0% | 4.6% | 56.2% | 27.4% | |
| |
|---|
| Median (24 companies) | 12.4% | 3.8% | -1.8% | 7.2% | 19.6% |
|---|
| PAX Global Technology Ltd ($327) | | 19.0% | 12.1% | 61.2% | 21.0% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 86.0% | 87.3% | 79.7% | 90.3% | |
| Thiz Technology Group Ltd ($8119) | 2.9% | 8.8% | 63.8% | 86.2% | 96.0% |
| Computer & Technologies Holdings Ltd ($46) | 27.4% | 45.3% | 54.0% | 52.1% | |
| CCID Consulting Co Ltd ($8235) | 46.5% | 43.7% | 49.1% | 51.8% | |
| Alibaba Health Information Technology Ltd ($241) | 10.1% | 11.4% | -12.6% | 49.3% | 53.7% |
| |
|---|
| Median (22 companies) | 11.0% | 12.7% | 16.0% | 15.4% | 19.5% |
|---|
| PAX Global Technology Ltd ($327) | 35.5% | 35.3% | 36.7% | 36.4% | 38.1% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | |
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | |
| CCID Consulting Co Ltd ($8235) | 19.0% | 10.6% | 10.8% | 12.3% | |
| Universal Technologies Holdings Ltd ($1026) | 29.5% | 12.8% | 1.5% | 9.9% | |
| EVOC Intelligent Technology Co Ltd ($2308) | 10.8% | 8.6% | 11.6% | 8.6% | |
| |
|---|
| Median (24 companies) | 2.5% | 2.8% | 2.2% | -1.5% | -8.0% |
|---|
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| North Asia Resources Holdings Ltd ($61) | 34.3% | 4.6% | 94.2% | 177.8% | |
| Beautiful China Holdings Co Ltd ($706) | 44.9% | 8.4% | 2.2% | 26.2% | |
| Ju Teng International Holdings Ltd ($3336) | 17.6% | 14.1% | 18.7% | 20.0% | |
| Alibaba Health Information Technology Ltd ($241) | 2.1% | 4.4% | 46.3% | 17.2% | 11.7% |
| Universal Technologies Holdings Ltd ($1026) | 8.5% | 20.0% | 5.7% | 14.2% | |
| |
|---|
| Median (24 companies) | 1.6% | 1.2% | 1.6% | 2.1% | 2.0% |
|---|
| PAX Global Technology Ltd ($327) | 0.2% | 0.2% | 0.1% | 0.3% | 0.2% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Lenovo Group Ltd ($992) | 18.9% | 26.2% | 30.5% | 34.7% | 24.5% |
| CCID Consulting Co Ltd ($8235) | 20.6% | 11.3% | 10.7% | 10.2% | |
| TPV Technology Ltd ($903) | 6.4% | 7.7% | 1.8% | 10.1% | |
| Computer & Technologies Holdings Ltd ($46) | 4.1% | 6.0% | 8.6% | 9.4% | |
| Wong's International Hldgs ($99) | 9.5% | 5.1% | 4.8% | 8.5% | |
| |
|---|
| Median (25 companies) | 3.7% | 0.9% | -0.2% | -1.4% | -13.7% |
|---|
| PAX Global Technology Ltd ($327) | 14.1% | 12.3% | 12.8% | 18.7% | 22.4% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| EVOC Intelligent Technology Co Ltd ($2308) | 6.4x | 0.5x | 5.8x | 5.7x | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.0x | 2.7x | 3.6x | 4.6x | |
| Ju Teng International Holdings Ltd ($3336) | 2.5x | 2.1x | 1.8x | 1.7x | |
| Wong's International Hldgs ($99) | -1.8x | -3.5x | 2.7x | 1.4x | |
| TPV Technology Ltd ($903) | 0.5x | -0.2x | 0.6x | -0.0x | |
| |
|---|
| Median (12 companies) | -1.6x | -2.1x | -1.3x | -3.2x | 1.0x |
|---|
| PAX Global Technology Ltd ($327) | -5.5x | -6.3x | -6.6x | -4.3x | -3.3x |
