Techtronic Industries Co Ltd reports 18.0% Net Income growth and 6.0% Revenue growth
15/03/2016 • About Techtronic Industries Co Ltd (
$669) • By InTwits
Techtronic Industries Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Techtronic Industries Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's in pair with industry average of 3.7%.
- CAPEX is quite volatile: 1,044 in 2015, 1,182 in 2014, 5,187 in 2013, 489 in 2012, 229 in 2011
- The company has highly profitable business model: ROIC is at 13.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Techtronic Industries Co Ltd ($669) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,667 | 3,852 | 4,300 | 4,753 | 5,038 | 6.0% |
| Gross Profit | 1,194 | 1,289 | 1,472 | 1,673 | 1,798 | 7.4% |
| SG&A | 914 | 954 | 1,068 | 1,208 | 1,275 | 5.6% |
| EBITDA | 340 | 393 | 428 | 506 | 575 | 13.7% |
| Net Income | 152 | 201 | 250 | 300 | 354 | 18.0% |
Balance Sheet
|
|---|
| Cash | 460 | 618 | 698 | 690 | 775 | 12.2% |
| Short Term Debt | 869 | 740 | 580 | 630 | 672 | 6.7% |
| Long Term Debt | 402 | 353 | 378 | 333 | 467 | 40.1% |
Cash flow
|
|---|
| Capex | 95 | 102 | 105 | 144 | 160 | 10.9% |
Ratios
|
|---|
| Revenue growth | 8.0% | 5.1% | 11.6% | 10.5% | 6.0% | |
| EBITDA growth | 8.9% | 15.6% | 8.9% | 18.1% | 13.7% | |
| Gross Margin | 32.6% | 33.5% | 34.2% | 35.2% | 35.7% | 0.5% |
| EBITDA Margin | 9.3% | 10.2% | 10.0% | 10.6% | 11.4% | 0.8% |
| Net Income Margin | 4.1% | 5.2% | 5.8% | 6.3% | 7.0% | 0.7% |
| SG&A, % of revenue | 24.9% | 24.8% | 24.8% | 25.4% | 25.3% | -0.1% |
| CAPEX, % of revenue | 2.6% | 2.7% | 2.4% | 3.0% | 3.2% | 0.1% |
| ROIC | 8.8% | 10.3% | 10.9% | 12.9% | 13.3% | 0.4% |
| ROE | 12.9% | 14.4% | 15.2% | 16.2% | 17.2% | 1.0% |
| Net Debt/EBITDA | 2.4x | 1.2x | 0.6x | 0.5x | 0.6x | 0.1x |
Revenue and profitability
Techtronic Industries Co Ltd's Revenue increased on 6.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 13.8 pp from 16.6% to 30.5% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.72 pp from 6.3% to 7.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Techtronic Industries Co Ltd's CAPEX/Revenue was 3.2% in 2015. Techtronic Industries Co Ltd showed small growth in CAPEX/Revenue of 0.51 pp from 2.7% in 2012 to 3.2% in 2015. It's average CAPEX/Revenue for the last three years was 2.9%.
Return on investment
The company operates at good ROIC (13.30%) and ROE (17.19%). ROIC showed almost no change in 2015. ROE increased slightly on 0.99 pp from 16.2% to 17.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is 2.0x. Net Debt / EBITDA increased on 0.1x from 0.5x to 0.6x in 2015. Debt surged on 18.3% in 2015 while cash jumped on 12.2% in 2015.
Management team
Techtronic Industries Co Ltd's CEO Joseph Galli Jr has spent 10 years at the company.
Appendix 1: Peers in Hand/Machine Tools
Below we provide Techtronic Industries Co Ltd benchmarking against other companies in Hand/Machine Tools 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cw Group Holdings Ltd ($1322) | 60.5% | 3.1% | 25.7% | 69.5% | |
| Chongqing Machinery & Electric Co Ltd ($2722) | 18.7% | -15.5% | 8.9% | -2.2% | |
| |
|---|
| Median (2 companies) | 18.7% | 3.1% | 8.9% | 33.6% | |
|---|
| Techtronic Industries Co Ltd ($669) | | 5.1% | 11.6% | 10.5% | 6.0% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cw Group Holdings Ltd ($1322) | 23.8% | 27.4% | 19.7% | 18.0% | |
| Chongqing Machinery & Electric Co Ltd ($2722) | 18.6% | 11.6% | 11.2% | 11.2% | |
| |
|---|
| Median (2 companies) | 18.6% | 27.4% | 19.7% | 14.6% | |
|---|
| Techtronic Industries Co Ltd ($669) | 32.6% | 33.5% | 34.2% | 35.2% | 35.7% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cw Group Holdings Ltd ($1322) | 18.8% | 19.3% | 16.0% | 15.2% | |
| Chongqing Machinery & Electric Co Ltd ($2722) | 10.1% | 4.1% | 4.2% | 4.2% | |
| |
|---|
| Median (2 companies) | 10.1% | 19.3% | 16.0% | 9.7% | |
|---|
| Techtronic Industries Co Ltd ($669) | 9.3% | 10.2% | 10.0% | 10.6% | 11.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chongqing Machinery & Electric Co Ltd ($2722) | 4.1% | 5.0% | 6.0% | 7.7% | |
| Cw Group Holdings Ltd ($1322) | 1.7% | 2.1% | 0.4% | 0.3% | |
| |
|---|
| Median (2 companies) | 4.0% | 2.1% | 1.5% | 4.0% | |
|---|
| Techtronic Industries Co Ltd ($669) | 2.6% | 2.7% | 2.4% | 3.0% | 3.2% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cw Group Holdings Ltd ($1322) | 34.8% | 21.4% | 16.9% | 19.4% | |
| Chongqing Machinery & Electric Co Ltd ($2722) | 12.4% | 2.1% | 2.4% | 2.0% | |
| Genvon Group Ltd ($2389) | -4.4% | 22.4% | 5.7% | -0.7% | |
| |
|---|
| Median (3 companies) | 12.4% | 21.4% | 5.7% | 2.0% | |
|---|
| Techtronic Industries Co Ltd ($669) | 8.8% | 10.3% | 10.9% | 12.9% | 13.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chongqing Machinery & Electric Co Ltd ($2722) | -0.1x | 0.4x | 1.7x | 3.2x | |
| Cw Group Holdings Ltd ($1322) | 0.6x | 0.2x | 1.7x | 1.7x | |
| |
|---|
| Median (2 companies) | 0.3x | 0.4x | 1.7x | 2.5x | |
|---|
| Techtronic Industries Co Ltd ($669) | 2.4x | 1.2x | 0.6x | 0.5x | 0.6x |
