Cash Financial Services Group Ltd reports 2,867% EBITDA growth and 35.9% Revenue growth
17/03/2016 • About Cash Financial Services Group Ltd (
$510) • By InTwits
Cash Financial Services Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cash Financial Services Group Ltd doesn't have a profitable business model yet: 2015 ROIC is 1.3%
- EBITDA Margin is quite volatile: 10.2% in 2015, 0.5% in 2014, -8.4% in 2013, 5.2% in 2012, 4.3% in 2011
- Cash Financial Services Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's a lot of higher than industry average of 4.1%.
- CAPEX is quite volatile: 4.0 in 2015, 16.5 in 2014, 18.6 in 2013, 28.8 in 2012, 46.5 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cash Financial Services Group Ltd ($510) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,580 | 293 | 267 | 289 | 393 | 35.9% |
| EBITDA | 68 | 15 | -22 | 1 | 40 | 2,867.4% |
| Net Income | -41 | -39 | -59 | 33 | 14 | -58.4% |
Balance Sheet
|
|---|
| Cash | 414 | 291 | 168 | 172 | 370 | 115.3% |
| Short Term Debt | 302 | 385 | 281 | 172 | 121 | -29.3% |
| Long Term Debt | 33 | 26 | 23 | 92 | 78 | -14.3% |
Cash flow
|
|---|
| Capex | 46 | 29 | 19 | 17 | 4 | -75.9% |
Ratios
|
|---|
| Revenue growth | 14.0% | -81.5% | -8.7% | 8.1% | 35.9% | |
| EBITDA growth | -48.7% | -77.5% | -246.3% | -106.0% | 2,867.4% | |
| EBITDA Margin | 4.3% | 5.2% | -8.4% | 0.5% | 10.2% | 9.7% |
| Net Income Margin | -2.6% | -13.2% | -22.1% | 11.3% | 3.5% | -7.8% |
| CAPEX, % of revenue | 2.9% | 9.8% | 6.9% | 5.7% | 1.0% | -4.7% |
| ROIC | -1.8% | -3.4% | -5.8% | -2.6% | 1.3% | 3.9% |
| ROE | -4.4% | -4.3% | -8.4% | 5.9% | 2.3% | -3.6% |
| Net Debt/EBITDA | -1.1x | 7.8x | | 67.5x | -4.3x | -71.7x |
Revenue and profitability
The company's Revenue jumped on 35.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.9 pp from -6.8% to -11.7% in 2015.
Net Income marign decreased on 7.8 pp from 11.3% to 3.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.0%. Cash Financial Services Group Ltd's CAPEX/Revenue decreased on 8.8 pp from 9.8% in 2012 to 1.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 4.6%.
Return on investment
The company operates at low ROIC (1.28%) and ROE (2.29%). ROIC increased on 3.9 pp from -2.6% to 1.3% in 2015. ROE decreased on 3.6 pp from 5.9% to 2.3% in 2015.
Leverage (Debt)
Debt level is -4.3x Net Debt / EBITDA and 5.0x Debt / EBITDA. Net Debt / EBITDA dropped on 71.7x from 67.5x to -4.3x in 2015. Debt dropped on 24.1% in 2015 while cash surged on 115% in 2015.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Cash Financial Services 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% |
| Global Strategic Group Ltd ($8007) | | -3.9% | 2.1% | 806.3% | 681.2% |
| AID Partners Capital Holdings Ltd ($8088) | -38.7% | 0.9% | -79.5% | 655.2% | |
| Willie International Holdings Ltd ($273) | | | | 543.9% | |
| |
|---|
| Median (62 companies) | 3.8% | 1.2% | 14.7% | 26.5% | 23.1% |
|---|
| Cash Financial Services Group Ltd ($510) | | -81.5% | -8.7% | 8.1% | 35.9% |
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% | 96.6% |
| First China Financial Network Holdings Ltd ($8123) | 98.6% | 93.4% | | 94.5% | 97.4% |
| Allied Group Ltd ($373) | 94.5% | 95.1% | 94.4% | 93.6% | |
| |
|---|
| Median (13 companies) | 80.8% | 64.2% | 75.1% | 88.2% | 91.7% |
|---|
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% | -25.5% |
| 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% | 28.5% |
|---|
| Cash Financial Services Group Ltd ($510) | 4.3% | 5.2% | -8.4% | 0.5% | 10.2% |
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% | 10.0% |
| 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% | 5.8% |
| 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) | 2.2% | 1.8% | 1.7% | 1.1% | 1.6% |
|---|
| Cash Financial Services Group Ltd ($510) | 2.9% | 9.8% | 6.9% | 5.7% | 1.0% |
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% | 9.6% |
| |
|---|
| Median (65 companies) | 4.9% | 3.9% | 4.0% | 4.8% | 3.0% |
|---|
| Cash Financial Services Group Ltd ($510) | -1.8% | -3.4% | -5.8% | -2.6% | 1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 |
| Shenyin Wanguo HK Ltd ($218) | -4.5x | 9.6x | 7.1x | 6.1x | -16.1x |
| |
|---|
| Median (45 companies) | -1.0x | -1.3x | 0.1x | -0.1x | -1.3x |
|---|
| Cash Financial Services Group Ltd ($510) | -1.1x | 7.8x | | 67.5x | -4.3x |
