Matrix Holdings Ltd Net Income jumped on 229% in 2015 and EBITDA Margin increased on 2.4 pp from 15.0% to 17.4%
17/03/2016 • About Matrix Holdings Ltd (
$1005) • By InTwits
Matrix Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 17.4% in 2015 vs. 15.0% in 2014 vs. 11.0% in 2011
- Matrix Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 3.7%.
- CAPEX is quite volatile: 129 in 2015, 162 in 2014, 457 in 2013, 242 in 2012, 613 in 2011
- The company has highly profitable business model: ROIC is at 21.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Matrix Holdings Ltd ($1005) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 882 | 880 | 1,034 | 1,160 | 1,277 | 10.1% |
| Gross Profit | 310 | 302 | 384 | 446 | 471 | 5.6% |
| SG&A | | 250 | 278 | 295 | 267 | -9.5% |
| EBITDA | 97 | 90 | 136 | 174 | 222 | 27.5% |
| Net Income | 48 | 31 | 98 | 118 | 388 | 229.0% |
Balance Sheet
|
|---|
| Cash | 46 | 43 | 55 | 68 | 130 | 89.5% |
| Short Term Debt | 7 | 26 | 26 | 25 | 0 | -99.7% |
| Long Term Debt | 83 | 71 | 34 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 51 | 42 | 33 | 32 | 22 | -33.3% |
Ratios
|
|---|
| Revenue growth | 0.2% | -0.2% | 17.5% | 12.2% | 10.1% | |
| EBITDA growth | -22.8% | -6.8% | 51.3% | 27.8% | 27.5% | |
| Gross Margin | 35.2% | 34.3% | 37.1% | 38.4% | 36.9% | -1.6% |
| EBITDA Margin | 11.0% | 10.2% | 13.2% | 15.0% | 17.4% | 2.4% |
| Net Income Margin | 5.4% | 3.5% | 9.5% | 10.2% | 30.4% | 20.2% |
| SG&A, % of revenue | | 28.3% | 26.9% | 25.4% | 20.9% | -4.5% |
| CAPEX, % of revenue | 5.8% | 4.7% | 3.2% | 2.8% | 1.7% | -1.1% |
| ROIC | 5.8% | 5.9% | 13.1% | 18.6% | 21.2% | 2.6% |
| ROE | 9.1% | 5.8% | 17.4% | 18.2% | 46.7% | 28.5% |
| Net Debt/EBITDA | 0.5x | 0.6x | 0.0x | -0.2x | -0.6x | -0.3x |
Revenue and profitability
The company's Revenue jumped on 10.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.0 pp from 32.6% to 28.5% in 2015.
Gross Margin decreased slightly on 1.6 pp from 38.4% to 36.9% in 2015. SG&A as a % of Revenue decreased on 4.5 pp from 25.4% to 20.9% in 2015.
Net Income marign jumped on 20.2 pp from 10.2% to 30.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.7%. CAPEX/Revenue decreased on 3.1 pp from 4.7% in 2012 to 1.7% in 2015. Average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at high and attractive ROIC (21.20%) and ROE (46.66%). ROIC increased on 2.6 pp from 18.6% to 21.2% in 2015. ROE surged on 28.5 pp from 18.2% to 46.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.6x and Debt / EBITDA is 0.0x. Net Debt / EBITDA dropped on 0.3x from -0.2x to -0.6x in 2015. Debt dropped on 99.5% in 2015 while cash surged on 89.5% in 2015.
Appendix 1: Peers in Toys/Games/Hobbies
Below you can find Matrix Holdings Ltd benchmarking vs. other companies in Toys/Games/Hobbies industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kiu Hung International Holdings Ltd ($381) | -0.8% | 4.5% | -11.9% | 34.8% | |
| Playmates Toys Ltd ($869) | -69.7% | 726.8% | 346.3% | 30.2% | |
| Playmates Holdings Ltd ($635) | -38.2% | 200.7% | 283.5% | 27.5% | |
| Dream International Ltd ($1126) | -29.9% | 24.9% | -0.1% | 21.0% | |
| Leyou Technologies Holdings Ltd ($1089) | 4.7% | 18.8% | 32.3% | 17.7% | |
| |
|---|
| Median (9 companies) | -18.8% | 18.8% | 8.8% | 17.7% | 12.2% |
|---|
| Matrix Holdings Ltd ($1005) | | -0.2% | 17.5% | 12.2% | 10.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | 68.1% | 65.7% | 66.1% | 64.7% | |
| Playmates Toys Ltd ($869) | 28.6% | 60.3% | 62.8% | 61.9% | |
| Kiu Hung International Holdings Ltd ($381) | 20.8% | 30.9% | 29.0% | 32.1% | |
| Dream International Ltd ($1126) | 24.3% | 25.6% | 29.1% | 22.4% | |
| Kin Yat Holdings Ltd ($638) | 16.4% | 9.9% | 12.8% | 12.6% | 12.4% |
| |
|---|
| Median (8 companies) | 19.6% | 21.7% | 20.9% | 17.5% | 11.4% |
|---|
| Matrix Holdings Ltd ($1005) | 35.2% | 34.3% | 37.1% | 38.4% | 36.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | -14.7% | 22.0% | 36.7% | 33.5% | |
| Playmates Toys Ltd ($869) | -186.4% | 15.1% | 33.0% | 30.2% | |
| Dream International Ltd ($1126) | 10.3% | 13.2% | 14.8% | 9.8% | |
| Kin Yat Holdings Ltd ($638) | 12.3% | 4.8% | 8.4% | 8.8% | 8.6% |
| Kader Holdings Co Ltd ($180) | -6.7% | -4.2% | -3.0% | 5.8% | |
| |
|---|
| Median (9 companies) | 5.1% | 6.6% | 5.6% | 5.8% | 5.5% |
|---|
| Matrix Holdings Ltd ($1005) | 11.0% | 10.2% | 13.2% | 15.0% | 17.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quali-Smart Holdings Ltd ($1348) | 1.7% | 1.5% | 2.2% | 12.7% | 3.0% |
| Dream International Ltd ($1126) | 2.6% | 2.9% | 3.8% | 11.2% | |
| Kin Yat Holdings Ltd ($638) | 7.9% | 9.8% | 4.6% | 7.5% | 4.8% |
| Green International Holdings Ltd ($2700) | 0.1% | 0.2% | 3.2% | 6.5% | |
| Kader Holdings Co Ltd ($180) | 4.0% | 3.5% | 3.7% | 2.8% | |
| |
|---|
| Median (9 companies) | 4.0% | 3.5% | 3.7% | 2.8% | 3.9% |
|---|
| Matrix Holdings Ltd ($1005) | 5.8% | 4.7% | 3.2% | 2.8% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Toys Ltd ($869) | -48.9% | 30.7% | 121.1% | 73.0% | |
| Dream International Ltd ($1126) | 12.4% | 19.3% | 19.4% | 13.3% | |
| Playmates Holdings Ltd ($635) | -1.0% | 2.4% | 12.6% | 12.0% | |
| Quali-Smart Holdings Ltd ($1348) | 24.2% | 31.3% | 16.2% | 9.1% | -0.3% |
| Kin Yat Holdings Ltd ($638) | 11.4% | -0.7% | 4.5% | 4.9% | 6.2% |
| |
|---|
| Median (9 companies) | 5.2% | 2.4% | 4.5% | 4.9% | 2.9% |
|---|
| Matrix Holdings Ltd ($1005) | 5.8% | 5.9% | 13.1% | 18.6% | 21.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kader Holdings Co Ltd ($180) | | | | 9.6x | |
| Leyou Technologies Holdings Ltd ($1089) | -1.4x | 1.1x | 4.4x | 3.8x | |
| Quali-Smart Holdings Ltd ($1348) | 1.2x | 0.6x | -0.7x | 0.9x | 4.5x |
| Kin Yat Holdings Ltd ($638) | 0.0x | 1.6x | 0.3x | 0.4x | -0.0x |
| Playmates Holdings Ltd ($635) | | 0.6x | -0.4x | -1.0x | |
| |
|---|
| Median (7 companies) | 0.0x | 0.6x | -0.5x | 0.4x | 2.2x |
|---|
| Matrix Holdings Ltd ($1005) | 0.5x | 0.6x | 0.0x | -0.2x | -0.6x |
