TPV Technology Ltd revenue decreased on 7.1% in 2015 and EBITDA Margin showed almost no change
17/03/2016 • About TPV Technology Ltd (
$903) • By InTwits
TPV Technology Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 3.9% in 2015 vs. 3.6% in 2014 vs. 2.5% in 2011
- TPV Technology Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 7.2%.
- CAPEX is quite volatile: 458 in 2015, 254 in 2014, 175 in 2013, 214 in 2012, 181 in 2011
- The company has highly profitable business model: ROIC is at 12.0%
- It operates with high leverage: Net Debt/EBITDA is 0.3x while industry average is -3.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TPV Technology Ltd ($903) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,040 | 11,975 | 11,973 | 11,908 | 11,062 | -7.1% |
| Gross Profit | 658 | 899 | 860 | 1,014 | 871 | -14.0% |
| SG&A | 508 | 671 | 778 | 723 | 599 | -17.1% |
| EBITDA | 271 | 368 | 257 | 425 | 428 | 0.7% |
| Net Income | 120 | 112 | -47 | -5 | -31 | 473.9% |
Balance Sheet
|
|---|
| Cash | 303 | 498 | 365 | 502 | 450 | -10.4% |
| Short Term Debt | 362 | 143 | 318 | 301 | 146 | -51.5% |
| Long Term Debt | 78 | 279 | 206 | 188 | 441 | 134.8% |
Cash flow
|
|---|
| Capex | 184 | 185 | 170 | 194 | 150 | -22.9% |
Ratios
|
|---|
| Revenue growth | -5.1% | 8.5% | -0.0% | -0.5% | -7.1% | |
| EBITDA growth | -6.4% | 35.8% | -30.3% | 65.7% | 0.7% | |
| Gross Margin | 6.0% | 7.5% | 7.2% | 8.5% | 7.9% | -0.6% |
| EBITDA Margin | 2.5% | 3.1% | 2.1% | 3.6% | 3.9% | 0.3% |
| Net Income Margin | 1.1% | 0.9% | -0.4% | -0.0% | -0.3% | -0.2% |
| SG&A, % of revenue | 4.6% | 5.6% | 6.5% | 6.1% | 5.4% | -0.7% |
| CAPEX, % of revenue | 1.7% | 1.5% | 1.4% | 1.6% | 1.4% | -0.3% |
| ROIC | 6.4% | 7.7% | 1.8% | 10.1% | 12.0% | 1.9% |
| ROE | 6.6% | 6.1% | -2.6% | -0.3% | -1.9% | -1.6% |
| Net Debt/EBITDA | 0.5x | -0.2x | 0.6x | -0.0x | 0.3x | 0.4x |
Revenue and profitability
TPV Technology Ltd's Revenue decreased on 7.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.0 pp from 24.7% to 26.7% in 2015.
Gross Margin decreased slightly on 0.63 pp from 8.5% to 7.9% in 2015. SG&A as a % of Revenue decreased slightly on 0.65 pp from 6.1% to 5.4% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.4%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. Average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low but positive ROIC (12.02%) and negative ROE (-1.90%). ROIC increased slightly on 1.9 pp from 10.1% to 12.0% in 2015. ROE decreased slightly on 1.6 pp from -0.32% to -1.9% in 2015.
Leverage (Debt)
Debt level is 0.3x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA surged on 0.4x from -0.032x to 0.3x in 2015. Debt surged on 20.2% in 2015 while cash dropped on 10.4% in 2015.
Appendix 1: Peers in Computers
Below you can find TPV Technology Ltd benchmarking vs. other companies in Computers 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 |
|---|
| 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% | |
| PAX Global Technology Ltd ($327) | | 19.0% | 12.1% | 61.2% | 21.0% |
| |
|---|
| Median (24 companies) | 12.4% | 3.8% | -1.8% | 11.0% | 9.3% |
|---|
| TPV Technology Ltd ($903) | | 8.5% | -0.0% | -0.5% | -7.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 54.2% |
| 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) | 13.2% | 14.2% | 17.0% | 17.2% | 29.3% |
|---|
| TPV Technology Ltd ($903) | 6.0% | 7.5% | 7.2% | 8.5% | 7.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Computer & Technologies Holdings Ltd ($46) | 4.8% | 12.9% | 19.9% | 20.1% | 23.2% |
| Ju Teng International Holdings Ltd ($3336) | 9.5% | 15.1% | 19.9% | 19.3% | 23.8% |
| PAX Global Technology Ltd ($327) | 18.9% | 16.5% | 17.4% | 18.8% | 22.7% |
| 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% | |
| |
|---|
| Median (24 companies) | 3.0% | 2.9% | 2.7% | -1.5% | 15.2% |
|---|
| TPV Technology Ltd ($903) | 2.5% | 3.1% | 2.1% | 3.6% | 3.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 17.3% |
| 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) | 1.3% | 1.0% | 1.4% | 2.1% | 1.1% |
|---|
| TPV Technology Ltd ($903) | 1.7% | 1.5% | 1.4% | 1.6% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenovo Group Ltd ($992) | 18.9% | 26.2% | 30.5% | 34.7% | 24.5% |
| PAX Global Technology Ltd ($327) | 14.1% | 12.3% | 12.8% | 18.7% | 22.4% |
| CCID Consulting Co Ltd ($8235) | 20.6% | 11.3% | 10.7% | 10.2% | |
| Computer & Technologies Holdings Ltd ($46) | 4.1% | 6.0% | 8.6% | 9.4% | 10.8% |
| Wong's International Hldgs ($99) | 9.5% | 5.1% | 4.8% | 8.5% | |
| |
|---|
| Median (25 companies) | 3.7% | 0.9% | -0.2% | -1.4% | 8.8% |
|---|
| TPV Technology Ltd ($903) | 6.4% | 7.7% | 1.8% | 10.1% | 12.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 | 1.6x |
| Wong's International Hldgs ($99) | -1.8x | -3.5x | 2.7x | 1.4x | |
| Lenovo Group Ltd ($992) | -4.8x | -4.9x | -2.8x | -2.5x | 0.1x |
| |
|---|
| Median (12 companies) | -1.7x | -2.5x | -2.1x | -4.1x | 0.1x |
|---|
| TPV Technology Ltd ($903) | 0.5x | -0.2x | 0.6x | -0.0x | 0.3x |
