Zhejiang Expressway Co EBITDA surged on 43.3% in 2015 and Revenue surged on 32.2%
17/03/2016 • About Zhejiang Expressway Co (
$576) • By InTwits
Zhejiang Expressway Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Zhejiang Expressway Co is a growth stock: 2015 revenue growth was 32.2%, 5 year revenue CAGR was 13.1% at 2015 ROIC 15.3%
- EBITDA Margin is expanding: 58.0% in 2015 vs. 53.5% in 2014 vs. 52.8% in 2011
- Zhejiang Expressway Co has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.2%. At the same time it's a lot of higher than industry average of 2.6%.
- CAPEX is quite volatile: 327 in 2015, 1,270 in 2014, 252 in 2013, 365 in 2012, 449 in 2011
- The company has highly profitable business model: ROIC is at 15.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.1x while industry average is 2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Zhejiang Expressway Co ($576) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,781 | 6,927 | 7,851 | 9,460 | 12,507 | 32.2% |
| Gross Profit | 2,704 | 2,353 | 2,896 | 3,562 | 5,447 | 52.9% |
| SG&A | 84 | 86 | 85 | 106 | 109 | 2.8% |
| EBITDA | 3,583 | 3,435 | 4,009 | 5,064 | 7,258 | 43.3% |
| Net Income | 1,805 | 1,649 | 1,907 | 2,265 | 2,990 | 32.0% |
Balance Sheet
|
|---|
| Cash | 3,120 | 3,392 | 1,807 | 3,357 | 4,983 | 48.5% |
| Short Term Debt | 463 | 1,660 | 1,850 | 10,813 | 10,979 | 1.5% |
| Long Term Debt | 1,000 | 680 | 300 | 3,160 | 9,190 | 190.8% |
Cash flow
|
|---|
| Capex | 449 | 365 | 252 | 1,270 | 327 | -74.3% |
Ratios
|
|---|
| Revenue growth | 0.2% | 2.2% | 13.3% | 20.5% | 32.2% | |
| EBITDA growth | -10.4% | -4.1% | 16.7% | 26.3% | 43.3% | |
| Gross Margin | 39.9% | 34.0% | 36.9% | 37.7% | 43.6% | 5.9% |
| EBITDA Margin | 52.8% | 49.6% | 51.1% | 53.5% | 58.0% | 4.5% |
| Net Income Margin | 26.6% | 23.8% | 24.3% | 23.9% | 23.9% | -0.0% |
| SG&A, % of revenue | 1.2% | 1.2% | 1.1% | 1.1% | 0.9% | -0.2% |
| CAPEX, % of revenue | 6.6% | 5.3% | 3.2% | 13.4% | 2.6% | -10.8% |
| ROIC | 13.3% | 11.2% | 13.3% | 13.2% | 15.3% | 2.1% |
| ROE | 12.1% | 10.6% | 11.9% | 13.7% | 17.7% | 4.0% |
| Net Debt/EBITDA | -0.5x | -0.3x | 0.1x | 2.1x | 2.1x | -0.0x |
Revenue and profitability
Zhejiang Expressway Co's Revenue surged on 32.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.6 pp from 15.0% to 17.6% in 2015.
Gross Margin increased on 5.9 pp from 37.7% to 43.6% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.6% in 2015. The company showed decline in CAPEX/Revenue of 2.7 pp from 5.3% in 2012 to 2.6% in 2015. It's average CAPEX/Revenue for the last three years was 6.4%.
Return on investment
The company operates at good ROIC (15.31%) and ROE (17.72%). ROIC increased on 2.1 pp from 13.2% to 15.3% in 2015. ROE increased on 4.0 pp from 13.7% to 17.7% in 2015.
Leverage (Debt)
Debt level is 2.1x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA showed almost no change in 2015. Debt jumped on 44.3% in 2015 while cash surged on 48.5% in 2015.
Appendix 1: Peers in Industrial Transportation
Below you can find Zhejiang Expressway Co benchmarking vs. other companies in Industrial Transportation 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.
