EDS Wellness Holdings Ltd CAPEX jumped on 293% in 2015 and Revenue surged on 70.4%
21/03/2016 • About EDS Wellness Holdings Ltd (
$8176) • By InTwits
EDS Wellness Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EDS Wellness Holdings Ltd doesn't have a profitable business model yet: 2015 ROIC is -27.3%
- The company operates at negative EBITDA Margin: -66.7%
- EDS Wellness Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -144.5%0
- EDS Wellness Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 111.3%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: 16.1 in 2015, 4.1 in 2014, 9.7 in 2013, 2.7 in 2012, 0.18 in 2011
- The company has unprofitable business model: ROIC is at -27.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
EDS Wellness Holdings Ltd ($8176) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 49.064 | 0.702 | 8.140 | 27.582 | 46.989 | 70.4% |
| Gross Profit | 11.589 | -0.511 | -3.546 | 10.985 | -0.845 | -107.7% |
| SG&A | | | 24.140 | 19.321 | 37.118 | 92.1% |
| EBITDA | -128.739 | -7.209 | -20.333 | -3.771 | -31.332 | 730.9% |
| Net Income | -185.680 | -100.389 | -23.568 | -11.768 | -42.086 | 257.6% |
Balance Sheet
|
|---|
| Cash | 1.436 | 0.308 | 1.815 | 43.149 | 116.055 | 169.0% |
| Short Term Debt | 0.000 | 19.691 | 42.443 | 15.139 | 10.609 | -29.9% |
| Long Term Debt | 0.000 | 0.449 | 0.124 | 90.872 | 0.002 | -100.0% |
Cash flow
|
|---|
| Capex | 0.180 | 2.719 | 9.744 | 4.108 | 16.134 | 292.7% |
Ratios
|
|---|
| Revenue growth | -50.8% | -98.6% | 1,059.5% | 238.8% | 70.4% | |
| EBITDA growth | -429.9% | -94.4% | 182.1% | -81.5% | 730.9% | |
| Gross Margin | 23.6% | -72.8% | -43.6% | 39.8% | -1.8% | -41.6% |
| EBITDA Margin | -262.4% | -1,026.9% | -249.8% | -13.7% | -66.7% | -53.0% |
| Net Income Margin | -378.4% | -14,300.4% | -289.5% | -42.7% | -89.6% | -46.9% |
| SG&A, % of revenue | | | 296.6% | 70.0% | 79.0% | 8.9% |
| CAPEX, % of revenue | 0.4% | 387.3% | 119.7% | 14.9% | 34.3% | 19.4% |
| ROIC | -52.1% | -5.3% | -48.6% | -8.4% | -27.3% | -18.8% |
| ROE | -124.8% | -148.5% | -172.1% | | | 0.0% |
Revenue and profitability
EDS Wellness Holdings Ltd's Revenue jumped on 70.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 90.4 pp from -75.6% to -166% in FY2015.
Gross Margin dropped on 41.6 pp from 39.8% to -1.8% in 2015. SG&A as a % of Revenue increased on 8.9 pp from 70.0% to 79.0% in 2015.
Net Income marign dropped on 46.9 pp from -42.7% to -89.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
EDS Wellness Holdings Ltd's CAPEX/Revenue was 34.3% in 2015. EDS Wellness Holdings Ltd's CAPEX/Revenue dropped on 353 pp from 387% in 2012 to 34.3% in 2015. It's average CAPEX/Revenue for the last three years was 56.3%.
Leverage (Debt)
Company's Net Debt / EBITDA is -88.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 90.0% in 2015 while cash surged on 169% in 2015.
Appendix 1: Peers in Cosmetics/Personal Care
Below we provide EDS Wellness Holdings Ltd benchmarking against other companies in Cosmetics/Personal Care 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 |
|---|
| Vinda International Holdings Ltd ($3331) | | 26.4% | 12.8% | 17.5% | 21.4% |
| Natural Beauty Bio-Technology Ltd ($157) | 21.8% | -18.2% | -9.1% | 15.1% | |
| L'Occitane International SA ($973) | | 18.3% | 14.2% | 1.1% | 11.7% |
| Ming Fai International Holdings Ltd ($3828) | 35.9% | 14.3% | -0.1% | -3.4% | |
| China Child Care Corp Ltd ($1259) | 51.5% | 23.9% | 8.9% | -13.4% | |
| |
|---|
| Median (7 companies) | 35.9% | 14.3% | -0.1% | -3.4% | 16.5% |
|---|
| EDS Wellness Holdings Ltd ($8176) | | -98.6% | 1,059.5% | 238.8% | 70.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| L'Occitane International SA ($973) | 82.5% | 82.7% | 82.0% | 81.1% | 81.8% |
| Natural Beauty Bio-Technology Ltd ($157) | 79.3% | 78.6% | 75.8% | 76.9% | |
| China Child Care Corp Ltd ($1259) | 42.4% | 45.9% | 47.3% | 47.5% | |
| BaWang International Group Holding Ltd ($1338) | 38.8% | 41.9% | 48.5% | 37.4% | 38.0% |
| Vinda International Holdings Ltd ($3331) | 27.2% | 30.8% | 29.0% | 30.2% | 30.5% |
| |
|---|
| Median (6 companies) | 40.6% | 43.9% | 47.9% | 42.5% | 38.0% |
|---|
| EDS Wellness Holdings Ltd ($8176) | 23.6% | -72.8% | -43.6% | 39.8% | -1.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 31.4% | 38.3% | 25.3% | 29.4% | |
| L'Occitane International SA ($973) | 20.9% | 20.7% | 19.3% | 17.4% | 19.6% |
| Vinda International Holdings Ltd ($3331) | 13.9% | 16.1% | 14.2% | 15.3% | 13.7% |
| China Child Care Corp Ltd ($1259) | 18.3% | 19.4% | 18.6% | 14.2% | |
| Ming Fai International Holdings Ltd ($3828) | 8.0% | 8.0% | 7.4% | 8.6% | |
| |
|---|
| Median (7 companies) | 17.1% | 16.1% | 14.2% | 14.2% | 16.7% |
|---|
| EDS Wellness Holdings Ltd ($8176) | -262.4% | -1,026.9% | -249.8% | -13.7% | -66.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinda International Holdings Ltd ($3331) | 16.2% | 20.5% | 20.2% | 12.9% | 12.4% |
| China Child Care Corp Ltd ($1259) | 4.6% | 2.7% | 10.1% | 7.8% | |
| L'Occitane International SA ($973) | 4.7% | 6.2% | 7.6% | 5.8% | 4.3% |
| Natural Beauty Bio-Technology Ltd ($157) | 8.6% | 10.1% | 5.1% | 3.7% | |
| BaWang International Group Holding Ltd ($1338) | 16.6% | 28.6% | 3.9% | 2.3% | 0.9% |
| |
|---|
| Median (7 companies) | 5.5% | 6.4% | 6.6% | 3.7% | 3.4% |
|---|
| EDS Wellness Holdings Ltd ($8176) | 0.4% | 387.3% | 119.7% | 14.9% | 34.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| L'Occitane International SA ($973) | 31.6% | 23.2% | 21.4% | 16.9% | 19.6% |
| Natural Beauty Bio-Technology Ltd ($157) | 20.2% | 19.4% | 9.2% | 13.6% | |
| China Child Care Corp Ltd ($1259) | 38.8% | 27.2% | 23.9% | 13.4% | |
| Vinda International Holdings Ltd ($3331) | 11.4% | 13.8% | 10.4% | 10.0% | 9.0% |
| Ming Fai International Holdings Ltd ($3828) | 6.9% | 7.2% | 4.3% | 5.6% | |
| |
|---|
| Median (7 companies) | 20.2% | 17.7% | 9.2% | 10.0% | 14.3% |
|---|
| EDS Wellness Holdings Ltd ($8176) | -52.1% | -5.3% | -48.6% | -8.4% | -27.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vinda International Holdings Ltd ($3331) | 1.9x | 1.4x | 2.1x | 3.1x | 3.3x |
| L'Occitane International SA ($973) | -1.5x | -1.3x | -1.2x | -1.3x | -1.2x |
| Ming Fai International Holdings Ltd ($3828) | -1.2x | -1.5x | -2.5x | -2.1x | |
| Natural Beauty Bio-Technology Ltd ($157) | -3.0x | -2.3x | -4.6x | -3.9x | |
| China Child Care Corp Ltd ($1259) | -3.0x | -2.1x | -2.7x | -4.6x | |
| |
|---|
| Median (5 companies) | -1.5x | -1.7x | -2.5x | -2.1x | -1.2x |
|---|
