Speedy Global Holdings Ltd Debt jumped on 21.8% in 2015 while Revenue decreased on 3.1%
21/03/2016 • About Speedy Global Holdings Ltd (
$540) • By InTwits
Speedy Global Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 3.9% in 2015, 4.6% in 2014, 3.7% in 2013, 8.0% in 2012, 10.2% in 2011
- Speedy Global Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 11.9%.
- CAPEX is quite volatile: 34.8 in 2015, 8.0 in 2014, 10.6 in 2013, 13.0 in 2012, 4.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.2%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is -21.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Speedy Global Holdings Ltd ($540) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,168 | 1,034 | 1,185 | 1,264 | 1,224 | -3.1% |
| Gross Profit | 202 | 183 | 144 | 161 | 135 | -16.2% |
| SG&A | | 116 | 109 | 119 | 97 | -18.5% |
| EBITDA | 119 | 83 | 44 | 58 | 48 | -17.2% |
| Net Income | 84 | 55 | 21 | 24 | 25 | 3.0% |
Balance Sheet
|
|---|
| Cash | 93 | 82 | 250 | 413 | 309 | -25.2% |
| Short Term Debt | 84 | 59 | 201 | 395 | 189 | -52.2% |
| Long Term Debt | 0 | 0 | 0 | 1 | 293 | 49,107.6% |
Cash flow
|
|---|
| Capex | 4 | 13 | 11 | 8 | 35 | 338.0% |
Ratios
|
|---|
| Revenue growth | 5.8% | -11.5% | 14.7% | 6.6% | -3.1% | |
| EBITDA growth | 211.3% | -30.6% | -47.2% | 33.4% | -17.2% | |
| Gross Margin | 17.3% | 17.7% | 12.1% | 12.7% | 11.0% | -1.7% |
| EBITDA Margin | 10.2% | 8.0% | 3.7% | 4.6% | 3.9% | -0.7% |
| Net Income Margin | 7.2% | 5.3% | 1.7% | 1.9% | 2.0% | 0.1% |
| SG&A, % of revenue | | 11.2% | 9.2% | 9.4% | 7.9% | -1.5% |
| CAPEX, % of revenue | 0.4% | 1.3% | 0.9% | 0.6% | 2.8% | 2.2% |
| ROIC | 59.9% | 39.8% | 12.3% | 9.3% | 6.2% | -3.1% |
| ROE | 120.4% | 60.3% | 15.7% | 12.2% | 12.0% | -0.2% |
| Net Debt/EBITDA | -0.1x | -0.3x | -1.1x | -0.3x | 3.6x | 3.9x |
Revenue and profitability
The company's Revenue decreased on 3.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 7.4% to 9.3% in 2015.
Gross Margin decreased slightly on 1.7 pp from 12.7% to 11.0% in 2015. SG&A as a % of Revenue decreased slightly on 1.5 pp from 9.4% to 7.9% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Speedy Global Holdings Ltd's CAPEX/Revenue was 2.8% in 2015. The company showed small growth in CAPEX/Revenue of 1.6 pp from 1.3% in 2012 to 2.8% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.5%.The company invested a big chunk of EBITDA (72.4%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at good ROE (12.02%) while ROIC is low (6.18%). ROIC decreased on 3.1 pp from 9.3% to 6.2% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.6x and Debt / EBITDA is 10.0x. Net Debt / EBITDA jumped on 3.9x from -0.3x to 3.6x in 2015. Debt jumped on 21.8% in 2015 while cash dropped on 25.2% in 2015.
Appendix 1: Peers in Commercial Services
Below you can find Speedy Global Holdings Ltd benchmarking vs. other companies in Commercial Services 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 |
|---|
| Global Energy Resources International Group Ltd ($8192) | 429.3% | -61.9% | -27.8% | 2,912.9% | |
| Dingyi Group Investment Ltd ($508) | | 8.8% | -95.9% | 1,361.2% | -32.6% |
| China Smartpay Group Holdings Ltd ($8325) | | 60.0% | 274.7% | 75.6% | 124.5% |
| Goldpac Group Ltd ($3315) | | 52.3% | 64.4% | 36.8% | 10.8% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | | 21.3% | 4.5% | 33.5% | 14.2% |
| |
|---|
| Median (60 companies) | 21.4% | 8.9% | 4.7% | 9.4% | 6.7% |
|---|
| Speedy Global Holdings Ltd ($540) | | -11.5% | 14.7% | 6.6% | -3.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| HC International Inc ($2280) | 84.7% | 87.5% | 91.9% | 92.5% | |
| Fu Shou Yuan International Group Ltd ($1448) | 81.6% | 80.5% | 80.4% | 80.0% | 77.6% |
| China Communication Telecom Services Co Ltd ($8206) | -56.6% | 61.6% | 58.6% | 69.1% | 70.2% |
| Dingyi Group Investment Ltd ($508) | 76.5% | 75.8% | | 64.5% | 86.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 67.1% | 66.2% | 66.8% | 62.8% | 65.2% |
| |
|---|
| Median (56 companies) | 33.0% | 31.5% | 30.5% | 30.9% | 28.7% |
|---|
| Speedy Global Holdings Ltd ($540) | 17.3% | 17.7% | 12.1% | 12.7% | 11.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shenzhen International Holdings Ltd ($152) | 69.3% | 60.2% | 65.8% | 97.1% | |
| Shenzhen Expressway Co Ltd ($548) | 80.4% | 74.3% | 79.4% | 76.6% | 53.0% |
| Yuexiu Transport Infrastructure Ltd ($1052) | 74.3% | 78.3% | 74.5% | 74.0% | 71.6% |
| Anhui Expressway Co Ltd ($995) | 62.7% | 56.9% | 54.1% | 60.4% | |
| Dragon Crown Group Holdings Ltd ($935) | 57.8% | 67.3% | 62.9% | 60.2% | |
| |
|---|
| Median (60 companies) | 17.1% | 16.9% | 14.2% | 11.1% | 8.1% |
|---|
| Speedy Global Holdings Ltd ($540) | 10.2% | 8.0% | 3.7% | 4.6% | 3.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 16.8% | 3.9% | 7.0% | 59.8% | |
| COSCO Pacific Ltd ($1199) | 111.3% | 96.6% | 66.6% | 43.3% | |
| Finet Group Ltd ($8317) | 3.9% | 10.3% | 9.1% | 26.0% | 8.4% |
| HC International Inc ($2280) | 15.1% | 8.5% | 28.7% | 24.7% | |
| Dragon Crown Group Holdings Ltd ($935) | 2.5% | 37.2% | 52.0% | 23.0% | |
| |
|---|
| Median (59 companies) | 4.0% | 3.4% | 4.5% | 4.8% | 2.6% |
|---|
| Speedy Global Holdings Ltd ($540) | 0.4% | 1.3% | 0.9% | 0.6% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mega Expo Holdings Ltd ($1360) | | 270.5% | 481.1% | 54.4% | 10.1% |
| China Packaging Holdings Development Ltd ($1439) | 50.0% | 52.0% | 46.6% | 34.1% | |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 136.8% | 51.5% | 26.6% | 30.0% | 29.5% |
| PPS International Holdings Ltd ($8201) | | 101.6% | 35.6% | 23.8% | -13.7% |
| 1010 Printing Group Ltd ($1127) | 14.4% | 13.5% | 20.8% | 17.8% | 19.9% |
| |
|---|
| Median (60 companies) | 5.0% | 5.9% | 4.2% | 3.2% | 3.7% |
|---|
| Speedy Global Holdings Ltd ($540) | 59.9% | 39.8% | 12.3% | 9.3% | 6.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dalian Port PDA Co Ltd ($2880) | 5.7x | 5.7x | 4.8x | 4.7x | |
| Sichuan Expressway Co Ltd ($107) | 1.8x | 2.7x | 3.8x | 4.3x | |
| Anxian Yuan China Holdings Ltd ($922) | | | 4.6x | 3.8x | 0.8x |
| Eagle Legend Asia Ltd ($936) | 4.3x | 4.0x | 4.0x | 3.3x | 6.2x |
| Yuexiu Transport Infrastructure Ltd ($1052) | 2.9x | 4.5x | 3.1x | 2.7x | 5.3x |
| |
|---|
| Median (39 companies) | -0.1x | -0.0x | -0.7x | -1.0x | -2.0x |
|---|
| Speedy Global Holdings Ltd ($540) | -0.1x | -0.3x | -1.1x | -0.3x | 3.6x |
