Greenheart Group Ltd Net Debt / EBITDA jumped on 26.2x from 26.8x to 53.0x in 2015 while EBITDA dropped on 55.2%
23/03/2016 • About Greenheart Group Ltd (
$94) • By InTwits
Greenheart Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Greenheart Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -7.8%
- Greenheart Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -0.5% for the sames years0
- Greenheart Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.5%. At the same time it's a lot of higher than industry average of 10.1%.
- CAPEX is quite volatile: 30.7 in 2015, 56.3 in 2014, 71.4 in 2013, 129 in 2012, 123 in 2011
- The company has unprofitable business model: ROIC is at -7.8%
- It operates with high leverage: Net Debt/EBITDA is 53.0x while industry average is 10.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Greenheart Group Ltd ($94) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 327.0 | 495.2 | 724.6 | 673.6 | 591.4 | -12.2% |
| Gross Profit | 154.8 | 186.4 | 244.4 | 145.5 | 113.7 | -21.9% |
| SG&A | 220.9 | 249.2 | 313.3 | 280.6 | 249.3 | -11.2% |
| EBITDA | -58.6 | -74.4 | 81.1 | 25.7 | 11.5 | -55.2% |
| Net Income | -74.3 | -76.8 | -5.7 | -133.3 | -436.9 | 227.8% |
Balance Sheet
|
|---|
| Cash | 285.0 | 144.3 | 204.0 | 108.1 | 121.9 | 12.8% |
| Short Term Debt | 6.2 | 534.1 | 478.5 | 551.5 | 443.9 | -19.5% |
| Long Term Debt | 541.1 | 86.1 | 304.4 | 246.3 | 287.9 | 16.9% |
Cash flow
|
|---|
| Capex | 123.5 | 129.1 | 71.4 | 56.3 | 30.7 | -45.5% |
Ratios
|
|---|
| Revenue growth | 1,819.9% | 51.5% | 46.3% | -7.0% | -12.2% | |
| EBITDA growth | -27.3% | 27.1% | -209.0% | -68.3% | -55.2% | |
| Gross Margin | 47.3% | 37.6% | 33.7% | 21.6% | 19.2% | -2.4% |
| EBITDA Margin | -17.9% | -15.0% | 11.2% | 3.8% | 1.9% | -1.9% |
| Net Income Margin | -22.7% | -15.5% | -0.8% | -19.8% | -73.9% | -54.1% |
| SG&A, % of revenue | 67.5% | 50.3% | 43.2% | 41.7% | 42.2% | 0.5% |
| CAPEX, % of revenue | 37.8% | 26.1% | 9.9% | 8.4% | 5.2% | -3.2% |
| ROIC | -5.8% | -9.9% | -3.4% | -6.9% | -7.8% | -0.9% |
| ROE | -7.1% | -7.4% | -0.6% | -14.2% | -60.1% | -46.0% |
| Net Debt/EBITDA | | | 7.1x | 26.8x | 53.0x | 26.2x |
Revenue and profitability
The company's Revenue dropped on 12.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.4 pp from 23.8% to 26.2% in 2015.
Gross Margin decreased on 2.4 pp from 21.6% to 19.2% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign dropped on 54.1 pp from -19.8% to -73.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
Greenheart Group Ltd's CAPEX/Revenue was 5.2% in 2015. The company showed big decline in CAPEX/Revenue of 20.9 pp from 26.1% in 2012 to 5.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 7.8%.Battling declining revenue Greenheart Group Ltd made large investments to CAPEX (267% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-7.79%) and ROE (-60.15%). ROIC decreased slightly on 0.93 pp from -6.9% to -7.8% in 2015. ROE dropped on 46.0 pp from -14.2% to -60.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 53.0x and Debt / EBITDA is 63.6x. Net Debt / EBITDA jumped on 26.2x from 26.8x to 53.0x in 2015. Debt decreased on 8.3% in 2015 while cash jumped on 12.8% in 2015.
Appendix 1: Peers in Forest Products&Paper
Below you can find Greenheart Group Ltd benchmarking vs. other companies in Forest Products&Paper 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 |
|---|
| Merdeka Mobile Group Ltd ($8163) | | -11.0% | 415.4% | 71.4% | 88.0% |
| KuangChi Science Ltd ($439) | | | | 39.7% | |
| PNG Resources Holdings Ltd ($221) | | 323.7% | 248.6% | 8.5% | 8.7% |
| Hop Fung Group Holdings Ltd ($2320) | 0.8% | -27.0% | -2.3% | 6.9% | |
| Samson Paper Holdings Ltd ($731) | | 7.4% | -7.1% | 6.4% | 6.2% |
| |
|---|
| Median (11 companies) | 0.8% | 3.9% | 4.0% | 0.8% | 8.7% |
|---|
| Greenheart Group Ltd ($94) | | 51.5% | 46.3% | -7.0% | -12.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 29.6% | 29.8% | 32.9% | 31.3% | 29.2% |
| PNG Resources Holdings Ltd ($221) | 31.9% | 19.4% | 18.6% | 24.2% | 35.3% |
| Shandong Chenming Paper Holdings Ltd ($1812) | 15.5% | 15.2% | 18.0% | 19.4% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 16.8% | 16.6% | 16.5% | 19.0% | |
| KuangChi Science Ltd ($439) | | | 20.3% | 17.3% | |
| |
|---|
| Median (11 companies) | 16.8% | 16.0% | 16.7% | 16.7% | 21.7% |
|---|
| Greenheart Group Ltd ($94) | 47.3% | 37.6% | 33.7% | 21.6% | 19.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 27.6% | 27.2% | 30.8% | 29.8% | 30.0% |
| Nine Dragons Paper Holdings Ltd ($2689) | 17.1% | 16.4% | 17.2% | 18.6% | 16.9% |
| Shandong Chenming Paper Holdings Ltd ($1812) | 11.6% | 11.4% | 13.2% | 14.5% | |
| China Sunshine Paper Holdings Co Ltd ($2002) | 13.8% | 14.3% | 12.7% | 14.5% | |
| PNG Resources Holdings Ltd ($221) | -68.2% | -6.1% | 9.6% | 12.2% | 26.5% |
| |
|---|
| Median (11 companies) | 2.3% | 10.8% | 10.3% | 10.2% | 10.3% |
|---|
| Greenheart Group Ltd ($94) | -17.9% | -15.0% | 11.2% | 3.8% | 1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| PNG Resources Holdings Ltd ($221) | 294.9% | 133.1% | 35.6% | 53.0% | 44.8% |
| China Agroforestry Low-Carbon Holdings Ltd ($1069) | 0.1% | 0.2% | 11.5% | 26.7% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 28.7% | 14.4% | 18.8% | 16.3% | |
| Nine Dragons Paper Holdings Ltd ($2689) | 34.3% | 16.8% | 15.5% | 8.9% | 5.9% |
| China Sunshine Paper Holdings Co Ltd ($2002) | 10.4% | 14.8% | 9.9% | 8.7% | |
| |
|---|
| Median (11 companies) | 33.5% | 14.6% | 10.7% | 8.4% | 4.1% |
|---|
| Greenheart Group Ltd ($94) | 37.8% | 26.1% | 9.9% | 8.4% | 5.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Youyuan International Holdings Ltd ($2268) | 15.6% | 12.6% | 12.9% | 10.4% | 10.6% |
| PNG Resources Holdings Ltd ($221) | -3.6% | -1.2% | 5.8% | 8.3% | 19.9% |
| Nine Dragons Paper Holdings Ltd ($2689) | 7.5% | 6.5% | 6.1% | 5.9% | 5.3% |
| China Sunshine Paper Holdings Co Ltd ($2002) | 7.5% | 6.8% | 5.1% | 5.5% | |
| Shandong Chenming Paper Holdings Ltd ($1812) | 2.4% | 1.9% | 3.3% | 3.0% | |
| |
|---|
| Median (13 companies) | 2.4% | 1.7% | 2.3% | 1.6% | 2.9% |
|---|
| Greenheart Group Ltd ($94) | -5.8% | -9.9% | -3.4% | -6.9% | -7.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shandong Chenming Paper Holdings Ltd ($1812) | 9.0x | 10.4x | 9.0x | 10.9x | |
| Samson Paper Holdings Ltd ($731) | 11.3x | 8.3x | 13.0x | 9.3x | 8.9x |
| China Sunshine Paper Holdings Co Ltd ($2002) | 6.1x | 5.9x | 6.9x | 6.0x | |
| Nine Dragons Paper Holdings Ltd ($2689) | 5.2x | 4.9x | 5.7x | 5.1x | 4.7x |
| Youyuan International Holdings Ltd ($2268) | 1.2x | 1.5x | 2.1x | 1.5x | 1.4x |
| |
|---|
| Median (7 companies) | 5.2x | 4.2x | 3.8x | 5.1x | 3.1x |
|---|
| Greenheart Group Ltd ($94) | | | 7.1x | 26.8x | 53.0x |
