Playmates Toys Ltd reports 43.7% Net Income decline and 4.4 pp EBITDA Margin decline from 30.2% to 25.8%
24/03/2016 • About Playmates Toys Ltd (
$869) • By InTwits
Playmates Toys Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Playmates Toys Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has highly profitable business model: ROIC is at 36.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Playmates Toys Ltd ($869) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 45 | 372 | 1,659 | 2,160 | 1,551 | -28.2% |
| Gross Profit | 13 | 224 | 1,042 | 1,336 | 956 | -28.5% |
| SG&A | | 172 | 495 | 688 | 560 | -18.6% |
| EBITDA | -84 | 56 | 547 | 652 | 401 | -38.5% |
| Net Income | -91 | 43 | 533 | 491 | 276 | -43.7% |
Balance Sheet
|
|---|
| Cash | 209 | 161 | 520 | 786 | 877 | 11.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 74 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 0 | 0 | 1 | 4 | 4 | -9.7% |
Ratios
|
|---|
| Revenue growth | -69.7% | 726.8% | 346.3% | 30.2% | -28.2% | |
| EBITDA growth | -3.0% | -167.0% | 874.4% | 19.1% | -38.5% | |
| Gross Margin | 28.6% | 60.3% | 62.8% | 61.9% | 61.6% | -0.2% |
| EBITDA Margin | -186.4% | 15.1% | 33.0% | 30.2% | 25.8% | -4.4% |
| Net Income Margin | -201.4% | 11.7% | 32.2% | 22.7% | 17.8% | -4.9% |
| SG&A, % of revenue | | 46.2% | 29.9% | 31.9% | 36.1% | 4.2% |
| CAPEX, % of revenue | 0.9% | 0.0% | 0.0% | 0.2% | 0.2% | 0.0% |
| ROIC | -48.9% | 30.7% | 121.1% | 73.0% | 36.6% | -36.3% |
| ROE | -66.3% | 30.4% | 113.1% | 54.9% | 25.5% | -29.4% |
| Net Debt/EBITDA | | -2.9x | -0.9x | -1.2x | -2.2x | -1.0x |
Revenue and profitability
The company's Revenue dropped on 28.2% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 4.4 pp from 30.2% to 25.8% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased on 4.2 pp from 31.9% to 36.1% in 2015.
Net Income marign decreased on 4.9 pp from 22.7% to 17.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Playmates Toys Ltd had CAPEX/Revenue of 0.24%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 0.16%.
Return on investment
The company operates at high and attractive ROIC (36.62%) and ROE (25.46%). ROIC dropped on 36.3 pp from 73.0% to 36.6% in 2015. ROE dropped on 29.4 pp from 54.9% to 25.5% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 11.7% in 2015.
Appendix 1: Peers in Toys/Games/Hobbies
Below we provide Playmates Toys Ltd benchmarking against other companies in Toys/Games/Hobbies 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 |
|---|
| Kiu Hung International Holdings Ltd ($381) | -0.8% | 4.5% | -11.9% | 34.8% | |
| Playmates Holdings Ltd ($635) | | 200.7% | 283.5% | 27.5% | -25.3% |
| Dream International Ltd ($1126) | | 24.9% | -0.1% | 21.0% | 10.8% |
| Leyou Technologies Holdings Ltd ($1089) | 4.7% | 18.8% | 32.3% | 17.7% | |
| Matrix Holdings Ltd ($1005) | | -0.2% | 17.5% | 12.2% | 10.1% |
| |
|---|
| Median (9 companies) | 1.9% | 4.5% | 8.8% | 12.2% | 10.1% |
|---|
| Playmates Toys Ltd ($869) | | 726.8% | 346.3% | 30.2% | -28.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | 68.1% | 65.7% | 66.1% | 64.7% | 65.6% |
| Matrix Holdings Ltd ($1005) | 35.2% | 34.3% | 37.1% | 38.4% | 36.9% |
| Kiu Hung International Holdings Ltd ($381) | 20.8% | 30.9% | 29.0% | 32.1% | |
| Dream International Ltd ($1126) | 24.3% | 25.6% | 29.1% | 22.4% | 23.5% |
| Kin Yat Holdings Ltd ($638) | 16.4% | 9.9% | 12.8% | 12.6% | 12.4% |
| |
|---|
| Median (8 companies) | 19.6% | 21.7% | 20.9% | 17.5% | 23.5% |
|---|
| Playmates Toys Ltd ($869) | 28.6% | 60.3% | 62.8% | 61.9% | 61.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Playmates Holdings Ltd ($635) | -14.7% | 22.0% | 36.7% | 33.5% | 32.8% |
| Matrix Holdings Ltd ($1005) | 11.0% | 10.2% | 13.2% | 15.0% | 17.4% |
| Dream International Ltd ($1126) | 10.3% | 13.2% | 14.8% | 9.8% | 12.9% |
| Kin Yat Holdings Ltd ($638) | 12.3% | 4.8% | 8.4% | 8.8% | 8.6% |
| Kader Holdings Co Ltd ($180) | -6.7% | -4.2% | -3.0% | 5.8% | |
| |
|---|
| Median (9 companies) | 8.9% | 6.6% | 5.6% | 5.8% | 12.9% |
|---|
| Playmates Toys Ltd ($869) | -186.4% | 15.1% | 33.0% | 30.2% | 25.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quali-Smart Holdings Ltd ($1348) | 1.7% | 1.5% | 2.2% | 12.7% | 3.0% |
| Dream International Ltd ($1126) | 2.6% | 2.9% | 3.8% | 11.2% | 7.3% |
| Kin Yat Holdings Ltd ($638) | 7.9% | 9.8% | 4.6% | 7.5% | 4.8% |
| Green International Holdings Ltd ($2700) | 0.1% | 0.2% | 3.2% | 6.5% | |
| Kader Holdings Co Ltd ($180) | 4.0% | 3.5% | 3.7% | 2.8% | |
| |
|---|
| Median (9 companies) | 5.8% | 4.7% | 3.7% | 2.8% | 4.8% |
|---|
| Playmates Toys Ltd ($869) | 0.9% | 0.0% | 0.0% | 0.2% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Matrix Holdings Ltd ($1005) | 5.8% | 5.9% | 13.1% | 18.6% | 21.2% |
| Dream International Ltd ($1126) | 12.4% | 19.3% | 19.4% | 13.3% | 19.4% |
| Playmates Holdings Ltd ($635) | -1.0% | 2.4% | 12.6% | 12.0% | 7.9% |
| Quali-Smart Holdings Ltd ($1348) | 24.2% | 31.3% | 16.2% | 9.1% | -0.3% |
| Kin Yat Holdings Ltd ($638) | 11.4% | -0.7% | 4.5% | 4.9% | 6.2% |
| |
|---|
| Median (9 companies) | 8.6% | 2.4% | 4.5% | 4.9% | 7.9% |
|---|
| Playmates Toys Ltd ($869) | -48.9% | 30.7% | 121.1% | 73.0% | 36.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kader Holdings Co Ltd ($180) | | | | 9.6x | |
| Leyou Technologies Holdings Ltd ($1089) | -1.4x | 1.1x | 4.4x | 3.8x | |
| Quali-Smart Holdings Ltd ($1348) | 1.2x | 0.6x | -0.7x | 0.9x | 4.5x |
| Kin Yat Holdings Ltd ($638) | 0.0x | 1.6x | 0.3x | 0.4x | -0.0x |
| Matrix Holdings Ltd ($1005) | 0.5x | 0.6x | 0.0x | -0.2x | -0.6x |
| |
|---|
| Median (7 companies) | 0.2x | 0.6x | -0.2x | 0.4x | -0.6x |
|---|
| Playmates Toys Ltd ($869) | | -2.9x | -0.9x | -1.2x | -2.2x |
