Carpenter Tan Holdings Ltd reports 11.0% EBITDA decline and 7.4% Revenue decline
28/03/2016 • About Carpenter Tan Holdings Ltd (
$837) • By InTwits
Carpenter Tan Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Carpenter Tan Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has highly profitable business model: ROIC is at 17.6%
- It operates with high leverage: Net Debt/EBITDA is -1.5x while industry average is -2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Carpenter Tan Holdings Ltd ($837) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 244.0 | 272.0 | 280.9 | 298.3 | 276.1 | -7.4% |
| Gross Profit | 166.9 | 182.0 | 188.3 | 196.3 | 178.1 | -9.3% |
| SG&A | | 57.0 | 61.5 | 62.0 | 60.6 | -2.2% |
| EBITDA | 128.8 | 133.2 | 135.0 | 144.8 | 129.0 | -11.0% |
| Net Income | 93.6 | 126.2 | 125.9 | 128.8 | 119.9 | -6.9% |
Balance Sheet
|
|---|
| Cash | 250.8 | 330.1 | 355.2 | 258.8 | 194.1 | -25.0% |
| Short Term Debt | 0.0 | 0.0 | 66.8 | 134.1 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.3 | 2.2 | 3.2 | 2.0 | 2.9 | 45.4% |
Ratios
|
|---|
| Revenue growth | 28.8% | 11.5% | 3.3% | 6.2% | -7.4% | |
| EBITDA growth | 51.6% | 3.4% | 1.4% | 7.3% | -11.0% | |
| Gross Margin | 68.4% | 66.9% | 67.0% | 65.8% | 64.5% | -1.3% |
| EBITDA Margin | 52.8% | 49.0% | 48.1% | 48.6% | 46.7% | -1.8% |
| Net Income Margin | 38.3% | 46.4% | 44.8% | 43.2% | 43.4% | 0.3% |
| SG&A, % of revenue | | 21.0% | 21.9% | 20.8% | 22.0% | 1.2% |
| CAPEX, % of revenue | 0.9% | 0.8% | 1.1% | 0.7% | 1.1% | 0.4% |
| ROIC | 35.2% | 30.3% | 24.6% | 20.7% | 17.6% | -3.1% |
| ROE | 28.3% | 31.5% | 26.6% | 23.8% | 19.9% | -3.8% |
| Net Debt/EBITDA | -1.9x | -2.5x | -2.1x | -0.9x | -1.5x | -0.6x |
Revenue and profitability
Carpenter Tan Holdings Ltd's Revenue decreased on 7.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 48.6% to 46.7% in 2015.
Gross Margin decreased slightly on 1.3 pp from 65.8% to 64.5% in 2015. SG&A as a % of Revenue increased slightly on 1.2 pp from 20.8% to 22.0% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Carpenter Tan Holdings Ltd's CAPEX/Revenue was 1.1% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.95%.
Return on investment
The company operates at good ROIC (17.59%) and ROE (19.95%). ROIC decreased on 3.1 pp from 20.7% to 17.6% in 2015. ROE decreased on 3.8 pp from 23.8% to 19.9% in 2015.
Leverage (Debt)
The company paid down all the debt in 2015. Cash dropped on 25.0% in 2015.
Appendix 1: Peers in Household Products/Wares
Below you can find Carpenter Tan Holdings Ltd benchmarking vs. other companies in Household Products/Wares 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 |
|---|
| Lisi Group Holdings Ltd ($526) | | 2.5% | -23.5% | 160.0% | 47.9% |
| Goodbaby International Holdings Ltd ($1086) | 5.9% | 15.5% | -8.0% | 46.0% | |
| Tempus Holdings Ltd ($6880) | | 17.3% | 5.5% | 31.1% | 14.7% |
| Samsonite International SA ($1910) | | 13.2% | 15.0% | 15.4% | 3.5% |
| eForce Holdings Ltd ($943) | -3.2% | 9.1% | 11.0% | 11.3% | |
| |
|---|
| Median (8 companies) | 1.3% | 11.1% | 4.6% | 13.3% | 9.1% |
|---|
| Carpenter Tan Holdings Ltd ($837) | | 11.5% | 3.3% | 6.2% | -7.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tempus Holdings Ltd ($6880) | 71.5% | 68.4% | 64.8% | 64.6% | 65.5% |
| Biostime International Holdings Ltd ($1112) | 66.5% | 65.9% | 65.2% | 61.9% | |
| Samsonite International SA ($1910) | 54.8% | 53.7% | 53.4% | 52.9% | 52.6% |
| eForce Holdings Ltd ($943) | 14.0% | 21.2% | 24.3% | 25.6% | |
| Goodbaby International Holdings Ltd ($1086) | 17.1% | 19.1% | 22.9% | 25.0% | |
| |
|---|
| Median (8 companies) | 21.5% | 23.1% | 23.6% | 25.3% | 37.5% |
|---|
| Carpenter Tan Holdings Ltd ($837) | 68.4% | 66.9% | 67.0% | 65.8% | 64.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biostime International Holdings Ltd ($1112) | 30.0% | 30.4% | 27.6% | 24.3% | |
| Lerado Group Holding Co Ltd ($1225) | 6.6% | 8.6% | 25.2% | 20.9% | |
| Samsonite International SA ($1910) | 15.9% | 15.9% | 16.0% | 14.9% | 15.1% |
| Goodbaby International Holdings Ltd ($1086) | 5.8% | 7.1% | 7.4% | 4.9% | |
| Lisi Group Holdings Ltd ($526) | 11.7% | 11.8% | -0.3% | 4.4% | 10.0% |
| |
|---|
| Median (8 companies) | 13.1% | 10.8% | 7.3% | 4.7% | 7.6% |
|---|
| Carpenter Tan Holdings Ltd ($837) | 52.8% | 49.0% | 48.1% | 48.6% | 46.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lerado Group Holding Co Ltd ($1225) | 4.3% | 3.0% | 75.4% | 18.8% | |
| Lisi Group Holdings Ltd ($526) | 7.9% | 7.1% | 11.3% | 6.1% | 13.1% |
| Samsonite International SA ($1910) | 2.4% | 2.1% | 2.8% | 3.0% | 2.8% |
| Biostime International Holdings Ltd ($1112) | 1.8% | 1.2% | 3.0% | 2.8% | |
| Tempus Holdings Ltd ($6880) | 1.0% | 0.9% | 4.0% | 2.8% | 2.4% |
| |
|---|
| Median (8 companies) | 3.1% | 2.5% | 2.9% | 2.8% | 2.6% |
|---|
| Carpenter Tan Holdings Ltd ($837) | 0.9% | 0.8% | 1.1% | 0.7% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biostime International Holdings Ltd ($1112) | 34.3% | 41.7% | 39.9% | 24.7% | |
| Samsonite International SA ($1910) | 18.5% | 20.8% | 21.8% | 21.1% | 20.3% |
| Goodbaby International Holdings Ltd ($1086) | 7.3% | 10.7% | 8.8% | 3.9% | |
| Tempus Holdings Ltd ($6880) | 34.9% | 18.2% | 1.3% | 2.5% | 4.2% |
| Lisi Group Holdings Ltd ($526) | 8.0% | 6.4% | -4.7% | 0.1% | 1.8% |
| |
|---|
| Median (8 companies) | 13.2% | 10.7% | 4.0% | 1.3% | 3.0% |
|---|
| Carpenter Tan Holdings Ltd ($837) | 35.2% | 30.3% | 24.6% | 20.7% | 17.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lisi Group Holdings Ltd ($526) | 2.9x | 3.4x | | 36.8x | 9.6x |
| Goodbaby International Holdings Ltd ($1086) | -2.0x | -1.3x | -0.5x | 5.9x | |
| Biostime International Holdings Ltd ($1112) | -2.3x | -0.4x | -0.0x | -0.0x | |
| Samsonite International SA ($1910) | -0.5x | -0.4x | -0.6x | -0.2x | -0.3x |
| Tempus Holdings Ltd ($6880) | -2.0x | -5.2x | -25.8x | -14.3x | -9.6x |
| |
|---|
| Median (6 companies) | -0.8x | -0.4x | -0.6x | -0.1x | -1.4x |
|---|
| Carpenter Tan Holdings Ltd ($837) | -1.9x | -2.5x | -2.1x | -0.9x | -1.5x |
