Cw Group Holdings Ltd revenue growth decelerated to 48.4% in 2015 vs. 69.5% a year earliner
29/03/2016 • About Cw Group Holdings Ltd (
$1322) • By InTwits
Cw Group Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cw Group Holdings Ltd is a fast growth stock: 2015 revenue growth was 48.4%, 5 year revenue CAGR was 39.2% at 2015 ROIC 15.9%
- EBITDA Margin is declining: 13.8% in 2015 vs. 15.2% in 2014 vs. 18.8% in 2011
- Cw Group Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has highly profitable business model: ROIC is at 15.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.8x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cw Group Holdings Ltd ($1322) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 754 | 777 | 976 | 1,655 | 2,456 | 48.4% |
| Gross Profit | 179 | 213 | 192 | 298 | 412 | 38.3% |
| SG&A | | 92 | 44 | 53 | 84 | 57.9% |
| EBITDA | 142 | 150 | 157 | 252 | 338 | 34.1% |
| Net Income | 68 | 55 | 130 | 304 | 220 | -27.7% |
Balance Sheet
|
|---|
| Cash | 32 | 128 | 28 | 81 | 444 | 451.4% |
| Short Term Debt | 118 | 162 | 297 | 487 | 649 | 33.1% |
| Long Term Debt | 2 | 0 | 1 | 15 | 408 | 2,578.6% |
Cash flow
|
|---|
| Capex | 13 | 16 | 3 | 6 | 12 | 119.2% |
Ratios
|
|---|
| Revenue growth | 60.5% | 3.1% | 25.7% | 69.5% | 48.4% | |
| EBITDA growth | 15.9% | 5.8% | 4.3% | 60.8% | 34.1% | |
| Gross Margin | 23.8% | 27.4% | 19.7% | 18.0% | 16.8% | -1.2% |
| EBITDA Margin | 18.8% | 19.3% | 16.0% | 15.2% | 13.8% | -1.5% |
| Net Income Margin | 9.0% | 7.1% | 13.3% | 18.4% | 9.0% | -9.4% |
| SG&A, % of revenue | | 11.8% | 4.5% | 3.2% | 3.4% | 0.2% |
| CAPEX, % of revenue | 1.7% | 2.1% | 0.4% | 0.3% | 0.5% | 0.2% |
| ROIC | 34.8% | 21.4% | 16.9% | 19.4% | 15.9% | -3.4% |
| ROE | 37.8% | 14.0% | 20.6% | 36.8% | 17.8% | -19.0% |
| Net Debt/EBITDA | 0.6x | 0.2x | 1.7x | 1.7x | 1.8x | 0.1x |
Revenue and profitability
The company's Revenue jumped on 48.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.59 pp from 13.1% to 13.7% in 2015.
Gross Margin decreased slightly on 1.2 pp from 18.0% to 16.8% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 9.4 pp from 18.4% to 9.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.50% in 2015. CAPEX/Revenue decreased slightly on 1.6 pp from 2.1% in 2012 to 0.50% in 2015. Average CAPEX/Revenue for the last three years was 0.40%.
Return on investment
The company operates at good ROIC (15.92%) and ROE (17.81%). ROIC decreased on 3.4 pp from 19.4% to 15.9% in 2015. ROE dropped on 19.0 pp from 36.8% to 17.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is 3.1x. Net Debt / EBITDA jumped on 0.1x from 1.7x to 1.8x in 2015. Debt jumped on 110% in 2015 while cash surged on 451% in 2015.
Appendix 1: Peers in Hand/Machine Tools
Below we provide Cw Group Holdings Ltd benchmarking against other companies in Hand/Machine Tools 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Techtronic Industries Co Ltd ($669) | | 5.1% | 11.6% | 10.5% | 6.0% |
| Chongqing Machinery & Electric Co Ltd ($2722) | 18.7% | -15.5% | 8.9% | -2.2% | |
| |
|---|
| Median (2 companies) | 18.7% | 5.1% | 8.9% | 4.2% | 6.0% |
|---|
| Cw Group Holdings Ltd ($1322) | | 3.1% | 25.7% | 69.5% | 48.4% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Techtronic Industries Co Ltd ($669) | 32.6% | 33.5% | 34.2% | 35.2% | 35.7% |
| Chongqing Machinery & Electric Co Ltd ($2722) | 18.6% | 11.6% | 11.2% | 11.2% | |
| |
|---|
| Median (2 companies) | 18.6% | 33.5% | 34.2% | 23.2% | 35.7% |
|---|
| Cw Group Holdings Ltd ($1322) | 23.8% | 27.4% | 19.7% | 18.0% | 16.8% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Techtronic Industries Co Ltd ($669) | 9.3% | 10.2% | 10.0% | 10.6% | 11.4% |
| Chongqing Machinery & Electric Co Ltd ($2722) | 10.1% | 4.1% | 4.2% | 4.2% | |
| |
|---|
| Median (2 companies) | 9.3% | 10.2% | 10.0% | 7.4% | 11.4% |
|---|
| Cw Group Holdings Ltd ($1322) | 18.8% | 19.3% | 16.0% | 15.2% | 13.8% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chongqing Machinery & Electric Co Ltd ($2722) | 4.1% | 5.0% | 6.0% | 7.7% | |
| Techtronic Industries Co Ltd ($669) | 2.6% | 2.7% | 2.4% | 3.0% | 3.2% |
| |
|---|
| Median (2 companies) | 4.0% | 2.7% | 2.4% | 5.4% | 3.2% |
|---|
| Cw Group Holdings Ltd ($1322) | 1.7% | 2.1% | 0.4% | 0.3% | 0.5% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Techtronic Industries Co Ltd ($669) | 8.8% | 10.3% | 10.9% | 12.9% | 13.3% |
| Chongqing Machinery & Electric Co Ltd ($2722) | 12.4% | 2.1% | 2.4% | 2.0% | |
| Genvon Group Ltd ($2389) | -4.4% | 22.4% | 5.7% | -0.7% | -4.7% |
| |
|---|
| Median (3 companies) | 8.8% | 10.3% | 5.7% | 2.0% | 4.3% |
|---|
| Cw Group Holdings Ltd ($1322) | 34.8% | 21.4% | 16.9% | 19.4% | 15.9% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chongqing Machinery & Electric Co Ltd ($2722) | -0.1x | 0.4x | 1.7x | 3.2x | |
| Techtronic Industries Co Ltd ($669) | 2.4x | 1.2x | 0.6x | 0.5x | 0.6x |
| |
|---|
| Median (2 companies) | 1.1x | 0.6x | 1.7x | 1.9x | 0.6x |
|---|
| Cw Group Holdings Ltd ($1322) | 0.6x | 0.2x | 1.7x | 1.7x | 1.8x |
