Silverman Holdings Ltd Debt jumped on 27.7% in 2015 and Net Debt / EBITDA jumped on 1.2x from 2.0x to 3.2x
29/03/2016 • About Silverman Holdings Ltd (
$1616) • By InTwits
Silverman Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Silverman Holdings Ltd is a company in decline: 2015 revenue growth was -13.9%, 5 years revenue CAGR was -3.3%
- EBITDA Margin is quite volatile: 13.2% in 2015, 12.3% in 2014, 9.6% in 2013, 17.1% in 2012, 26.9% in 2011
- Silverman Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.2%. At the same time it's a lot of higher than industry average of 5.7%.
- CAPEX is quite volatile: 28.7 in 2015, 63.5 in 2014, 139 in 2013, 56.8 in 2012, 81.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.4%
- It operates with high leverage: Net Debt/EBITDA is 3.2x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Silverman Holdings Ltd ($1616) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 927.8 | 871.4 | 774.6 | 759.8 | 654.0 | -13.9% |
| Gross Profit | 230.1 | 170.3 | 93.2 | 103.0 | 101.1 | -1.9% |
| SG&A | | 74.3 | 67.1 | 78.6 | 80.6 | 2.5% |
| EBITDA | 249.3 | 148.6 | 74.4 | 93.4 | 86.6 | -7.3% |
| Net Income | 162.1 | 74.0 | 21.6 | 7.6 | 7.3 | -3.9% |
Balance Sheet
|
|---|
| Cash | 130.2 | 136.6 | 102.4 | 122.4 | 113.3 | -7.4% |
| Short Term Debt | 404.6 | 359.9 | 246.6 | 276.4 | 389.0 | 40.8% |
| Long Term Debt | 14.7 | 0.0 | 41.2 | 31.3 | 3.9 | -87.7% |
Cash flow
|
|---|
| Capex | 81.1 | 56.8 | 139.3 | 63.5 | 28.7 | -54.8% |
Ratios
|
|---|
| Revenue growth | 19.9% | -6.1% | -11.1% | -1.9% | -13.9% | |
| EBITDA growth | 27.1% | -40.4% | -49.9% | 25.5% | -7.3% | |
| Gross Margin | 24.8% | 19.5% | 12.0% | 13.6% | 15.5% | 1.9% |
| EBITDA Margin | 26.9% | 17.1% | 9.6% | 12.3% | 13.2% | 1.0% |
| Net Income Margin | 17.5% | 8.5% | 2.8% | 1.0% | 1.1% | 0.1% |
| SG&A, % of revenue | | 8.5% | 8.7% | 10.4% | 12.3% | 2.0% |
| CAPEX, % of revenue | 8.7% | 6.5% | 18.0% | 8.4% | 4.4% | -4.0% |
| ROIC | 31.4% | 10.8% | 0.9% | 2.9% | 2.4% | -0.4% |
| ROE | 91.6% | 17.6% | 3.6% | 1.3% | 1.0% | -0.3% |
| Net Debt/EBITDA | 1.2x | 1.5x | 2.5x | 2.0x | 3.2x | 1.2x |
Revenue and profitability
Silverman Holdings Ltd's Revenue dropped on 13.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.95 pp from 12.3% to 13.2% in 2015.
Gross Margin increased slightly on 1.9 pp from 13.6% to 15.5% in 2015. SG&A as a % of Revenue increased slightly on 2.0 pp from 10.4% to 12.3% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 4.4%. Silverman Holdings Ltd's CAPEX/Revenue decreased on 2.1 pp from 6.5% in 2012 to 4.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 10.2%.
Return on investment
The company operates at low ROIC (2.43%) and ROE (0.99%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 3.2x Net Debt / EBITDA and 4.5x Debt / EBITDA. Net Debt / EBITDA jumped on 1.2x from 2.0x to 3.2x in 2015. Debt surged on 27.7% in 2015 while cash decreased on 7.4% in 2015.
Appendix 1: Peers in Textiles
Below you can find Silverman Holdings Ltd benchmarking vs. other companies in Textiles 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 |
|---|
| China Weaving Materials Holdings Ltd ($3778) | | -15.4% | -4.2% | -3.8% | 53.9% |
| Easyknit Enterprises Holdings Ltd ($616) | | 9.6% | 10.2% | 7.3% | 22.3% |
| Kingdom Holding Co Ltd ($528) | | 1.1% | 6.0% | 20.0% | 12.2% |
| Kam Hing International Holdings Ltd ($2307) | | 0.9% | -4.3% | 1.6% | 4.2% |
| Zhejiang Yonglong Enterprises Co Ltd ($8211) | | -33.5% | 58.8% | -8.6% | 1.8% |
| |
|---|
| Median (17 companies) | -5.2% | 0.5% | -4.2% | -10.1% | -4.4% |
|---|
| Silverman Holdings Ltd ($1616) | | -6.1% | -11.1% | -1.9% | -13.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Art Textile Technology International Co Ltd ($565) | 13.9% | 9.4% | 11.8% | 18.0% | 81.8% |
| TAI Ping Carpet International Ltd ($146) | 40.4% | 41.0% | 45.4% | 46.7% | 46.6% |
| Texwinca Holdings Ltd ($321) | 33.7% | 29.6% | 30.9% | 33.3% | 34.1% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 5.6% | 4.9% | 7.3% | 24.9% | 28.8% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 30.3% | 31.1% | 32.5% | 32.5% | 28.3% |
| |
|---|
| Median (16 companies) | 15.3% | 16.7% | 17.2% | 15.3% | 18.2% |
|---|
| Silverman Holdings Ltd ($1616) | 24.8% | 19.5% | 12.0% | 13.6% | 15.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Weiqiao Textile Co ($2698) | 10.2% | 17.5% | 20.2% | 21.4% | 30.8% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 26.2% | 28.1% | 28.7% | 30.2% | 23.4% |
| Kingdom Holding Co Ltd ($528) | 29.3% | 26.3% | 25.3% | 24.8% | 23.0% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 3.2% | 2.5% | 5.1% | 17.5% | 18.9% |
| Pacific Textiles Holdings Ltd ($1382) | 19.5% | 19.1% | 19.0% | 19.5% | 18.4% |
| |
|---|
| Median (16 companies) | 12.5% | 10.3% | 10.4% | 11.7% | 11.2% |
|---|
| Silverman Holdings Ltd ($1616) | 26.9% | 17.1% | 9.6% | 12.3% | 13.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Art Textile Technology International Co Ltd ($565) | 2.6% | 1.0% | 1.9% | 3.9% | 105.3% |
| Kam Hing International Holdings Ltd ($2307) | 5.5% | 10.6% | 10.5% | 7.6% | 8.3% |
| TAI Ping Carpet International Ltd ($146) | 6.3% | 8.2% | 10.1% | 6.9% | 7.4% |
| Victory City International Holdings Ltd ($539) | 2.3% | 4.2% | 10.1% | 8.6% | 6.8% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 0.6% | 0.3% | 0.4% | 3.2% | 6.1% |
| |
|---|
| Median (16 companies) | 2.5% | 2.6% | 1.7% | 3.7% | 3.4% |
|---|
| Silverman Holdings Ltd ($1616) | 8.7% | 6.5% | 18.0% | 8.4% | 4.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pacific Textiles Holdings Ltd ($1382) | 28.8% | 23.7% | 26.4% | 31.6% | 25.9% |
| Yongsheng Advanced Materials Co Ltd ($3608) | 7.9% | 6.2% | 13.2% | 15.4% | 19.6% |
| Kingdom Holding Co Ltd ($528) | 16.3% | 13.8% | 12.7% | 13.8% | 12.7% |
| CECEP COSTIN New Materials Group Ltd ($2228) | 24.2% | 22.3% | 20.1% | 17.6% | 11.0% |
| Texwinca Holdings Ltd ($321) | 15.5% | 8.3% | 5.3% | 5.5% | 8.1% |
| |
|---|
| Median (17 companies) | 7.3% | 5.1% | 5.3% | 4.2% | 6.1% |
|---|
| Silverman Holdings Ltd ($1616) | 31.4% | 10.8% | 0.9% | 2.9% | 2.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Guangdong Tannery Ltd ($1058) | 8.9x | 6.5x | 5.8x | 11.6x | |
| Sijia Group Co ($1863) | -0.1x | 1.6x | 5.3x | 6.4x | |
| China Weaving Materials Holdings Ltd ($3778) | 1.3x | 3.6x | 3.0x | 5.3x | 5.5x |
| Co-Prosperity Holdings Ltd ($707) | 8.3x | 34.8x | | 4.5x | |
| Victory City International Holdings Ltd ($539) | 1.8x | 1.5x | 2.0x | 3.2x | 2.5x |
| |
|---|
| Median (18 companies) | 1.3x | 1.5x | 0.6x | 0.5x | 0.1x |
|---|
| Silverman Holdings Ltd ($1616) | 1.2x | 1.5x | 2.5x | 2.0x | 3.2x |
