DeTeam Co Ltd reports 328% CAPEX growth while 28.3% Revenue decline
31/03/2016 • About DeTeam Co Ltd (
$65) • By InTwits
DeTeam Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- DeTeam Co Ltd is a company in decline: 2015 revenue growth was -28.3%, 5 years revenue CAGR was -5.2%
- EBITDA Margin is quite volatile: 24.3% in 2015, -1.3% in 2014, 3.9% in 2013, 8.0% in 2012, 4.3% in 2011
- DeTeam Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.3%. At the same time it's a lot of higher than industry average of 8.6%.
- CAPEX is quite volatile: 81.4 in 2015, 19.0 in 2014, 134 in 2013, 28.8 in 2012, 68.9 in 2011
- The company has unprofitable business model: ROIC is at -0.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
DeTeam Co Ltd ($65) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 494.5 | 430.5 | 286.1 | 342.9 | 245.8 | -28.3% |
| Gross Profit | 68.9 | 76.0 | 44.9 | 106.3 | 92.2 | -13.3% |
| SG&A | | 68.6 | 70.4 | 100.6 | 139.8 | 39.1% |
| EBITDA | 21.4 | 34.4 | 11.0 | -4.5 | 59.8 | -1,436.9% |
| Net Income | -2.3 | -25.4 | -35.1 | -113.1 | -170.8 | 51.0% |
Balance Sheet
|
|---|
| Cash | 37.1 | 34.5 | 16.9 | 105.4 | 48.2 | -54.3% |
| Short Term Debt | 49.0 | 0.0 | 0.0 | 19.7 | 15.3 | -22.2% |
| Long Term Debt | 50.1 | 51.6 | 85.1 | 87.8 | 54.4 | -38.1% |
Cash flow
|
|---|
| Capex | 68.9 | 28.8 | 134.5 | 19.0 | 81.4 | 327.8% |
Ratios
|
|---|
| Revenue growth | 54.3% | -12.9% | -33.5% | 19.8% | -28.3% | |
| EBITDA growth | -47.3% | 60.8% | -67.9% | -140.6% | -1,436.9% | |
| Gross Margin | 13.9% | 17.7% | 15.7% | 31.0% | 37.5% | 6.5% |
| EBITDA Margin | 4.3% | 8.0% | 3.9% | -1.3% | 24.3% | 25.6% |
| Net Income Margin | -0.5% | -5.9% | -12.3% | -33.0% | -69.5% | -36.5% |
| SG&A, % of revenue | | 15.9% | 24.6% | 29.3% | 56.9% | 27.6% |
| CAPEX, % of revenue | 13.9% | 6.7% | 47.0% | 5.6% | 33.1% | 27.6% |
| ROIC | -1.7% | -0.8% | -5.8% | -10.0% | -0.0% | 10.0% |
| ROE | -0.5% | -5.5% | -7.4% | -24.4% | -44.4% | -20.0% |
| Net Debt/EBITDA | 2.9x | 0.5x | 6.2x | | 0.4x | 0.4x |
Revenue and profitability
The company's Revenue dropped on 28.3% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 25.6 pp from -1.3% to 24.3% in 2015.
Gross Margin increased on 6.5 pp from 31.0% to 37.5% in 2015. SG&A as a % of Revenue jumped on 27.6 pp from 29.3% to 56.9% in 2015.
Net Income marign dropped on 36.5 pp from -33.0% to -69.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 33.1%. DeTeam Co Ltd's CAPEX/Revenue surged on 26.4 pp from 6.7% in 2012 to 33.1% in 2015. It's average CAPEX/Revenue for the last three years was 28.6%.Battling declining revenue the company made large investments to CAPEX (136% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-0.01%) and ROE (-44.38%). ROIC increased on 10.0 pp from -10.0% to -0.0086% in 2015. ROE dropped on 20.0 pp from -24.4% to -44.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.4x and Debt / EBITDA is 1.2x. Net Debt / EBITDA surged0.4x from to 0.4x in 2015. Debt dropped on 35.2% in 2015 while cash dropped on 54.3% in 2015.
Appendix 1: Peers in Miscellaneous Manufactur
Below we provide DeTeam Co Ltd benchmarking against other companies in Miscellaneous Manufactur 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 |
|---|
| Karrie International Hldgs ($1050) | | -11.6% | 0.1% | -11.3% | 27.4% |
| Sunny Optical Technology Group Co Ltd ($2382) | | 59.5% | 45.9% | 45.0% | 26.9% |
| TK Group Holdings Ltd ($2283) | | 40.2% | 9.3% | 11.8% | 20.0% |
| Yusei Holdings Ltd ($96) | | 18.4% | -9.3% | 6.7% | 15.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | | 1.5% | 22.2% | 43.2% | 11.7% |
| |
|---|
| Median (25 companies) | | -1.8% | 0.1% | 6.7% | -4.8% |
|---|
| DeTeam Co Ltd ($65) | | -12.9% | -33.5% | 19.8% | -28.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Man Sang International Ltd ($938) | 34.7% | 42.4% | 32.8% | 60.3% | 78.6% |
| Time Watch Investments Ltd ($2033) | 58.5% | 60.2% | 60.6% | 65.0% | 68.1% |
| China Environmental Energy Investment Ltd ($986) | 21.0% | 14.0% | 1.2% | 9.0% | 49.2% |
| Lee & Man Chemical Co Ltd ($746) | 46.7% | 34.3% | 35.7% | 41.9% | 39.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 35.0% | 33.2% | 35.1% | 37.4% | 38.7% |
| |
|---|
| Median (24 companies) | 21.0% | 19.8% | 20.8% | 23.4% | 22.4% |
|---|
| DeTeam Co Ltd ($65) | 13.9% | 17.7% | 15.7% | 31.0% | 37.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lee & Man Chemical Co Ltd ($746) | 42.8% | 30.4% | 31.3% | 38.4% | 37.6% |
| Man Sang International Ltd ($938) | 18.7% | 24.9% | 15.4% | 37.0% | 33.8% |
| IPE Group Ltd ($929) | 24.9% | 25.6% | 22.5% | 29.5% | 29.1% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 19.5% | 18.4% | 19.8% | 20.6% | 24.2% |
| Time Watch Investments Ltd ($2033) | 16.8% | 17.6% | 16.8% | 19.4% | 20.5% |
| |
|---|
| Median (25 companies) | 10.7% | 8.1% | 9.8% | 9.8% | 7.9% |
|---|
| DeTeam Co Ltd ($65) | 4.3% | 8.0% | 3.9% | -1.3% | 24.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Environmental Energy Investment Ltd ($986) | 77.7% | 6.1% | 0.4% | 17.9% | 47.6% |
| Lee & Man Chemical Co Ltd ($746) | 1.4% | 5.8% | 51.1% | 33.7% | 22.8% |
| China International Marine Containers Group Co Ltd ($2039) | 4.7% | 3.9% | 12.1% | 18.5% | 21.2% |
| IPE Group Ltd ($929) | 7.1% | 6.3% | 13.3% | 12.3% | 13.3% |
| Yusei Holdings Ltd ($96) | 11.3% | 3.3% | 4.2% | 3.8% | 9.3% |
| |
|---|
| Median (25 companies) | 5.0% | 4.7% | 4.2% | 4.2% | 4.3% |
|---|
| DeTeam Co Ltd ($65) | 13.9% | 6.7% | 47.0% | 5.6% | 33.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Time Watch Investments Ltd ($2033) | 30.5% | 34.5% | 27.1% | 27.8% | 27.9% |
| TK Group Holdings Ltd ($2283) | 34.0% | 36.8% | 31.1% | 29.4% | 27.6% |
| Zhuzhou CSR Times Electric Co Ltd ($3898) | 21.4% | 16.9% | 17.7% | 20.0% | 21.1% |
| Sunny Optical Technology Group Co Ltd ($2382) | 12.2% | 19.7% | 17.8% | 16.5% | 19.4% |
| Yusei Holdings Ltd ($96) | 8.0% | 4.2% | 7.0% | 13.6% | 14.1% |
| |
|---|
| Median (25 companies) | 8.0% | 4.4% | 4.4% | 4.4% | 1.6% |
|---|
| DeTeam Co Ltd ($65) | -1.7% | -0.8% | -5.8% | -10.0% | -0.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Continental Holdings Ltd ($513) | 8.3x | | 20.1x | 92.9x | 4,203.6x |
| South China China Ltd ($413) | 2.3x | | 37.5x | 2,842.3x | 27.3x |
| Launch Tech Co Ltd ($2488) | -0.4x | 7.6x | 2.4x | 3.9x | 14.5x |
| China International Marine Containers Group Co Ltd ($2039) | 2.8x | 4.0x | 4.7x | 5.8x | 9.8x |
| VS International Group Ltd ($1002) | 8.6x | 5.1x | 6.5x | 4.4x | 3.3x |
| |
|---|
| Median (22 companies) | -0.3x | -0.3x | -0.3x | -0.1x | -0.2x |
|---|
| DeTeam Co Ltd ($65) | 2.9x | 0.5x | 6.2x | | 0.4x |
