Mastercraft International Holdings Ltd reports 38.9% Net Income decline and 2.9 pp EBITDA Margin decline from 8.5% to 5.6%
31/03/2016 • About Mastercraft International Holdings Ltd (
$8146) • By InTwits
Mastercraft International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mastercraft International Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has highly profitable business model: ROIC is at 23.2%
- It operates with high leverage: Net Debt/EBITDA is -0.9x while industry average is -1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mastercraft International Holdings Ltd ($8146) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 264.5 | 331.3 | 353.1 | 373.2 | 389.7 | 4.4% |
| Gross Profit | 48.0 | 68.5 | 76.3 | 83.0 | 77.2 | -7.0% |
| SG&A | | 39.0 | 42.5 | 46.7 | 52.3 | 11.8% |
| EBITDA | 20.2 | 24.6 | 28.8 | 31.8 | 21.7 | -31.7% |
| Net Income | 9.6 | 14.3 | 21.2 | 23.6 | 14.4 | -38.9% |
Balance Sheet
|
|---|
| Cash | 3.4 | 20.6 | 25.4 | 21.8 | 20.0 | -8.1% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.8 | 0.3 | 3.5 | 1.6 | 1.2 | -20.4% |
Ratios
|
|---|
| Revenue growth | 33.2% | 25.3% | 6.6% | 5.7% | 4.4% | |
| EBITDA growth | 16.7% | 22.2% | 16.8% | 10.4% | -31.7% | |
| Gross Margin | 18.2% | 20.7% | 21.6% | 22.2% | 19.8% | -2.4% |
| EBITDA Margin | 7.6% | 7.4% | 8.2% | 8.5% | 5.6% | -2.9% |
| Net Income Margin | 3.6% | 4.3% | 6.0% | 6.3% | 3.7% | -2.6% |
| SG&A, % of revenue | | 11.8% | 12.0% | 12.5% | 13.4% | 0.9% |
| CAPEX, % of revenue | 0.3% | 0.1% | 1.0% | 0.4% | 0.3% | -0.1% |
| ROIC | 76.2% | 54.4% | 38.6% | 36.4% | 23.2% | -13.3% |
| ROE | 49.7% | 35.9% | 29.8% | 29.0% | 16.8% | -12.1% |
| Net Debt/EBITDA | -0.2x | -0.8x | -0.9x | -0.7x | -0.9x | -0.2x |
Revenue and profitability
Mastercraft International Holdings Ltd's Revenue increased on 4.4% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.9 pp from 8.5% to 5.6% in 2015.
Gross Margin decreased on 2.4 pp from 22.2% to 19.8% in 2015. SG&A as a % of Revenue increased slightly on 0.88 pp from 12.5% to 13.4% in 2015.
Net Income marign decreased on 2.6 pp from 6.3% to 3.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Mastercraft International Holdings Ltd had CAPEX/Revenue of 0.32%. Mastercraft International Holdings Ltd showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 0.57%.
Return on investment
The company operates at high and attractive ROIC (23.17%) while ROE is a bit lower (16.81%). ROIC dropped on 13.3 pp from 36.4% to 23.2% in 2015. ROE dropped on 12.1 pp from 29.0% to 16.8% in 2015.
Leverage (Debt)
The company has no debt. Cash decreased on 8.1% in 2015.
Appendix 1: Peers in Home Furnishings
Below we provide Mastercraft International Holdings Ltd benchmarking against other companies in Home Furnishings 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 |
|---|
| BEP International Holdings Ltd ($2326) | | 44.7% | -41.5% | 46.2% | 187.9% |
| See Corp Ltd ($491) | | 13.7% | -31.9% | 134.1% | 126.9% |
| Sunrise China Technology Group Ltd ($8226) | | -93.0% | 21.9% | -20.4% | 77.5% |
| Yuxing InfoTech Investment Holdings Ltd ($8005) | | 29.6% | -21.2% | -16.5% | 21.3% |
| Aupu Group Holding Co Ltd ($477) | | 5.7% | 9.0% | 26.4% | 18.5% |
| |
|---|
| Median (25 companies) | -15.9% | -0.2% | 6.7% | 1.1% | -0.8% |
|---|
| Mastercraft International Holdings Ltd ($8146) | | 25.3% | 6.6% | 5.7% | 4.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| South East Group Ltd ($726) | 36.2% | 25.5% | 51.6% | 38.8% | 82.4% |
| Aupu Group Holding Co Ltd ($477) | 47.1% | 48.6% | 45.0% | 47.8% | 48.7% |
| Samson Holding Ltd ($531) | 24.9% | 25.6% | 25.4% | 27.3% | 27.3% |
| Gold Peak Industries Holding Ltd ($40) | 26.8% | 25.8% | 23.6% | 24.9% | 25.6% |
| Hing Lee HK Holdings Ltd ($396) | 23.1% | 16.3% | 18.7% | 22.7% | 22.9% |
| |
|---|
| Median (25 companies) | 16.4% | 17.3% | 16.8% | 15.9% | 15.5% |
|---|
| Mastercraft International Holdings Ltd ($8146) | 18.2% | 20.7% | 21.6% | 22.2% | 19.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 18.1% | 15.3% | 17.6% | 30.1% | 27.0% |
| Skyworth Digital Holdings Ltd ($751) | 7.0% | 6.0% | 6.1% | 5.7% | 11.3% |
| Welling Holding Ltd ($382) | 8.6% | 11.9% | 12.8% | 10.8% | 8.6% |
| Hing Lee HK Holdings Ltd ($396) | 9.3% | -3.0% | 4.3% | 9.4% | 8.2% |
| Raymond Industrial Ltd ($229) | 4.5% | 7.6% | 7.7% | 7.8% | 6.3% |
| |
|---|
| Median (25 companies) | 5.9% | 4.9% | 4.5% | 4.5% | 3.2% |
|---|
| Mastercraft International Holdings Ltd ($8146) | 7.6% | 7.4% | 8.2% | 8.5% | 5.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| JF Household Furnishings Ltd ($776) | 4.7% | 0.7% | 4.5% | 2.8% | 54.5% |
| Sunrise China Technology Group Ltd ($8226) | 7.9% | 126.4% | 69.3% | 7.4% | 14.1% |
| Royale Furniture Holdings Ltd ($1198) | 35.8% | | 14.1% | 16.5% | 10.5% |
| South East Group Ltd ($726) | 0.0% | 0.0% | 0.0% | 0.0% | 7.9% |
| Aupu Group Holding Co Ltd ($477) | 1.9% | 1.5% | 6.3% | 5.3% | 5.7% |
| |
|---|
| Median (25 companies) | 1.8% | 1.5% | 2.2% | 2.8% | 2.5% |
|---|
| Mastercraft International Holdings Ltd ($8146) | 0.3% | 0.1% | 1.0% | 0.4% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aupu Group Holding Co Ltd ($477) | 18.0% | 14.8% | 17.0% | 32.2% | 32.2% |
| Skyworth Digital Holdings Ltd ($751) | 11.7% | 11.6% | 13.4% | 10.9% | 23.0% |
| BEP International Holdings Ltd ($2326) | 218.9% | 90.3% | 4.7% | -4.5% | 17.6% |
| Tonly Electronics Holdings Ltd ($1249) | 7.0% | 4.2% | 7.1% | 15.9% | 11.7% |
| Welling Holding Ltd ($382) | 29.4% | 23.5% | 24.3% | 18.7% | 10.7% |
| |
|---|
| Median (25 companies) | 5.0% | 3.7% | 4.4% | 3.9% | 1.5% |
|---|
| Mastercraft International Holdings Ltd ($8146) | 76.2% | 54.4% | 38.6% | 36.4% | 23.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kasen International Holdings Ltd ($496) | 9.6x | 2.2x | 3.7x | 44.9x | 20.1x |
| Hisense Kelon Electrical Holdings Co Ltd ($921) | 3.3x | 1.2x | 0.9x | 1.0x | 6.4x |
| Gold Peak Industries Holding Ltd ($40) | 5.6x | 10.2x | 3.4x | 3.6x | 2.8x |
| TCL Multimedia Technology Holdings Ltd ($1070) | -0.0x | -0.3x | -2.3x | 0.7x | 0.5x |
| Skyworth Digital Holdings Ltd ($751) | 1.1x | 1.2x | 1.5x | 1.2x | -0.2x |
| |
|---|
| Median (16 companies) | 0.2x | -0.2x | -1.1x | -1.9x | -1.3x |
|---|
| Mastercraft International Holdings Ltd ($8146) | -0.2x | -0.8x | -0.9x | -0.7x | -0.9x |
