Multifield International Holdings Ltd Net Debt / EBITDA surged on 52.9x from 3.0x to 55.9x in 2015 while Revenue dropped on 78.1%
31/03/2016 • About Multifield International Holdings Ltd (
$898) • By InTwits
Multifield International Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Multifield International Holdings Ltd is a company in decline: 2015 revenue growth was -78.1%, 5 years revenue CAGR was -18.5%
- EBITDA Margin is quite volatile: 30.4% in 2015, 97.5% in 2014, 68.3% in 2013, 80.1% in 2012, 49.8% in 2011
- Multifield International Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 50.0%. At the same time it's a lot of higher than industry average of 38.8%.
- CAPEX is quite volatile: 18.1 in 2015, 26.3 in 2014, 91.0 in 2013, 1.1 in 2012, 250 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.2%
- It operates with high leverage: Net Debt/EBITDA is 55.9x while industry average is 7.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Multifield International Holdings Ltd ($898) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 141.6 | 282.6 | 216.0 | 353.5 | 77.3 | -78.1% |
| Gross Profit | 94.0 | 247.2 | 183.0 | 315.1 | 34.3 | -89.1% |
| SG&A | | | | 51.8 | 46.9 | -9.4% |
| EBITDA | 70.5 | 226.3 | 147.5 | 344.5 | 23.5 | -93.2% |
| Net Income | 172.4 | 535.6 | 710.5 | 480.1 | 659.6 | 37.4% |
Balance Sheet
|
|---|
| Cash | 154.4 | 206.9 | 181.6 | 320.8 | 541.6 | 68.8% |
| Short Term Debt | 1,002.8 | 922.0 | 1,254.2 | 1,340.4 | 1,854.3 | 38.3% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 249.8 | 1.1 | 91.0 | 26.3 | 18.1 | -31.2% |
Ratios
|
|---|
| Revenue growth | -34.3% | 99.7% | -23.6% | 63.6% | -78.1% | |
| EBITDA growth | -61.4% | 220.8% | -34.8% | 133.6% | -93.2% | |
| Gross Margin | 66.4% | 87.5% | 84.7% | 89.1% | 44.3% | -44.8% |
| EBITDA Margin | 49.8% | 80.1% | 68.3% | 97.5% | 30.4% | -67.1% |
| Net Income Margin | 121.8% | 189.5% | 328.9% | 135.8% | 853.1% | 717.3% |
| SG&A, % of revenue | | | | 14.6% | 60.6% | 46.0% |
| CAPEX, % of revenue | 176.4% | 0.4% | 42.1% | 7.4% | 23.4% | 16.0% |
| ROIC | 1.2% | 3.7% | 2.1% | 4.3% | 0.2% | -4.1% |
| ROE | 5.8% | 16.0% | 17.6% | 10.4% | 13.1% | 2.7% |
| Net Debt/EBITDA | 12.0x | 3.2x | 7.3x | 3.0x | 55.9x | 52.9x |
Revenue and profitability
The company's Revenue dropped on 78.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 67.1 pp from 97.5% to 30.4% in 2015.
Gross Margin dropped on 44.8 pp from 89.1% to 44.3% in 2015. SG&A as a % of Revenue surged on 46.0 pp from 14.6% to 60.6% in 2015.
Net Income marign jumped on 717 pp from 136% to 853% in 2015.
Capital expenditures (CAPEX) and working capital investments
Multifield International Holdings Ltd's CAPEX/Revenue was 23.4% in 2015. Multifield International Holdings Ltd showed fast CAPEX/Revenue growth of 23.0 pp from 0.40% in 2012 to 23.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 24.3%.Battling declining revenue the company invested a large share of EBITDA (77.0%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at good ROE (13.06%) while ROIC is low (0.19%). ROIC decreased on 4.1 pp from 4.3% to 0.19% in 2015. ROE increased on 2.7 pp from 10.4% to 13.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 55.9x and Debt / EBITDA is 78.9x. Net Debt / EBITDA jumped on 52.9x from 3.0x to 55.9x in 2015. Debt jumped on 38.3% in 2015 while cash jumped on 68.8% in 2015.
Appendix 1: Peers in Holding Companies-Divers
Below you can find Multifield International Holdings Ltd benchmarking vs. other companies in Holding Companies-Divers 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 |
|---|
| Beijing Development HK Ltd ($154) | | 12.5% | | | 1,048.9% |
| CIAM Group Ltd ($378) | | -62.2% | 47.9% | -40.0% | 211.5% |
| Melco International Development Ltd ($200) | | 16.5% | 21.7% | 3.0% | 134.9% |
| New Century Group Hong Kong Ltd ($234) | | -68.9% | 326.7% | -70.3% | 118.2% |
| Greater China Holdings Ltd ($431) | | -35.8% | -72.1% | 67.3% | 110.3% |
| |
|---|
| Median (41 companies) | -3.5% | 11.4% | 4.9% | 12.6% | 7.2% |
|---|
| Multifield International Holdings Ltd ($898) | | 99.7% | -23.6% | 63.6% | -78.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| New Century Group Hong Kong Ltd ($234) | 76.7% | 27.3% | 85.2% | 82.8% | 91.5% |
| Melco International Development Ltd ($200) | 72.0% | 63.1% | 52.9% | 54.5% | 79.4% |
| CIAM Group Ltd ($378) | | | | | 75.8% |
| Emperor International Holdings Ltd ($163) | 74.5% | 71.3% | 64.9% | 79.2% | 75.3% |
| Heng Fai Enterprises Ltd ($185) | 89.3% | 89.0% | 89.5% | 58.3% | 74.7% |
| |
|---|
| Median (37 companies) | 27.9% | 32.9% | 34.6% | 30.8% | 30.8% |
|---|
| Multifield International Holdings Ltd ($898) | 66.4% | 87.5% | 84.7% | 89.1% | 44.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| New Century Group Hong Kong Ltd ($234) | 82.5% | -5.5% | 78.8% | 58.3% | 85.0% |
| Emperor International Holdings Ltd ($163) | 224.8% | 180.7% | 131.8% | 100.6% | 73.9% |
| Pioneer Global Group Ltd ($224) | 111.2% | -0.5% | -9.9% | -11.6% | 64.3% |
| C C Land Holdings Ltd ($1224) | 22.0% | 27.0% | 23.6% | 24.6% | 55.7% |
| China Merchants Holdings International Co Ltd ($144) | 63.7% | 56.4% | 50.8% | 45.2% | 55.7% |
| |
|---|
| Median (41 companies) | 5.2% | 1.7% | 1.9% | 5.6% | 4.8% |
|---|
| Multifield International Holdings Ltd ($898) | 49.8% | 80.1% | 68.3% | 97.5% | 30.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heng Fai Enterprises Ltd ($185) | 217.5% | 4.8% | 77.1% | 310.0% | 458.1% |
| Chinney Investments Ltd ($216) | 37.6% | 17.5% | 103.4% | 111.3% | 230.9% |
| China Investments Holdings Ltd ($132) | 20.7% | 4.8% | 81.9% | 382.2% | 222.5% |
| Goldin Properties Holdings Ltd ($283) | | 2,178.4% | 1,190.0% | 50.1% | 202.4% |
| Emperor International Holdings Ltd ($163) | 93.5% | 100.9% | 48.5% | 105.9% | 110.6% |
| |
|---|
| Median (41 companies) | 4.1% | 2.7% | 3.6% | 6.1% | 6.0% |
|---|
| Multifield International Holdings Ltd ($898) | 176.4% | 0.4% | 42.1% | 7.4% | 23.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| C C Land Holdings Ltd ($1224) | 4.5% | 7.4% | 5.3% | 7.9% | 15.0% |
| Chinney Alliance Group Ltd ($385) | 3.4% | 6.4% | 8.1% | 13.6% | 15.0% |
| Top Spring International Holdings Ltd ($3688) | 27.9% | 15.6% | 6.9% | 7.3% | 8.0% |
| New Century Group Hong Kong Ltd ($234) | 8.6% | -1.7% | 11.7% | 1.7% | 7.3% |
| Chuang's China Investments Ltd ($298) | -0.9% | 22.9% | 1.5% | 2.2% | 6.1% |
| |
|---|
| Median (41 companies) | 0.3% | -0.2% | -0.2% | 0.5% | 0.2% |
|---|
| Multifield International Holdings Ltd ($898) | 1.2% | 3.7% | 2.1% | 4.3% | 0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chinney Investments Ltd ($216) | 111.3x | 10.3x | 63.7x | 48.6x | 93.7x |
| CIAM Group Ltd ($378) | -48.0x | | | | 32.6x |
| Chuang's Consortium International Ltd ($367) | 2.2x | 0.7x | 5.0x | | 23.9x |
| Pioneer Global Group Ltd ($224) | 7.9x | | | | 10.9x |
| Van Shung Chong Holdings Ltd ($1001) | 3.4x | | 0.9x | 12.3x | 7.7x |
| |
|---|
| Median (22 companies) | 2.7x | 2.4x | 2.9x | 3.2x | 2.4x |
|---|
| Multifield International Holdings Ltd ($898) | 12.0x | 3.2x | 7.3x | 3.0x | 55.9x |
