Changfeng Axle China Co Ltd CAPEX jumped on 1,729% in 2015 while Revenue dropped on 49.4%
01/04/2016 • About Changfeng Axle China Co Ltd (
$1039) • By InTwits
Changfeng Axle China Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Changfeng Axle China Co Ltd is a company in decline: 2015 revenue growth was -49.4%, 5 years revenue CAGR was -33.6%
- The company operates at negative EBITDA Margin: -138.1%
- Changfeng Axle China Co Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -19.1% for the sames years0
- Changfeng Axle China Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.3%. At the same time it's in pair with industry average of 19.8%.
- CAPEX is quite volatile: 65.3 in 2015, 3.6 in 2014, 17.8 in 2013, 72.5 in 2012, 172 in 2011
- The company has unprofitable business model: ROIC is at -30.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Changfeng Axle China Co Ltd ($1039) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 920.7 | 503.8 | 429.8 | 336.9 | 170.4 | -49.4% |
| Gross Profit | 252.1 | 88.3 | 72.9 | 6.0 | -159.8 | -2,767.9% |
| SG&A | | 93.1 | 93.9 | 74.7 | 131.9 | 76.6% |
| EBITDA | 143.9 | -229.3 | -87.6 | -42.5 | -235.2 | 453.5% |
| Net Income | 59.8 | -459.4 | -208.2 | -411.7 | -574.0 | 39.4% |
Balance Sheet
|
|---|
| Cash | 134.5 | 61.9 | 57.9 | 6.9 | 195.6 | 2,752.6% |
| Short Term Debt | 468.1 | 498.6 | 529.3 | 331.9 | 171.9 | -48.2% |
| Long Term Debt | 48.0 | 0.0 | 0.0 | 0.0 | 208.7 | |
Cash flow
|
|---|
| Capex | 171.9 | 72.5 | 17.8 | 3.6 | 65.3 | 1,729.4% |
Ratios
|
|---|
| Revenue growth | -30.2% | -45.3% | -14.7% | -21.6% | -49.4% | |
| EBITDA growth | -62.8% | -259.4% | -61.8% | -51.5% | 453.5% | |
| Gross Margin | 27.4% | 17.5% | 17.0% | 1.8% | -93.8% | -95.6% |
| EBITDA Margin | 15.6% | -45.5% | -20.4% | -12.6% | -138.1% | -125.5% |
| Net Income Margin | 6.5% | -91.2% | -48.5% | -122.2% | -336.9% | -214.8% |
| SG&A, % of revenue | | 18.5% | 21.8% | 22.2% | 77.4% | 55.3% |
| CAPEX, % of revenue | 18.7% | 14.4% | 4.1% | 1.1% | 38.3% | 37.3% |
| ROIC | 5.4% | -13.9% | -7.6% | -6.2% | -30.0% | -23.8% |
| ROE | 4.0% | -35.5% | -21.7% | -64.0% | -217.8% | -153.8% |
| Net Debt/EBITDA | 2.7x | | | | | 0.0x |
Revenue and profitability
Changfeng Axle China Co Ltd's Revenue dropped on 49.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 125 pp from -12.6% to -138% in 2015.
Gross Margin dropped on 95.6 pp from 1.8% to -93.8% in 2015. SG&A as a % of Revenue jumped on 55.3 pp from 22.2% to 77.4% in 2015.
Net Income marign dropped on 215 pp from -122% to -337% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Changfeng Axle China Co Ltd had CAPEX/Revenue of 38.3%. CAPEX/Revenue jumped on 24.0 pp from 14.4% in 2012 to 38.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 14.5%.
Return on investment
The company operates at negative ROIC (-30.00%) and ROE (-217.79%). ROIC dropped on 23.8 pp from -6.2% to -30.0% in 2015. ROE dropped on 154 pp from -64.0% to -218% in 2015.
Leverage (Debt)
Debt level is -1.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped on 14.7% in 2015 while cash jumped on 2,753% in 2015.
Appendix 1: Peers in Auto Parts&Equipment
Below you can find Changfeng Axle China Co Ltd benchmarking vs. other companies in Auto Parts&Equipment 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 Vehicle Components Technology Holdings Ltd ($1269) | | -10.4% | 27.1% | 31.0% | 30.9% |
| Xinchen China Power Holdings Ltd ($1148) | | 11.5% | 0.5% | 2.6% | 23.3% |
| Minth Group Ltd ($425) | | 11.3% | 27.3% | 21.3% | 14.5% |
| Nexteer Automotive Group Ltd ($1316) | | -3.6% | 10.1% | 24.8% | 12.8% |
| Xinyi Glass Holdings Ltd ($868) | | 2.5% | 17.8% | 9.3% | 5.5% |
| |
|---|
| Median (16 companies) | | -5.6% | 14.6% | 6.0% | 0.2% |
|---|
| Changfeng Axle China Co Ltd ($1039) | | -45.3% | -14.7% | -21.6% | -49.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 36.2% | 37.4% | 41.0% | 41.5% | 41.5% |
| Minth Group Ltd ($425) | 35.0% | 33.1% | 33.0% | 31.2% | 31.7% |
| Xinyi Glass Holdings Ltd ($868) | 28.6% | 26.4% | 31.6% | 25.2% | 27.3% |
| Zhejiang Shibao Co Ltd ($1057) | 34.9% | 30.3% | 26.0% | 26.4% | 25.5% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 25.1% | 20.9% | 23.6% | 24.0% | 24.2% |
| |
|---|
| Median (17 companies) | 25.1% | 20.8% | 20.6% | 22.3% | 20.3% |
|---|
| Changfeng Axle China Co Ltd ($1039) | 27.4% | 17.5% | 17.0% | 1.8% | -93.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 26.9% | 28.5% | 28.7% | 29.2% | 27.7% |
| Xinyi Glass Holdings Ltd ($868) | 23.5% | 22.5% | 43.8% | 20.0% | 25.0% |
| Minth Group Ltd ($425) | 25.9% | 25.6% | 24.2% | 23.1% | 24.5% |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 20.7% | 17.2% | 16.0% | 18.6% |
| Nexteer Automotive Group Ltd ($1316) | 5.9% | 6.7% | 10.4% | 12.0% | 13.7% |
| |
|---|
| Median (17 companies) | 15.6% | 9.4% | 11.9% | 12.4% | 11.4% |
|---|
| Changfeng Axle China Co Ltd ($1039) | 15.6% | -45.5% | -20.4% | -12.6% | -138.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hybrid Kinetic Group Ltd ($1188) | 41.7% | 8.5% | | | 176.2% |
| Fuyao Glass Industry Group Co Ltd ($3606) | 11.5% | 14.6% | 16.5% | 21.1% | 23.9% |
| Xiezhong International Holdings Ltd ($3663) | 15.4% | 22.9% | 24.9% | 12.0% | 19.4% |
| Xinyi Glass Holdings Ltd ($868) | 37.3% | 17.0% | 28.9% | 15.8% | 16.7% |
| Minth Group Ltd ($425) | 12.3% | 14.8% | 16.1% | 18.7% | 15.4% |
| |
|---|
| Median (17 companies) | 11.4% | 8.5% | 8.5% | 6.1% | 7.4% |
|---|
| Changfeng Axle China Co Ltd ($1039) | 18.7% | 14.4% | 4.1% | 1.1% | 38.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nexteer Automotive Group Ltd ($1316) | | 14.0% | 18.2% | 17.7% | 21.2% |
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.1% | 19.0% | 21.1% | 22.3% | 15.7% |
| Minth Group Ltd ($425) | 13.1% | 11.9% | 12.1% | 11.8% | 13.4% |
| Xinyi Glass Holdings Ltd ($868) | 12.8% | 9.3% | 22.6% | 8.3% | 10.8% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 13.4% | 2.4% | 9.2% | 12.5% | 10.3% |
| |
|---|
| Median (17 companies) | 13.4% | 7.6% | 8.9% | 6.9% | 3.3% |
|---|
| Changfeng Axle China Co Ltd ($1039) | 5.4% | -13.9% | -7.6% | -6.2% | -30.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.2x | 7.9x | 2.8x | 2.2x | 2.9x |
| Xiezhong International Holdings Ltd ($3663) | 0.7x | 0.6x | 1.2x | 1.2x | 2.2x |
| China Vehicle Components Technology Holdings Ltd ($1269) | 2.4x | 9.4x | 5.8x | 5.3x | 2.0x |
| Xinchen China Power Holdings Ltd ($1148) | -0.3x | -0.1x | -2.3x | 0.6x | 1.9x |
| Xinyi Glass Holdings Ltd ($868) | 2.0x | 1.9x | 0.9x | 2.4x | 1.7x |
| |
|---|
| Median (12 companies) | 0.8x | 0.7x | 1.0x | 1.0x | 0.6x |
|---|
