Cw Group Holdings Ltd demonstrates fast growth
05/04/2016 • About Cw Group Holdings Ltd (
$1322) • By InTwits
Cw Group Holdings Ltd is an attractive growth stock in Hand/Machine Tools industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Cw Group Holdings Ltd showed growth in the last financial year. Cw Group Holdings Ltd's revenue surged on 48.4% in FY2015. The growth also happened in EBITDA of 34.1% for the same period.
If we look for the longer period Cw Group Holdings Ltd showed fast revenue growth of 46.8% from 2012 to 2015 annualy. EBITDA surged on 31.1% from 2012 to 2015 annualy.
Cw Group Holdings Ltd ($1322) financials for the last 5 years
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 754 | 777 | 976 | 1,655 | 2,456 |
|---|
| Revenue growth, % | | 3.1% | 25.7% | 69.5% | 48.4% |
|---|
| Gross margin, % | 23.8% | 27.4% | 19.7% | 18.0% | 16.8% |
|---|
| SG&A, % | | 11.8% | 4.53% | 3.22% | 3.42% |
|---|
| EBITDA | 142 | 150 | 157 | 252 | 338 |
|---|
| EBITDA growth, % | | 5.8% | 4.3% | 60.8% | 34.1% |
|---|
| EBITDA margin, % | 18.8% | 19.3% | 16.0% | 15.2% | 13.8% |
|---|
| Net Income | 68 | 55 | 130 | 304 | 220 |
|---|
| Net Income margin, % | 9.03% | 7.10% | 13.3% | 18.4% | 8.97% |
|---|
| |
| CAPEX | 13 | 16 | 3 | 6 | 12 |
|---|
| CAPEX/Revenue, % | 1.67% | 2.09% | 0.358% | 0.342% | 0.504% |
|---|
| Debt | 121 | 162 | 299 | 503 | 1,057 |
|---|
| Cash | 32 | 128 | 28 | 81 | 444 |
|---|
| Net Debt/EBITDA | 0.6x | 0.2x | 1.7x | 1.7x | 1.8x |
|---|
| |
| ROIC, % | 34.8% | 21.4% | 16.9% | 19.4% | 15.9% |
|---|
| ROE, % | 37.8% | 14.0% | 20.6% | 36.8% | 17.8% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 15.2% in FY2014 to 13.8% in FY2015. If we look for the longer period the company's EBITDA margin dropped on 5.50 pp from 19.3% in 2012 to 13.8% in 2015.
Cw Group Holdings Ltd shows attractive ROIC at 15.9% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 21.4% in FY2012. For the last three years the average ROIC was 17.4%.
Net Income margin dropped on 9.40 pp from 18.4% to 9% in 2015. In the last 3 years Net Income margin surged on 1.90 pp from 7.10% in 2012 to 9% in 2015.
Cw Group Holdings Ltd operates at ROE of 17.8%. It's average ROE for the last three years was 25.1%.
Capital expenditures (CAPEX)
Cw Group Holdings Ltd's CAPEX/Revenue was 0.504% in FY2015. Cw Group Holdings Ltd's CAPEX/Revenue dropped on 1.59 pp from 2.09% in 2012 to 0.504% in 2015. It's average level of CAPEX/Revenue for the last three years was 0.401%.
Leverage (Debt)
Having such a fast growth profile Cw Group Holdings Ltd keeps medium debt level at 1.8x Net Debt/EBITDA. In the longer period leverage surged on 1.59x from 0.23x in 2012 to 1.81x in 2015.
Peers in Hand/Machine Tools
Below you can find Cw Group Holdings Ltd benchmarking vs. other companies in Hand/Machine Tools 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Techtronic Industries Co Ltd ($669) | | 5.1% | 11.6% | 10.5% | 6.0% |
| Chongqing Machinery & Electric Co Ltd ($2722) | 18.7% | -15.5% | 8.9% | -2.2% | |
| |
|---|
| Median (2 companies) | 18.7% | 5.1% | 8.9% | 4.2% | 6.0% |
|---|
| Cw Group Holdings Ltd ($1322) | | 3.1% | 25.7% | 69.5% | 48.4% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Techtronic Industries Co Ltd ($669) | 32.6% | 33.5% | 34.2% | 35.2% | 35.7% |
| Chongqing Machinery & Electric Co Ltd ($2722) | 18.6% | 11.6% | 11.2% | 11.2% | |
| |
|---|
| Median (2 companies) | 18.6% | 33.5% | 34.2% | 23.2% | 35.7% |
|---|
| Cw Group Holdings Ltd ($1322) | 23.8% | 27.4% | 19.7% | 18.0% | 16.8% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Techtronic Industries Co Ltd ($669) | 9.3% | 10.2% | 10.0% | 10.6% | 11.4% |
| Chongqing Machinery & Electric Co Ltd ($2722) | 10.1% | 4.1% | 4.2% | 4.2% | |
| |
|---|
| Median (2 companies) | 9.3% | 10.2% | 10.0% | 7.4% | 11.4% |
|---|
| Cw Group Holdings Ltd ($1322) | 18.8% | 19.3% | 16.0% | 15.2% | 13.8% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Chongqing Machinery & Electric Co Ltd ($2722) | 4.1% | 5.0% | 6.0% | 7.7% | |
| Techtronic Industries Co Ltd ($669) | 2.6% | 2.7% | 2.4% | 3.0% | 3.2% |
| |
|---|
| Median (2 companies) | 4.0% | 2.7% | 2.4% | 5.4% | 3.2% |
|---|
| Cw Group Holdings Ltd ($1322) | 1.7% | 2.1% | 0.4% | 0.3% | 0.5% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Techtronic Industries Co Ltd ($669) | 8.8% | 10.3% | 10.9% | 12.9% | 13.3% |
| Chongqing Machinery & Electric Co Ltd ($2722) | 12.4% | 2.1% | 2.4% | 2.0% | |
| Genvon Group Ltd ($2389) | -4.4% | 22.4% | 5.7% | -0.7% | -4.7% |
| |
|---|
| Median (3 companies) | 8.8% | 10.3% | 5.7% | 2.0% | 4.3% |
|---|
| Cw Group Holdings Ltd ($1322) | 34.8% | 21.4% | 16.9% | 19.4% | 15.9% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Chongqing Machinery & Electric Co Ltd ($2722) | -0.1x | 0.4x | 1.7x | 3.2x | |
| Techtronic Industries Co Ltd ($669) | 2.4x | 1.2x | 0.6x | 0.5x | 0.6x |
| |
|---|
| Median (2 companies) | 1.1x | 0.6x | 1.7x | 1.9x | 0.6x |
|---|
| Cw Group Holdings Ltd ($1322) | 0.6x | 0.2x | 1.7x | 1.7x | 1.8x |
