Is Ourgame International Holdings Ltd a solid growth stock? - The numbers tells it is
05/04/2016 • About Ourgame International Holdings Ltd (
$6899) • By InTwits
Ourgame International Holdings Ltd is an attractive growth stock in Internet industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Ourgame International Holdings Ltd showed growth in the last financial year. The company's revenue surged on 61.8% in FY2015. EBITDA also increased considerably: 57.5% for the same period.
In the longer period the company showed fast revenue growth of 55.2% from 2012 to 2015 annualy. EBITDA surged on 53.9% from 2012 to 2015 annualy.
Ourgame International Holdings Ltd ($6899) financials for the last 5 years
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 154 | 206 | 236 | 476 | 770 |
|---|
| Revenue growth, % | | 33.7% | 14.8% | 101.3% | 61.8% |
|---|
| Gross margin, % | 69.8% | 73.1% | 66.2% | 61.9% | 59.7% |
|---|
| SG&A, % | 35.4% | 36.9% | 33.9% | 29.7% | 31.8% |
|---|
| EBITDA | 41 | 48 | 59 | 111 | 175 |
|---|
| EBITDA growth, % | | 16.2% | 22.4% | 89.1% | 57.5% |
|---|
| EBITDA margin, % | 26.8% | 23.3% | 24.8% | 23.3% | 22.7% |
|---|
| Net Income | 21 | 29 | 35 | 98 | 114 |
|---|
| Net Income margin, % | 13.6% | 14.2% | 14.8% | 20.5% | 14.9% |
|---|
| |
| CAPEX | 7 | 4 | 7 | 8 | 49 |
|---|
| CAPEX/Revenue, % | 4.50% | 1.81% | 3.13% | 1.73% | 6.38% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 32 | 96 | 59 | 719 | 349 |
|---|
| Net Debt/EBITDA | -0.8x | -2.0x | -1.0x | -6.5x | -2.0x |
|---|
| |
| ROIC, % | | 42.8% | 33.3% | 17.5% | 12.7% |
|---|
| ROE, % | | 38.3% | 29.3% | 18.8% | 12.0% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 23.3% in FY2014 to 22.7% in FY2015. If we look for the longer period Ourgame International Holdings Ltd showed small EBITDA margin decline of 0.600 pp from 23.3% in 2012 to 22.7% in 2015.
Ourgame International Holdings Ltd shows attractive ROIC at 12.7% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 42.8% in FY2012. Average ROIC for the last three years was 21.2%.
Ourgame International Holdings Ltd showed big decline in Net Income margin of 5.60 pp from 20.5% to 14.9% in 2015. If we look for the longer period Net Income margin increased slightly on 0.700 pp from 14.2% in 2012 to 14.9% in 2015.
Ourgame International Holdings Ltd operates at ROE of 12.0%. It's average ROE for the last three years was 20.0%.
Capital expenditures (CAPEX)
To this fast growth Ourgame International Holdings Ltd had to invest in CAPEX.Ourgame International Holdings Ltd's CAPEX/Revenue was 6.38% in FY2015. Ourgame International Holdings Ltd's CAPEX/Revenue surged on 4.57 pp from 1.81% in 2012 to 6.38% in 2015. For the last three years the average CAPEX/Revenue was 3.75%.
Leverage (Debt)
Having such a fast growth profile Ourgame International Holdings Ltd keeps negative net debt at -2.0x Net Debt/EBITDA. If we look for the longer period Ourgame International Holdings Ltd's leverage surged on 0.00x from -2.00x in 2012 to -2.00x in 2015.
Peers in Internet
Below you can find Ourgame International Holdings Ltd benchmarking vs. other companies in Internet 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 5 |
|---|
| China Public Procurement Ltd ($1094) | -78.5% | 5,077.0% | -67.5% | 1,258.9% | |
| China Digital Culture Group Ltd ($8175) | 320.4% | -47.9% | 180.8% | 168.8% | |
| GET Holdings Ltd ($8380) | | 13.8% | 2,126.4% | 154.4% | 38.6% |
| China Healthcare Holdings Ltd ($673) | | -14.8% | -52.9% | 63.1% | 0.3% |
| ABC Multiactive Ltd ($8131) | | -15.2% | -13.2% | 59.4% | -32.4% |
| |
|---|
| Median (21 companies) | 11.2% | 12.3% | 8.3% | 11.3% | 9.8% |
|---|
| Ourgame International Holdings Ltd ($6899) | | 33.7% | 14.8% | 101.3% | 61.8% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| ABC Multiactive Ltd ($8131) | 73.0% | 86.7% | 83.5% | 86.2% | 82.1% |
| Sino-I Technology Ltd ($250) | 74.2% | 75.3% | 82.7% | 78.8% | |
| AcrossAsia Ltd ($8061) | 78.7% | 70.9% | 73.0% | 72.5% | |
| BAIOO Family Interactive Ltd ($2100) | 61.6% | 68.0% | 76.7% | 68.7% | 61.1% |
| Pacific Online Ltd ($543) | 69.1% | 71.0% | 70.5% | 67.3% | 64.8% |
| |
|---|
| Median (18 companies) | 62.1% | 65.0% | 65.5% | 61.3% | 50.9% |
|---|
| Ourgame International Holdings Ltd ($6899) | 69.8% | 73.1% | 66.2% | 61.9% | 59.7% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| SUNeVision Holdings Ltd ($8008) | 61.1% | 64.2% | 71.6% | 71.6% | 72.4% |
| GET Holdings Ltd ($8380) | -182.0% | -237.7% | 56.8% | 66.4% | 28.5% |
| AcrossAsia Ltd ($8061) | 15.4% | 20.8% | 24.2% | 44.7% | |
| Tencent Holdings Ltd ($700) | 48.2% | 38.4% | 34.7% | 42.5% | 43.5% |
| China Digital Culture Group Ltd ($8175) | -12.1% | -66.7% | 22.5% | 40.8% | |
| |
|---|
| Median (22 companies) | 9.3% | 5.1% | 18.6% | 13.8% | 11.1% |
|---|
| Ourgame International Holdings Ltd ($6899) | 26.8% | 23.3% | 24.8% | 23.3% | 22.7% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| SUNeVision Holdings Ltd ($8008) | 14.2% | 7.6% | 10.2% | 62.8% | 12.4% |
| AcrossAsia Ltd ($8061) | 61.2% | 56.6% | 65.9% | 36.3% | |
| China E-Learning Group Ltd ($8055) | 1.3% | 0.0% | 2.7% | 15.3% | |
| Asian Capital Resources Holdings Ltd ($8025) | 0.0% | 0.0% | | 12.2% | 14.0% |
| Capinfo Co Ltd ($1075) | 1.6% | 17.3% | 13.1% | 9.7% | 4.3% |
| |
|---|
| Median (22 companies) | 10.8% | 3.4% | 2.7% | 2.7% | 1.3% |
|---|
| Ourgame International Holdings Ltd ($6899) | 4.5% | 1.8% | 3.1% | 1.7% | 6.4% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Tencent Holdings Ltd ($700) | 33.4% | 29.5% | 26.7% | 29.1% | 24.3% |
| Pacific Online Ltd ($543) | 41.7% | 37.9% | 36.4% | 28.6% | 21.6% |
| BAIOO Family Interactive Ltd ($2100) | | | | 26.5% | 3.7% |
| GET Holdings Ltd ($8380) | -6.8% | -6.5% | 10.8% | 19.3% | 6.7% |
| Tradelink Electronic Commerce Ltd ($536) | 19.5% | 22.4% | 18.2% | 17.4% | 16.7% |
| |
|---|
| Median (22 companies) | -2.3% | -4.4% | 4.0% | -2.6% | 2.1% |
|---|
| Ourgame International Holdings Ltd ($6899) | | 42.8% | 33.3% | 17.5% | 12.7% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Tai Shing International Holdings Ltd ($8103) | | | | | 82.7x |
| GET Holdings Ltd ($8380) | | | -1.1x | -1.0x | 0.7x |
| Tencent Holdings Ltd ($700) | -0.1x | -0.2x | -0.2x | -0.2x | 0.5x |
| SUNeVision Holdings Ltd ($8008) | -2.7x | -2.2x | -2.0x | -1.5x | -1.2x |
| Pacific Online Ltd ($543) | -1.5x | -1.4x | -1.3x | -1.3x | -1.7x |
| |
|---|
| Median (11 companies) | -1.8x | -1.4x | -1.2x | -1.4x | -2.1x |
|---|
| Ourgame International Holdings Ltd ($6899) | -0.8x | -2.0x | -1.0x | -6.5x | -2.0x |
