Roma Group Ltd revenue growth decelerated from 41.2% in FY2015 to 38.1% in FY2016
16/05/2016 • About Roma Group Ltd (
$8072) • By InTwits
Roma Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 42.4% in FY2016, 44.7% in FY2015, 143.0% in FY2014, 36.8% in FY2013, 18.1% in FY2012
- Roma Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 31.6%.
- CAPEX is quite volatile: 0.21 in FY2016, 0.14 in FY2015, 1.8 in FY2014, 0.016 in FY2013, 0.70 in FY2012
- The company has business model with low profitability: ROIC is at 9.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Roma Group Ltd ($8072) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 29.7 | 43.1 | 60.6 | 85.5 | 118.1 | 38.1% |
| Gross Profit | | | 60.2 | 84.4 | | -100.0% |
| EBITDA | 5.4 | 15.9 | 86.6 | 38.2 | 50.1 | 31.1% |
| Net Income | 3.3 | 12.1 | 20.0 | 29.2 | 36.6 | 25.3% |
Balance Sheet
|
|---|
| Cash | 7.0 | 38.0 | 23.8 | 216.1 | 40.3 | -81.3% |
| Short Term Debt | 0.0 | 0.0 | 30.6 | 31.4 | 51.9 | 65.4% |
| Long Term Debt | 0.0 | 0.0 | 2.0 | 2.9 | 4.1 | 39.2% |
Cash flow
|
|---|
| Capex | 0.7 | 0.0 | 1.8 | 0.1 | 0.2 | 52.9% |
Ratios
|
|---|
| Revenue growth | -22.5% | 45.4% | 40.4% | 41.2% | 38.1% | |
| EBITDA growth | -82.8% | 196.7% | 445.0% | -55.8% | 31.1% | |
| Gross Margin | | | 99.4% | 98.7% | | -98.7% |
| EBITDA Margin | 18.1% | 36.8% | 143.0% | 44.7% | 42.4% | -2.3% |
| Net Income Margin | 11.0% | 28.1% | 33.1% | 34.1% | 31.0% | -3.2% |
| CAPEX, % of revenue | 2.4% | 0.0% | 3.0% | 0.2% | 0.2% | 0.0% |
| ROIC | 19.6% | 43.7% | 107.8% | 13.3% | 9.8% | -3.5% |
| ROE | 16.9% | 40.4% | 33.3% | 12.6% | 8.6% | -3.9% |
| Net Debt/EBITDA | -1.3x | -2.4x | 0.1x | -4.8x | 0.3x | 5.1x |
Revenue and profitability
The company's Revenue jumped on 38.1%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 44.7% to 42.4% in FY2016.
Net Income marign decreased on 3.2 pp from 34.1% to 31.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Roma Group Ltd had CAPEX/Revenue of 0.18%. Roma Group Ltd showed almost no change in CAPEX/Revenue from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at low ROIC (9.77%) and ROE (8.61%). ROIC decreased on 3.5 pp from 13.3% to 9.8% in FY2016. ROE decreased on 3.9 pp from 12.6% to 8.6% in FY2016.
Leverage (Debt)
Debt level is 0.3x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA jumped on 5.1x from -4.8x to 0.3x in FY2016. Debt jumped on 63.1% while cash dropped on 81.3%.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Roma Group Ltd benchmarking vs. other companies in Diversified Finan Serv 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -4.0% | -23.1% | -87.3% | 1,860.5% | |
| Crown International Corp Ltd ($727) | 225.8% | -75.0% | 117.4% | 802.5% | |
| Global Strategic Group Ltd ($8007) | -3.9% | 2.1% | 806.3% | 681.2% | |
| Upbest Group Ltd ($335) | -38.5% | -61.8% | 24.1% | 208.1% | |
| GF Securities Co Ltd ($1776) | 16.3% | 31.8% | 75.0% | 163.9% | |
| |
|---|
| Median (64 companies) | 6.1% | 14.9% | 26.5% | 24.0% | -2.5% |
|---|
| Roma Group Ltd ($8072) | | 45.4% | 40.4% | 41.2% | 38.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| First China Financial Network Holdings Ltd ($8123) | 93.4% | | 94.5% | 97.4% | |
| China Smarter Energy Group Holdings Ltd ($1004) | 6.2% | 4.0% | 46.9% | 96.9% | |
| Chinese Strategic Holdings Ltd ($8089) | 99.1% | 97.9% | 97.0% | 96.6% | |
| Allied Group Ltd ($373) | 95.1% | 94.4% | 93.6% | 92.2% | |
| Styland Holdings Ltd ($211) | 57.7% | 75.1% | 88.2% | 91.7% | |
| |
|---|
| Median (11 companies) | 64.2% | 75.1% | 81.8% | 89.0% | |
|---|
| Roma Group Ltd ($8072) | | | 99.4% | 98.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -282.7% | -373.2% | -1,524.9% | 212.2% | |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 91.3% | 86.4% | 92.9% | 107.0% | |
| Get Nice Holdings Ltd ($64) | 2.6% | 153.4% | 92.7% | 83.9% | |
| Hong Kong Exchanges and Clearing Ltd ($388) | 81.6% | 73.4% | 75.7% | 82.1% | |
| Hong Kong Finance Group Co Ltd ($1273) | 76.9% | 67.5% | 65.2% | 74.8% | |
| |
|---|
| Median (66 companies) | 23.0% | 36.5% | 47.2% | 31.4% | 35.9% |
|---|
| Roma Group Ltd ($8072) | 18.1% | 36.8% | 143.0% | 44.7% | 42.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Aircraft Leasing Group Holdings Ltd ($1848) | 351.0% | 0.1% | 33.3% | 64.6% | |
| Willie International Holdings Ltd ($273) | | 0.3% | 0.8% | 58.0% | |
| China Assurance Finance Group Ltd ($8090) | 94.7% | 68.9% | 53.3% | 51.0% | |
| AID Partners Capital Holdings Ltd ($8088) | 4.1% | 2.9% | 28.4% | 26.6% | |
| Hongkong Chinese Ltd ($655) | | | 0.1% | 25.6% | |
| |
|---|
| Median (65 companies) | 1.9% | 1.9% | 1.1% | 1.5% | 1.5% |
|---|
| Roma Group Ltd ($8072) | 2.4% | 0.0% | 3.0% | 0.2% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hong Kong Exchanges and Clearing Ltd ($388) | 29.1% | 20.1% | 21.5% | 29.1% | |
| China Smarter Energy Group Holdings Ltd ($1004) | -19.4% | -23.0% | -14.0% | 22.5% | |
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 32.7% | 20.7% | 14.0% | 15.3% | |
| Emperor Capital Group Ltd ($717) | 5.1% | 12.8% | 13.1% | 14.6% | |
| Orient Securities International Holdings Ltd ($8001) | 10.6% | 13.3% | 12.1% | 12.4% | |
| |
|---|
| Median (69 companies) | 3.9% | 4.0% | 4.8% | 3.5% | 6.6% |
|---|
| Roma Group Ltd ($8072) | 19.6% | 43.7% | 107.8% | 13.3% | 9.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hoifu Energy Group Ltd ($7) | | | | 62.5x | |
| South China Financial Holdings Ltd ($619) | | | | 56.9x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 2.1x | 10.3x | 9.3x | 39.3x | |
| Far East Horizon Ltd ($3360) | 16.9x | 21.7x | 20.0x | 20.8x | |
| Quam Ltd ($952) | 58.9x | 15.9x | 4.1x | 14.8x | |
| |
|---|
| Median (49 companies) | -0.5x | 0.3x | -0.1x | 0.0x | 5.6x |
|---|
| Roma Group Ltd ($8072) | -1.3x | -2.4x | 0.1x | -4.8x | 0.3x |
