Willas-Array Electronics Holdings Ltd Net Debt / EBITDA surged on 8.7x from 5.4x to 14.1x in 2016 and Revenue increased on 7.4%
27/05/2016 • About Willas-Array Electronics Holdings Ltd (
$854) • By InTwits
Willas-Array Electronics Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Willas-Array Electronics Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is 0.8%
- EBITDA Margin is relatively stable: 0.7% in FY2016 vs. 2.2% in FY2015 vs. 2.4% in FY2012
- EBITDA Margin is quite volatile: 0.7% in FY2016, 2.2% in FY2015, 1.8% in FY2014, 2.5% in FY2013, 2.4% in FY2012
- Willas-Array Electronics Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has potentially unprofitable business model: ROIC is at 0.8%
- It operates with high leverage: Net Debt/EBITDA is 14.1x while industry average is 0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Willas-Array Electronics Holdings Ltd ($854) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,262 | 3,158 | 3,196 | 3,392 | 3,642 | 7.4% |
| Gross Profit | 303 | 306 | 328 | 310 | 320 | 3.2% |
| SG&A | | | | | 248 | |
| EBITDA | 77 | 78 | 59 | 76 | 26 | -65.7% |
| Net Income | 45 | 46 | 29 | 32 | -72 | -324.1% |
Balance Sheet
|
|---|
| Cash | 333 | 390 | 219 | 306 | 483 | 57.7% |
| Short Term Debt | 435 | 590 | 553 | 717 | 850 | 18.5% |
| Long Term Debt | 66 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 12 | 2 | 4 | 6 | 2 | -62.1% |
Ratios
|
|---|
| Revenue growth | -14.1% | -3.2% | 1.2% | 6.1% | 7.4% | |
| EBITDA growth | -40.1% | 0.7% | -24.5% | 29.7% | -65.7% | |
| Gross Margin | 9.3% | 9.7% | 10.3% | 9.1% | 8.8% | -0.4% |
| EBITDA Margin | 2.4% | 2.5% | 1.8% | 2.2% | 0.7% | -1.5% |
| Net Income Margin | 1.4% | 1.5% | 0.9% | 0.9% | -2.0% | -2.9% |
| SG&A, % of revenue | | | | | 6.8% | 6.8% |
| CAPEX, % of revenue | 0.4% | 0.1% | 0.1% | 0.2% | 0.1% | -0.1% |
| ROIC | 5.5% | 5.8% | 4.1% | 5.0% | 0.8% | -4.2% |
| ROE | 8.9% | 8.5% | 5.2% | 5.2% | -11.8% | -17.0% |
| Net Debt/EBITDA | 2.2x | 2.6x | 5.7x | 5.4x | 14.1x | 8.7x |
Revenue and profitability
Willas-Array Electronics Holdings Ltd's Revenue increased on 7.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 88.4 pp from -34.6% to 53.8% in FY2016.
Gross Margin showed almost no change in FY2016.
Net Income marign decreased on 2.9 pp from 0.94% to -2.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Willas-Array Electronics Holdings Ltd's CAPEX/Revenue was 0.067% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.13%.
Return on investment
The company operates at low but positive ROIC (0.81%) and negative ROE (-11.76%). ROIC decreased on 4.2 pp from 5.0% to 0.81% in FY2016. ROE dropped on 17.0 pp from 5.2% to -11.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 14.1x and Debt / EBITDA is 32.5x. Net Debt / EBITDA surged on 8.7x from 5.4x to 14.1x in FY2016. Debt surged on 18.5% while cash jumped on 57.7%.
Appendix 1: Peers in Electronics
Below we provide Willas-Array Electronics Holdings Ltd benchmarking against other companies in Electronics industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| GCL New Energy Holdings Ltd ($451) | 14.7% | -6.8% | 10.9% | 53.9% | |
| Tech Pro Technology Development Ltd ($3823) | 7.4% | -44.9% | -13.7% | 52.4% | |
| Nanjing Sample Technology Co Ltd ($1708) | 36.1% | 8.0% | 15.4% | 34.8% | |
| AAC Technologies Holdings Inc ($2018) | 54.8% | 28.9% | 9.7% | 32.2% | |
| Ningbo Wanhao Holdings Co Ltd ($8249) | 5.7% | 412.4% | -6.9% | 28.9% | |
| |
|---|
| Median (49 companies) | 1.0% | 4.1% | 7.2% | -0.2% | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | | -3.2% | 1.2% | 6.1% | 7.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 54.0% | 58.1% | 49.5% | 49.6% | |
| AAC Technologies Holdings Inc ($2018) | 44.2% | 42.7% | 41.4% | 41.5% | |
| TeleEye Holdings Ltd ($8051) | 44.0% | 42.1% | 38.5% | 37.0% | |
| Hi Sun Technology China Ltd ($818) | 28.1% | 37.4% | 33.3% | 34.7% | |
| Datronix Holdings Ltd ($889) | 32.9% | 32.0% | 34.1% | 34.6% | |
| |
|---|
| Median (47 companies) | 14.1% | 13.8% | 14.1% | 16.6% | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | 9.3% | 9.7% | 10.3% | 9.1% | 8.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.8% | 35.8% | 34.9% | 34.8% | |
| GCL New Energy Holdings Ltd ($451) | 10.8% | 11.1% | 12.6% | 33.0% | |
| Daiwa Associate Holdings ($1037) | 2.4% | 3.8% | 2.8% | 25.6% | |
| Wasion Group Holdings Ltd ($3393) | 18.8% | 21.2% | 22.0% | 19.3% | |
| Tongda Group Holdings Ltd ($698) | 17.1% | 16.8% | 18.4% | 18.9% | |
| |
|---|
| Median (49 companies) | 7.4% | 7.6% | 5.4% | 5.5% | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | 2.4% | 2.5% | 1.8% | 2.2% | 0.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| GCL New Energy Holdings Ltd ($451) | 5.5% | 5.1% | 5.4% | 401.2% | |
| National Electronic Hldgs ($213) | 3.4% | 18.1% | 7.1% | 49.7% | |
| Irico Group Electronics Co Ltd ($438) | 39.9% | 30.4% | 17.4% | 25.8% | |
| Kingwell Group Ltd ($1195) | 8.6% | 5.4% | 5.3% | 21.4% | |
| AAC Technologies Holdings Inc ($2018) | 18.7% | 8.7% | 19.6% | 18.4% | |
| |
|---|
| Median (49 companies) | 3.9% | 3.2% | 4.2% | 2.9% | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | 0.4% | 0.1% | 0.1% | 0.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 29.1% | 30.0% | 26.0% | 27.8% | |
| Cowell e Holdings Inc ($1415) | 12.5% | 27.1% | 24.4% | 25.8% | |
| Changhong Jiahua Holdings Ltd ($8016) | 29.6% | 17.7% | 15.1% | 16.7% | |
| Tongda Group Holdings Ltd ($698) | 15.2% | 13.5% | 16.5% | 16.3% | |
| Alltronics Holdings Ltd ($833) | 13.1% | 15.2% | 19.8% | 15.6% | |
| |
|---|
| Median (49 companies) | 4.3% | 3.5% | 3.0% | 2.2% | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | 5.5% | 5.8% | 4.1% | 5.0% | 0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| National Electronic Hldgs ($213) | 16.3x | 30.2x | 84.8x | 19.9x | |
| GCL New Energy Holdings Ltd ($451) | 2.9x | 2.6x | 1.7x | 17.4x | |
| Man Yue Technology Holdings Ltd ($894) | 2.1x | 2.7x | 3.3x | 6.5x | |
| SAS Dragon Hldg Ltd ($1184) | 7.1x | 2.0x | 6.4x | 4.8x | |
| Trigiant Group Ltd ($1300) | 1.7x | 1.1x | 2.2x | 2.3x | |
| |
|---|
| Median (32 companies) | 1.0x | 1.1x | 0.8x | 0.2x | |
|---|
| Willas-Array Electronics Holdings Ltd ($854) | 2.2x | 2.6x | 5.7x | 5.4x | 14.1x |
