Echo International Holdings Group Ltd reports 12.6% revenue growth in FY2016 and 1.3 pp EBITDA Margin growth from -23.5% to -22.1%
21/06/2016 • About Echo International Holdings Group Ltd (
$8218) • By InTwits
Echo International Holdings Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Echo International Holdings Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is -33.6%
- The company operates at negative EBITDA Margin: -22.1%
- Echo International Holdings Group Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -1.5%0
- Echo International Holdings Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has unprofitable business model: ROIC is at -33.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Echo International Holdings Group Ltd ($8218) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 60.990 | 71.707 | 51.328 | 51.807 | 58.345 | 12.6% |
| Gross Profit | 20.408 | 26.995 | 15.726 | 10.679 | 11.338 | 6.2% |
| SG&A | 12.835 | 14.391 | 24.082 | 23.518 | 25.320 | 7.7% |
| EBITDA | 15.148 | 13.336 | -7.681 | -12.160 | -12.918 | |
| Net Income | 12.284 | 9.350 | -8.721 | -12.631 | -13.739 | |
Balance Sheet
|
|---|
| Cash | 1.797 | 1.215 | 20.840 | 1.589 | 9.718 | 511.6% |
| Short Term Debt | 0.588 | 2.270 | 2.037 | 0.870 | 10.117 | 1,062.9% |
| Long Term Debt | 0.000 | 0.388 | 0.459 | 0.341 | 0.224 | -34.3% |
Cash flow
|
|---|
| Capex | 0.836 | 0.129 | 0.548 | 0.111 | 0.969 | 773.0% |
Ratios
|
|---|
| Revenue growth | -26.1% | 17.6% | -28.4% | 0.9% | 12.6% | |
| EBITDA growth | 11.6% | -12.0% | -157.6% | 58.3% | 6.2% | |
| Gross Margin | 33.5% | 37.6% | 30.6% | 20.6% | 19.4% | -1.2% |
| EBITDA Margin | 24.8% | 18.6% | -15.0% | -23.5% | -22.1% | 1.3% |
| Net Income Margin | 20.1% | 13.0% | -17.0% | -24.4% | -23.5% | 0.8% |
| SG&A, % of revenue | 21.0% | 20.1% | 46.9% | 45.4% | 43.4% | -2.0% |
| CAPEX, % of revenue | 1.4% | 0.2% | 1.1% | 0.2% | 1.7% | 1.4% |
| ROIC | 69.5% | 50.0% | -20.3% | -26.7% | -33.6% | -6.9% |
| ROE | 64.0% | 42.2% | -23.9% | -27.9% | -40.9% | -13.0% |
| Net Debt/EBITDA | -0.1x | 0.1x | | | | 0.0x |
Revenue and profitability
The company's Revenue jumped on 12.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 37.9 pp from 12.6% to -25.3% in FY2016.
Gross Margin decreased slightly on 1.2 pp from 20.6% to 19.4% in FY2016. SG&A as a % of Revenue decreased slightly on 2.0 pp from 45.4% to 43.4% in FY2016.
Net Income marign increased slightly on 0.83 pp from -24.4% to -23.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Echo International Holdings Group Ltd's CAPEX/Revenue was 1.7% in FY2016. CAPEX/Revenue increased slightly on 1.5 pp from 0.18% in FY2013 to 1.7% in FY2016. For the last three years the average CAPEX/Revenue was 0.98%.
Return on investment
The company operates at negative ROIC (-33.62%) and ROE (-40.93%). ROIC decreased on 6.9 pp from -26.7% to -33.6% in FY2016. ROE dropped on 13.0 pp from -27.9% to -40.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt surged on 754% while cash jumped on 512%.
Appendix 1: Peers in Electronics
Below we provide Echo International Holdings Group 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) | 2.3% | 3.6% | 7.2% | -0.2% | 7.4% |
|---|
| Echo International Holdings Group Ltd ($8218) | | 17.6% | -28.4% | 0.9% | 12.6% |
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) | 13.6% | 13.8% | 13.9% | 14.1% | 8.8% |
|---|
| Echo International Holdings Group Ltd ($8218) | 33.5% | 37.6% | 30.6% | 20.6% | 19.4% |
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) | 6.5% | 6.0% | 5.4% | 5.5% | 0.7% |
|---|
| Echo International Holdings Group Ltd ($8218) | 24.8% | 18.6% | -15.0% | -23.5% | -22.1% |
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% | 0.1% |
|---|
| Echo International Holdings Group Ltd ($8218) | 1.4% | 0.2% | 1.1% | 0.2% | 1.7% |
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% | 3.7% | 2.6% | 0.8% |
|---|
| Echo International Holdings Group Ltd ($8218) | 69.5% | 50.0% | -20.3% | -26.7% | -33.6% |
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 | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.2x | 2.6x | 5.7x | 5.4x | 14.1x |
| SAS Dragon Hldg Ltd ($1184) | 7.1x | 2.0x | 6.4x | 4.8x | |
| |
|---|
| Median (33 companies) | 1.1x | 1.1x | 0.8x | 0.2x | 14.1x |
|---|
