Tack Fiori International Group Ltd CAPEX jumped on 876% while Revenue dropped on 39.1%
22/06/2016 • About Tack Fiori International Group Ltd (
$928) • By InTwits
Tack Fiori International Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tack Fiori International Group Ltd is a company in decline: FY2016 revenue growth was -39.1%, 5 years revenue CAGR was -37.5%
- The company operates at negative EBITDA Margin: -709.2%
- Tack Fiori International Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -255.9% for the sames years0
- Tack Fiori International Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 35.0%. At the same time it's a lot of higher than industry average of 4.2%.
- CAPEX is quite volatile: 0.32 in FY2016, 0.033 in FY2015, 2.4 in FY2014, 33.8 in FY2013, 13.1 in FY2012
- The company has unprofitable business model: ROIC is at -44.3%
- It operates with high leverage: Net Debt/EBITDA is 6.1x while industry average is 1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tack Fiori International Group Ltd ($928) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 56.516 | 25.149 | 22.469 | 8.398 | 5.114 | -39.1% |
| Gross Profit | 16.834 | 6.110 | 9.121 | 1.383 | 3.831 | 177.0% |
| SG&A | | 107.557 | 105.928 | 31.476 | 41.916 | 33.2% |
| EBITDA | -79.422 | -93.275 | -61.932 | -30.150 | -36.271 | |
| Net Income | 1,293.770 | -125.987 | -110.804 | -45.333 | -34.337 | |
Balance Sheet
|
|---|
| Cash | 121.183 | 52.257 | 134.515 | 97.670 | 65.810 | -32.6% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 13.077 | 33.798 | 2.400 | 0.033 | 0.322 | 875.8% |
Ratios
|
|---|
| Revenue growth | 5.3% | -55.5% | -10.7% | -62.6% | -39.1% | |
| EBITDA growth | 211.8% | 17.4% | -33.6% | -51.3% | 20.3% | |
| Gross Margin | 29.8% | 24.3% | 40.6% | 16.5% | 74.9% | 58.4% |
| EBITDA Margin | -140.5% | -370.9% | -275.6% | -359.0% | -709.2% | -350.2% |
| Net Income Margin | 2,289.2% | -501.0% | -493.1% | -539.8% | -671.4% | -131.6% |
| SG&A, % of revenue | | 427.7% | 471.4% | 374.8% | 819.6% | 444.8% |
| CAPEX, % of revenue | 23.1% | 134.4% | 10.7% | 0.4% | 6.3% | 5.9% |
| ROIC | | -65.8% | -47.6% | -24.6% | -44.3% | -19.7% |
| ROE | | -82.1% | -76.2% | -36.1% | -41.1% | -4.9% |
Revenue and profitability
The company's Revenue dropped on 39.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 91.4 pp from -514% to -423% in FY2016.
Gross Margin surged on 58.4 pp from 16.5% to 74.9% in FY2016. SG&A as a % of Revenue jumped on 445 pp from 375% to 820% in FY2016.
Net Income marign dropped on 132 pp from -540% to -671% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 6.3%. CAPEX/Revenue dropped on 128 pp from 134% in FY2013 to 6.3% in FY2016. It's average CAPEX/Revenue for the last three years was 5.8%.
Return on investment
The company operates at negative ROIC (-44.28%) and ROE (-41.05%). ROIC dropped on 19.7 pp from -24.6% to -44.3% in FY2016. ROE decreased on 4.9 pp from -36.1% to -41.1% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 32.6%.
Appendix 1: Peers in Apparel
Below you can find Tack Fiori International Group Ltd benchmarking vs. other companies in Apparel 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 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | -94.0% | 46.8% | 20.4% | 33.1% | |
| Highlight China IoT International Ltd ($1682) | 0.8% | 17.7% | -73.7% | 29.6% | |
| Koradior Holdings Ltd ($3709) | 48.3% | 44.7% | 47.7% | 23.9% | |
| Kingmaker Footwear Holdings Ltd ($1170) | 10.0% | 9.3% | 6.3% | 23.7% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 36.3% | 29.2% | 37.4% | 23.6% | |
| |
|---|
| Median (51 companies) | 5.6% | 6.3% | 5.5% | -1.0% | 10.6% |
|---|
| Tack Fiori International Group Ltd ($928) | | -55.5% | -10.7% | -62.6% | -39.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 38.5% | 42.3% | 59.6% | 75.6% | |
| Koradior Holdings Ltd ($3709) | 62.8% | 69.3% | 73.3% | 73.7% | |
| Prada SpA ($1913) | 71.5% | 72.1% | 73.8% | 71.8% | 72.4% |
| China Outfitters Holdings Ltd ($1146) | 74.9% | 74.3% | 70.0% | 65.7% | |
| Crocodile Garments ($122) | 64.7% | 60.7% | 60.4% | 62.1% | |
| |
|---|
| Median (50 companies) | 24.8% | 23.5% | 24.9% | 25.0% | 37.6% |
|---|
| Tack Fiori International Group Ltd ($928) | 29.8% | 24.3% | 40.6% | 16.5% | 74.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Lilang Ltd ($1234) | 26.3% | 26.9% | 29.4% | 30.6% | |
| Cabbeen Fashion Ltd ($2030) | 25.0% | 29.7% | 28.4% | 29.0% | |
| Fuguiniao Co Ltd ($1819) | 24.5% | 26.1% | 26.7% | 27.9% | |
| Prada SpA ($1913) | 29.6% | 31.7% | 31.7% | 26.8% | 22.4% |
| Shenzhou International Group Holdings Ltd ($2313) | 26.4% | 26.2% | 26.1% | 26.7% | |
| |
|---|
| Median (51 companies) | 11.1% | 10.9% | 7.5% | 6.8% | 9.9% |
|---|
| Tack Fiori International Group Ltd ($928) | -140.5% | -370.9% | -275.6% | -359.0% | -709.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 136.9% | 70.3% | 13.5% | 28.5% | |
| Shenzhou International Group Holdings Ltd ($2313) | 7.3% | 7.9% | 10.2% | 16.1% | |
| Crocodile Garments ($122) | 20.1% | 22.1% | 1.8% | 13.5% | |
| Texhong Textile Group Ltd ($2678) | 8.9% | 11.8% | 5.8% | 10.5% | |
| Prada SpA ($1913) | 9.7% | 10.6% | 15.3% | 10.2% | 11.1% |
| |
|---|
| Median (50 companies) | 2.2% | 3.0% | 2.3% | 2.4% | 5.7% |
|---|
| Tack Fiori International Group Ltd ($928) | 23.1% | 134.4% | 10.7% | 0.4% | 6.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Koradior Holdings Ltd ($3709) | 45.2% | 69.5% | 36.5% | 31.0% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 41.7% | 56.0% | 38.6% | 27.8% | |
| Cabbeen Fashion Ltd ($2030) | 32.3% | 32.9% | 26.5% | 27.0% | |
| Sitoy Group Holdings Ltd ($1023) | 39.3% | 28.7% | 31.8% | 22.0% | |
| Prada SpA ($1913) | 32.1% | 37.4% | 34.0% | 21.9% | 14.0% |
| |
|---|
| Median (51 companies) | 11.7% | 7.3% | 5.3% | 5.4% | 4.7% |
|---|
| Tack Fiori International Group Ltd ($928) | | -65.8% | -47.6% | -24.6% | -44.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| S Culture International Holdings Ltd ($1255) | 1.4x | 0.7x | 2.4x | 158.1x | |
| High Fashion International Ltd ($608) | 16.7x | 27.7x | 11.2x | 5.2x | |
| Global Brands Group Holding Ltd ($787) | -0.4x | -0.3x | 1.3x | 2.1x | |
| Fuguiniao Co Ltd ($1819) | -0.0x | -0.7x | 0.3x | 1.9x | |
| Texhong Textile Group Ltd ($2678) | 1.4x | 1.3x | 2.3x | 1.4x | |
| |
|---|
| Median (38 companies) | -0.3x | -0.7x | -0.3x | -1.0x | 0.1x |
|---|
