Safety Godown Co Ltd CAPEX surged on 18,502% while Revenue decreased slightly on 1.5%
28/06/2016 • About Safety Godown Co Ltd (
$237) • By InTwits
Safety Godown Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Safety Godown Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.1%. At the same time it's a lot of higher than industry average of 58.1%.
- CAPEX is quite volatile: 67.7 in FY2016, 0.36 in FY2015, 0.83 in FY2014, 5.1 in FY2013, 1.8 in FY2012
- The company has potentially unprofitable business model: ROIC is at 2.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Safety Godown Co Ltd ($237) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 111.9 | 119.8 | 139.2 | 156.4 | 154.0 | -1.5% |
| EBITDA | 78.8 | 92.5 | 96.5 | 115.1 | 114.7 | -0.3% |
| Net Income | 308.9 | 824.1 | 204.7 | 599.3 | 845.7 | 41.1% |
Balance Sheet
|
|---|
| Cash | 170.1 | 208.2 | 230.4 | 273.9 | 1,634.5 | 496.7% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 1.8 | 5.1 | 0.8 | 0.4 | 67.7 | 18,502.5% |
Ratios
|
|---|
| Revenue growth | 17.1% | 7.0% | 16.2% | 12.4% | -1.5% | |
| EBITDA growth | -15.9% | 17.3% | 4.4% | 19.2% | -0.3% | |
| EBITDA Margin | 70.4% | 77.2% | 69.4% | 73.6% | 74.5% | 0.9% |
| Net Income Margin | 276.0% | 688.2% | 147.1% | 383.1% | 549.2% | 166.0% |
| CAPEX, % of revenue | 1.6% | 4.2% | 0.6% | 0.2% | 44.0% | 43.7% |
| ROIC | 3.4% | 3.4% | 3.0% | 3.2% | 2.6% | -0.6% |
| ROE | 15.3% | 33.1% | 6.9% | 18.1% | 20.8% | 2.8% |
| Net Debt/EBITDA | -2.2x | -2.3x | -2.4x | -2.4x | -14.3x | -11.9x |
Revenue and profitability
The company's Revenue decreased slightly on 1.5%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.90 pp from 73.6% to 74.5% in FY2016.
Net Income marign surged on 166 pp from 383% to 549% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Safety Godown Co Ltd's CAPEX/Revenue was 44.0% in FY2016. CAPEX/Revenue surged on 39.7 pp from 4.2% in FY2013 to 44.0% in FY2016. It's average CAPEX/Revenue for the last three years was 14.9%.Battling declining revenue the company invested a large share of EBITDA (59.0%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at good ROE (20.84%) while ROIC is low (2.62%). ROIC decreased slightly on 0.59 pp from 3.2% to 2.6% in FY2016. ROE increased on 2.8 pp from 18.1% to 20.8% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 497%.
Appendix 1: Peers in Storage/Warehousing
Below we provide Safety Godown Co Ltd benchmarking against other companies in Storage/Warehousing 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Daido Group Ltd ($544) | 7.8% | 3.9% | 10.5% | 29.0% | |
| |
|---|
| Median (1 company) | 7.8% | 3.9% | 10.5% | 29.0% | |
|---|
| Safety Godown Co Ltd ($237) | | 7.0% | 16.2% | 12.4% | -1.5% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Daido Group Ltd ($544) | 12.0% | 11.5% | 9.3% | 17.8% | |
| |
|---|
| Median (1 company) | 12.0% | 11.5% | 9.3% | 17.8% | |
|---|
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Daido Group Ltd ($544) | -0.2% | -4.3% | -8.4% | 2.9% | |
| |
|---|
| Median (1 company) | -0.2% | -4.3% | -8.4% | 2.9% | |
|---|
| Safety Godown Co Ltd ($237) | 70.4% | 77.2% | 69.4% | 73.6% | 74.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Daido Group Ltd ($544) | 19.8% | 2.1% | 1.2% | 1.9% | |
| |
|---|
| Median (1 company) | 19.8% | 2.1% | 1.2% | 1.9% | |
|---|
| Safety Godown Co Ltd ($237) | 1.6% | 4.2% | 0.6% | 0.2% | 44.0% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Daido Group Ltd ($544) | -4.2% | -5.5% | -6.6% | 0.9% | |
| |
|---|
| Median (1 company) | -4.2% | -5.5% | -6.6% | 0.9% | |
|---|
| Safety Godown Co Ltd ($237) | 3.4% | 3.4% | 3.0% | 3.2% | 2.6% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Daido Group Ltd ($544) | | | | -2.0x | |
| |
|---|
| Median (1 company) | | | | -2.0x | |
|---|
| Safety Godown Co Ltd ($237) | -2.2x | -2.3x | -2.4x | -2.4x | -14.3x |
