eprint Group Ltd revenue surged on 20.9% while EBITDA Margin decreased on 3.7 pp from 15.7% to 11.9%
28/06/2016 • About eprint Group Ltd (
$1884) • By InTwits
eprint Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- eprint Group Ltd is a growth stock: FY2016 revenue growth was 20.9%, 5 year revenue CAGR was 12.4% at FY2016 ROIC 13.3%
- eprint Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 8.1%.
- CAPEX is quite volatile: 17.9 in FY2016, 7.4 in FY2015, 6.5 in FY2014, 13.2 in FY2013, 10.1 in FY2012
- The company has highly profitable business model: ROIC is at 13.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
eprint Group Ltd ($1884) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 254.1 | 284.5 | 304.6 | 316.5 | 382.8 | 20.9% |
| Gross Profit | 90.3 | 102.9 | 114.5 | 120.2 | 135.1 | 12.4% |
| SG&A | 53.0 | 57.4 | 92.7 | 90.4 | 118.7 | 31.3% |
| EBITDA | 49.0 | 60.7 | 39.3 | 49.6 | 45.7 | -7.8% |
| Net Income | 39.8 | 42.4 | 21.6 | 32.3 | 26.1 | -19.4% |
Balance Sheet
|
|---|
| Cash | 23.7 | 71.1 | 134.0 | 118.2 | 90.3 | -23.6% |
| Short Term Debt | 44.8 | 34.4 | 21.3 | 13.8 | 27.3 | 98.3% |
| Long Term Debt | 9.2 | 34.8 | 14.7 | 7.0 | 8.4 | 20.8% |
Cash flow
|
|---|
| Capex | 10.1 | 13.2 | 6.5 | 7.4 | 17.9 | 143.8% |
Ratios
|
|---|
| Revenue growth | 19.0% | 11.9% | 7.1% | 3.9% | 20.9% | |
| EBITDA growth | 32.0% | 23.9% | -35.3% | 26.1% | -7.8% | |
| Gross Margin | 35.5% | 36.2% | 37.6% | 38.0% | 35.3% | -2.7% |
| EBITDA Margin | 19.3% | 21.3% | 12.9% | 15.7% | 11.9% | -3.7% |
| Net Income Margin | 15.6% | 14.9% | 7.1% | 10.2% | 6.8% | -3.4% |
| SG&A, % of revenue | 20.8% | 20.2% | 30.4% | 28.6% | 31.0% | 2.5% |
| CAPEX, % of revenue | 4.0% | 4.6% | 2.1% | 2.3% | 4.7% | 2.4% |
| ROIC | 33.0% | 34.8% | 15.4% | 18.5% | 13.3% | -5.3% |
| ROE | 77.2% | 63.0% | 18.6% | 20.0% | 14.2% | -5.8% |
| Net Debt/EBITDA | 0.6x | -0.0x | -2.5x | -2.0x | -1.2x | 0.8x |
Revenue and profitability
The company's Revenue jumped on 20.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.5 pp from 39.6% to 33.1% in FY2016.
Gross Margin decreased on 2.7 pp from 38.0% to 35.3% in FY2016. SG&A as a % of Revenue increased on 2.5 pp from 28.6% to 31.0% in FY2016.
Net Income marign decreased on 3.4 pp from 10.2% to 6.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
eprint Group Ltd's CAPEX/Revenue was 4.7% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at good ROIC (13.25%) and ROE (14.16%). ROIC decreased on 5.3 pp from 18.5% to 13.3% in FY2016. ROE decreased on 5.8 pp from 20.0% to 14.2% in FY2016.
Leverage (Debt)
Debt level is -1.2x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA jumped on 0.8x from -2.0x to -1.2x in FY2016. Debt surged on 72.2% while cash dropped on 23.6%.
Appendix 1: Peers in Commercial Services
Below we provide eprint Group Ltd benchmarking against other companies in Commercial Services 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 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | 6.7% | -81.8% | -39.3% | 195.3% | |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Celebrate International Holdings Ltd ($8212) | -90.1% | 1,437.6% | -6.3% | 117.0% | |
| Haier Healthwise Holdings Ltd ($348) | -22.0% | -50.1% | -7.5% | 101.1% | |
| |
|---|
| Median (65 companies) | 6.7% | 8.6% | 9.9% | 4.7% | 8.0% |
|---|
| eprint Group Ltd ($1884) | | 11.9% | 7.1% | 3.9% | 20.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (60 companies) | 31.6% | 30.7% | 31.0% | 31.2% | 31.7% |
|---|
| eprint Group Ltd ($1884) | 35.5% | 36.2% | 37.6% | 38.0% | 35.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | |
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| |
|---|
| Median (65 companies) | 17.5% | 14.9% | 11.2% | 9.8% | -0.1% |
|---|
| eprint Group Ltd ($1884) | 19.3% | 21.3% | 12.9% | 15.7% | 11.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | |
| |
|---|
| Median (65 companies) | 3.0% | 3.8% | 3.2% | 3.9% | 1.7% |
|---|
| eprint Group Ltd ($1884) | 4.0% | 4.6% | 2.1% | 2.3% | 4.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| CAR Inc ($699) | 5.2% | 2.7% | 12.2% | 19.0% | |
| |
|---|
| Median (65 companies) | 6.3% | 5.8% | 5.8% | 3.2% | -0.8% |
|---|
| eprint Group Ltd ($1884) | 33.0% | 34.8% | 15.4% | 18.5% | 13.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | |
| |
|---|
| Median (42 companies) | -0.0x | -0.7x | -0.5x | -0.5x | -2.4x |
|---|
| eprint Group Ltd ($1884) | 0.6x | -0.0x | -2.5x | -2.0x | -1.2x |
