Integrated Waste Solutions Group Holdings Ltd CAPEX dropped on 74.5% and Revenue dropped on 38.4%
29/06/2016 • About Integrated Waste Solutions Group Holdings Ltd (
$923) • By InTwits
Integrated Waste Solutions Group Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Integrated Waste Solutions Group Holdings Ltd is a company in decline: FY2016 revenue growth was -38.4%, 5 years revenue CAGR was -33.7%
- The company operates at negative EBITDA Margin: -27.1%
- Integrated Waste Solutions Group Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -10.4% for the sames years0
- Integrated Waste Solutions Group Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 38.0%. At the same time it's a lot of higher than industry average of 15.6%.
- CAPEX is quite volatile: 99.8 in FY2016, 391 in FY2015, 200 in FY2014, 61.0 in FY2013, 98.7 in FY2012
- The company has unprofitable business model: ROIC is at -9.2%
- It operates with high leverage: Net Debt/EBITDA is 1.5x 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.
Integrated Waste Solutions Group Holdings Ltd ($923) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 750.2 | 573.3 | 480.6 | 443.5 | 273.1 | -38.4% |
| Gross Profit | 76.6 | 89.5 | 40.9 | 24.3 | 22.5 | -7.5% |
| SG&A | 95.3 | 111.5 | 126.0 | 148.6 | 108.6 | -26.9% |
| EBITDA | -24.5 | -7.7 | -48.2 | -107.1 | -74.0 | |
| Net Income | -2,152.7 | -5.6 | -484.9 | -149.6 | -104.1 | |
Balance Sheet
|
|---|
| Cash | 748.4 | 548.0 | 276.3 | 455.9 | 288.2 | -36.8% |
| Short Term Debt | 30.1 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 98.7 | 61.0 | 200.2 | 390.6 | 99.8 | -74.5% |
Ratios
|
|---|
| Revenue growth | -64.7% | -23.6% | -16.2% | -7.7% | -38.4% | |
| EBITDA growth | -103.9% | -68.7% | 528.1% | 122.4% | -30.9% | |
| Gross Margin | 10.2% | 15.6% | 8.5% | 5.5% | 8.2% | 2.8% |
| EBITDA Margin | -3.3% | -1.3% | -10.0% | -24.1% | -27.1% | -3.0% |
| Net Income Margin | -286.9% | -1.0% | -100.9% | -33.7% | -38.1% | -4.4% |
| SG&A, % of revenue | 12.7% | 19.4% | 26.2% | 33.5% | 39.8% | 6.2% |
| CAPEX, % of revenue | 13.2% | 10.6% | 41.7% | 88.1% | 36.5% | -51.5% |
| ROIC | -1.3% | -1.2% | -5.4% | -11.8% | -9.2% | 2.6% |
| ROE | -82.5% | -0.4% | -41.4% | -13.7% | -8.6% | 5.1% |
Revenue and profitability
The company's Revenue dropped on 38.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.0 pp from -24.1% to -27.1% in FY2016.
Gross Margin increased on 2.8 pp from 5.5% to 8.2% in FY2016. SG&A as a % of Revenue increased on 6.2 pp from 33.5% to 39.8% in FY2016.
Net Income marign decreased on 4.4 pp from -33.7% to -38.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Integrated Waste Solutions Group Holdings Ltd had CAPEX/Revenue of 36.5%. CAPEX/Revenue jumped on 25.9 pp from 10.6% in FY2013 to 36.5% in FY2016. Average CAPEX/Revenue for the last three years was 55.4%.
Return on investment
The company operates at negative ROIC (-9.20%) and ROE (-8.63%). ROIC increased on 2.6 pp from -11.8% to -9.2% in FY2016. ROE increased on 5.1 pp from -13.7% to -8.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 36.8%.
Appendix 1: Peers in Environmental Control
Below we provide Integrated Waste Solutions Group Holdings Ltd benchmarking against other companies in Environmental Control 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 |
|---|
| Sky Forever Supply Chain Management Group Ltd ($8047) | | 446.4% | -62.3% | 12,494.5% | 1.5% |
| Pan Asia Environmental Protection Group Ltd ($556) | -13.7% | 43.1% | -1.8% | 85.0% | |
| CT Environmental Group Ltd ($1363) | -18.7% | 23.1% | 112.9% | 75.4% | |
| ELL Environmental Holdings Ltd ($1395) | 5.3% | 38.8% | 30.9% | 70.8% | |
| Ozner Water International Holding Ltd ($2014) | 183.9% | 38.5% | 27.2% | 45.7% | |
| |
|---|
| Median (24 companies) | 3.1% | 18.9% | 23.6% | 4.0% | 54.7% |
|---|
| Integrated Waste Solutions Group Holdings Ltd ($923) | | -23.6% | -16.2% | -7.7% | -38.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| EverChina International Holdings Co Ltd ($202) | 51.8% | 53.4% | 95.3% | 95.4% | 93.5% |
| Ozner Water International Holding Ltd ($2014) | 64.5% | 67.8% | 65.4% | 58.9% | |
| CT Environmental Group Ltd ($1363) | 65.8% | 63.1% | 56.4% | 49.9% | |
| Kangda International Environmental Co Ltd ($6136) | 44.2% | 38.3% | 40.0% | 47.6% | |
| China Water Affairs Group Ltd ($855) | 44.0% | 43.1% | 41.8% | 47.3% | 47.1% |
| |
|---|
| Median (23 companies) | 39.0% | 30.6% | 32.2% | 34.1% | 23.9% |
|---|
| Integrated Waste Solutions Group Holdings Ltd ($923) | 10.2% | 15.6% | 8.5% | 5.5% | 8.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CT Environmental Group Ltd ($1363) | 63.6% | 62.8% | 58.7% | 64.6% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 57.5% | 56.6% | 57.8% | 57.9% | |
| China Everbright International Ltd ($257) | 44.6% | 40.7% | 43.6% | 44.1% | |
| China Water Affairs Group Ltd ($855) | 38.2% | 38.1% | 37.1% | 40.3% | 40.2% |
| Kangda International Environmental Co Ltd ($6136) | 37.1% | 33.6% | 32.4% | 36.6% | |
| |
|---|
| Median (24 companies) | 17.9% | 11.7% | 5.1% | 16.2% | -12.8% |
|---|
| Integrated Waste Solutions Group Holdings Ltd ($923) | -3.3% | -1.3% | -10.0% | -24.1% | -27.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chaoyue Group Ltd ($147) | | 18.1% | 9.2% | 100.9% | 1.4% |
| Ozner Water International Holding Ltd ($2014) | 94.9% | 102.2% | 148.5% | 90.9% | |
| Green Energy Group Ltd ($979) | 169.0% | 270.8% | 41.9% | 59.0% | |
| CT Environmental Group Ltd ($1363) | 65.0% | 27.1% | 51.4% | 40.5% | |
| New Universe International Group Ltd ($8068) | 16.4% | 16.6% | 44.9% | 33.3% | |
| |
|---|
| Median (23 companies) | 11.7% | 9.0% | 7.6% | 3.2% | 2.0% |
|---|
| Integrated Waste Solutions Group Holdings Ltd ($923) | 13.2% | 10.6% | 41.7% | 88.1% | 36.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CT Environmental Group Ltd ($1363) | 25.9% | 20.5% | 20.8% | 20.1% | |
| China Everbright International Ltd ($257) | 10.4% | 11.2% | 10.5% | 10.8% | |
| Sound Global Ltd ($967) | 12.8% | 11.5% | 10.8% | 9.3% | |
| Baguio Green Group Ltd ($1397) | 20.1% | 29.2% | 9.6% | 9.0% | |
| Tianjin Capital Environmental Protection Group Co Ltd ($1065) | 7.1% | 6.8% | 7.8% | 8.8% | |
| |
|---|
| Median (24 companies) | 3.9% | 6.8% | 4.9% | 5.2% | -9.7% |
|---|
| Integrated Waste Solutions Group Holdings Ltd ($923) | -1.3% | -1.2% | -5.4% | -11.8% | -9.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kangda International Environmental Co Ltd ($6136) | 4.4x | 5.1x | 4.8x | 5.2x | |
| China Water Affairs Group Ltd ($855) | 2.6x | 2.7x | 3.2x | 3.4x | 3.0x |
| Dynagreen Environmental Protection Group Co Ltd ($1330) | 3.2x | | | 3.2x | |
| Sound Global Ltd ($967) | -0.1x | 0.3x | 1.9x | 2.8x | |
| China Everbright International Ltd ($257) | 2.1x | 0.5x | 1.5x | 2.6x | |
| |
|---|
| Median (16 companies) | 2.3x | 0.3x | 1.2x | 1.5x | 3.0x |
|---|
