Quam Ltd Net Income dropped on 31.5% and EBITDA Margin decreased on 6.0 pp from 16.9% to 10.9%
29/06/2016 • About Quam Ltd (
$952) • By InTwits
Quam Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 10.9% in FY2016, 16.9% in FY2015, 13.2% in FY2014, 5.5% in FY2013, 1.0% in FY2012
- Quam Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. 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 potentially unprofitable business model: ROIC is at 2.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Quam Ltd ($952) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 358.8 | 337.1 | 413.7 | 432.3 | 540.1 | 24.9% |
| EBITDA | 3.5 | 18.5 | 54.8 | 73.0 | 58.9 | -19.3% |
| Net Income | -24.5 | -18.9 | 31.6 | 36.0 | 24.7 | -31.5% |
Balance Sheet
|
|---|
| Cash | 60.0 | 66.2 | 162.9 | 67.1 | 1,421.5 | 2,018.5% |
| Short Term Debt | 265.9 | 319.5 | 387.5 | 1,050.7 | 263.9 | -74.9% |
| Long Term Debt | 0.0 | 39.9 | 0.5 | 95.6 | 98.6 | 3.1% |
Cash flow
|
|---|
| Capex | 6.6 | 8.8 | 4.4 | 5.1 | 6.0 | 17.6% |
Ratios
|
|---|
| Revenue growth | 13.0% | -6.0% | 22.7% | 4.5% | 24.9% | |
| EBITDA growth | -85.9% | 429.2% | 196.3% | 33.2% | -19.3% | |
| EBITDA Margin | 1.0% | 5.5% | 13.2% | 16.9% | 10.9% | -6.0% |
| Net Income Margin | -6.8% | -5.6% | 7.6% | 8.3% | 4.6% | -3.8% |
| CAPEX, % of revenue | 1.8% | 2.6% | 1.1% | 1.2% | 1.1% | -0.1% |
| ROIC | -1.6% | 0.4% | 5.0% | 3.5% | 2.5% | -1.0% |
| ROE | -6.6% | -5.1% | 8.5% | 8.9% | 4.8% | -4.1% |
| Net Debt/EBITDA | 58.9x | 15.9x | 4.1x | 14.8x | -18.0x | -32.8x |
Revenue and profitability
Quam Ltd's Revenue surged on 24.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.0 pp from -24.1% to -27.1% in FY2016.
Net Income marign decreased on 3.8 pp from 8.3% to 4.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Quam Ltd's CAPEX/Revenue was 1.1% in FY2016. CAPEX/Revenue decreased slightly on 1.5 pp from 2.6% in FY2013 to 1.1% in FY2016. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at low ROIC (2.48%) and ROE (4.77%). ROIC decreased slightly on 1.0 pp from 3.5% to 2.5% in FY2016. ROE decreased on 4.1 pp from 8.9% to 4.8% in FY2016.
Leverage (Debt)
Debt level is -18.0x Net Debt / EBITDA and 6.2x Debt / EBITDA. Net Debt / EBITDA dropped on 32.8x from 14.8x to -18.0x in FY2016. Debt dropped on 68.4% while cash surged on 2,018%.
Appendix 1: Peers in Diversified Finan Serv
Below you can find Quam Ltd benchmarking vs. other companies in Diversified Finan Serv 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 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -4.0% | -23.1% | -87.3% | 1,860.5% | |
| Crown International Corp Ltd ($727) | 225.8% | -75.0% | 117.4% | 802.5% | |
| Global Strategic Group Ltd ($8007) | -3.9% | 2.1% | 806.3% | 681.2% | |
| Upbest Group Ltd ($335) | | -61.8% | 24.1% | 208.1% | -63.4% |
| GF Securities Co Ltd ($1776) | 16.3% | 31.8% | 75.0% | 163.9% | |
| |
|---|
| Median (64 companies) | 7.7% | 19.3% | 27.6% | 25.3% | 15.2% |
|---|
| Quam Ltd ($952) | | -6.0% | 22.7% | 4.5% | 24.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Roma Group Ltd ($8072) | | | 99.4% | 98.7% | |
| First China Financial Network Holdings Ltd ($8123) | 93.4% | | 94.5% | 97.4% | |
| China Smarter Energy Group Holdings Ltd ($1004) | 6.2% | 4.0% | 46.9% | 96.9% | |
| Chinese Strategic Holdings Ltd ($8089) | 99.1% | 97.9% | 97.0% | 96.6% | |
| Allied Group Ltd ($373) | 95.1% | 94.4% | 93.6% | 92.2% | |
| |
|---|
| Median (12 companies) | 64.2% | 75.1% | 88.2% | 90.3% | 69.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -282.7% | -373.2% | -1,524.9% | 212.2% | |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 91.3% | 86.4% | 92.9% | 107.0% | |
| Get Nice Holdings Ltd ($64) | 2.6% | 153.4% | 92.7% | 83.9% | 84.5% |
| Hong Kong Exchanges and Clearing Ltd ($388) | 81.6% | 73.4% | 75.7% | 82.1% | |
| Hong Kong Finance Group Co Ltd ($1273) | 76.9% | 67.5% | 65.2% | 74.8% | 70.3% |
| |
|---|
| Median (66 companies) | 23.0% | 37.2% | 47.9% | 32.4% | 60.8% |
|---|
| Quam Ltd ($952) | 1.0% | 5.5% | 13.2% | 16.9% | 10.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Aircraft Leasing Group Holdings Ltd ($1848) | 351.0% | 0.1% | 33.3% | 64.6% | |
| Willie International Holdings Ltd ($273) | | 0.3% | 0.8% | 58.0% | |
| China Assurance Finance Group Ltd ($8090) | 94.7% | 68.9% | 53.3% | 51.0% | |
| AID Partners Capital Holdings Ltd ($8088) | 4.1% | 2.9% | 28.4% | 26.6% | |
| Hongkong Chinese Ltd ($655) | | | 0.1% | 25.6% | |
| |
|---|
| Median (65 companies) | 2.1% | 1.8% | 1.1% | 1.5% | 0.6% |
|---|
| Quam Ltd ($952) | 1.8% | 2.6% | 1.1% | 1.2% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hong Kong Exchanges and Clearing Ltd ($388) | 29.1% | 20.1% | 21.5% | 29.1% | |
| China Smarter Energy Group Holdings Ltd ($1004) | -19.4% | -23.0% | -14.0% | 22.5% | |
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 32.7% | 20.7% | 14.0% | 15.3% | 12.5% |
| Emperor Capital Group Ltd ($717) | 5.1% | 12.8% | 13.1% | 14.6% | |
| Roma Group Ltd ($8072) | 19.6% | 43.7% | 107.8% | 13.3% | 9.8% |
| |
|---|
| Median (69 companies) | 4.4% | 4.2% | 4.8% | 3.6% | 5.4% |
|---|
| Quam Ltd ($952) | -1.6% | 0.4% | 5.0% | 3.5% | 2.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hoifu Energy Group Ltd ($7) | | | | 62.5x | |
| South China Financial Holdings Ltd ($619) | | | | 56.9x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 2.1x | 10.3x | 9.3x | 39.3x | 4.3x |
| Far East Horizon Ltd ($3360) | 16.9x | 21.7x | 20.0x | 20.8x | |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 14.7x | 19.0x | 17.5x | 14.6x | |
| |
|---|
| Median (49 companies) | -0.7x | 0.1x | -0.1x | -0.1x | 0.8x |
|---|
| Quam Ltd ($952) | 58.9x | 15.9x | 4.1x | 14.8x | -18.0x |
