Novo Group Ltd/Singapore revenue dropped on 54.7% and EBITDA Margin decreased on 3.0 pp from -5.0% to -8.0%
30/06/2016 • About Novo Group Ltd/Singapore (
$1048) • By InTwits
Novo Group Ltd/Singapore reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Novo Group Ltd/Singapore is a company in decline: FY2016 revenue growth was -54.7%, 5 years revenue CAGR was -27.2%
- The company operates at negative EBITDA Margin: -8.0%
- Novo Group Ltd/Singapore spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -2.8%0
- Novo Group Ltd/Singapore has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.6%. At the same time it's in pair with industry average of 6.0%.
- CAPEX is quite volatile: 1.8 in FY2016, 8.5 in FY2015, 13.7 in FY2014, 41.3 in FY2013, 10.3 in FY2012
- The company has unprofitable business model: ROIC is at -12.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Novo Group Ltd/Singapore ($1048) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 327.8 | 284.2 | 273.0 | 225.9 | 102.2 | -54.7% |
| Gross Profit | 18.9 | 13.5 | 4.7 | -3.0 | 1.7 | |
| SG&A | | | | 12.1 | 11.6 | -4.1% |
| EBITDA | -1.0 | -5.5 | -7.9 | -11.3 | -8.2 | |
| Net Income | -1.9 | -5.6 | -13.3 | -22.1 | -16.2 | |
Balance Sheet
|
|---|
| Cash | 15.3 | 19.1 | 46.8 | 33.5 | 9.8 | -70.8% |
| Short Term Debt | 11.6 | 45.5 | 68.5 | 71.8 | 47.7 | -33.7% |
| Long Term Debt | 5.0 | 18.7 | 0.0 | 5.4 | 41.4 | 662.9% |
Cash flow
|
|---|
| Capex | 10.3 | 41.3 | 13.7 | 8.5 | 1.8 | -78.8% |
Ratios
|
|---|
| Revenue growth | -34.6% | -13.3% | -3.9% | -17.3% | -54.7% | |
| EBITDA growth | -121.0% | 446.3% | 44.3% | 42.8% | -27.2% | |
| Gross Margin | 5.8% | 4.7% | 1.7% | -1.3% | 1.7% | 3.0% |
| EBITDA Margin | -0.3% | -1.9% | -2.9% | -5.0% | -8.0% | -3.0% |
| Net Income Margin | -0.6% | -2.0% | -4.9% | -9.8% | -15.8% | -6.0% |
| SG&A, % of revenue | | | | 5.3% | 11.3% | 6.0% |
| CAPEX, % of revenue | 3.2% | 14.5% | 5.0% | 3.8% | 1.8% | -2.0% |
| ROIC | -1.9% | -6.3% | -8.4% | -14.9% | -12.1% | 2.8% |
| ROE | -3.2% | -10.4% | -30.8% | -88.2% | -210.8% | -122.6% |
Revenue and profitability
Novo Group Ltd/Singapore's Revenue dropped on 54.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from -6.9% to -5.4% in FY2016.
Gross Margin increased on 3.0 pp from -1.3% to 1.7% in FY2016. SG&A as a % of Revenue increased on 6.0 pp from 5.3% to 11.3% in FY2016.
Net Income marign decreased on 6.0 pp from -9.8% to -15.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Novo Group Ltd/Singapore had CAPEX/Revenue of 1.8%. CAPEX/Revenue dropped on 12.8 pp from 14.5% in FY2013 to 1.8% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.5%.
Return on investment
The company operates at negative ROIC (-12.09%) and ROE (-210.84%). ROIC increased on 2.8 pp from -14.9% to -12.1% in FY2016. ROE dropped on 123 pp from -88.2% to -211% in FY2016.
Leverage (Debt)
Debt level is -3.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt surged on 15.2% while cash dropped on 70.8%.
Appendix 1: Peers in Distribution/Wholesale
Below you can find Novo Group Ltd/Singapore benchmarking vs. other companies in Distribution/Wholesale 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 |
|---|
| C Y Foundation Group Ltd ($1182) | | -65.6% | 5.9% | 214.6% | -14.6% |
| China Fortune Holdings Ltd ($110) | -64.7% | -68.2% | -71.0% | 174.2% | |
| Hailiang International Holdings Ltd ($2336) | 9.7% | -30.8% | -69.1% | 99.7% | |
| Forefront Group Ltd ($885) | | 504.6% | 3,871.0% | 72.0% | |
| Yestar International Holdings Co Ltd ($2393) | -2.2% | 22.8% | 30.5% | 60.3% | |
| |
|---|
| Median (35 companies) | 2.6% | 2.1% | 1.4% | -0.5% | -14.8% |
|---|
| Novo Group Ltd/Singapore ($1048) | | -13.3% | -3.9% | -17.3% | -54.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Yunnan Tin Minerals Group Co Ltd ($263) | 79.6% | 66.3% | | 98.7% | |
| Goldin Financial Holdings Ltd ($530) | 75.3% | 71.7% | 74.8% | 73.8% | |
| YGM Trading Ltd ($375) | 66.5% | 67.4% | 64.0% | 62.5% | 58.7% |
| Goldlion Holdings Ltd ($533) | 56.4% | 54.1% | 55.7% | 60.0% | |
| E.Bon Holdings Ltd ($599) | 40.3% | 37.4% | 35.8% | 39.6% | 42.4% |
| |
|---|
| Median (33 companies) | 17.5% | 18.2% | 19.3% | 21.1% | 23.9% |
|---|
| Novo Group Ltd/Singapore ($1048) | 5.8% | 4.7% | 1.7% | -1.3% | 1.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 95.1% | 76.4% | 97.9% | 1,277.8% | |
| Goldin Financial Holdings Ltd ($530) | 163.7% | 613.4% | 285.7% | 364.1% | |
| China Infrastructure Investment Ltd ($600) | -274.9% | 120.0% | 52.0% | 134.5% | |
| China Yunnan Tin Minerals Group Co Ltd ($263) | -1,064.4% | -252.1% | | 62.8% | |
| Goldlion Holdings Ltd ($533) | 25.8% | 23.4% | 22.5% | 22.8% | |
| |
|---|
| Median (36 companies) | 2.6% | 2.5% | 4.6% | 4.9% | -5.1% |
|---|
| Novo Group Ltd/Singapore ($1048) | -0.3% | -1.9% | -2.9% | -5.0% | -8.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | 13.4% | 31.8% | 14.8% | 49.8% | |
| Inspur International Ltd ($596) | 8.4% | 12.2% | 33.6% | 25.6% | |
| China LNG Group Ltd ($931) | 11.1% | 0.3% | 0.6% | 15.6% | |
| YGM Trading Ltd ($375) | 1.8% | 2.1% | 3.5% | 14.5% | 4.0% |
| Victory Group Ltd ($1139) | 0.7% | 0.1% | 6.1% | 12.6% | |
| |
|---|
| Median (35 companies) | 1.3% | 1.7% | 1.6% | 1.2% | 2.9% |
|---|
| Novo Group Ltd/Singapore ($1048) | 3.2% | 14.5% | 5.0% | 3.8% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China LNG Group Ltd ($931) | 8.4% | 7.4% | 87.0% | 56.2% | |
| Powerwell Pacific Holdings Ltd ($8265) | 6.4% | 6.4% | 23.6% | 27.1% | |
| Yestar International Holdings Co Ltd ($2393) | 28.8% | 24.1% | 26.2% | 25.4% | |
| E.Bon Holdings Ltd ($599) | 7.0% | 7.2% | 3.3% | 16.9% | 17.4% |
| Goldin Financial Holdings Ltd ($530) | 5.9% | 20.6% | 10.4% | 16.0% | |
| |
|---|
| Median (37 companies) | 2.7% | 1.7% | 3.2% | 2.8% | -7.5% |
|---|
| Novo Group Ltd/Singapore ($1048) | -1.9% | -6.3% | -8.4% | -14.9% | -12.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SIS International Holdings ($529) | -1.8x | 7.0x | 7.2x | 16.8x | |
| Leeport Holdings Ltd ($387) | | | | 16.1x | |
| Takson Holdings Ltd ($918) | | 11.5x | 11.7x | 15.7x | |
| Sheng Yuan Holdings Ltd ($851) | | | 19.3x | 15.4x | |
| Forefront Group Ltd ($885) | | | -0.0x | 15.3x | |
| |
|---|
| Median (27 companies) | -0.2x | -0.6x | -0.0x | -0.2x | -2.7x |
|---|
