Looking for growth? Don't miss eprint Group Ltd with its track record of fast growth
05/07/2016 • About eprint Group Ltd (
$1884) • By InTwits
Have you thought about eprint Group Ltd as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
eprint Group Ltd showed fast growth in the last financial year. Eprint Group Ltd's revenue surged on 20.9% in FY2016. EBITDA also increased: -7.80% for the same period.
If we look for the longer period eprint Group Ltd showed fast revenue growth of 10.4% from FY2013 to FY2016 annualy. EBITDA dropped on 9.04% from FY2013 to FY2016 annualy.
eprint Group Ltd ($1884) financials for the last 5 years
| mln. HKD | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 254 | 284 | 305 | 317 | 383 |
|---|
| Revenue growth, % | | 11.9% | 7.1% | 3.9% | 20.9% |
|---|
| Gross margin, % | 35.5% | 36.2% | 37.6% | 38.0% | 35.3% |
|---|
| SG&A, % | 20.8% | 20.2% | 30.4% | 28.6% | 31.0% |
|---|
| EBITDA | 49 | 61 | 39 | 50 | 46 |
|---|
| EBITDA growth, % | | 23.9% | -35.3% | 26.1% | -7.8% |
|---|
| EBITDA margin, % | 19.3% | 21.3% | 12.9% | 15.7% | 11.9% |
|---|
| Net Income | 40 | 42 | 22 | 32 | 26 |
|---|
| Net Income margin, % | 15.6% | 14.9% | 7.08% | 10.2% | 6.81% |
|---|
| |
| CAPEX | 10 | 13 | 6 | 7 | 18 |
|---|
| CAPEX/Revenue, % | 3.96% | 4.63% | 2.12% | 2.32% | 4.68% |
|---|
| Debt | 54 | 69 | 36 | 21 | 36 |
|---|
| Cash | 24 | 71 | 134 | 118 | 90 |
|---|
| Net Debt/EBITDA | 0.6x | -0.0x | -2.5x | -2.0x | -1.2x |
|---|
| |
| ROIC, % | 33.0% | 34.8% | 15.4% | 18.5% | 13.3% |
|---|
| ROE, % | 77.2% | 63.0% | 18.6% | 20.0% | 14.2% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the last 3 years EBITDA margin dropped on 9.40 pp from 21.3% in FY2013 to 11.9% in FY2016.
We call eprint Group Ltd an attractive growth stock as together with the growth it delivers high ROIC at 13.3%. During the last three years it dropped - it was 34.8% in FY2013. It's average level of ROIC for the last three years was 15.7%.
The company's Net Income margin dropped on 3.40 pp from 10.2% to 6.80% in FY2016. In the longer period Net Income margin dropped on 8.10 pp from 14.9% in FY2013 to 6.80% in FY2016.
eprint Group Ltd operates at ROE of 14.2%. For the last three years the average ROE was 17.6%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 4.68% in FY2016. CAPEX/Revenue increased slightly on 0.0581 pp from 4.63% in FY2013 to 4.68% in FY2016. For the last three years the average CAPEX/Revenue was 3.04%.
Leverage (Debt)
eprint Group Ltd has negative net debt at -1.2x Net Debt/EBITDA - at the same time with high growth. In the last 3 years eprint Group Ltd showed fast leverage growth of 1.16x from -0.03x in FY2013 to -1.19x in FY2016.
Valuation vs. comparable companies
At the end of trading day today eprint Group Ltd traded at 11.6x EV/EBITDA which is 62.4% lower than 30.8x Commercial Services peer group avearge calculated on the basis of 74 companies. At the end of trading day today eprint Group Ltd traded at 22.4x P/E which is 43.6% lower than 39.7x Commercial Services peer group avearge calculated on the basis of 7 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The market closed today at 19.0x EV/(EBITDA-CAPEX) for eprint Group Ltd which is higher vs. -0.8x Commercial Services peer group avearge calculated on the basis of 7 companies.
Peers in Commercial Services
Below you can find eprint Group Ltd benchmarking vs. other companies in Commercial Services 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 |
