Pegasus Entertainment Holdings Ltd revenue growth accelerated to 188% in FY2016 vs. 15.2% a year earliner
29/09/2016 • About Pegasus Entertainment Holdings Ltd (
$1326) • By InTwits
Pegasus Entertainment Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pegasus Entertainment Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -0.7%
- EBITDA Margin is quite volatile: 3.7% in FY2016, -41.9% in FY2015, 19.5% in FY2014, 12.4% in FY2013, 24.0% in FY2012
- Pegasus Entertainment Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.4%. At the same time it's a lot of higher than industry average of 58.1%.
- CAPEX is quite volatile: 1.5 in FY2016, 47.5 in FY2015, 0.15 in FY2014, 1.4 in FY2013, 0.19 in FY2012
- The company has unprofitable business model: ROIC is at -0.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pegasus Entertainment Holdings Ltd ($1326) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 137.2 | 192.6 | 134.8 | 155.2 | 446.4 | 187.5% |
| Gross Profit | 56.1 | 65.3 | 59.7 | 46.8 | 186.8 | 299.0% |
| SG&A | | 38.8 | 37.1 | 117.9 | 190.5 | 61.5% |
| EBITDA | 32.9 | 23.9 | 26.3 | -65.0 | 16.5 | |
| Net Income | 21.0 | 19.1 | 26.4 | -215.3 | -72.6 | |
Balance Sheet
|
|---|
| Cash | 15.9 | 30.0 | 36.3 | 81.8 | 72.2 | -11.7% |
| Short Term Debt | 2.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.2 | 1.4 | 0.2 | 47.5 | 1.5 | -96.8% |
Ratios
|
|---|
| Revenue growth | 92.7% | 40.4% | -30.0% | 15.2% | 187.5% | |
| EBITDA growth | 55.2% | -27.4% | 10.1% | -346.9% | -125.3% | |
| Gross Margin | 40.9% | 33.9% | 44.3% | 30.2% | 41.9% | 11.7% |
| EBITDA Margin | 24.0% | 12.4% | 19.5% | -41.9% | 3.7% | 45.6% |
| Net Income Margin | 15.3% | 9.9% | 19.6% | -138.7% | -16.3% | 122.4% |
| SG&A, % of revenue | | 20.1% | 27.6% | 76.0% | 42.7% | -33.3% |
| CAPEX, % of revenue | 0.1% | 0.7% | 0.1% | 30.6% | 0.3% | -30.2% |
| ROIC | 82.1% | 18.5% | 10.3% | -21.3% | -0.7% | 20.6% |
| ROE | 68.6% | 16.3% | 10.9% | -66.4% | -21.0% | 45.4% |
| Net Debt/EBITDA | -0.4x | -1.3x | -1.4x | | -4.4x | -4.4x |
Revenue and profitability
Pegasus Entertainment Holdings Ltd's Revenue surged on 188%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 45.6 pp from -41.9% to 3.7% in FY2016.
Gross Margin jumped on 11.7 pp from 30.2% to 41.9% in FY2016. SG&A as a % of Revenue dropped on 33.3 pp from 76.0% to 42.7% in FY2016.
Net Income marign jumped on 122 pp from -139% to -16.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.34% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 10.3%.
Return on investment
The company operates at negative ROIC (-0.69%) and ROE (-21.00%). ROIC surged on 20.6 pp from -21.3% to -0.69% in FY2016. ROE surged on 45.4 pp from -66.4% to -21.0% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 11.7%.
Appendix 1: Peers in Entertainment
Below you can find Pegasus Entertainment Holdings Ltd benchmarking vs. other companies in Entertainment 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 |
|---|
| Neo Telemedia Ltd ($8167) | 268.8% | -60.2% | -13.4% | 5,442.4% | |
| National Arts Entertainment and Culture Group Ltd ($8228) | -57.9% | 181.2% | -20.1% | 162.4% | |
| Alibaba Pictures Group Ltd ($1060) | 169.4% | -45.8% | -63.8% | 108.3% | |
| SMI Holdings Group Ltd ($198) | 16.4% | 65.4% | 16.4% | 77.2% | |
| Universe International Holdings Ltd ($1046) | -42.2% | 4.3% | 159.4% | 46.3% | |
| |
|---|
| Median (27 companies) | 0.9% | 10.4% | 1.2% | -4.8% | 0.9% |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | | 40.4% | -30.0% | 15.2% | 187.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amax International Holdings Ltd ($959) | | 92.1% | 98.6% | 96.6% | 70.6% |
| China Vanguard Group Ltd ($8156) | 63.8% | 88.2% | 93.8% | 95.2% | 91.0% |
| Universe International Holdings Ltd ($1046) | 22.1% | 36.7% | 11.4% | 84.8% | |
| Cheung Wo International Holdings Ltd ($9) | -17.5% | 71.4% | 77.7% | 77.8% | |
| REXLot Holdings Ltd ($555) | 70.2% | 73.1% | 73.4% | 67.4% | |
| |
|---|
| Median (23 companies) | 44.8% | 52.7% | 44.0% | 44.3% | 57.9% |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 40.9% | 33.9% | 44.3% | 30.2% | 41.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Neptune Group Ltd ($70) | 98.6% | 98.6% | 86.6% | 99.0% | |
| Universe International Holdings Ltd ($1046) | 36.6% | 44.6% | 74.6% | 73.6% | |
| Haichang Holdings Ltd ($2255) | 55.0% | 44.5% | 46.3% | 56.6% | |
| REXLot Holdings Ltd ($555) | 53.7% | 55.1% | 6.1% | 40.5% | |
| SMI Holdings Group Ltd ($198) | 19.2% | 35.4% | 34.5% | 31.2% | |
| |
|---|
| Median (27 companies) | 20.2% | 20.3% | 17.0% | 2.2% | -11.0% |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 24.0% | 12.4% | 19.5% | -41.9% | 3.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Star Cultural Media Group Ltd ($8172) | 8.9% | 0.0% | 0.0% | 848.3% | |
| National Arts Entertainment and Culture Group Ltd ($8228) | 1,237.1% | 771.1% | 799.0% | 508.9% | |
| Cheung Wo International Holdings Ltd ($9) | 90.3% | 465.2% | 383.2% | 202.4% | |
| Haichang Holdings Ltd ($2255) | 21.4% | 18.5% | 10.3% | 64.2% | |
| Amax International Holdings Ltd ($959) | 10.4% | 2.7% | 17.2% | 59.8% | 42.5% |
| |
|---|
| Median (27 companies) | 8.9% | 7.8% | 4.8% | 8.1% | 4.3% |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 0.1% | 0.7% | 0.1% | 30.6% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Universe International Holdings Ltd ($1046) | -6.2% | -0.8% | -3.7% | 43.8% | |
| China Animation Characters Co Ltd ($1566) | | 119.2% | 117.8% | 24.1% | 14.0% |
| Neptune Group Ltd ($70) | 22.8% | 23.8% | 21.1% | 18.1% | |
| SMI Holdings Group Ltd ($198) | 1.3% | 8.4% | 9.9% | 10.5% | |
| Dynam Japan Holdings Co Ltd ($6889) | 23.8% | 25.4% | 21.8% | 10.5% | 12.6% |
| |
|---|
| Median (28 companies) | -1.1% | 2.3% | -0.3% | -1.7% | -8.4% |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 82.1% | 18.5% | 10.3% | -21.3% | -0.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Orange Sky Golden Harvest Entertainment Holdings Ltd ($1132) | 1.1x | 4.2x | 2.7x | 25.8x | |
| Nan Hai Corp Ltd ($680) | 80.8x | 3.5x | 20.8x | 12.6x | |
| Haichang Holdings Ltd ($2255) | 7.0x | 4.7x | 1.7x | 1.7x | |
| SMI Holdings Group Ltd ($198) | 2.0x | 1.6x | 2.1x | 1.6x | |
| REXLot Holdings Ltd ($555) | -0.0x | -0.2x | 7.2x | 1.6x | |
| |
|---|
| Median (14 companies) | -0.1x | -0.3x | -0.2x | -0.5x | -0.1x |
|---|
