Universe International Holdings Ltd EBITDA Margin dropped on 1,492 pp from 73.6% to -1,418% in 2016 and Revenue dropped on 97.5%
03/10/2016 • About Universe International Holdings Ltd (
$1046) • By InTwits
Universe International Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Universe International Holdings Ltd is a company in decline: FY2016 revenue growth was -97.5%, 5 years revenue CAGR was -43.6%
- Universe International Holdings Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's a lot of higher than industry average of 5.1%.
- CAPEX is quite volatile: 1.6 in FY2016, 4.2 in FY2015, 0.17 in FY2014, 0.85 in FY2013, 1.3 in FY2012
- The company has unprofitable business model: ROIC is at -17.0%
- It operates with high leverage: Net Debt/EBITDA is 5.0x while industry average is -2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Universe International Holdings Ltd ($1046) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 75.9 | 79.1 | 205.2 | 300.2 | 7.5 | -97.5% |
| Gross Profit | 16.8 | 29.1 | 23.4 | 254.7 | -47.4 | -118.6% |
| SG&A | 31.4 | 31.1 | 39.2 | 52.4 | 90.5 | 72.9% |
| EBITDA | 27.8 | 35.2 | 153.1 | 221.0 | -105.9 | -147.9% |
| Net Income | -17.4 | -4.7 | -24.3 | 162.0 | -140.8 | -186.9% |
Balance Sheet
|
|---|
| Cash | 71.1 | 50.4 | 84.2 | 102.8 | 217.8 | 111.8% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 13.3 | 37,771.4% |
| Long Term Debt | 0.0 | 0.0 | 0.1 | 9.3 | 0.1 | -99.3% |
Cash flow
|
|---|
| Capex | 1.3 | 0.9 | 0.2 | 4.2 | 1.6 | -61.5% |
Ratios
|
|---|
| Revenue growth | -42.2% | 4.3% | 159.4% | 46.3% | -97.5% | |
| EBITDA growth | -65.9% | 26.8% | 334.4% | 44.3% | -147.9% | |
| Gross Margin | 22.1% | 36.7% | 11.4% | 84.8% | -635.1% | -719.9% |
| EBITDA Margin | 36.6% | 44.6% | 74.6% | 73.6% | -1,418.4% | -1,492.0% |
| Net Income Margin | -22.9% | -5.9% | -11.9% | 53.9% | -1,885.0% | -1,938.9% |
| SG&A, % of revenue | 41.4% | 39.3% | 19.1% | 17.4% | 1,211.9% | 1,194.4% |
| CAPEX, % of revenue | 1.8% | 1.1% | 0.1% | 1.4% | 21.9% | 20.4% |
| ROIC | -6.2% | -0.8% | -3.7% | 43.8% | -17.0% | -60.7% |
| ROE | -7.3% | -2.0% | -9.0% | 37.1% | -21.2% | -58.4% |
| Net Debt/EBITDA | -2.6x | -1.4x | -0.5x | -0.4x | | 0.4x |
Revenue and profitability
The company's Revenue dropped on 97.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 1,492 pp from 73.6% to -1,418% in FY2016.
Gross Margin dropped on 720 pp from 84.8% to -635% in FY2016. SG&A as a % of Revenue jumped on 1,194 pp from 17.4% to 1,212% in FY2016.
Net Income marign dropped on 1,939 pp from 53.9% to -1,885% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Universe International Holdings Ltd had CAPEX/Revenue of 21.9%. CAPEX/Revenue surged on 20.8 pp from 1.1% in FY2013 to 21.9% in FY2016. For the last three years the average CAPEX/Revenue was 7.8%.
Return on investment
The company operates at negative ROIC (-16.97%) and ROE (-21.25%). ROIC dropped on 60.7 pp from 43.8% to -17.0% in FY2016. ROE dropped on 58.4 pp from 37.1% to -21.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.0x and Debt / EBITDA is . Net Debt / EBITDA surged on 0.4x from -0.4x to in FY2016. Debt jumped on 42.7% while cash jumped on 112%.
Appendix 1: Peers in Entertainment
Below we provide Universe International Holdings Ltd benchmarking against other companies in Entertainment 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 |
|---|
| 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% | |
| China Animation Characters Co Ltd ($1566) | | -3.0% | 19.5% | 44.1% | 11.6% |
| |
|---|
| Median (27 companies) | 6.6% | 11.6% | 1.1% | -4.8% | 5.7% |
|---|
| Universe International Holdings Ltd ($1046) | | 4.3% | 159.4% | 46.3% | -97.5% |
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% |
| 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% | |
| Nan Hai Corp Ltd ($680) | 62.2% | 65.3% | 65.8% | 62.1% | |
| |
|---|
| Median (23 companies) | 44.8% | 52.7% | 44.3% | 41.2% | 41.9% |
|---|
| Universe International Holdings Ltd ($1046) | 22.1% | 36.7% | 11.4% | 84.8% | -635.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Neptune Group Ltd ($70) | 98.6% | 98.6% | 86.6% | 99.0% | |
| 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% | |
| China Vanguard Group Ltd ($8156) | -15.0% | -51.8% | 30.0% | 22.9% | -72.8% |
| |
|---|
| Median (27 companies) | 20.2% | 19.2% | 17.0% | -1.7% | -11.0% |
|---|
| Universe International Holdings Ltd ($1046) | 36.6% | 44.6% | 74.6% | 73.6% | -1,418.4% |
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% | 8.4% | 4.3% |
|---|
| Universe International Holdings Ltd ($1046) | 1.8% | 1.1% | 0.1% | 1.4% | 21.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% |
| Haichang Holdings Ltd ($2255) | 7.1% | 8.1% | 8.6% | 8.9% | |
| |
|---|
| Median (28 companies) | -1.1% | 5.1% | 0.7% | -2.6% | -8.4% |
|---|
| Universe International Holdings Ltd ($1046) | -6.2% | -0.8% | -3.7% | 43.8% | -17.0% |
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 (13 companies) | -0.1x | -0.3x | -0.2x | -0.6x | -0.2x |
|---|
| Universe International Holdings Ltd ($1046) | -2.6x | -1.4x | -0.5x | -0.4x | |
