Crocodile Garments Net Income dropped on 99.1% and Revenue dropped on 22.7%
28/10/2016 • About Crocodile Garments (
$122) • By InTwits
Crocodile Garments reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Crocodile Garments is a company in decline: FY2016 revenue growth was -22.7%, 5 years revenue CAGR was -9.4%
- The company operates at negative EBITDA Margin: -7.9%
- Crocodile Garments 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 -5.7%0
- Crocodile Garments has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.8%. At the same time it's a lot of higher than industry average of 4.7%.
- CAPEX is quite volatile: 5.5 in FY2016, 54.6 in FY2015, 8.8 in FY2014, 110 in FY2013, 102 in FY2012
- The company has unprofitable business model: ROIC is at -1.9%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is 1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Crocodile Garments ($122) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 505.6 | 499.5 | 501.8 | 405.3 | 313.2 | -22.7% |
| Gross Profit | 327.2 | 303.0 | 302.9 | 251.9 | 186.8 | -25.8% |
| SG&A | 370.0 | 408.4 | 385.3 | 327.2 | 262.8 | -19.7% |
| EBITDA | -0.2 | -62.6 | -15.4 | -23.6 | -24.7 | |
| Net Income | 84.7 | 236.9 | 106.0 | 51.1 | 0.5 | -99.1% |
Balance Sheet
|
|---|
| Cash | 49.7 | 57.6 | 57.2 | 72.1 | 152.8 | 111.8% |
| Short Term Debt | 35.9 | 144.1 | 186.1 | 517.1 | 318.6 | -38.4% |
| Long Term Debt | 233.5 | 316.1 | 301.6 | 26.0 | 276.8 | 962.6% |
Cash flow
|
|---|
| Capex | 101.6 | 110.3 | 8.8 | 54.6 | 5.5 | -89.9% |
Ratios
|
|---|
| Revenue growth | -1.7% | -1.2% | 0.5% | -19.2% | -22.7% | |
| EBITDA growth | -100.6% | 25,565.2% | -75.4% | 53.1% | 4.8% | |
| Gross Margin | 64.7% | 60.7% | 60.4% | 62.1% | 59.7% | -2.5% |
| EBITDA Margin | -0.0% | -12.5% | -3.1% | -5.8% | -7.9% | -2.1% |
| Net Income Margin | 16.7% | 47.4% | 21.1% | 12.6% | 0.1% | -12.5% |
| SG&A, % of revenue | 73.2% | 81.8% | 76.8% | 80.7% | 83.9% | 3.2% |
| CAPEX, % of revenue | 20.1% | 22.1% | 1.8% | 13.5% | 1.8% | -11.7% |
| ROIC | -1.3% | -4.9% | -1.7% | -1.9% | -1.9% | 0.1% |
| ROE | 7.9% | 18.6% | 7.3% | 3.3% | 0.0% | -3.3% |
Revenue and profitability
Crocodile Garments's Revenue dropped on 22.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from -5.8% to -7.9% in FY2016.
Gross Margin decreased on 2.5 pp from 62.1% to 59.7% in FY2016. SG&A as a % of Revenue increased on 3.2 pp from 80.7% to 83.9% in FY2016.
Net Income marign dropped on 12.5 pp from 12.6% to 0.15% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Crocodile Garments had CAPEX/Revenue of 1.8%. Crocodile Garments's CAPEX/Revenue dropped on 20.3 pp from 22.1% in FY2013 to 1.8% in FY2016. It's average CAPEX/Revenue for the last three years was 5.7%.
Return on investment
The company operates at negative ROIC (-1.88%) and low but positive ROE (0.03%). ROIC showed almost no change in FY2016. ROE decreased on 3.3 pp from 3.3% to 0.029% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt increased on 9.6% while cash jumped on 112%.
Appendix 1: Peers in Apparel
Below you can find Crocodile Garments benchmarking vs. other companies in Apparel 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 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | -94.0% | 46.8% | 20.4% | 33.1% | |
| Highlight China IoT International Ltd ($1682) | | 17.7% | -73.7% | 29.6% | -55.0% |
| Koradior Holdings Ltd ($3709) | 48.3% | 44.7% | 47.7% | 23.9% | |
| Kingmaker Footwear Holdings Ltd ($1170) | | 9.3% | 6.3% | 23.7% | -1.5% |
| Cosmo Lady China Holdings Co Ltd ($2298) | 36.3% | 29.2% | 37.4% | 23.6% | |
| |
|---|
| Median (52 companies) | 5.6% | 6.3% | 5.5% | -1.5% | -16.1% |
|---|
| Crocodile Garments ($122) | | -1.2% | 0.5% | -19.2% | -22.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 38.5% | 42.3% | 59.6% | 75.6% | |
| Koradior Holdings Ltd ($3709) | 62.8% | 69.3% | 73.3% | 73.7% | |
| Prada SpA ($1913) | 71.5% | 72.1% | 73.8% | 71.8% | 72.4% |
| China Outfitters Holdings Ltd ($1146) | 74.9% | 74.3% | 70.0% | 65.7% | |
| S Culture International Holdings Ltd ($1255) | 64.7% | 63.7% | 62.9% | 61.9% | |
| |
|---|
| Median (51 companies) | 24.8% | 23.5% | 24.9% | 25.0% | 17.5% |
|---|
| Crocodile Garments ($122) | 64.7% | 60.7% | 60.4% | 62.1% | 59.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Lilang Ltd ($1234) | 26.3% | 26.9% | 29.4% | 30.6% | |
| Cabbeen Fashion Ltd ($2030) | 25.0% | 29.7% | 28.4% | 29.0% | |
| Fuguiniao Co Ltd ($1819) | 24.5% | 26.1% | 26.7% | 27.9% | |
| Prada SpA ($1913) | 29.6% | 31.7% | 31.7% | 26.8% | 22.4% |
| Shenzhou International Group Holdings Ltd ($2313) | 26.4% | 26.2% | 26.1% | 26.7% | |
| |
|---|
| Median (52 companies) | 11.1% | 10.9% | 7.5% | 7.2% | -2.7% |
|---|
| Crocodile Garments ($122) | -0.0% | -12.5% | -3.1% | -5.8% | -7.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Symphony Holdings Ltd/Hong Kong ($1223) | 136.9% | 70.3% | 13.5% | 28.5% | |
| Shenzhou International Group Holdings Ltd ($2313) | 7.3% | 7.9% | 10.2% | 16.1% | |
| Texhong Textile Group Ltd ($2678) | 8.9% | 11.8% | 5.8% | 10.5% | |
| Prada SpA ($1913) | 9.7% | 10.6% | 15.3% | 10.2% | 11.1% |
| Citychamp Watch & Jewellery Group Ltd ($256) | 6.5% | 5.6% | 3.6% | 8.6% | |
| |
|---|
| Median (51 companies) | 2.2% | 3.0% | 2.5% | 2.3% | 1.6% |
|---|
| Crocodile Garments ($122) | 20.1% | 22.1% | 1.8% | 13.5% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Koradior Holdings Ltd ($3709) | 45.2% | 69.5% | 36.5% | 31.0% | |
| Cosmo Lady China Holdings Co Ltd ($2298) | 41.7% | 56.0% | 38.6% | 27.8% | |
| Cabbeen Fashion Ltd ($2030) | 32.3% | 32.9% | 26.5% | 27.0% | |
| Sitoy Group Holdings Ltd ($1023) | 39.3% | 28.7% | 31.8% | 22.0% | 16.4% |
| Prada SpA ($1913) | 32.1% | 37.4% | 34.0% | 21.9% | 14.0% |
| |
|---|
| Median (52 companies) | 12.4% | 7.3% | 5.3% | 5.7% | -4.6% |
|---|
| Crocodile Garments ($122) | -1.3% | -4.9% | -1.7% | -1.9% | -1.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| S Culture International Holdings Ltd ($1255) | 1.4x | 0.7x | 2.4x | 158.1x | |
| High Fashion International Ltd ($608) | 16.7x | 27.7x | 11.2x | 5.2x | |
| Global Brands Group Holding Ltd ($787) | -0.4x | -0.3x | 1.3x | 2.1x | |
| Fuguiniao Co Ltd ($1819) | -0.0x | -0.7x | 0.3x | 1.9x | |
| Texhong Textile Group Ltd ($2678) | 1.4x | 1.3x | 2.3x | 1.4x | |
| |
|---|
| Median (39 companies) | -0.3x | -0.7x | -0.3x | -1.2x | -2.5x |
|---|
