Clear Media Ltd CAPEX dropped on 30.5% while Revenue increased on 2.5%
24/01/2017 • About Clear Media Ltd (
$100) • By InTwits
Clear Media Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Clear Media Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.7%. At the same time it's a lot of higher than industry average of 5.1%.
- CAPEX is quite volatile: 356 in FY2016, 513 in FY2015, 10.8 in FY2014, 8.9 in FY2013, 8.5 in FY2012
- The company has highly profitable business model: ROIC is at 14.9%
- It operates with high leverage: Net Debt/EBITDA is -0.7x while industry average is -8.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Clear Media Ltd ($100) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,522 | 1,647 | 1,761 | 1,833 | 1,879 | 2.5% |
| Gross Profit | 583 | 666 | 726 | 804 | 831 | 3.4% |
| SG&A | 264 | 306 | 344 | 362 | 385 | 6.4% |
| EBITDA | 624 | 674 | 727 | 806 | 824 | 2.2% |
| Net Income | 219 | 201 | 240 | 281 | 284 | 1.2% |
Balance Sheet
|
|---|
| Cash | 1,290 | 893 | 1,050 | 689 | 574 | -16.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 8 | 9 | 11 | 513 | 356 | -30.5% |
Ratios
|
|---|
| Revenue growth | 2.4% | 8.2% | 6.9% | 4.1% | 2.5% | |
| EBITDA growth | 10.0% | 8.0% | 7.9% | 11.0% | 2.2% | |
| Gross Margin | 38.3% | 40.4% | 41.2% | 43.9% | 44.2% | 0.3% |
| EBITDA Margin | 41.0% | 40.9% | 41.3% | 44.0% | 43.9% | -0.1% |
| Net Income Margin | 14.4% | 12.2% | 13.6% | 15.3% | 15.1% | -0.2% |
| SG&A, % of revenue | 17.4% | 18.6% | 19.5% | 19.7% | 20.5% | 0.7% |
| CAPEX, % of revenue | 0.6% | 0.5% | 0.6% | 28.0% | 19.0% | -9.0% |
| ROIC | 9.2% | 10.8% | 12.4% | 14.4% | 14.9% | 0.5% |
| ROE | 6.9% | 6.6% | 8.4% | 10.0% | 10.8% | 0.8% |
| Net Debt/EBITDA | -2.1x | -1.3x | -1.4x | -0.9x | -0.7x | 0.2x |
Revenue and profitability
The company's Revenue increased on 2.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.52 pp from 6.3% to 6.8% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased slightly on 0.74 pp from 19.7% to 20.5% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 19.0% in FY2016. Clear Media Ltd's CAPEX/Revenue jumped on 18.4 pp from 0.54% in FY2013 to 19.0% in FY2016. Average CAPEX/Revenue for the last three years was 15.9%.
Return on investment
The company operates at good ROIC (14.92%) while ROE is low (10.81%). ROIC increased slightly on 0.53 pp from 14.4% to 14.9% in FY2016. ROE increased slightly on 0.80 pp from 10.0% to 10.8% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 16.7%.
Appendix 1: Peers in Advertising
Below we provide Clear Media Ltd benchmarking against other companies in Advertising 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 |
|---|
| China Chuanglian Education Group Ltd ($2371) | -40.5% | 332.3% | -21.8% | 26.5% | |
| Dahe Media Co Ltd ($8243) | 5.8% | -5.7% | -1.6% | 8.8% | |
| Asiaray Media Group Ltd ($1993) | 32.8% | 27.1% | 9.0% | 6.5% | |
| Cinderella Media Group Ltd ($550) | 7.1% | -63.6% | -89.2% | 4.9% | |
| Branding China Group Ltd ($8219) | 11.3% | 84.6% | 12.0% | 4.5% | |
| |
|---|
| Median (8 companies) | 7.1% | 8.7% | -4.5% | 4.7% | |
|---|
| Clear Media Ltd ($100) | | 8.2% | 6.9% | 4.1% | 2.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cinderella Media Group Ltd ($550) | 26.3% | 26.7% | 72.1% | 72.8% | |
| China Chuanglian Education Group Ltd ($2371) | -2,833.2% | 74.2% | 68.5% | 64.3% | |
| SEEC Media Group Ltd ($205) | 61.7% | 58.4% | 52.0% | 51.6% | |
| Dahe Media Co Ltd ($8243) | 35.3% | 36.7% | 40.7% | 29.5% | |
| Branding China Group Ltd ($8219) | 39.4% | 33.4% | 27.3% | 29.5% | |
| |
|---|
| Median (7 companies) | 34.8% | 36.5% | 40.7% | 29.5% | |
|---|
| Clear Media Ltd ($100) | 38.3% | 40.4% | 41.2% | 43.9% | 44.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dahe Media Co Ltd ($8243) | 16.0% | 15.3% | 19.4% | 17.2% | |
| Branding China Group Ltd ($8219) | 30.3% | 26.2% | 18.6% | 17.0% | |
| SinoMedia Holding Ltd ($623) | 27.3% | 30.5% | 24.9% | 16.7% | |
| Cinderella Media Group Ltd ($550) | 18.2% | 18.3% | 43.6% | 10.3% | |
| China Chuanglian Education Group Ltd ($2371) | -2,821.1% | 50.5% | 36.2% | 7.7% | |
| |
|---|
| Median (8 companies) | 17.1% | 22.8% | 20.1% | 9.0% | |
|---|
| Clear Media Ltd ($100) | 41.0% | 40.9% | 41.3% | 44.0% | 43.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Chuanglian Education Group Ltd ($2371) | 1.2% | 5.0% | 0.7% | 14.2% | |
| Roadshow Holdings Ltd ($888) | 2.1% | 2.8% | 1.5% | 3.8% | |
| Cinderella Media Group Ltd ($550) | 1.5% | 5.1% | 6.8% | 2.7% | |
| Asiaray Media Group Ltd ($1993) | 6.1% | 3.0% | 2.2% | 1.7% | |
| SEEC Media Group Ltd ($205) | 0.9% | 0.4% | 1.1% | 1.3% | |
| |
|---|
| Median (8 companies) | 1.4% | 2.8% | 1.4% | 1.5% | |
|---|
| Clear Media Ltd ($100) | 0.6% | 0.5% | 0.6% | 28.0% | 19.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Branding China Group Ltd ($8219) | 29.0% | 23.6% | 13.7% | 12.0% | |
| SinoMedia Holding Ltd ($623) | 34.8% | 33.8% | 20.8% | 9.6% | |
| Dahe Media Co Ltd ($8243) | 6.9% | 5.3% | 6.9% | 6.8% | |
| Cinderella Media Group Ltd ($550) | 24.6% | 6.7% | 2.3% | 2.7% | |
| China Chuanglian Education Group Ltd ($2371) | -171.2% | 12.3% | 1.9% | -1.4% | |
| |
|---|
| Median (8 companies) | 18.8% | 14.4% | 9.4% | 0.6% | |
|---|
| Clear Media Ltd ($100) | 9.2% | 10.8% | 12.4% | 14.4% | 14.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dahe Media Co Ltd ($8243) | 1.3x | 1.7x | 2.3x | 3.0x | |
| SinoMedia Holding Ltd ($623) | -3.2x | -2.0x | -1.6x | -1.9x | |
| Branding China Group Ltd ($8219) | -1.8x | -1.4x | -1.6x | -2.7x | |
| Cinderella Media Group Ltd ($550) | -1.1x | -3.1x | -5.5x | -14.1x | |
| Asiaray Media Group Ltd ($1993) | -0.8x | -0.3x | -0.1x | -18.9x | |
| |
|---|
| Median (6 companies) | -1.1x | -1.1x | -1.6x | -8.4x | |
|---|
| Clear Media Ltd ($100) | -2.1x | -1.3x | -1.4x | -0.9x | -0.7x |
