NagaCorp Ltd reports 11.9% EBITDA growth in 2016 and 5.5% Revenue growth
08/02/2017 • About NagaCorp Ltd (
$3918) • By InTwits
NagaCorp Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- NagaCorp Ltd is a growth stock: 2016 revenue growth was 5.5%, 5 year revenue CAGR was 18.9% at 2016 ROIC 21.3%
- NagaCorp Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 24.1%. At the same time it's in pair with industry average of 21.2%.
- CAPEX is quite volatile: 137 in 2016, 140 in 2015, 97.1 in 2014, 59.4 in 2013, 72.2 in 2012
- The company has highly profitable business model: ROIC is at 21.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
NagaCorp Ltd ($3918) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 278.8 | 344.9 | 404.3 | 503.7 | 531.6 | 5.5% |
| Gross Profit | 203.2 | 248.6 | 272.7 | 327.8 | 366.8 | 11.9% |
| SG&A | | | | 47.2 | 52.6 | 11.5% |
| EBITDA | 138.9 | 172.7 | 172.9 | 228.3 | 255.5 | 11.9% |
| Net Income | 113.1 | 140.3 | 136.1 | 172.6 | 184.2 | 6.7% |
Balance Sheet
|
|---|
| Cash | 73.2 | 252.1 | 178.2 | 143.1 | 210.9 | 47.4% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 72.2 | 59.4 | 97.1 | 140.2 | 137.0 | -2.3% |
Ratios
|
|---|
| Revenue growth | 24.6% | 23.7% | 17.2% | 24.6% | 5.5% | |
| EBITDA growth | 26.1% | 24.3% | 0.1% | 32.1% | 11.9% | |
| Gross Margin | 72.9% | 72.1% | 67.4% | 65.1% | 69.0% | 3.9% |
| EBITDA Margin | 49.8% | 50.1% | 42.8% | 45.3% | 48.1% | 2.7% |
| Net Income Margin | 40.6% | 40.7% | 33.7% | 34.3% | 34.6% | 0.4% |
| SG&A, % of revenue | | | | 9.4% | 9.9% | 0.5% |
| CAPEX, % of revenue | 25.9% | 17.2% | 24.0% | 27.8% | 25.8% | -2.1% |
| ROIC | 30.6% | 28.9% | 22.6% | 28.6% | 21.3% | -7.3% |
| ROE | 30.0% | 28.0% | 22.2% | 26.3% | 19.0% | -7.3% |
| Net Debt/EBITDA | -0.5x | -1.5x | -1.0x | -0.6x | -0.8x | -0.2x |
Revenue and profitability
The company's Revenue increased on 5.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from 8.3% to 12.3% in FY2016.
Gross Margin increased on 3.9 pp from 65.1% to 69.0% in 2016. SG&A as a % of Revenue increased slightly on 0.53 pp from 9.4% to 9.9% in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 NagaCorp Ltd had CAPEX/Revenue of 25.8%. CAPEX/Revenue increased on 8.6 pp from 17.2% in 2013 to 25.8% in 2016. Average CAPEX/Revenue for the last three years was 25.9%.NagaCorp Ltd maintained rich investment policy and has spent a big chunk of EBITDA (53.6%) to CAPEX.
Return on investment
The company operates at high and attractive ROIC (21.31%) while ROE is a bit lower (19.01%). ROIC decreased on 7.3 pp from 28.6% to 21.3% in 2016. ROE decreased on 7.3 pp from 26.3% to 19.0% in 2016.
Leverage (Debt)
The company has no debt. Cash jumped on 47.4%.
Appendix 1: Peers in Lodging
Below you can find NagaCorp Ltd benchmarking vs. other companies in Lodging 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 |
|---|
| China New City Commercial Development Ltd ($1321) | -16.9% | 433.0% | -76.2% | 141.3% | |
| Zhuhai Holdings Investment Group Ltd ($908) | 229.8% | 14.5% | 57.0% | 76.3% | |
| Shanghai Jin Jiang International Hotels Group Co Ltd ($2006) | -28.8% | 3.2% | 0.8% | 29.9% | |
| Century City International Holdings Ltd ($355) | 283.6% | 108.7% | -35.8% | 25.9% | |
| Far East Consortium International Ltd/HK ($35) | | 111.9% | 9.0% | 25.7% | -21.8% |
| |
|---|
| Median (23 companies) | 8.7% | 10.2% | 0.7% | -10.2% | -7.5% |
|---|
| NagaCorp Ltd ($3918) | | 23.7% | 17.2% | 24.6% | 5.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SJM Holdings Ltd ($880) | 99.7% | 99.7% | 99.7% | 99.5% | |
| Wynn Macau Ltd ($1128) | 97.9% | 98.3% | 98.5% | 98.4% | |
| Emperor Entertainment Hotel Ltd ($296) | 77.1% | 75.6% | 76.8% | 70.9% | 65.5% |
| Asia Standard Hotel Group Ltd ($292) | 60.7% | 73.4% | 72.1% | 67.6% | 65.8% |
| Sino Hotels Holdings Ltd ($1221) | 71.3% | 70.4% | 68.9% | 65.8% | 62.0% |
| |
|---|
| Median (17 companies) | 55.7% | 46.3% | 51.3% | 45.4% | 62.0% |
|---|
| NagaCorp Ltd ($3918) | 72.9% | 72.1% | 67.4% | 65.1% | 69.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Emperor Entertainment Hotel Ltd ($296) | 44.9% | 46.4% | 46.9% | 43.1% | 36.2% |
| Jinmao Investments and Jinmao China Investments Holdings Ltd ($6139) | 41.2% | 40.5% | 25.8% | 41.5% | |
| Asia Standard Hotel Group Ltd ($292) | -23.9% | 65.2% | 49.9% | 40.4% | 17.8% |
| Sino Hotels Holdings Ltd ($1221) | 46.5% | 45.9% | 43.1% | 39.6% | 33.1% |
| Far East Consortium International Ltd/HK ($35) | 57.2% | 34.5% | 43.0% | 36.4% | 37.3% |
| |
|---|
| Median (23 companies) | 26.7% | 26.4% | 25.8% | 22.6% | 33.1% |
|---|
| NagaCorp Ltd ($3918) | 49.8% | 50.1% | 42.8% | 45.3% | 48.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Macau Legend Development Ltd ($1680) | 5.0% | 24.2% | 73.0% | 68.5% | |
| Wynn Macau Ltd ($1128) | 5.2% | 11.0% | 28.2% | 66.6% | |
| Legend Strategy International Holdings Group Co Ltd ($1355) | 17.0% | 38.0% | 1.2% | 62.6% | |
| Century City International Holdings Ltd ($355) | 21.2% | 32.9% | 13.4% | 35.8% | |
| Shangri-La Asia Ltd ($69) | 48.5% | 33.1% | 41.2% | 34.3% | |
| |
|---|
| Median (23 companies) | 6.3% | 8.9% | 10.8% | 12.8% | 6.4% |
|---|
| NagaCorp Ltd ($3918) | 25.9% | 17.2% | 24.0% | 27.8% | 25.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| MGM China Holdings Ltd ($2282) | 46.2% | 53.8% | 54.5% | 24.0% | |
| Sands China Ltd ($1928) | 14.2% | 24.4% | 26.7% | 15.8% | |
| Emperor Entertainment Hotel Ltd ($296) | 22.2% | 21.1% | 18.4% | 12.0% | 7.5% |
| Galaxy Entertainment Group Ltd ($27) | 25.2% | 30.0% | 27.5% | 10.2% | |
| Wynn Macau Ltd ($1128) | 53.9% | 42.3% | 29.9% | 9.9% | |
| |
|---|
| Median (23 companies) | 5.7% | 5.6% | 3.6% | 2.7% | 2.6% |
|---|
| NagaCorp Ltd ($3918) | 30.6% | 28.9% | 22.6% | 28.6% | 21.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China New City Commercial Development Ltd ($1321) | 26.0x | 7.9x | | 100.1x | |
| Century City International Holdings Ltd ($355) | 6.5x | 9.3x | 11.2x | 12.3x | |
| Regal Hotels International Holdings Ltd ($78) | 5.0x | 8.7x | 11.8x | 11.1x | |
| Shangri-La Asia Ltd ($69) | 6.0x | 6.8x | 6.9x | 9.8x | |
| Macau Legend Development Ltd ($1680) | 2.2x | 0.6x | 0.2x | 7.1x | |
| |
|---|
| Median (21 companies) | 1.2x | 0.8x | 1.0x | 4.0x | 4.2x |
|---|
| NagaCorp Ltd ($3918) | -0.5x | -1.5x | -1.0x | -0.6x | -0.8x |
