Elec & Eltek International Co Ltd EBITDA surged on 34.3% and Revenue increased on 5.6%
24/02/2017 • About Elec & Eltek International Co Ltd (
$1151) • By InTwits
Elec & Eltek International Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Elec & Eltek International Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.8%. At the same time it's a lot of higher than industry average of 33.1%.
- CAPEX is quite volatile: 0.80 in FY2016, 96.9 in FY2015, 29.5 in FY2014, 0.10 in FY2013, 0.10 in FY2012
- The company has potentially unprofitable business model: ROIC is at 3.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Elec & Eltek International Co Ltd ($1151) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 530.1 | 504.9 | 517.1 | 453.0 | 478.1 | 5.6% |
| Gross Profit | 72.1 | 49.8 | 44.8 | 36.4 | 52.4 | 44.1% |
| SG&A | | | | 38.0 | 30.3 | -20.3% |
| EBITDA | 75.9 | 56.7 | 48.4 | 41.0 | 55.1 | 34.3% |
| Net Income | 34.8 | 13.7 | 3.8 | -4.8 | 11.4 | |
Balance Sheet
|
|---|
| Cash | 43.1 | 20.4 | 22.3 | 11.0 | 18.7 | 70.3% |
| Short Term Debt | 48.3 | 50.4 | 49.7 | 48.1 | 49.5 | 3.0% |
| Long Term Debt | 40.6 | 31.1 | 43.7 | 34.3 | 5.7 | -83.5% |
Cash flow
|
|---|
| Capex | 32.0 | 47.6 | 41.3 | 26.3 | 22.1 | -15.8% |
Ratios
|
|---|
| Revenue growth | -13.4% | -4.8% | 2.4% | -12.4% | 5.6% | |
| EBITDA growth | -22.7% | -25.3% | -14.6% | -15.3% | 34.3% | |
| Gross Margin | 13.6% | 9.9% | 8.7% | 8.0% | 11.0% | 2.9% |
| EBITDA Margin | 14.3% | 11.2% | 9.4% | 9.1% | 11.5% | 2.5% |
| Net Income Margin | 6.6% | 2.7% | 0.7% | -1.1% | 2.4% | 3.4% |
| SG&A, % of revenue | | | | 8.4% | 6.3% | -2.0% |
| CAPEX, % of revenue | 6.0% | 9.4% | 8.0% | 5.8% | 4.6% | -1.2% |
| ROIC | 6.2% | 2.6% | 1.0% | 0.3% | 3.8% | 3.6% |
| ROE | 9.4% | 3.8% | 1.1% | -1.4% | 3.1% | 4.5% |
| Net Debt/EBITDA | 0.6x | 1.1x | 1.5x | 1.7x | 0.7x | -1.1x |
Revenue and profitability
Elec & Eltek International Co Ltd's Revenue increased on 5.6%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.5 pp from 9.1% to 11.5% in FY2016.
Gross Margin increased on 2.9 pp from 8.0% to 11.0% in FY2016. SG&A as a % of Revenue decreased on 2.0 pp from 8.4% to 6.3% in FY2016.
Net Income marign increased on 3.4 pp from -1.1% to 2.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Elec & Eltek International Co Ltd's CAPEX/Revenue was 4.6% in FY2016. CAPEX/Revenue decreased on 4.8 pp from 9.4% in FY2013 to 4.6% in FY2016. Average CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at low ROIC (3.84%) and ROE (3.13%). ROIC increased on 3.6 pp from 0.27% to 3.8% in FY2016. ROE increased on 4.5 pp from -1.4% to 3.1% in FY2016.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from 1.7x to 0.7x in FY2016. Debt dropped on 33.0% while cash surged on 70.3%.
Appendix 1: Peers in Electronics
Below we provide Elec & Eltek International Co Ltd benchmarking against other companies in Electronics 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 |
|---|
| GCL New Energy Holdings Ltd ($451) | 14.7% | -6.8% | 10.9% | 53.9% | |
| Tech Pro Technology Development Ltd ($3823) | 7.4% | -44.9% | -13.7% | 52.4% | |
| Nanjing Sample Technology Co Ltd ($1708) | 36.1% | 8.0% | 15.4% | 34.8% | |
| AAC Technologies Holdings Inc ($2018) | 54.8% | 28.9% | 9.7% | 32.2% | |
| Ningbo Wanhao Holdings Co Ltd ($8249) | 5.7% | 412.4% | -6.9% | 28.9% | |
| |
|---|
| Median (50 companies) | 6.5% | 4.1% | 7.2% | 0.4% | -4.7% |
|---|
| Elec & Eltek International Co Ltd ($1151) | | -4.8% | 2.4% | -12.4% | 5.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 54.0% | 58.1% | 49.5% | 49.6% | |
| AAC Technologies Holdings Inc ($2018) | 44.2% | 42.7% | 41.4% | 41.5% | |
| TeleEye Holdings Ltd ($8051) | 44.0% | 42.1% | 38.5% | 37.0% | 40.9% |
| Hi Sun Technology China Ltd ($818) | 28.1% | 37.4% | 33.3% | 34.7% | |
| Datronix Holdings Ltd ($889) | 32.9% | 32.0% | 34.1% | 34.6% | |
| |
|---|
| Median (48 companies) | 14.1% | 13.8% | 14.1% | 15.3% | 13.5% |
|---|
| Elec & Eltek International Co Ltd ($1151) | 13.6% | 9.9% | 8.7% | 8.0% | 11.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.8% | 35.8% | 34.9% | 34.8% | |
| GCL New Energy Holdings Ltd ($451) | 10.8% | 11.1% | 12.6% | 33.0% | |
| Daiwa Associate Holdings ($1037) | 2.4% | 3.8% | 2.8% | 25.6% | -53.6% |
| Wasion Group Holdings Ltd ($3393) | 18.8% | 21.2% | 22.0% | 19.3% | |
| Tongda Group Holdings Ltd ($698) | 17.1% | 16.8% | 18.4% | 18.9% | |
| |
|---|
| Median (50 companies) | 6.5% | 6.0% | 4.6% | 4.6% | -5.5% |
|---|
| Elec & Eltek International Co Ltd ($1151) | 14.3% | 11.2% | 9.4% | 9.1% | 11.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| GCL New Energy Holdings Ltd ($451) | 5.5% | 5.1% | 5.4% | 401.2% | |
| National Electronic Hldgs ($213) | 3.4% | 18.1% | 7.1% | 49.7% | 4.7% |
| Irico Group Electronics Co Ltd ($438) | 39.9% | 30.4% | 17.4% | 25.8% | |
| Kingwell Group Ltd ($1195) | 8.6% | 5.4% | 5.3% | 21.4% | 0.0% |
| AAC Technologies Holdings Inc ($2018) | 18.7% | 8.7% | 19.6% | 18.4% | |
| |
|---|
| Median (50 companies) | 3.7% | 3.0% | 3.7% | 2.9% | 1.7% |
|---|
| Elec & Eltek International Co Ltd ($1151) | 6.0% | 9.4% | 8.0% | 5.8% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 29.1% | 30.0% | 26.0% | 27.8% | |
| Cowell e Holdings Inc ($1415) | 12.5% | 27.1% | 24.4% | 25.8% | |
| Changhong Jiahua Holdings Ltd ($8016) | 29.6% | 17.7% | 15.1% | 16.7% | |
| Tongda Group Holdings Ltd ($698) | 15.2% | 13.5% | 16.5% | 16.3% | |
| Alltronics Holdings Ltd ($833) | 13.1% | 15.2% | 19.8% | 15.6% | |
| |
|---|
| Median (50 companies) | 4.3% | 4.1% | 3.7% | 2.4% | -7.0% |
|---|
| Elec & Eltek International Co Ltd ($1151) | 6.2% | 2.6% | 1.0% | 0.3% | 3.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| National Electronic Hldgs ($213) | 16.3x | 30.2x | 84.8x | 19.9x | 42.7x |
| GCL New Energy Holdings Ltd ($451) | 2.9x | 2.6x | 1.7x | 17.4x | |
| Man Yue Technology Holdings Ltd ($894) | 2.1x | 2.7x | 3.3x | 6.5x | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.2x | 2.6x | 5.7x | 5.4x | 14.1x |
| SAS Dragon Hldg Ltd ($1184) | 7.1x | 2.0x | 6.4x | 4.8x | |
| |
|---|
| Median (32 companies) | 1.1x | 1.1x | 0.8x | 0.2x | 1.2x |
|---|
| Elec & Eltek International Co Ltd ($1151) | 0.6x | 1.1x | 1.5x | 1.7x | 0.7x |
