Pacific Basin Shipping Ltd Net Debt / EBITDA jumped on 7.2x from 4.7x to 12.0x in 2016 while EBITDA dropped on 60.3%
28/02/2017 • About Pacific Basin Shipping Ltd (
$2343) • By InTwits
Pacific Basin Shipping Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pacific Basin Shipping Ltd is a company in decline: 2016 revenue growth was -13.7%, 5 years revenue CAGR was -3.7%
- EBITDA Margin is quite volatile: 4.4% in 2016, 9.5% in 2015, -7.8% in 2014, 7.1% in 2013, 9.9% in 2012
- Pacific Basin Shipping Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.9%. At the same time it's in pair with industry average of 14.0%.
- CAPEX is quite volatile: 181 in 2016, 146 in 2015, 194 in 2014, 458 in 2013, 190 in 2012
- The company has unprofitable business model: ROIC is at -2.7%
- It operates with high leverage: Net Debt/EBITDA is 12.0x while industry average is 2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Basin Shipping Ltd ($2343) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,443 | 1,709 | 1,718 | 1,260 | 1,087 | -13.7% |
| Gross Profit | 85 | 55 | -40 | -4 | -54 | |
| SG&A | 14 | 18 | 9 | | 6 | |
| EBITDA | 143 | 121 | -134 | 120 | 48 | -60.3% |
| Net Income | -158 | 2 | -285 | -19 | -87 | |
Balance Sheet
|
|---|
| Cash | 633 | 483 | 362 | 358 | 269 | -24.9% |
| Short Term Debt | 78 | 329 | 179 | 293 | 96 | -67.3% |
| Long Term Debt | 854 | 709 | 821 | 633 | 744 | 17.4% |
Cash flow
|
|---|
| Capex | 190 | 458 | 194 | 146 | 181 | 23.9% |
Ratios
|
|---|
| Revenue growth | 9.9% | 18.4% | 0.6% | -26.7% | -13.7% | |
| EBITDA growth | -37.8% | -15.3% | -210.1% | -189.9% | -60.3% | |
| Gross Margin | 5.9% | 3.2% | -2.3% | -0.3% | -5.0% | -4.7% |
| EBITDA Margin | 9.9% | 7.1% | -7.8% | 9.5% | 4.4% | -5.1% |
| Net Income Margin | -11.0% | 0.1% | -16.6% | -1.5% | -8.0% | -6.5% |
| SG&A, % of revenue | 1.0% | 1.0% | 0.5% | | 0.5% | 0.5% |
| CAPEX, % of revenue | 13.2% | 26.8% | 11.3% | 11.6% | 16.7% | 5.1% |
| ROIC | 3.1% | 1.7% | -10.9% | 1.0% | -2.7% | -3.7% |
| ROE | -11.3% | 0.1% | -24.7% | -1.9% | -8.6% | -6.7% |
| Net Debt/EBITDA | 2.1x | 4.6x | | 4.7x | 12.0x | 7.2x |
Revenue and profitability
Pacific Basin Shipping Ltd's Revenue dropped on 13.7%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 5.1 pp from 9.5% to 4.4% in 2016.
Gross Margin decreased on 4.7 pp from -0.33% to -5.0% in 2016.
Net Income marign decreased on 6.5 pp from -1.5% to -8.0% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Pacific Basin Shipping Ltd had CAPEX/Revenue of 16.7%. The company's CAPEX/Revenue dropped on 10.1 pp from 26.8% in 2013 to 16.7% in 2016. It's average CAPEX/Revenue for the last three years was 13.2%.Battling declining revenue the company made large investments to CAPEX (381% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-2.71%) and ROE (-8.60%). ROIC decreased on 3.7 pp from 1.0% to -2.7% in 2016. ROE decreased on 6.7 pp from -1.9% to -8.6% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 12.0x and Debt / EBITDA is 17.6x. Net Debt / EBITDA jumped on 7.2x from 4.7x to 12.0x in 2016. Debt decreased on 9.4% while cash dropped on 24.9%.
Management team
The company's CEO Mats Henrik Berglund has spent 6 years at the company.
Appendix 1: Peers in Transportation
Below you can find Pacific Basin Shipping Ltd benchmarking vs. other companies in Transportation 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 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | | | 2,388.3% | 326.5% |
| China Best Group Holding Ltd ($370) | 202.4% | -53.6% | 459.4% | 25.9% | |
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 10.9% | 27.9% | 15.0% | 13.3% | |
| Kwoon Chung Bus Holdings Ltd ($306) | | 7.9% | 5.5% | 7.9% | 1.1% |
| Guangshen Railway Co Ltd ($525) | 2.7% | 4.7% | -6.9% | 6.9% | |
| |
|---|
| Median (31 companies) | 7.2% | 4.0% | 5.6% | -5.7% | 1.1% |
|---|
| Pacific Basin Shipping Ltd ($2343) | | 18.4% | 0.6% | -26.7% | -13.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.3% | 44.8% | 46.6% | 48.7% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.1% | 42.4% | 43.3% | 40.5% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 18.9% | 20.4% | 22.7% | 26.8% | 27.5% |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 23.1% | 25.1% | 24.1% | 23.1% | |
| Tianjin Port Development Holdings Ltd ($3382) | 22.5% | 18.4% | 13.6% | 22.7% | |
| |
|---|
| Median (27 companies) | 13.2% | 11.3% | 11.3% | 12.6% | 1.4% |
|---|
| Pacific Basin Shipping Ltd ($2343) | 5.9% | 3.2% | -2.3% | -0.3% | -5.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| MTR Corp Ltd ($66) | 42.7% | 37.6% | 45.2% | 41.6% | |
| Qinhuangdao Port Co Ltd ($3369) | 46.0% | 44.6% | 46.5% | 41.1% | |
| CIG Yangtze Ports PLC ($8233) | 30.2% | 27.6% | 38.5% | 39.5% | |
| China Shipping Development Co Ltd ($1138) | 12.5% | 3.0% | 24.7% | 26.7% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 13.3% | 16.1% | 20.7% | 26.1% | 25.7% |
| |
|---|
| Median (31 companies) | 8.8% | 6.7% | 7.8% | 6.9% | -0.7% |
|---|
| Pacific Basin Shipping Ltd ($2343) | 9.9% | 7.1% | -7.8% | 9.5% | 4.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Great Harvest Maeta Group Holdings Ltd ($3683) | 4.0% | 6.1% | 40.7% | 164.7% | 8.7% |
| Frontier Services Group Ltd ($500) | 6.3% | 3.6% | 63.3% | 75.9% | |
| MTR Corp Ltd ($66) | 31.1% | 34.5% | 30.8% | 52.0% | |
| CIG Yangtze Ports PLC ($8233) | 17.8% | 24.8% | 2.1% | 50.7% | |
| Transport International Holdings Ltd ($62) | 7.9% | 16.2% | 16.0% | 26.2% | |
| |
|---|
| Median (31 companies) | 7.7% | 8.5% | 6.8% | 9.0% | 8.7% |
|---|
| Pacific Basin Shipping Ltd ($2343) | 13.2% | 26.8% | 11.3% | 11.6% | 16.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 21.1% | 20.9% | 19.1% | 19.3% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 3.6% | 5.7% | 9.2% | 14.6% | 12.4% |
| SITC International Holdings Co Ltd ($1308) | 8.2% | 9.1% | 9.1% | 11.2% | |
| CIG Yangtze Ports PLC ($8233) | 4.9% | 5.7% | 11.0% | 11.1% | |
| On Time Logistics Holdings Ltd ($6123) | 15.6% | 15.5% | 16.7% | 11.1% | |
| |
|---|
| Median (31 companies) | 3.5% | 3.7% | 3.7% | 3.9% | -2.1% |
|---|
| Pacific Basin Shipping Ltd ($2343) | 3.1% | 1.7% | -10.9% | 1.0% | -2.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jinhui Holdings Co Ltd ($137) | 5.0x | 4.2x | 17.5x | 19.6x | |
| China Shipping Development Co Ltd ($1138) | 20.2x | 92.8x | 12.8x | 11.4x | |
| China COSCO Holdings Co Ltd ($1919) | | 18.8x | 9.0x | 8.1x | |
| AMS Public Transport Holdings Ltd ($77) | 1.2x | 11.6x | 7.7x | 4.5x | 1.6x |
| Orient Overseas International Ltd ($316) | 2.7x | 5.1x | 3.4x | 3.9x | |
| |
|---|
| Median (20 companies) | 0.9x | 1.5x | 0.8x | 0.8x | 1.3x |
|---|
| Pacific Basin Shipping Ltd ($2343) | 2.1x | 4.6x | | 4.7x | 12.0x |
