PAX Global Technology Ltd EBITDA increased on 6.3% and EBITDA Margin increased slightly on 1.1 pp from 22.7% to 23.7%
08/03/2017 • About PAX Global Technology Ltd (
$327) • By InTwits
PAX Global Technology Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 23.7% in 2016 vs. 22.7% in 2015 vs. 16.5% in 2012
- PAX Global Technology Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has highly profitable business model: ROIC is at 20.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PAX Global Technology Ltd ($327) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,313 | 1,472 | 2,373 | 2,871 | 2,915 | 1.5% |
| Gross Profit | 464 | 541 | 865 | 1,092 | 1,262 | 15.5% |
| SG&A | 187 | 226 | 351 | 370 | 443 | 19.7% |
| EBITDA | 216 | 256 | 447 | 651 | 692 | 6.3% |
| Net Income | 183 | 227 | 392 | 621 | 601 | -3.2% |
Balance Sheet
|
|---|
| Cash | 1,358 | 1,698 | 1,919 | 2,144 | 2,207 | 2.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 3 | 1 | 7 | 5 | 15 | 178.5% |
Ratios
|
|---|
| Revenue growth | 19.0% | 12.1% | 61.2% | 21.0% | 1.5% | |
| EBITDA growth | 3.4% | 18.5% | 74.6% | 45.6% | 6.3% | |
| Gross Margin | 35.3% | 36.7% | 36.4% | 38.1% | 43.3% | 5.2% |
| EBITDA Margin | 16.5% | 17.4% | 18.8% | 22.7% | 23.7% | 1.1% |
| Net Income Margin | 13.9% | 15.4% | 16.5% | 21.6% | 20.6% | -1.0% |
| SG&A, % of revenue | 14.2% | 15.4% | 14.8% | 12.9% | 15.2% | 2.3% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.3% | 0.2% | 0.5% | 0.3% |
| ROIC | 12.3% | 12.8% | 18.7% | 22.4% | 20.4% | -2.0% |
| ROE | 10.7% | 11.6% | 16.9% | 22.1% | 18.4% | -3.7% |
| Net Debt/EBITDA | -6.3x | -6.6x | -4.3x | -3.3x | -3.2x | 0.1x |
Revenue and profitability
The company's Revenue increased slightly on 1.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.4 pp from 12.0% to 3.5% in FY2016.
Gross Margin increased on 5.2 pp from 38.1% to 43.3% in 2016. SG&A as a % of Revenue increased on 2.3 pp from 12.9% to 15.2% in 2016.
Net Income marign decreased slightly on 1.0 pp from 21.6% to 20.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
PAX Global Technology Ltd's CAPEX/Revenue was 0.50% in 2016. The company showed almost no change in CAPEX/Revenue from 2013 to 2016. For the last three years the average CAPEX/Revenue was 0.33%.
Return on investment
The company operates at high and attractive ROIC (20.42%) while ROE is a bit lower (18.37%). ROIC decreased slightly on 2.0 pp from 22.4% to 20.4% in 2016. ROE decreased on 3.7 pp from 22.1% to 18.4% in 2016.
Leverage (Debt)
The company has no debt. Cash increased on 2.9%.
Appendix 1: Peers in Computers
Below you can find PAX Global Technology Ltd benchmarking vs. other companies in Computers 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 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | -65.4% | 8.8% | 27.1% | 759.3% | |
| Beautiful China Holdings Co Ltd ($706) | -7.8% | -23.3% | -37.1% | 267.1% | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.5% | -10.3% | 18.8% | 45.0% | |
| Alibaba Health Information Technology Ltd ($241) | | -96.7% | 73.0% | 35.3% | 85.8% |
| Thiz Technology Group Ltd ($8119) | | -95.1% | 72.2% | 31.9% | 8.1% |
| |
|---|
| Median (25 companies) | 2.8% | -0.0% | 10.9% | -3.9% | 16.8% |
|---|
| PAX Global Technology Ltd ($327) | | 12.1% | 61.2% | 21.0% | 1.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Universal Technologies Holdings Ltd ($1026) | 87.3% | 79.7% | 90.3% | 98.4% | |
| Thiz Technology Group Ltd ($8119) | 8.8% | 63.8% | 86.2% | 96.0% | 96.4% |
| Computer & Technologies Holdings Ltd ($46) | 45.3% | 54.0% | 52.1% | 54.2% | |
| Alibaba Health Information Technology Ltd ($241) | 11.4% | -12.6% | 49.3% | 53.7% | 67.1% |
| CCID Consulting Co Ltd ($8235) | 43.7% | 49.1% | 51.8% | 48.7% | |
| |
|---|
| Median (25 companies) | 12.1% | 15.4% | 15.1% | 18.4% | 17.6% |
|---|
| PAX Global Technology Ltd ($327) | 35.3% | 36.7% | 36.4% | 38.1% | 43.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thiz Technology Group Ltd ($8119) | -47.4% | -847.3% | -506.6% | 74.0% | -225.0% |
| World Wide Touch Technology Holdings Ltd ($1282) | 3.4% | -6.4% | -6.4% | 35.7% | |
| Ju Teng International Holdings Ltd ($3336) | 15.1% | 19.9% | 19.3% | 23.8% | |
| Computer & Technologies Holdings Ltd ($46) | 12.9% | 19.9% | 20.1% | 23.2% | |
| CCID Consulting Co Ltd ($8235) | 10.6% | 10.8% | 12.3% | 20.3% | |
| |
|---|
| Median (26 companies) | 3.1% | 2.3% | 1.6% | 3.9% | -27.6% |
|---|
| PAX Global Technology Ltd ($327) | 16.5% | 17.4% | 18.8% | 22.7% | 23.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Beautiful China Holdings Co Ltd ($706) | 8.4% | 2.2% | 26.2% | 743.7% | |
| North Asia Resources Holdings Ltd ($61) | 4.6% | 94.2% | 177.8% | 110.2% | |
| China Uptown Group Co Ltd ($2330) | 0.0% | 0.2% | 1.0% | 20.5% | |
| Universal Technologies Holdings Ltd ($1026) | 20.0% | 5.7% | 14.2% | 20.3% | |
| Ju Teng International Holdings Ltd ($3336) | 14.1% | 18.7% | 20.0% | 17.3% | |
| |
|---|
| Median (26 companies) | 1.0% | 1.4% | 1.7% | 1.9% | 0.4% |
|---|
| PAX Global Technology Ltd ($327) | 0.2% | 0.1% | 0.3% | 0.2% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lenovo Group Ltd ($992) | 26.2% | 30.5% | 34.7% | 24.5% | 1.0% |
| CCID Consulting Co Ltd ($8235) | 11.3% | 10.7% | 10.2% | 15.0% | |
| TPV Technology Ltd ($903) | 7.7% | 1.8% | 10.1% | 12.0% | |
| Goldenmars Technology Holdings Ltd ($8036) | | 10.5% | 11.4% | 11.6% | 9.5% |
| Computer & Technologies Holdings Ltd ($46) | 6.0% | 8.6% | 9.4% | 10.8% | |
| |
|---|
| Median (26 companies) | 0.9% | 0.9% | -0.6% | 2.1% | -7.4% |
|---|
| PAX Global Technology Ltd ($327) | 12.3% | 12.8% | 18.7% | 22.4% | 20.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shinhint Acoustic Link Holdings Ltd ($2728) | -2.8x | -2.5x | -20.8x | 8.8x | |
| Thiz Technology Group Ltd ($8119) | | | | 8.2x | |
| Powerleader Science & Technology Group Ltd ($8236) | 2.7x | 3.6x | 4.6x | 6.7x | |
| EVOC Intelligent Technology Co Ltd ($2308) | 0.5x | 5.8x | 5.7x | 5.4x | |
| Perception Digital Holdings Ltd ($1822) | | | | 1.8x | |
| |
|---|
| Median (16 companies) | -1.2x | -0.9x | -2.5x | 0.6x | 0.3x |
|---|
| PAX Global Technology Ltd ($327) | -6.3x | -6.6x | -4.3x | -3.3x | -3.2x |
