EDS Wellness Holdings Ltd revenue growth decelerated to 30.9% in FY2016 vs. 70.4% a year earliner
09/03/2017 • About EDS Wellness Holdings Ltd (
$8176) • By InTwits
EDS Wellness Holdings Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EDS Wellness Holdings Ltd doesn't have a profitable business model yet: FY2016 ROIC is -60.5%
- The company operates at negative EBITDA Margin: -188.3%
- EDS Wellness Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -123.1%0
- The company has unprofitable business model: ROIC is at -60.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
EDS Wellness Holdings Ltd ($8176) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 0.702 | 8.140 | 27.582 | 46.989 | 61.521 | 30.9% |
| Gross Profit | -0.511 | -3.546 | 10.985 | -0.845 | -45.473 | |
| SG&A | | 24.140 | 19.321 | 37.118 | 47.468 | 27.9% |
| EBITDA | -7.209 | -20.333 | -3.771 | -31.332 | -115.818 | |
| Net Income | -100.389 | -23.568 | -11.768 | -42.086 | -44.946 | |
Balance Sheet
|
|---|
| Cash | 0.308 | 1.815 | 43.149 | 116.055 | 152.218 | 31.2% |
| Short Term Debt | 19.691 | 42.443 | 15.139 | 10.609 | 1.962 | -81.5% |
| Long Term Debt | 0.449 | 0.124 | 90.872 | 0.002 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 2.719 | 9.744 | 4.108 | 16.134 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -98.6% | 1,059.5% | 238.8% | 70.4% | 30.9% | |
| EBITDA growth | -94.4% | 182.1% | -81.5% | 730.9% | 269.6% | |
| Gross Margin | -72.8% | -43.6% | 39.8% | -1.8% | -73.9% | -72.1% |
| EBITDA Margin | -1,026.9% | -249.8% | -13.7% | -66.7% | -188.3% | -121.6% |
| Net Income Margin | -14,300.4% | -289.5% | -42.7% | -89.6% | -73.1% | 16.5% |
| SG&A, % of revenue | | 296.6% | 70.0% | 79.0% | 77.2% | -1.8% |
| CAPEX, % of revenue | 387.3% | 119.7% | 14.9% | 34.3% | | -34.3% |
| ROIC | -5.3% | -48.6% | -8.4% | -27.3% | -60.5% | -33.2% |
| ROE | -148.5% | -172.1% | | | -22.9% | -22.9% |
Revenue and profitability
EDS Wellness Holdings Ltd's Revenue surged on 30.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 632 pp from -166% to -798% in FY2016.
Gross Margin dropped on 72.1 pp from -1.8% to -73.9% in FY2016. SG&A as a % of Revenue decreased slightly on 1.8 pp from 79.0% to 77.2% in FY2016.
Net Income marign jumped on 16.5 pp from -89.6% to -73.1% in FY2016.
Return on investment
The company operates at negative ROIC (-60.48%) and ROE (-22.85%). ROIC dropped on 33.2 pp from -27.3% to -60.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -37.7x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 81.5% while cash surged on 31.2%.
Appendix 1: Peers in Cosmetics/Personal Care
Below you can find EDS Wellness Holdings Ltd benchmarking vs. other companies in Cosmetics/Personal Care 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 |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | -5.0% | -20.2% | -24.8% | 117.2% | |
| Vinda International Holdings Ltd ($3331) | | 12.8% | 17.5% | 21.4% | 24.3% |
| L'Occitane International SA ($973) | | 14.2% | 1.1% | 11.7% | 8.9% |
| Ming Fai International Holdings Ltd ($3828) | 14.3% | -0.1% | -3.4% | 5.2% | |
| Natural Beauty Bio-Technology Ltd ($157) | -18.2% | -9.1% | 15.1% | 0.2% | |
| |
|---|
| Median (8 companies) | -5.0% | -4.6% | -1.2% | 2.7% | 8.9% |
|---|
| EDS Wellness Holdings Ltd ($8176) | | 1,059.5% | 238.8% | 70.4% | 30.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| L'Occitane International SA ($973) | 82.7% | 82.0% | 81.1% | 81.8% | 82.8% |
| Natural Beauty Bio-Technology Ltd ($157) | 78.6% | 75.8% | 76.9% | 78.4% | |
| HIN Sang Group International Holding Co Ltd ($6893) | 28.2% | 41.9% | 56.2% | 57.1% | 60.8% |
| China Child Care Corp Ltd ($1259) | 45.9% | 47.3% | 47.5% | 39.3% | |
| BaWang International Group Holding Ltd ($1338) | 41.9% | 48.5% | 37.4% | 38.0% | |
| |
|---|
| Median (7 companies) | 41.9% | 47.3% | 47.5% | 39.3% | 60.8% |
|---|
| EDS Wellness Holdings Ltd ($8176) | -72.8% | -43.6% | 39.8% | -1.8% | -73.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Natural Beauty Bio-Technology Ltd ($157) | 38.3% | 25.3% | 29.4% | 38.7% | |
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 9.5% | -23.3% | -37.4% | 20.4% | |
| L'Occitane International SA ($973) | 20.7% | 19.3% | 17.4% | 19.6% | 17.8% |
| Vinda International Holdings Ltd ($3331) | 16.1% | 14.2% | 15.3% | 13.7% | 14.3% |
| HIN Sang Group International Holding Co Ltd ($6893) | 8.4% | 9.7% | 24.2% | 12.7% | 14.1% |
| |
|---|
| Median (8 companies) | 12.8% | 12.0% | 14.7% | 13.2% | 14.3% |
|---|
| EDS Wellness Holdings Ltd ($8176) | -1,026.9% | -249.8% | -13.7% | -66.7% | -188.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinda International Holdings Ltd ($3331) | 20.5% | 20.2% | 12.9% | 12.4% | 10.9% |
| Natural Beauty Bio-Technology Ltd ($157) | 10.1% | 5.1% | 3.7% | 12.0% | |
| Ming Fai International Holdings Ltd ($3828) | 1.8% | 1.4% | 2.3% | 7.5% | |
| L'Occitane International SA ($973) | 6.2% | 7.6% | 5.8% | 4.3% | 4.0% |
| China Child Care Corp Ltd ($1259) | 2.7% | 10.1% | 7.8% | 2.6% | |
| |
|---|
| Median (8 companies) | 6.3% | 5.9% | 4.7% | 3.4% | 10.9% |
|---|
| EDS Wellness Holdings Ltd ($8176) | 387.3% | 119.7% | 14.9% | 34.3% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | 17.7% | -67.7% | -113.8% | 35.6% | |
| Natural Beauty Bio-Technology Ltd ($157) | 19.4% | 9.2% | 13.6% | 20.7% | |
| L'Occitane International SA ($973) | 23.2% | 21.4% | 16.9% | 19.6% | 18.5% |
| Ming Fai International Holdings Ltd ($3828) | 7.2% | 4.3% | 5.6% | 12.0% | |
| HIN Sang Group International Holding Co Ltd ($6893) | | 14.3% | 42.1% | 11.0% | 7.6% |
| |
|---|
| Median (8 companies) | 17.7% | 9.8% | 11.7% | 11.5% | 9.8% |
|---|
| EDS Wellness Holdings Ltd ($8176) | -5.3% | -48.6% | -8.4% | -27.3% | -60.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinda International Holdings Ltd ($3331) | 1.4x | 2.1x | 3.1x | 3.3x | 2.3x |
| Ming Fai International Holdings Ltd ($3828) | -1.5x | -2.5x | -2.1x | -1.2x | |
| L'Occitane International SA ($973) | -1.3x | -1.2x | -1.3x | -1.2x | -1.5x |
| Natural Beauty Bio-Technology Ltd ($157) | -2.3x | -4.6x | -3.9x | -2.6x | |
| Rui Kang Pharmaceutical Group Investments Ltd ($8037) | -1.9x | | | -3.8x | |
| |
|---|
| Median (6 companies) | -1.5x | -1.8x | -1.7x | -1.9x | -1.5x |
|---|
