Tom Group Ltd Net Debt / EBITDA jumped on 8.7x from 16.7x to 25.4x in 2016 while Revenue dropped on 18.4%
09/03/2017 • About Tom Group Ltd (
$2383) • By InTwits
Tom Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tom Group Ltd is a company in decline: FY2016 revenue growth was -18.4%, 5 years revenue CAGR was -15.0%
- EBITDA Margin is quite volatile: 8.7% in FY2016, 9.9% in FY2015, 15.8% in FY2014, -11.6% in FY2013, -3.3% in FY2012
- The company has unprofitable business model: ROIC is at -1.7%
- It operates with high leverage: Net Debt/EBITDA is 25.4x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tom Group Ltd ($2383) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,206 | 1,928 | 1,511 | 1,268 | 1,035 | -18.4% |
| Gross Profit | 625 | 585 | 504 | 449 | 388 | -13.6% |
| SG&A | 458 | 444 | 380 | 319 | 265 | -16.7% |
| EBITDA | -73 | -223 | 239 | 126 | 90 | -28.2% |
| Net Income | -337 | -550 | -85 | -214 | -277 | |
Balance Sheet
|
|---|
| Cash | 797 | 695 | 536 | 467 | 377 | -19.2% |
| Short Term Debt | 216 | 245 | 154 | 150 | 91 | -39.5% |
| Long Term Debt | 2,000 | 2,076 | 2,317 | 2,420 | 2,579 | 6.6% |
Cash flow
|
|---|
| Capex | 262 | 161 | 142 | 120 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -5.2% | -12.6% | -21.6% | -16.1% | -18.4% | |
| EBITDA growth | -71.0% | 207.4% | -207.3% | -47.5% | -28.2% | |
| Gross Margin | 28.4% | 30.3% | 33.4% | 35.5% | 37.5% | 2.1% |
| EBITDA Margin | -3.3% | -11.6% | 15.8% | 9.9% | 8.7% | -1.2% |
| Net Income Margin | -15.3% | -28.5% | -5.6% | -16.9% | -26.7% | -9.8% |
| SG&A, % of revenue | 20.8% | 23.1% | 25.1% | 25.1% | 25.6% | 0.5% |
| CAPEX, % of revenue | 11.9% | 8.4% | 9.4% | 9.5% | | -9.5% |
| ROIC | -8.3% | -12.9% | 2.6% | -0.6% | -1.7% | -1.1% |
| ROE | -35.0% | -98.6% | -31.3% | | | 0.0% |
| Net Debt/EBITDA | | | 8.1x | 16.7x | 25.4x | 8.7x |
Revenue and profitability
Tom Group Ltd's Revenue dropped on 18.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 137 pp from -459% to -321% in FY2016.
Gross Margin increased on 2.1 pp from 35.5% to 37.5% in FY2016. SG&A as a % of Revenue increased slightly on 0.50 pp from 25.1% to 25.6% in FY2016.
Net Income marign decreased on 9.8 pp from -16.9% to -26.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 25.4x and Debt / EBITDA is 29.6x. Net Debt / EBITDA surged on 8.7x from 16.7x to 25.4x in FY2016. Debt increased on 3.9% while cash dropped on 19.2%.
Appendix 1: Peers in Media
Below you can find Tom Group Ltd benchmarking vs. other companies in Media 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 |
|---|
| CMMB Vision Holdings Ltd ($471) | | 168.1% | 27.8% | 850.0% | |
| SCMP Group Ltd ($583) | 7.8% | 12.5% | -95.9% | 12.5% | |
| Hong Kong Economic Times Holdings Ltd ($423) | | 2.7% | 3.1% | 5.3% | 4.9% |
| Modern Media Holdings ($72) | 11.8% | -3.7% | -4.3% | -1.3% | |
| Focus Media Network Ltd ($8112) | -10.6% | 34.6% | 5.6% | -5.2% | |
| |
|---|
| Median (18 companies) | 4.6% | -1.8% | -3.9% | -8.8% | -10.8% |
|---|
| Tom Group Ltd ($2383) | | -12.6% | -21.6% | -16.1% | -18.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| I-CABLE Communications Ltd ($1097) | 94.8% | 94.7% | 94.1% | 94.4% | 94.0% |
| Focus Media Network Ltd ($8112) | 68.0% | 67.2% | 50.8% | 57.6% | |
| Television Broadcasts Ltd ($511) | 62.9% | 60.9% | 59.0% | 54.9% | |
| One Media Group Ltd ($426) | 57.3% | 56.7% | 54.5% | 52.7% | 45.6% |
| Modern Media Holdings ($72) | 57.5% | 55.8% | 55.6% | 50.8% | |
| |
|---|
| Median (15 companies) | 39.0% | 40.5% | 36.2% | 37.3% | 40.4% |
|---|
| Tom Group Ltd ($2383) | 28.4% | 30.3% | 33.4% | 35.5% | 37.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SCMP Group Ltd ($583) | 23.5% | 20.5% | 218.1% | 193.5% | |
| Media Chinese International Ltd ($685) | 20.0% | 18.3% | 18.1% | 16.5% | 14.3% |
| One Media Group Ltd ($426) | 18.7% | 23.0% | 22.8% | 15.2% | -5.8% |
| Phoenix Satellite Television Holdings Ltd ($2008) | 30.1% | 31.1% | 24.6% | 14.1% | |
| Oriental Press Group ($18) | 9.5% | 12.8% | 14.6% | 13.9% | 9.2% |
| |
|---|
| Median (18 companies) | 12.9% | 11.6% | 9.8% | 8.9% | 9.2% |
|---|
| Tom Group Ltd ($2383) | -3.3% | -11.6% | 15.8% | 9.9% | 8.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| SCMP Group Ltd ($583) | 7.0% | 5.3% | 52.2% | 85.2% | |
| Evergrande Health Industry Group Ltd ($708) | 14.6% | 2.4% | 2.9% | 13.5% | |
| I-CABLE Communications Ltd ($1097) | 10.1% | 7.6% | 11.3% | 13.0% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 8.4% | 8.5% | 1.3% | 10.0% | 1.5% |
| China 33 Media Group Ltd ($8087) | 1.4% | 0.6% | 1.5% | 8.5% | |
| |
|---|
| Median (18 companies) | 2.7% | 5.2% | 2.3% | 5.0% | 1.3% |
|---|
| Tom Group Ltd ($2383) | 11.9% | 8.4% | 9.4% | 9.5% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Media Chinese International Ltd ($685) | 18.6% | 17.8% | 18.4% | 15.6% | 11.1% |
| One Media Group Ltd ($426) | 25.6% | 21.8% | 16.0% | 8.9% | -6.5% |
| Next Media Ltd ($282) | 8.5% | 6.7% | 8.2% | 6.8% | -1.5% |
| Modern Media Holdings ($72) | 20.6% | 10.4% | 9.3% | 5.5% | |
| Hong Kong Economic Times Holdings Ltd ($423) | 11.5% | -1.5% | 3.2% | 5.2% | 7.0% |
| |
|---|
| Median (18 companies) | 5.6% | 5.1% | 2.6% | 1.7% | -1.5% |
|---|
| Tom Group Ltd ($2383) | -8.3% | -12.9% | 2.6% | -0.6% | -1.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| I-CABLE Communications Ltd ($1097) | -4.0x | -0.8x | 0.2x | 2.0x | 3.8x |
| One Media Group Ltd ($426) | -2.3x | -0.6x | -1.1x | 1.5x | |
| Modern Media Holdings ($72) | -0.8x | -0.9x | 0.1x | 1.0x | |
| Media Chinese International Ltd ($685) | -1.4x | 0.8x | 0.6x | 0.2x | -0.5x |
| Hong Kong Economic Times Holdings Ltd ($423) | -1.3x | -4.6x | -0.7x | -0.1x | -0.7x |
| |
|---|
| Median (11 companies) | -1.7x | -1.3x | -1.5x | -0.3x | -0.7x |
|---|
| Tom Group Ltd ($2383) | | | 8.1x | 16.7x | 25.4x |
