Nexteer Automotive Group Ltd reports 43.5% Net Income growth and 1.1 pp EBITDA Margin growth from 13.7% to 14.8%
14/03/2017 • About Nexteer Automotive Group Ltd (
$1316) • By InTwits
Nexteer Automotive Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nexteer Automotive Group Ltd is a growth stock: FY2016 revenue growth was 14.3%, 5 year revenue CAGR was 11.3% at FY2016 ROIC 24.9%
- EBITDA Margin is expanding: 14.8% in FY2016 vs. 13.7% in FY2015 vs. 6.7% in FY2012
- Nexteer Automotive Group Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.1%. At the same time it's a lot of higher than industry average of 4.2%.
- CAPEX is quite volatile: 25.5 in FY2016, 50.2 in FY2015, 74.6 in FY2014, 104 in FY2013, 69.7 in FY2012
- The company has highly profitable business model: ROIC is at 24.9%
- It operates with high leverage: Net Debt/EBITDA is 0.1x 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.
Nexteer Automotive Group Ltd ($1316) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,168 | 2,387 | 2,978 | 3,361 | 3,842 | 14.3% |
| Gross Profit | 271 | 339 | 420 | 545 | 662 | 21.4% |
| SG&A | 97 | 88 | 96 | 113 | 130 | 14.6% |
| EBITDA | 145 | 249 | 356 | 462 | 570 | 23.3% |
| Net Income | 57 | 109 | 161 | 205 | 295 | 43.5% |
Balance Sheet
|
|---|
| Cash | 64 | 314 | 380 | 417 | 484 | 16.2% |
| Short Term Debt | 99 | 130 | 97 | 81 | 75 | -7.0% |
| Long Term Debt | 442 | 458 | 634 | 561 | 489 | -12.8% |
Cash flow
|
|---|
| Capex | 172 | 184 | 172 | 166 | 167 | 0.7% |
Ratios
|
|---|
| Revenue growth | -3.6% | 10.1% | 24.8% | 12.8% | 14.3% | |
| EBITDA growth | 9.8% | 71.8% | 42.7% | 29.8% | 23.3% | |
| Gross Margin | 12.5% | 14.2% | 14.1% | 16.2% | 17.2% | 1.0% |
| EBITDA Margin | 6.7% | 10.4% | 12.0% | 13.7% | 14.8% | 1.1% |
| Net Income Margin | 2.6% | 4.6% | 5.4% | 6.1% | 7.7% | 1.6% |
| SG&A, % of revenue | 4.5% | 3.7% | 3.2% | 3.4% | 3.4% | 0.0% |
| CAPEX, % of revenue | 8.0% | 7.7% | 5.8% | 4.9% | 4.3% | -0.6% |
| ROIC | 14.0% | 18.2% | 17.7% | 21.2% | 24.9% | 3.7% |
| ROE | 40.5% | 29.6% | 25.8% | 27.2% | 31.2% | 4.1% |
| Net Debt/EBITDA | 3.3x | 1.1x | 1.0x | 0.5x | 0.1x | -0.3x |
Revenue and profitability
Nexteer Automotive Group Ltd's Revenue surged on 14.3%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.97 pp from 15.6% to 14.6% in FY2016.
Gross Margin increased slightly on 1.0 pp from 16.2% to 17.2% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 1.6 pp from 6.1% to 7.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Nexteer Automotive Group Ltd's CAPEX/Revenue was 4.3% in FY2016. The company's CAPEX/Revenue decreased on 3.4 pp from 7.7% in FY2013 to 4.3% in FY2016. Average CAPEX/Revenue for the last three years was 5.0%.
Return on investment
The company operates at high and attractive ROIC (24.92%) and ROE (31.25%). ROIC increased on 3.7 pp from 21.2% to 24.9% in FY2016. ROE increased on 4.1 pp from 27.2% to 31.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 1.0x. Net Debt / EBITDA dropped on 0.3x from 0.5x to 0.1x in FY2016. Debt dropped on 12.1% while cash surged on 16.2%.
Appendix 1: Peers in Auto Parts&Equipment
Below you can find Nexteer Automotive Group Ltd benchmarking vs. other companies in Auto Parts&Equipment 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 |
|---|
| China Vehicle Components Technology Holdings Ltd ($1269) | -10.4% | 27.1% | 31.0% | 30.9% | |
| Xinchen China Power Holdings Ltd ($1148) | 11.5% | 0.5% | 2.6% | 23.3% | |
| Minth Group Ltd ($425) | 11.3% | 27.3% | 21.3% | 14.5% | |
| Xinyi Glass Holdings Ltd ($868) | | 17.8% | 9.3% | 5.5% | 12.1% |
| Jinheng Automotive Safety Technology Holdings Ltd ($872) | -10.2% | -23.5% | -7.5% | 5.3% | |
| |
|---|
| Median (16 companies) | -10.3% | 14.6% | 2.6% | -2.9% | 17.3% |
|---|
| Nexteer Automotive Group Ltd ($1316) | | 10.1% | 24.8% | 12.8% | 14.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 37.4% | 41.0% | 41.5% | 41.5% | 42.0% |
| Minth Group Ltd ($425) | 33.1% | 33.0% | 31.2% | 31.7% | |
| Xinyi Glass Holdings Ltd ($868) | 26.4% | 31.6% | 25.2% | 27.3% | 36.3% |
| Zhejiang Shibao Co Ltd ($1057) | 30.3% | 26.0% | 26.4% | 25.5% | |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 20.9% | 23.6% | 24.0% | 24.2% | |
| |
|---|
| Median (17 companies) | 20.8% | 20.6% | 22.3% | 20.3% | 39.1% |
|---|
| Nexteer Automotive Group Ltd ($1316) | 12.5% | 14.2% | 14.1% | 16.2% | 17.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 28.5% | 28.7% | 29.2% | 27.7% | 28.6% |
| Xinyi Glass Holdings Ltd ($868) | 22.5% | 43.8% | 20.0% | 25.0% | 31.4% |
| Minth Group Ltd ($425) | 25.6% | 24.2% | 23.1% | 24.5% | |
| Xiezhong International Holdings Ltd ($3663) | 20.7% | 17.2% | 16.0% | 18.6% | |
| Zhejiang Shibao Co Ltd ($1057) | 19.8% | 14.0% | 14.5% | 13.5% | |
| |
|---|
| Median (17 companies) | 9.4% | 11.9% | 11.9% | 11.3% | 30.0% |
|---|
| Nexteer Automotive Group Ltd ($1316) | 6.7% | 10.4% | 12.0% | 13.7% | 14.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hybrid Kinetic Group Ltd ($1188) | 8.5% | | | 176.2% | |
| Changfeng Axle China Co Ltd ($1039) | 14.4% | 4.1% | 1.1% | 38.3% | |
| Fuyao Glass Industry Group Co Ltd ($3606) | 14.6% | 16.5% | 21.1% | 23.9% | 21.3% |
| Xiezhong International Holdings Ltd ($3663) | 22.9% | 24.9% | 12.0% | 19.4% | |
| Xinyi Glass Holdings Ltd ($868) | 17.0% | 28.9% | 15.8% | 16.7% | |
| |
|---|
| Median (17 companies) | 10.2% | 7.0% | 5.7% | 7.4% | 21.3% |
|---|
| Nexteer Automotive Group Ltd ($1316) | 8.0% | 7.7% | 5.8% | 4.9% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Fuyao Glass Industry Group Co Ltd ($3606) | 19.0% | 21.1% | 22.3% | 15.7% | 15.0% |
| Minth Group Ltd ($425) | 11.9% | 12.1% | 11.8% | 13.4% | |
| Xinyi Glass Holdings Ltd ($868) | 9.3% | 22.6% | 8.3% | 10.8% | 15.5% |
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 2.4% | 9.2% | 12.5% | 10.3% | |
| Xinchen China Power Holdings Ltd ($1148) | 22.4% | 14.7% | 12.5% | 8.6% | |
| |
|---|
| Median (17 companies) | 6.3% | 8.5% | 5.8% | 2.8% | 15.3% |
|---|
| Nexteer Automotive Group Ltd ($1316) | 14.0% | 18.2% | 17.7% | 21.2% | 24.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Huazhong In-Vehicle Holdings Co Ltd ($6830) | 7.9x | 2.8x | 2.2x | 2.9x | |
| Xiezhong International Holdings Ltd ($3663) | 0.6x | 1.2x | 1.2x | 2.2x | |
| China Vehicle Components Technology Holdings Ltd ($1269) | 9.4x | 5.8x | 5.3x | 2.0x | |
| Xinchen China Power Holdings Ltd ($1148) | -0.1x | -2.3x | 0.6x | 1.9x | |
| Xinyi Glass Holdings Ltd ($868) | 1.9x | 0.9x | 2.4x | 1.7x | 1.2x |
| |
|---|
| Median (11 companies) | 0.6x | 0.9x | 1.1x | 0.6x | 0.6x |
|---|
| Nexteer Automotive Group Ltd ($1316) | 3.3x | 1.1x | 1.0x | 0.5x | 0.1x |
