Techtronic Industries Co Ltd reports 15.4% Net Income growth and almost no change in EBITDA Margin of 11.7%
14/03/2017 • About Techtronic Industries Co Ltd (
$669) • By InTwits
Techtronic Industries Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 11.7% in FY2016 vs. 11.4% in FY2015 vs. 10.2% in FY2012
- The company has highly profitable business model: ROIC is at 14.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Techtronic Industries Co Ltd ($669) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,852 | 4,300 | 4,753 | 5,038 | 5,480 | 8.8% |
| Gross Profit | 1,289 | 1,472 | 1,673 | 1,798 | 1,985 | 10.4% |
| SG&A | 954 | 1,068 | 1,208 | 1,275 | 1,393 | 9.2% |
| EBITDA | 393 | 428 | 506 | 575 | 641 | 11.4% |
| Net Income | 201 | 250 | 300 | 354 | 409 | 15.4% |
Balance Sheet
|
|---|
| Cash | 618 | 698 | 690 | 775 | 805 | 3.9% |
| Short Term Debt | 740 | 580 | 630 | 672 | 502 | -25.2% |
| Long Term Debt | 353 | 378 | 333 | 467 | 501 | 7.3% |
Cash flow
|
|---|
| Capex | 102 | 105 | 144 | 160 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 5.1% | 11.6% | 10.5% | 6.0% | 8.8% | |
| EBITDA growth | 15.6% | 8.9% | 18.1% | 13.7% | 11.4% | |
| Gross Margin | 33.5% | 34.2% | 35.2% | 35.7% | 36.2% | 0.5% |
| EBITDA Margin | 10.2% | 10.0% | 10.6% | 11.4% | 11.7% | 0.3% |
| Net Income Margin | 5.2% | 5.8% | 6.3% | 7.0% | 7.5% | 0.4% |
| SG&A, % of revenue | 24.8% | 24.8% | 25.4% | 25.3% | 25.4% | 0.1% |
| CAPEX, % of revenue | 2.7% | 2.4% | 3.0% | 3.2% | | -3.2% |
| ROIC | 10.3% | 10.9% | 12.9% | 13.3% | 14.0% | 0.7% |
| ROE | 14.4% | 15.2% | 16.2% | 17.2% | 18.0% | 0.8% |
| Net Debt/EBITDA | 1.2x | 0.6x | 0.5x | 0.6x | 0.3x | -0.3x |
Revenue and profitability
The company's Revenue increased on 8.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.93 pp from 36.4% to 37.3% in FY2016.
Gross Margin increased slightly on 0.54 pp from 35.7% to 36.2% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at good ROIC (13.97%) and ROE (17.96%). ROIC increased slightly on 0.67 pp from 13.3% to 14.0% in FY2016. ROE increased slightly on 0.76 pp from 17.2% to 18.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 1.6x. Net Debt / EBITDA dropped on 0.3x from 0.6x to 0.3x in FY2016. Debt dropped on 11.9% while cash increased on 3.9%.
Management team
Techtronic Industries Co Ltd's CEO is Joseph Galli Jr. Joseph Galli Jr has 10 years tenure at the company.
Appendix 1: Peers in Hand/Machine Tools
Below we provide Techtronic Industries Co Ltd benchmarking against other companies in Hand/Machine Tools industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cw Group Holdings Ltd ($1322) | 3.1% | 25.7% | 69.5% | 48.4% | |
| Chongqing Machinery & Electric Co Ltd ($2722) | -15.5% | 8.9% | -2.2% | -5.0% | |
| |
|---|
| Median (2 companies) | 3.1% | 8.9% | 33.6% | 21.7% | |
|---|
| Techtronic Industries Co Ltd ($669) | | 11.6% | 10.5% | 6.0% | 8.8% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cw Group Holdings Ltd ($1322) | 27.4% | 19.7% | 18.0% | 16.8% | |
| Chongqing Machinery & Electric Co Ltd ($2722) | 11.6% | 11.2% | 11.2% | 11.0% | |
| |
|---|
| Median (2 companies) | 27.4% | 19.7% | 14.6% | 13.9% | |
|---|
| Techtronic Industries Co Ltd ($669) | 33.5% | 34.2% | 35.2% | 35.7% | 36.2% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cw Group Holdings Ltd ($1322) | 19.3% | 16.0% | 15.2% | 13.8% | |
| Chongqing Machinery & Electric Co Ltd ($2722) | 4.1% | 4.2% | 4.2% | -0.3% | |
| |
|---|
| Median (2 companies) | 19.3% | 16.0% | 9.7% | 6.7% | |
|---|
| Techtronic Industries Co Ltd ($669) | 10.2% | 10.0% | 10.6% | 11.4% | 11.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chongqing Machinery & Electric Co Ltd ($2722) | 5.0% | 6.0% | 7.7% | 8.3% | |
| Cw Group Holdings Ltd ($1322) | 2.1% | 0.4% | 0.3% | 0.5% | |
| |
|---|
| Median (2 companies) | 2.1% | 1.5% | 4.0% | 4.4% | |
|---|
| Techtronic Industries Co Ltd ($669) | 2.7% | 2.4% | 3.0% | 3.2% | |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cw Group Holdings Ltd ($1322) | 21.4% | 16.9% | 19.4% | 15.9% | |
| Chongqing Machinery & Electric Co Ltd ($2722) | 2.1% | 2.4% | 2.0% | -2.9% | |
| Genvon Group Ltd ($2389) | 22.4% | 5.7% | -0.7% | -4.7% | |
| |
|---|
| Median (3 companies) | 21.4% | 5.7% | 2.0% | -2.9% | |
|---|
| Techtronic Industries Co Ltd ($669) | 10.3% | 10.9% | 12.9% | 13.3% | 14.0% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cw Group Holdings Ltd ($1322) | 0.2x | 1.7x | 1.7x | 1.8x | |
| |
|---|
| Median (1 company) | 0.4x | 1.7x | 2.5x | 1.8x | |
|---|
| Techtronic Industries Co Ltd ($669) | 1.2x | 0.6x | 0.5x | 0.6x | 0.3x |
