TPV Technology Ltd reports 32.0% EBITDA decline and 11.3% Revenue decline
16/03/2017 • About TPV Technology Ltd (
$903) • By InTwits
TPV Technology Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TPV Technology Ltd is a company in decline: FY2016 revenue growth was -11.3%, 5 years revenue CAGR was -2.3%
- EBITDA Margin is relatively stable: 3.0% in FY2016 vs. 3.9% in FY2015 vs. 3.1% in FY2012
- The company has potentially unprofitable business model: ROIC is at 6.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TPV Technology Ltd ($903) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,975 | 11,973 | 11,908 | 11,062 | 9,808 | -11.3% |
| Gross Profit | 899 | 860 | 1,014 | 871 | 848 | -2.7% |
| SG&A | 671 | 778 | 723 | 599 | 560 | -6.6% |
| EBITDA | 368 | 257 | 425 | 428 | 291 | -32.0% |
| Net Income | 112 | -47 | -5 | -31 | 39 | |
Balance Sheet
|
|---|
| Cash | 498 | 365 | 502 | 450 | 627 | 39.3% |
| Short Term Debt | 143 | 318 | 301 | 146 | 164 | 12.1% |
| Long Term Debt | 279 | 206 | 188 | 441 | 372 | -15.8% |
Cash flow
|
|---|
| Capex | 185 | 170 | 194 | 150 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 8.5% | -0.0% | -0.5% | -7.1% | -11.3% | |
| EBITDA growth | 35.8% | -30.3% | 65.7% | 0.7% | -32.0% | |
| Gross Margin | 7.5% | 7.2% | 8.5% | 7.9% | 8.6% | 0.8% |
| EBITDA Margin | 3.1% | 2.1% | 3.6% | 3.9% | 3.0% | -0.9% |
| Net Income Margin | 0.9% | -0.4% | -0.0% | -0.3% | 0.4% | 0.7% |
| SG&A, % of revenue | 5.6% | 6.5% | 6.1% | 5.4% | 5.7% | 0.3% |
| CAPEX, % of revenue | 1.5% | 1.4% | 1.6% | 1.4% | | -1.4% |
| ROIC | 7.7% | 1.8% | 10.1% | 12.0% | 6.6% | -5.4% |
| ROE | 6.1% | -2.6% | -0.3% | -1.9% | 2.3% | 4.2% |
| Net Debt/EBITDA | -0.2x | 0.6x | -0.0x | 0.3x | -0.3x | -0.6x |
Revenue and profitability
The company's Revenue dropped on 11.3%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 0.90 pp from 3.9% to 3.0% in FY2016.
Gross Margin increased slightly on 0.76 pp from 7.9% to 8.6% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased slightly on 0.68 pp from -0.28% to 0.39% in FY2016.
Return on investment
The company operates at low ROIC (6.63%) and ROE (2.34%). ROIC decreased on 5.4 pp from 12.0% to 6.6% in FY2016. ROE increased on 4.2 pp from -1.9% to 2.3% in FY2016.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 0.3x to -0.3x in FY2016. Debt decreased on 8.8% while cash jumped on 39.3%.
Appendix 1: Peers in Computers
Below we provide TPV Technology Ltd benchmarking against other companies in Computers 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 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) | -2.7% | 0.1% | 11.1% | 3.9% | 16.8% |
|---|
| TPV Technology Ltd ($903) | | -0.0% | -0.5% | -7.1% | -11.3% |
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) | 13.2% | 16.6% | 15.6% | 19.5% | 30.4% |
|---|
| TPV Technology Ltd ($903) | 7.5% | 7.2% | 8.5% | 7.9% | 8.6% |
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% | |
| PAX Global Technology Ltd ($327) | 16.5% | 17.4% | 18.8% | 22.7% | 23.7% |
| |
|---|
| Median (26 companies) | 3.2% | 3.1% | 1.6% | 4.3% | -12.9% |
|---|
| TPV Technology Ltd ($903) | 3.1% | 2.1% | 3.6% | 3.9% | 3.0% |
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) | 0.9% | 1.1% | 1.7% | 1.9% | 0.5% |
|---|
| TPV Technology Ltd ($903) | 1.5% | 1.4% | 1.6% | 1.4% | |
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% |
| PAX Global Technology Ltd ($327) | 12.3% | 12.8% | 18.7% | 22.4% | 20.4% |
| CCID Consulting Co Ltd ($8235) | 11.3% | 10.7% | 10.2% | 15.0% | |
| 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% | -3.2% |
|---|
| TPV Technology Ltd ($903) | 7.7% | 1.8% | 10.1% | 12.0% | 6.6% |
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) | -2.3x | -1.8x | -3.9x | 0.6x | -1.0x |
|---|
| TPV Technology Ltd ($903) | -0.2x | 0.6x | -0.0x | 0.3x | -0.3x |
