Cash Financial Services Group Ltd reports 163% EBITDA decline in 2016 and 25.3 pp EBITDA Margin decline from 10.2% to -15.1%
17/03/2017 • About Cash Financial Services Group Ltd (
$510) • By InTwits
Cash Financial Services Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cash Financial Services Group Ltd is a company in decline: FY2016 revenue growth was -57.5%, 5 years revenue CAGR was -36.2%
- The company operates at negative EBITDA Margin: -15.1%
- The company has unprofitable business model: ROIC is at -5.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.0x while industry average is 2.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cash Financial Services Group Ltd ($510) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 292.9 | 267.4 | 289.0 | 392.7 | 167.0 | -57.5% |
| EBITDA | 15.3 | -22.4 | 1.4 | 40.1 | -25.2 | -162.9% |
| Net Income | -38.7 | -59.1 | 32.7 | 13.6 | -51.2 | -476.3% |
Balance Sheet
|
|---|
| Cash | 291.3 | 167.5 | 172.1 | 370.5 | 359.7 | -2.9% |
| Short Term Debt | 384.6 | 280.8 | 171.7 | 121.3 | 153.7 | 26.7% |
| Long Term Debt | 26.3 | 22.6 | 91.5 | 78.4 | 10.6 | -86.4% |
Cash flow
|
|---|
| Capex | 28.8 | 18.6 | 16.5 | 4.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -81.5% | -8.7% | 8.1% | 35.9% | -57.5% | |
| EBITDA growth | -77.5% | -246.3% | -106.0% | 2,867.4% | -162.9% | |
| EBITDA Margin | 5.2% | -8.4% | 0.5% | 10.2% | -15.1% | -25.3% |
| Net Income Margin | -13.2% | -22.1% | 11.3% | 3.5% | -30.7% | -34.1% |
| CAPEX, % of revenue | 9.8% | 6.9% | 5.7% | 1.0% | | -1.0% |
| ROIC | -3.4% | -5.8% | -2.6% | 1.3% | -5.3% | -6.6% |
| ROE | -4.3% | -8.4% | 5.9% | 2.3% | -9.0% | -11.3% |
| Net Debt/EBITDA | 7.8x | | 67.5x | -4.3x | | 4.3x |
Revenue and profitability
Cash Financial Services Group Ltd's Revenue dropped on 57.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 26.7 pp from 5.0% to 31.7% in FY2016.
Net Income marign dropped on 34.1 pp from 3.5% to -30.7% in FY2016.
Return on investment
The company operates at negative ROIC (-5.28%) and ROE (-8.99%). ROIC decreased on 6.6 pp from 1.3% to -5.3% in FY2016. ROE dropped on 11.3 pp from 2.3% to -9.0% in FY2016.
Leverage (Debt)
Debt level is 3.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 4.3x from -4.3x to in FY2016. Debt dropped on 17.7% while cash decreased on 2.9%.
Appendix 1: Peers in Diversified Finan Serv
Below we provide Cash Financial Services Group Ltd benchmarking against other companies in Diversified Finan Serv 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 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | | -23.1% | -87.3% | 1,860.5% | 25.3% |
| Crown International Corp Ltd ($727) | | -75.0% | 117.4% | 802.5% | -25.1% |
| Global Strategic Group Ltd ($8007) | -3.9% | 2.1% | 806.3% | 681.2% | |
| Upbest Group Ltd ($335) | | -61.8% | 24.1% | 208.1% | -63.4% |
| GF Securities Co Ltd ($1776) | 16.3% | 31.8% | 75.0% | 163.9% | |
| |
|---|
| Median (64 companies) | 9.9% | 19.3% | 27.6% | 24.0% | 12.0% |
|---|
| Cash Financial Services Group Ltd ($510) | | -8.7% | 8.1% | 35.9% | -57.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Roma Group Ltd ($8072) | | | 99.4% | 98.7% | |
| First China Financial Network Holdings Ltd ($8123) | 93.4% | | 94.5% | 97.4% | |
| China Smarter Energy Group Holdings Ltd ($1004) | 6.2% | 4.0% | 46.9% | 96.9% | 98.4% |
| Chinese Strategic Holdings Ltd ($8089) | 99.1% | 97.9% | 97.0% | 96.6% | |
| Allied Group Ltd ($373) | 95.1% | 94.4% | 93.6% | 92.2% | |
| |
|---|
| Median (12 companies) | 64.2% | 75.1% | 88.2% | 90.3% | 69.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Smarter Energy Group Holdings Ltd ($1004) | -282.7% | -373.2% | -1,524.9% | 212.2% | 55.6% |
| China Aircraft Leasing Group Holdings Ltd ($1848) | 91.3% | 86.4% | 92.9% | 107.0% | |
| Get Nice Holdings Ltd ($64) | 2.6% | 153.4% | 92.7% | 83.9% | 84.5% |
| Hong Kong Exchanges and Clearing Ltd ($388) | 81.6% | 73.4% | 75.7% | 82.1% | 73.7% |
| Hong Kong Finance Group Co Ltd ($1273) | 76.9% | 67.5% | 65.2% | 74.8% | 70.3% |
| |
|---|
| Median (66 companies) | 23.0% | 37.2% | 47.9% | 32.4% | 50.8% |
|---|
| Cash Financial Services Group Ltd ($510) | 5.2% | -8.4% | 0.5% | 10.2% | -15.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Aircraft Leasing Group Holdings Ltd ($1848) | 351.0% | 0.1% | 33.3% | 64.6% | |
| Willie International Holdings Ltd ($273) | | 0.3% | 0.8% | 58.0% | |
| China Assurance Finance Group Ltd ($8090) | 94.7% | 68.9% | 53.3% | 51.0% | |
| AID Partners Capital Holdings Ltd ($8088) | 4.1% | 2.9% | 28.4% | 26.6% | |
| Hongkong Chinese Ltd ($655) | | | 0.1% | 25.6% | 0.1% |
| |
|---|
| Median (65 companies) | 1.9% | 1.8% | 1.1% | 1.5% | 1.7% |
|---|
| Cash Financial Services Group Ltd ($510) | 9.8% | 6.9% | 5.7% | 1.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hong Kong Exchanges and Clearing Ltd ($388) | 29.1% | 20.1% | 21.5% | 29.1% | 19.3% |
| China Smarter Energy Group Holdings Ltd ($1004) | -19.4% | -23.0% | -14.0% | 22.5% | 2.1% |
| Oi Wah Pawnshop Credit Holdings Ltd ($1319) | 32.7% | 20.7% | 14.0% | 15.3% | 12.5% |
| Emperor Capital Group Ltd ($717) | 5.1% | 12.8% | 13.1% | 14.6% | 12.4% |
| Roma Group Ltd ($8072) | 19.6% | 43.7% | 107.8% | 13.3% | 9.8% |
| |
|---|
| Median (69 companies) | 4.4% | 4.2% | 4.9% | 3.6% | 4.0% |
|---|
| Cash Financial Services Group Ltd ($510) | -3.4% | -5.8% | -2.6% | 1.3% | -5.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hoifu Energy Group Ltd ($7) | | | | 62.5x | |
| South China Financial Holdings Ltd ($619) | | | | 56.9x | |
| Bright Smart Securities & Commodities Group Ltd ($1428) | 2.1x | 10.3x | 9.3x | 39.3x | 4.3x |
| Far East Horizon Ltd ($3360) | 16.9x | 21.7x | 20.0x | 20.8x | |
| Quam Ltd ($952) | 58.9x | 15.9x | 4.1x | 14.8x | -18.0x |
| |
|---|
| Median (49 companies) | -0.7x | 0.1x | -0.1x | 0.0x | 0.5x |
|---|
| Cash Financial Services Group Ltd ($510) | 7.8x | | 67.5x | -4.3x | |
