CAR Inc's three year revenue growth was 33.7% and EBITDA growth was 70.6% per year
21/03/2017 • About CAR Inc (
$699) • By InTwits
CAR Inc is a fast-growing stock in Commercial Services industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
CAR Inc showed fast growth in the last financial year. The company's revenue surged on 29.0% in FY2016. In addition to revenue CAR Inc also keeps delivering EBITDA growth. It was 19.6% in FY2016
In the longer period the company showed fast revenue growth of 33.7% from FY2013 to FY2016 annualy. EBITDA surged on 70.6% from FY2013 to FY2016 annualy.
CAR Inc ($699) financials for the last 5 years
| mln. CNY | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 1,609 | 2,703 | 3,520 | 5,003 | 6,454 |
|---|
| Revenue growth, % | | 68.0% | 30.3% | 42.1% | 29.0% |
|---|
| Gross margin, % | 30.6% | 23.3% | 35.2% | 41.8% | 32.3% |
|---|
| SG&A, % | 21.4% | 19.4% | 12.3% | 10.7% | 9.44% |
|---|
| EBITDA | 701 | 813 | 1,517 | 3,371 | 4,032 |
|---|
| EBITDA growth, % | | 15.9% | 86.7% | 122.3% | 19.6% |
|---|
| EBITDA margin, % | 43.6% | 30.1% | 43.1% | 67.4% | 62.5% |
|---|
| Net Income | -132 | -223 | 436 | 1,401 | 1,460 |
|---|
| Net Income margin, % | -8.22% | -8.26% | 12.4% | 28.0% | 22.6% |
|---|
| |
| CAPEX | 31 | 32 | 81 | 236 | 274 |
|---|
| CAPEX/Revenue, % | 1.95% | 1.19% | 2.31% | 4.73% | 4.24% |
|---|
| Debt | 2,994 | 3,811 | 3,611 | 8,514 | 11,682 |
|---|
| Cash | 910 | 842 | 1,352 | 1,988 | 5,723 |
|---|
| Net Debt/EBITDA | 3.0x | 3.7x | 1.5x | 1.9x | 1.5x |
|---|
| |
| ROIC, % | 5.2% | 2.7% | 12.2% | 19.0% | 15.1% |
|---|
| ROE, % | -162.0% | -505.0% | 15.4% | 22.1% | 19.1% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the last 3 years the company's EBITDA margin surged on 32.4 pp from 30.1% in FY2013 to 62.5% in FY2016.
CAR Inc shows attractive ROIC at 15.1% for the last 12 months which assumes stable development model. Three years ago it was considerably lower at 2.67%. It's average ROIC for the last three years was 15.4%.
Net Income margin dropped on 5.40 pp from 28% to 22.6% in FY2016. In the last 3 years Net Income margin surged on 30.9 pp from -8.30% in FY2013 to 22.6% in FY2016.
CAR Inc operates at ROE of 19.1%. For the last three years the average ROE was 18.8%.
Capital expenditures (CAPEX)
In FY2016 the company had CAPEX/Revenue of 4.24%. CAPEX/Revenue surged on 3.05 pp from 1.19% in FY2013 to 4.24% in FY2016. For the last three years the average CAPEX/Revenue was 3.76%.
Leverage (Debt)
CAR Inc has medium debt level at 1.5x Net Debt/EBITDA to maintain high growth. In the longer period CAR Inc's leverage dropped on 2.18x from 3.65x in FY2013 to 1.48x in FY2016.
Management team
Yifan Song is a CEO of CAR Inc and Wei Li "Wilson" is a CFO.
Peers in Commercial Services
Below you can find CAR Inc benchmarking vs. other companies in Commercial Services 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Kai Yuan Holdings Ltd ($1215) | 99.1% | 14.9% | -88.3% | 271.8% | |
| China Seven Star Holdings Ltd ($245) | 6.7% | -81.8% | -39.3% | 195.3% | |
| China Smartpay Group Holdings Ltd ($8325) | | 274.7% | 75.6% | 124.5% | 79.5% |
| Celebrate International Holdings Ltd ($8212) | | 1,437.6% | -6.3% | 117.0% | -78.1% |
| Haier Healthwise Holdings Ltd ($348) | | -50.1% | -7.5% | 101.1% | -9.4% |
| |
|---|
| Median (67 companies) | 5.7% | 8.6% | 9.8% | 4.0% | 8.7% |
|---|
| CAR Inc ($699) | | 68.0% | 30.3% | 42.1% | 29.0% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| HC International Inc ($2280) | 87.5% | 91.9% | 92.5% | 89.6% | |
| Winto Group Holdings Ltd ($8238) | 90.2% | 93.4% | 92.0% | 88.4% | |
| Dingyi Group Investment Ltd ($508) | 75.8% | | 64.5% | 86.0% | 89.6% |
| Fu Shou Yuan International Group Ltd ($1448) | 80.5% | 80.4% | 80.0% | 77.6% | |
| Nirvana Asia Ltd ($1438) | 68.3% | 69.6% | 70.5% | 75.7% | |
| |
|---|
| Median (61 companies) | 31.9% | 31.0% | 31.0% | 30.9% | 30.1% |
|---|
| CAR Inc ($699) | 30.6% | 23.3% | 35.2% | 41.8% | 32.3% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Zuoli Kechuang Micro-Finance Co Ltd ($6866) | 61.6% | 84.9% | 75.9% | 80.9% | |
| Shenzhen International Holdings Ltd ($152) | 60.2% | 65.8% | 97.1% | 73.6% | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 78.3% | 74.5% | 74.0% | 71.6% | 84.1% |
| Jiangsu Expressway Co Ltd ($177) | 57.0% | 60.7% | 59.3% | 61.5% | |
| Dragon Crown Group Holdings Ltd ($935) | 67.3% | 62.9% | 60.2% | 61.1% | |
| |
|---|
| Median (67 companies) | 17.5% | 14.9% | 11.2% | 9.8% | 1.5% |
|---|
| CAR Inc ($699) | 43.6% | 30.1% | 43.1% | 67.4% | 62.5% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Blue Sky Power Holdings Ltd ($6828) | 21.3% | 9.0% | 13.9% | 47.4% | |
| COSCO Pacific Ltd ($1199) | 96.6% | 66.6% | 43.3% | 45.8% | |
| Shenzhen International Holdings Ltd ($152) | 23.0% | 22.1% | 20.9% | 35.0% | |
| Celebrate International Holdings Ltd ($8212) | 211.7% | 12.0% | 6.2% | 34.2% | 18.6% |
| China Maple Leaf Educational Systems Ltd ($1317) | 25.7% | 50.9% | 21.1% | 32.8% | 18.0% |
| |
|---|
| Median (67 companies) | 3.0% | 3.8% | 2.6% | 2.8% | 1.8% |
|---|
| CAR Inc ($699) | 2.0% | 1.2% | 2.3% | 4.7% | 4.2% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Bamboos Health Care Holdings Ltd ($8216) | | 71.1% | 50.1% | 58.3% | 40.0% |
| Wonderful Sky Financial Group Holdings Ltd ($1260) | 51.5% | 26.6% | 30.0% | 29.5% | 19.8% |
| 1010 Printing Group Ltd ($1127) | 13.5% | 20.8% | 17.8% | 19.9% | 18.8% |
| China Packaging Holdings Development Ltd ($1439) | 52.0% | 46.6% | 34.1% | 19.8% | |
| iOne Holdings Ltd ($982) | 12.5% | 11.1% | 9.4% | 19.2% | |
| |
|---|
| Median (67 companies) | 7.5% | 7.0% | 5.8% | 3.3% | 1.8% |
|---|
| CAR Inc ($699) | 5.2% | 2.7% | 12.2% | 19.0% | 15.1% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Celebrate International Holdings Ltd ($8212) | | | | 22.2x | |
| Kai Yuan Holdings Ltd ($1215) | -143.8x | -0.7x | | 18.8x | |
| Eagle Legend Asia Ltd ($936) | 4.0x | 4.0x | 3.3x | 6.2x | |
| Sichuan Expressway Co Ltd ($107) | 2.7x | 3.8x | 4.3x | 5.5x | |
| Yuexiu Transport Infrastructure Ltd ($1052) | 4.5x | 3.1x | 2.7x | 5.3x | 3.5x |
| |
|---|
| Median (44 companies) | -0.0x | -0.7x | -0.9x | -0.8x | -2.3x |
|---|
| CAR Inc ($699) | 3.0x | 3.7x | 1.5x | 1.9x | 1.5x |
