Cowell e Holdings Inc reports 53.0% Net Income decline in 2016 and 4.5 pp EBITDA Margin decline from 9.9% to 5.3%
23/03/2017 • About Cowell e Holdings Inc (
$1415) • By InTwits
Cowell e Holdings Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with low profitability: ROIC is at 8.2%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cowell e Holdings Inc ($1415) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 527.5 | 813.9 | 886.5 | 980.2 | 914.5 | -6.7% |
| Gross Profit | 42.5 | 103.2 | 112.1 | 136.9 | 76.1 | -44.4% |
| SG&A | 4.4 | 5.9 | 43.6 | 57.2 | 47.7 | -16.6% |
| EBITDA | 29.9 | 80.3 | 82.9 | 96.7 | 48.8 | -49.5% |
| Net Income | 13.2 | 50.2 | 53.2 | 60.7 | 28.5 | -53.0% |
Balance Sheet
|
|---|
| Cash | 13.6 | 45.2 | 82.2 | 93.6 | 125.1 | 33.7% |
| Short Term Debt | 144.1 | 123.8 | 91.9 | 40.8 | 89.2 | 118.6% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 50.7 | 15.8 | 21.5 | 36.5 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 63.3% | 54.3% | 8.9% | 10.6% | -6.7% | |
| EBITDA growth | 10.9% | 168.5% | 3.2% | 16.6% | -49.5% | |
| Gross Margin | 8.1% | 12.7% | 12.6% | 14.0% | 8.3% | -5.6% |
| EBITDA Margin | 5.7% | 9.9% | 9.3% | 9.9% | 5.3% | -4.5% |
| Net Income Margin | 2.5% | 6.2% | 6.0% | 6.2% | 3.1% | -3.1% |
| SG&A, % of revenue | 0.8% | 0.7% | 4.9% | 5.8% | 5.2% | -0.6% |
| CAPEX, % of revenue | 9.6% | 1.9% | 2.4% | 3.7% | | -3.7% |
| ROIC | 12.5% | 27.1% | 24.4% | 25.8% | 8.2% | -17.5% |
| ROE | 16.6% | 44.4% | 32.0% | 25.4% | 9.8% | -15.6% |
| Net Debt/EBITDA | 4.4x | 1.0x | 0.1x | -0.5x | -0.7x | -0.2x |
Revenue and profitability
The company's Revenue decreased on 6.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.1 pp from 35.4% to 36.5% in FY2016.
Gross Margin decreased on 5.6 pp from 14.0% to 8.3% in FY2016. SG&A as a % of Revenue decreased slightly on 0.62 pp from 5.8% to 5.2% in FY2016.
Net Income marign decreased on 3.1 pp from 6.2% to 3.1% in FY2016.
Return on investment
The company operates at low ROIC (8.25%) and ROE (9.77%). ROIC dropped on 17.5 pp from 25.8% to 8.2% in FY2016. ROE dropped on 15.6 pp from 25.4% to 9.8% in FY2016.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from -0.5x to -0.7x in FY2016. Debt jumped on 119% while cash surged on 33.7%.
Appendix 1: Peers in Electronics
Below we provide Cowell e Holdings Inc benchmarking against other companies in Electronics 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 |
|---|
| GCL New Energy Holdings Ltd ($451) | 14.7% | -6.8% | 10.9% | 53.9% | |
| Tech Pro Technology Development Ltd ($3823) | 7.4% | -44.9% | -13.7% | 52.4% | |
| Nanjing Sample Technology Co Ltd ($1708) | 36.1% | 8.0% | 15.4% | 34.8% | |
| AAC Technologies Holdings Inc ($2018) | | 28.9% | 9.7% | 32.2% | 32.1% |
| Ningbo Wanhao Holdings Co Ltd ($8249) | 5.7% | 412.4% | -6.9% | 28.9% | |
| |
|---|
| Median (50 companies) | -1.6% | 3.6% | 5.0% | -1.2% | -0.1% |
|---|
| Cowell e Holdings Inc ($1415) | | 54.3% | 8.9% | 10.6% | -6.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Advanced Card Systems Holdings Ltd ($8210) | 54.0% | 58.1% | 49.5% | 49.6% | |
| AAC Technologies Holdings Inc ($2018) | 44.2% | 42.7% | 41.4% | 41.5% | 41.5% |
| TeleEye Holdings Ltd ($8051) | 44.0% | 42.1% | 38.5% | 37.0% | 40.9% |
| Hi Sun Technology China Ltd ($818) | 28.1% | 37.4% | 33.3% | 34.7% | 30.8% |
| Datronix Holdings Ltd ($889) | 32.9% | 32.0% | 34.1% | 34.6% | |
| |
|---|
| Median (48 companies) | 14.1% | 13.8% | 14.1% | 15.3% | 15.2% |
|---|
| Cowell e Holdings Inc ($1415) | 8.1% | 12.7% | 12.6% | 14.0% | 8.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 35.8% | 35.8% | 34.9% | 34.8% | 36.1% |
| GCL New Energy Holdings Ltd ($451) | 10.8% | 11.1% | 12.6% | 33.0% | |
| Daiwa Associate Holdings ($1037) | 2.4% | 3.8% | 2.8% | 25.6% | -53.6% |
| Wasion Group Holdings Ltd ($3393) | 18.8% | 21.2% | 22.0% | 19.3% | |
| Tongda Group Holdings Ltd ($698) | 17.1% | 16.8% | 18.4% | 18.9% | 20.2% |
| |
|---|
| Median (50 companies) | 7.4% | 6.0% | 4.6% | 4.6% | 6.2% |
|---|
| Cowell e Holdings Inc ($1415) | 5.7% | 9.9% | 9.3% | 9.9% | 5.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| GCL New Energy Holdings Ltd ($451) | 5.5% | 5.1% | 5.4% | 401.2% | |
| National Electronic Hldgs ($213) | 3.4% | 18.1% | 7.1% | 49.7% | 4.7% |
| Irico Group Electronics Co Ltd ($438) | 39.9% | 30.4% | 17.4% | 25.8% | |
| Kingwell Group Ltd ($1195) | 8.6% | 5.4% | 5.3% | 21.4% | 0.0% |
| AAC Technologies Holdings Inc ($2018) | 18.7% | 8.7% | 19.6% | 18.4% | |
| |
|---|
| Median (50 companies) | 3.7% | 3.2% | 4.2% | 2.9% | 3.2% |
|---|
| Cowell e Holdings Inc ($1415) | 9.6% | 1.9% | 2.4% | 3.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AAC Technologies Holdings Inc ($2018) | 29.1% | 30.0% | 26.0% | 27.8% | 27.6% |
| Changhong Jiahua Holdings Ltd ($8016) | 29.6% | 17.7% | 15.1% | 16.7% | |
| Tongda Group Holdings Ltd ($698) | 15.2% | 13.5% | 16.5% | 16.3% | 17.8% |
| Alltronics Holdings Ltd ($833) | 13.1% | 15.2% | 19.8% | 15.6% | |
| Varitronix International Ltd ($710) | 8.7% | 17.5% | 11.4% | 11.6% | |
| |
|---|
| Median (50 companies) | 4.3% | 3.5% | 3.0% | 1.9% | 3.4% |
|---|
| Cowell e Holdings Inc ($1415) | 12.5% | 27.1% | 24.4% | 25.8% | 8.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| National Electronic Hldgs ($213) | 16.3x | 30.2x | 84.8x | 19.9x | 42.7x |
| GCL New Energy Holdings Ltd ($451) | 2.9x | 2.6x | 1.7x | 17.4x | |
| Man Yue Technology Holdings Ltd ($894) | 2.1x | 2.7x | 3.3x | 6.5x | |
| Willas-Array Electronics Holdings Ltd ($854) | 2.2x | 2.6x | 5.7x | 5.4x | 14.1x |
| SAS Dragon Hldg Ltd ($1184) | 7.1x | 2.0x | 6.4x | 4.8x | |
| |
|---|
| Median (32 companies) | 1.0x | 1.1x | 1.0x | 0.4x | 0.8x |
|---|
| Cowell e Holdings Inc ($1415) | 4.4x | 1.0x | 0.1x | -0.5x | -0.7x |
