Vision Values Holdings Ltd reports 20.1% revenue growth in FY2020 and 66.0 pp EBITDA Margin growth from -167% to -101%
23/09/2020 • About Vision Values Holdings Ltd (
$862) • By InTwits
Vision Values Holdings Ltd reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Vision Values Holdings Ltd is a fast growth stock: FY2020 revenue growth was 20.1%, 5 year revenue CAGR was 24.1% at FY2020 ROIC -14.8%
- The company operates at negative EBITDA Margin: -100.5%
- Vision Values Holdings Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -113.9% for the sames years
- The company has unprofitable business model: ROIC is -14.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Vision Values Holdings Ltd's Revenue jumped on 20.1%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 66.0 pp from -167% to -101% in FY2020.
Net Income margin dropped on 43.6 pp from -123% to -167% in FY2020.
Return on investment
The company operates at negative ROIC (-14.8%) and ROE (-26.5%). ROIC increased on 2.8 pp from -17.6% to -14.8% in FY2020. ROE dropped on 12.7 pp from -13.8% to -26.5% in FY2020.
Leverage (Debt)
Debt level is Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2020. Debt jumped on 611% while cash dropped on 40.4%.
Vision Values Holdings Ltd has short term refinancing risk: cash is only 40.7% of short term debt.
Financial and operational results
Vision Values Holdings Ltd ($862) key annual financial indicators| mln. HKD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 26.351 | 22.212 | 30.354 | 54.020 | 64.895 | 20.1% |
| EBITDA | -29.504 | -48.221 | 7.633 | -89.960 | -65.239 | |
| Net Income | -26.803 | -46.055 | 9.819 | -66.613 | -108.328 | |
Balance Sheet
|
|---|
| Cash | 157.565 | 220.614 | 71.921 | 26.755 | 15.940 | -40.4% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 5.500 | 39.124 | 611.3% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 19.110 | 7.357 | 12.900 | 23.348 | | |
Ratios
|
|---|
| Revenue growth | 19.6% | -15.7% | 36.7% | 78.0% | 20.1% | |
| EBITDA growth | -30.1% | 63.4% | -115.8% | -1,278.6% | -27.5% | |
|
|---|
| EBITDA Margin | -112.0% | -217.1% | 25.1% | -166.5% | -100.5% | 66.0% |
| Net Income Margin | -101.7% | -207.3% | 32.3% | -123.3% | -166.9% | -43.6% |
| CAPEX, % of revenue | 72.5% | 33.1% | 42.5% | 43.2% | | |
|
|---|
| ROIC | -9.1% | -11.5% | 1.3% | -17.6% | -14.8% | 2.8% |
| ROE | -8.6% | -11.6% | 1.9% | -13.8% | -26.5% | -12.7% |
| Net Debt/EBITDA | | | -9.4x | | |
Peers in Telecommunications
Below we provide Vision Values Holdings Ltd benchmarking against other companies in Telecommunications 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cisco Systems Inc ($4333) | 0.2% | -2.5% | 2.8% | 5.2% | - |
| SmarTone Telecommunications Holdings Ltd ($315) | - | -52.5% | 14.6% | -15.8% | -17.0% |
| |
|---|
| Median (2 companies) | -2.5% | -2.5% | 8.7% | -5.3% | -17.0% |
|---|
| Vision Values Holdings Ltd ($862) | - | -15.7% | 36.7% | 78.0% | 20.1% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cisco Systems Inc ($4333) | 62.9% | 63.0% | 62.0% | 62.9% | - |
| |
|---|
| Median (1 company) | 33.5% | 37.9% | 62.0% | 62.9% | - |
|---|
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cisco Systems Inc ($4333) | 30.1% | 29.7% | 29.4% | 31.0% | - |
| SmarTone Telecommunications Holdings Ltd ($315) | 14.5% | 26.3% | 21.3% | 21.0% | 32.5% |
| |
|---|
| Median (2 companies) | 8.9% | 26.3% | 25.4% | 26.0% | 32.5% |
|---|
| Vision Values Holdings Ltd ($862) | -112.0% | -217.1% | 25.1% | -166.5% | -100.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| SmarTone Telecommunications Holdings Ltd ($315) | 3.3% | 6.6% | 6.2% | 6.2% | 7.7% |
| Cisco Systems Inc ($4333) | 2.3% | 2.0% | 1.7% | 1.8% | - |
| |
|---|
| Median (2 companies) | 3.8% | 2.0% | 4.0% | 4.0% | 7.7% |
|---|
| Vision Values Holdings Ltd ($862) | 72.5% | 33.1% | 42.5% | 43.2% | - |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cisco Systems Inc ($4333) | 14.6% | 12.9% | 15.1% | 23.2% | - |
| SmarTone Telecommunications Holdings Ltd ($315) | 14.5% | 11.8% | 10.9% | 10.4% | 6.4% |
| |
|---|
| Median (2 companies) | 6.1% | 11.8% | 13.0% | 16.8% | 6.4% |
|---|
| Vision Values Holdings Ltd ($862) | -9.1% | -11.5% | 1.3% | -17.6% | -14.8% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Cisco Systems Inc ($4333) | 1.4x | 1.5x | 1.1x | 0.8x | - |
| SmarTone Telecommunications Holdings Ltd ($315) | -0.0x | 0.7x | 0.3x | 0.2x | 0.3x |
| |
|---|
| Median (2 companies) | 1.6x | 0.7x | 0.7x | 0.5x | 0.3x |
|---|
