Pegasus Entertainment Holdings Ltd Debt jumped on 124%
25/09/2020 • About Pegasus Entertainment Holdings Ltd (
$1326) • By InTwits
Pegasus Entertainment Holdings Ltd reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Pegasus Entertainment 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 -6.3% for the sames years
- Pegasus Entertainment Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.3%. At the same time it's in pair with industry average of 4.7%
- CAPEX is quite volatile: 12 m in FY2020, 17 m in FY2019, 102 m in FY2018, 31 m in FY2017, 1 m in FY2016
- The company has unprofitable business model: ROIC is -7.1%
- It operates with high leverage: Net Debt/EBITDA is 16.8x while industry average is -2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Pegasus Entertainment Holdings Ltd's Revenue dropped on 30.3%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 12.9 pp from -0.46% to 12.4% in FY2020. During the last 5 years EBITDA Margin bottomed in FY2018 at -59.6% and was growing since that time.
Gross Margin decreased slightly on 1.9 pp from 39.3% to 37.3% in FY2020. During FY2016-FY2020 Gross Margin topped in FY2017 at 51.5% and was declining since that time. SG&A as a % of Revenue jumped on 11.1 pp from 41.1% to 52.2% in FY2020.
Net Income margin dropped on 21.9 pp from -5.3% to -27.2% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 2.5%. The company showed big decline in CAPEX/Revenue of 11.4 pp from 13.9% in FY2017 to 2.5% in FY2020. It's average level of CAPEX/Revenue for the last three years was 14.0%.
Inventories as a % of Revenue showed almost no change at 0.27% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 16.8x and Debt / EBITDA is 19.0x. Net Debt / EBITDA surged16.8x from to 16.8x in FY2020. Debt surged on 124% while cash increased on 3.0%.
Pegasus Entertainment Holdings Ltd has short term refinancing risk: cash is only 85.9% of short term debt.
Average interest expence paid by the company was 0.72% in FY2020.
Management team
The company has 74.1% shares owned by insiders. Insider ownership didn't change in 2020.
At the end of financial year the company had 308 employees. The number of employees jumped on 18.5%. Average revenue per employee in FY2020 was 1,511,474 and it dropped on 41.2%.
Financial and operational results
FY ended 30/06/2020
Pegasus Entertainment Holdings Ltd ($1326) key annual financial indicators| mln. | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 446.4 | 225.6 | 274.6 | 668.1 | 465.5 | -30.3% |
| Gross Profit | 186.8 | 116.3 | 138.4 | 262.3 | 173.7 | -33.8% |
| SG&A | 190.5 | 154.5 | 251.6 | 274.6 | 242.8 | -11.6% |
| EBITDA | 16.5 | -39.2 | -163.6 | -3.0 | 57.8 | |
| EBIT | | -47.0 | -182.5 | -17.5 | -68.1 | |
| Interest expence | | | 0.3 | 11.6 | 8.0 | -31.6% |
| Tax | | -1.0 | 10.1 | 5.7 | -0.9 | -115.5% |
| Net Income | -72.6 | -40.0 | -189.8 | -35.5 | -126.6 | |
Balance Sheet
|
|---|
| Cash | 72.2 | 32.0 | 76.3 | 122.0 | 125.7 | 3.0% |
| Inventory | | 0.6 | 0.7 | 0.7 | 1.2 | 82.3% |
| Short Term Debt | 0.0 | 0.0 | 8.2 | 129.5 | 146.3 | 13.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 361.9 | 953.4 | 163.5% |
Cash flow
|
|---|
| Capex | 1.5 | 31.4 | 101.9 | 16.6 | 11.6 | -29.9% |
Ratios
|
|---|
| Revenue growth | 187.5% | -49.5% | 21.7% | 143.3% | -30.3% | |
| EBITDA growth | -125.3% | -338.3% | 317.1% | -98.1% | -1,997.1% | |
|
|---|
| Gross Margin | 41.9% | 51.5% | 50.4% | 39.3% | 37.3% | -1.9% |
| EBITDA Margin | 3.7% | -17.4% | -59.6% | -0.5% | 12.4% | 12.9% |
| EBIT Margin | | -20.8% | -66.5% | -2.6% | -14.6% | -12.0% |
| SG&A, % of revenue | 42.7% | 68.5% | 91.6% | 41.1% | 52.2% | 11.1% |
| Net Income Margin | -16.3% | -17.7% | -69.1% | -5.3% | -27.2% | -21.9% |
| CAPEX, % of revenue | 0.3% | 13.9% | 37.1% | 2.5% | 2.5% | 0.0% |
|
|---|
| ROIC | -0.7% | -14.7% | -84.6% | -5.0% | -7.1% | -2.2% |
| ROE | -21.0% | -12.4% | -88.0% | -33.8% | | |
| Net Debt/EBITDA | -4.4x | | | | 16.8x |
| Interest expence / Average debt | | | 6.4% | 4.7% | 0.7% | -3.9% |
People
|
|---|
| Insider ownership | | 74.1% | 74.1% | 74.1% | 74.1% | 0.0% |
| Employees | | 122 | 298 | 260 | 308 | 18.5% |
| Revenue/Employee, th. | | 1,849 | 922 | 2,570 | 1,511 | -41.2% |
Peers in Entertainment
Below you can find Pegasus Entertainment Holdings Ltd benchmarking vs. other companies in Entertainment 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, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| China Vanguard Group Ltd ($8156) | -72.0% | -23.9% | -3.8% | 71.6% | - |
| Universe International Holdings Ltd ($1046) | -97.5% | 2,520.4% | -55.7% | -28.8% | - |
| |
|---|
| Median (2 companies) | 5.6% | 0.6% | -3.8% | 21.4% | - |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | - | -49.5% | 21.7% | 143.3% | -30.3% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| China Vanguard Group Ltd ($8156) | 91.0% | 51.0% | 62.0% | 54.5% | - |
| Universe International Holdings Ltd ($1046) | -635.1% | 55.0% | 52.9% | 24.9% | - |
| |
|---|
| Median (2 companies) | 30.9% | 53.0% | 57.4% | 39.7% | - |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 41.9% | 51.5% | 50.4% | 39.3% | 37.3% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| China Vanguard Group Ltd ($8156) | -72.8% | -604.2% | -196.7% | -57.2% | - |
| Universe International Holdings Ltd ($1046) | -1,418.4% | -42.1% | -51.3% | -187.3% | - |
| |
|---|
| Median (2 companies) | -14.4% | -42.1% | -51.3% | -122.2% | - |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 3.7% | -17.4% | -59.6% | -0.5% | 12.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Universe International Holdings Ltd ($1046) | 21.9% | 0.7% | 6.7% | 6.2% | - |
| China Vanguard Group Ltd ($8156) | 26.5% | 17.6% | 1.8% | 0.0% | - |
| |
|---|
| Median (2 companies) | 6.2% | 6.3% | 3.3% | 3.1% | - |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 0.3% | 13.9% | 37.1% | 2.5% | 2.5% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Universe International Holdings Ltd ($1046) | -17.0% | -11.7% | -5.0% | -17.9% | - |
| China Vanguard Group Ltd ($8156) | -10.2% | -90.8% | -46.0% | -19.5% | - |
| |
|---|
| Median (2 companies) | -7.1% | -11.7% | -5.0% | -18.7% | - |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | -0.7% | -14.7% | -84.6% | -5.0% | -7.1% |
