Universe International Holdings Ltd revenue surged on 268% and EBITDA Margin surged on 176 pp from -187% to -11.7%
29/09/2020 • About Universe International Holdings Ltd (
$1046) • By InTwits
Universe International Holdings Ltd reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -11.7%
- Universe International Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 1.8%. Average EBITDA Margin for the same period was -64.8%
- In the last 5 years the company invested considerably less than D&A: 13 m vs. 41 m. In FY2020 this situation was still the same: CAPEX was while D&A was 3
- The company has unprofitable business model: ROIC is -7.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 268%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 54.8 pp from -67.4% to -122% in FY2020.
Gross Margin jumped on 20.7 pp from 24.9% to 45.7% in FY2020. SG&A as a % of Revenue dropped on 97.2 pp from 140% to 43.2% in FY2020.
Net Income margin surged on 185 pp from -197% to -11.9% in FY2020.
Investments (CAPEX, working capital and M&A)
Accounts receivable as a % of Revenue surged on 14.1 pp from 18.1% to 32.2% in FY2020. Inventories as a % of Revenue dropped on 10.1 pp from 14.9% to 4.8% in FY2020. Accounts payable as a % of Revenue decreased on 7.7 pp from 23.4% to 15.7% in FY2020.
Return on investment
The company operates at negative ROIC (-7.7%) and ROE (-7.3%). ROIC surged on 10.2 pp from -17.9% to -7.7% in FY2020. ROE jumped on 11.3 pp from -18.7% to -7.3% in FY2020.
Leverage (Debt)
Debt level is -56.8x Net Debt / EBITDA and Debt / EBITDA. Debt jumped on 220,971% while cash dropped on 39.8%.
Universe International Holdings Ltd has no short term refinancing risk: cash is higher than short term debt (1,092.3%).
Management team
At the end of financial year the company had 70.2% shares owned by insiders. Insider ownership didn't change in 2020.
Financial and operational results
FY ended 30/06/2020
Universe International Holdings Ltd ($1046) key annual financial indicators| mln. | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 7.5 | 195.7 | 86.7 | 61.7 | 226.8 | 267.7% |
| Gross Profit | -47.4 | 107.7 | 45.8 | 15.4 | 103.5 | 573.2% |
| SG&A | 90.5 | 110.2 | 124.5 | 86.6 | 97.9 | 13.1% |
| EBITDA | -105.9 | -82.4 | -44.4 | -115.5 | -26.5 | |
| EBIT | | -108.8 | -51.2 | -120.3 | -29.9 | |
| Interest expence | | 12.2 | 6.2 | | | |
| Tax | | 6.2 | -3.6 | -0.1 | -0.1 | |
| Net Income | -140.8 | -114.3 | -135.3 | -121.2 | -27.1 | |
| Stock Based Compensation | | | 10.5 | | | |
Balance Sheet
|
|---|
| Cash | 217.8 | 321.2 | 529.4 | 179.1 | 107.7 | -39.8% |
| Accounts Receivable | | 333.9 | 30.9 | 11.2 | 73.1 | 555.0% |
| Inventory | | 10.1 | 8.0 | 9.2 | 11.0 | 18.9% |
| Accounts Payable | | 92.4 | 8.5 | 10.8 | 19.3 | 78.4% |
| Short Term Debt | 13.3 | 43.1 | 0.0 | 0.0 | 9.9 | 140,800.0% |
| Long Term Debt | 0.1 | 10.0 | 0.0 | 0.0 | 5.6 | |
Cash flow
|
|---|
| Capex | 1.6 | 1.4 | 5.8 | 3.8 | | |
| Dividends | | | | 408.0 | | |
Ratios
|
|---|
| Revenue growth | -97.5% | 2,520.4% | -55.7% | -28.8% | 267.7% | |
| EBITDA growth | -147.9% | -22.3% | -46.0% | 159.9% | -77.1% | |
|
|---|
| Gross Margin | -635.1% | 55.0% | 52.9% | 24.9% | 45.7% | 20.7% |
| EBITDA Margin | -1,418.4% | -42.1% | -51.3% | -187.3% | -11.7% | 175.6% |
| EBIT Margin | | -55.6% | -59.1% | -195.0% | -13.2% | 181.8% |
| SG&A, % of revenue | 1,211.9% | 56.3% | 143.6% | 140.4% | 43.2% | -97.2% |
| SBC, % of revenue | | | 12.1% | | |
| Net Income Margin | -1,885.0% | -58.4% | -156.1% | -196.5% | -11.9% | 184.6% |
| CAPEX, % of revenue | 21.9% | 0.7% | 6.7% | 6.2% | | |
|
|---|
| ROIC | -17.0% | -11.7% | -5.0% | -17.9% | -7.7% | 10.2% |
| ROE | -21.2% | -12.9% | -14.0% | -18.7% | -7.3% | 11.3% |
| Interest expence / Average debt | | 36.7% | 23.2% | | | |
People
|
|---|
| Insider ownership | | 70.2% | 70.2% | 70.2% | 70.2% | 0.0% |
| Employees | | 117 | 110 | 116 | | |
| Revenue/Employee, th. | | 1,673 | 788 | 532 | | |
Peers in Entertainment
Below we provide Universe International Holdings Ltd benchmarking against other companies in Entertainment 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 |
|---|
| China Vanguard Group Ltd ($8156) | - | -23.9% | -3.8% | 71.6% | 281.4% |
| Pegasus Entertainment Holdings Ltd ($1326) | - | -49.5% | 21.7% | 143.3% | -30.3% |
| |
|---|
| Median (2 companies) | 6.9% | -23.9% | -3.0% | 107.5% | 125.6% |
|---|
| Universe International Holdings Ltd ($1046) | - | 2,520.4% | -55.7% | -28.8% | 267.7% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 41.9% | 51.5% | 50.4% | 39.3% | 37.3% |
| China Vanguard Group Ltd ($8156) | 91.0% | 51.0% | 62.0% | 54.5% | 26.9% |
| |
|---|
| Median (2 companies) | 41.9% | 51.3% | 56.2% | 46.9% | 32.1% |
|---|
| Universe International Holdings Ltd ($1046) | -635.1% | 55.0% | 52.9% | 24.9% | 45.7% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 3.7% | -17.4% | -59.6% | -0.5% | 12.4% |
| China Vanguard Group Ltd ($8156) | -72.8% | -604.2% | -196.7% | -57.2% | -84.7% |
| |
|---|
| Median (2 companies) | -10.2% | -17.4% | -59.6% | -28.8% | -36.1% |
|---|
| Universe International Holdings Ltd ($1046) | -1,418.4% | -42.1% | -51.3% | -187.3% | -11.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | 0.3% | 13.9% | 37.1% | 2.5% | 2.5% |
| China Vanguard Group Ltd ($8156) | 26.5% | 17.6% | 1.8% | 0.0% | 14.1% |
| |
|---|
| Median (2 companies) | 2.5% | 13.9% | 3.3% | 1.2% | 8.3% |
|---|
| Universe International Holdings Ltd ($1046) | 21.9% | 0.7% | 6.7% | 6.2% | - |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | -0.7% | -14.7% | -84.6% | -5.0% | -7.1% |
| China Vanguard Group Ltd ($8156) | -10.2% | -90.8% | -46.0% | -19.5% | -67.8% |
| |
|---|
| Median (2 companies) | -4.3% | -14.7% | -46.0% | -12.2% | -37.4% |
|---|
| Universe International Holdings Ltd ($1046) | -17.0% | -11.7% | -5.0% | -17.9% | -7.7% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pegasus Entertainment Holdings Ltd ($1326) | -4.4x | - | - | - | 16.8x |
| |
|---|
| Median (1 company) | -0.4x | -0.6x | -1.1x | - | 16.8x |
|---|
