Heng Tai Consumables Group Ltd revenue dropped on 35.5% and EBITDA Margin dropped on 19.0 pp from -27.6% to -46.6%30/09/2020
• About Heng Tai Consumables Group Ltd ($197
) • By InTwits
Heng Tai Consumables Group Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Heng Tai Consumables Group Ltd is a company in decline: FY2020 revenue growth was -35.5%, 5 years revenue CAGR was -19.9%
- The company operates at negative EBITDA Margin: -46.6%
- Heng Tai Consumables Group Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -18.4% for the sames years
- The company has unprofitable business model: ROIC is -18.1%
- It operates with high leverage: Net Debt/EBITDA is 6.5x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Heng Tai Consumables Group Ltd's Revenue dropped on 35.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 19.0 pp from -27.6% to -46.6% in FY2020.
Gross Margin decreased on 2.7 pp from 8.6% to 5.9% in FY2020. Gross Margin stuck to a declining trend at -1.1 pp per annum in the last 5 years. SG&A as a % of Revenue increased on 5.1 pp from 19.5% to 24.5% in FY2020. SG&A as a % of Revenue stuck to a growing trend at 2.5 pp per annum in the last 5 years.
Net Income margin dropped on 24.8 pp from -33.9% to -58.7% in FY2020.
Return on investment
The company operates at negative ROIC (-18.1%) and ROE (-18.9%). ROIC decreased on 3.3 pp from -14.8% to -18.1% in FY2020. ROE decreased on 4.7 pp from -14.2% to -18.9% in FY2020.
Company's Net Debt / EBITDA is 6.5x and Debt / EBITDA is . Debt surged on 41.3% while cash dropped on 24.0%.
Heng Tai Consumables Group Ltd has no short term refinancing risk: cash is higher than short term debt (1,517.5%).
Financial and operational resultsHeng Tai Consumables Group Ltd ($197) key annual financial indicators
|Short Term Debt||61||33||16||20||24||16.6%|
|Long Term Debt||0||0||0||0||5|
|SG&A, % of revenue||13.8%||15.8%||17.7%||19.5%||24.5%||5.1%|
|Net Income Margin||-20.0%||-33.1%||-15.6%||-33.9%||-58.7%||-24.8%|
|CAPEX, % of revenue||3.2%||2.8%||3.8%||17.5%|
Peers in Food
Below we provide Heng Tai Consumables Group Ltd benchmarking against other companies in Food 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.