D B Corp is an attractive growth stock: revenue grew 15.1% annually over the last three years
19-05-2014 • About D B Corp (
$DBCORP) • By InTwits
Pay attention to D B Corp as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
D B Corp showed fast growth in the last financial year. The company's revenue surged on 19.3% in FY2014. EBITDA also increased considerably: 30.4% for the same period.
If we look for the longer period the company showed fast revenue growth of 15.1% from FY2011 to FY2014 annually. EBITDA surged on 7.51% from FY2011 to FY2014 annually.
D B Corp ($DBCORP) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 24,406 | 12,196 | 13,713 | 15,594 | 18,598 |
|---|
| Revenue growth, % | | -50.0% | 12.4% | 13.7% | 19.3% |
|---|
| SG&A, % | | 6.44% | | | 1.11% |
|---|
| EBITDA | 3,450 | 4,063 | 3,557 | 3,871 | 5,048 |
|---|
| EBITDA growth, % | | 17.7% | -12.4% | 8.8% | 30.4% |
|---|
| EBITDA margin, % | 14.1% | 33.3% | 25.9% | 24.8% | 27.1% |
|---|
| Net Income | 1,828 | 2,585 | 2,021 | 2,181 | 3,066 |
|---|
| Net Income margin, % | 7.49% | 21.2% | 14.7% | 14.0% | 16.5% |
|---|
| |
| CAPEX | 603 | 1,433 | 1,227 | 567 | 1,023 |
|---|
| CAPEX/Revenue, % | 2.47% | 11.8% | 8.95% | 3.64% | 5.50% |
|---|
| Debt | 3,207 | 2,111 | 2,133 | 1,628 | 1,264 |
|---|
| Cash | 464 | 972 | 1,363 | 1,190 | 1,132 |
|---|
| Net Debt/EBITDA | 0.8x | 0.3x | 0.2x | 0.1x | 0.0x |
|---|
| |
| ROIC, % | 32.0% | 33.4% | 25.7% | 25.8% | 32.7% |
|---|
| ROE, % | 40.3% | 35.0% | 23.0% | 22.3% | 28.2% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. D B Corp showed EBITDA margin growth of 2.30 pp from 24.8% to 27.1% in FY2014. In the longer period the company's EBITDA margin dropped on 6.20 pp from 33.3% in FY2011 to 27.1% in FY2014.
D B Corp shows attractive ROIC at 32.7% for the last 12 months which assumes stable development model. During the last three years it decreased slightly - it was 33.4% in FY2011. Average ROIC for the last three years was 28.1%.
The company's Net Income margin surged on 2.50 pp from 14% to 16.5% in FY2014. If we look for the longer period D B Corp's Net Income margin dropped on 4.70 pp from 21.2% in FY2011 to 16.5% in FY2014.
D B Corp operates at ROE of 28.2%. It's average level of ROE for the last three years was 24.5%.
Capital expenditures (CAPEX)
To fuel this fast growth D B Corp had to invest in CAPEX.The company's CAPEX/Revenue was 5.50% in FY2014. The company showed big decline in CAPEX/Revenue of 6.25 pp from 11.8% in FY2011 to 5.50% in FY2014. Average CAPEX/Revenue for the last three years was 6.03%.
Leverage (Debt)
The company has low debt level at 0.0x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage dropped on 0.25x from 0.28x in FY2011 to 0.03x in FY2014.
Valuation vs. comparable companies
At the end of trading day today D B Corp traded at 9.8x EV/EBITDA which is 38.7% lower than 16.0x Publishing peer group avearge calculated on the basis of 16 companies. At the end of trading day today D B Corp traded at 16.1x P/E which is 50.2% lower than 32.3x Publishing peer group avearge calculated on the basis of 3 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The company trades at 12.3x EV/(EBITDA-CAPEX) which is higher vs. -0.1x Publishing industry avearge calculated based on 3 companies.
Peers in Publishing
Below you can find D B Corp benchmarking vs. other companies in Publishing 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Hindustan Media Ventures ($HMVL) | | -44.5% | 15.6% | 6.6% | 14.7% |
| Ht Media ($HTMEDIA) | | -37.5% | 15.0% | 2.3% | 7.4% |
| |
|---|
| Median (2 companies) | | -41.0% | 15.3% | 4.5% | 11.1% |
|---|
| D B Corp ($DBCORP) | | -50.0% | 12.4% | 13.7% | 19.3% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Hindustan Media Ventures ($HMVL) | 2.8% | 17.0% | 16.3% | 17.7% | 20.8% |
| Ht Media ($HTMEDIA) | 9.2% | 20.6% | 18.1% | 18.4% | 15.2% |
| |
|---|
| Median (2 companies) | 9.2% | 18.8% | 17.2% | 18.1% | 18.0% |
|---|
| D B Corp ($DBCORP) | 14.1% | 33.3% | 25.9% | 24.8% | 27.1% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Ht Media ($HTMEDIA) | 5.8% | 4.5% | 3.8% | 6.4% | 6.9% |
| Hindustan Media Ventures ($HMVL) | 2.5% | 5.7% | 7.7% | 1.2% | 5.8% |
| |
|---|
| Median (2 companies) | 2.5% | 5.1% | 5.7% | 3.8% | 6.4% |
|---|
| D B Corp ($DBCORP) | 2.5% | 11.8% | 8.9% | 3.6% | 5.5% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Hindustan Media Ventures ($HMVL) | 20.8% | 23.0% | 17.7% | 18.3% | 22.3% |
| Ht Media ($HTMEDIA) | 13.3% | 16.8% | 14.7% | 14.2% | 10.9% |
| Next Mediaworks ($NEXTMEDIA) | 2.5% | -5.6% | -12.0% | 1.4% | 3.8% |
| |
|---|
| Median (3 companies) | 13.3% | 16.8% | 14.7% | 14.2% | 10.9% |
|---|
| D B Corp ($DBCORP) | 32.0% | 33.4% | 25.7% | 25.8% | 32.7% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Ht Media ($HTMEDIA) | 1.3x | 0.5x | 0.5x | 0.6x | 1.1x |
| Next Mediaworks ($NEXTMEDIA) | 3.7x | 11.9x | | 1.9x | 1.0x |
| Hindustan Media Ventures ($HMVL) | 4.1x | -0.2x | -0.2x | -0.2x | -0.0x |
| |
|---|
| Median (3 companies) | 3.7x | 0.5x | 0.2x | 0.6x | 1.0x |
|---|
| D B Corp ($DBCORP) | 0.8x | 0.3x | 0.2x | 0.1x | 0.0x |
