Waterbase's revenue growth was 70.3% and EBITDA growth 65.9% annually over the last three years
03-06-2014 • About Waterbase (
$WATERBASE) • By InTwits
Waterbase is a growth stock in Other Food Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Waterbase showed growth in the last financial year. Waterbase's revenue surged on 45.3% in FY2014. EBITDA also increased considerably: 95.3% for the same period.
If we look for the longer period the company showed fast revenue growth of 70.3% from FY2011 to FY2014 annually. EBITDA surged on 65.9% from FY2011 to FY2014 annually.
Waterbase ($WATERBASE) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 3,310 | 462 | 1,035 | 1,570 | 2,282 |
|---|
| Revenue growth, % | | -86.0% | 124.1% | 51.8% | 45.3% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 2 | 52 | 111 | 122 | 237 |
|---|
| EBITDA growth, % | | 2,781.7% | 113.0% | 9.8% | 95.3% |
|---|
| EBITDA margin, % | 0.0545% | 11.3% | 10.7% | 7.74% | 10.4% |
|---|
| Net Income | -36 | 7 | 56 | 60 | 136 |
|---|
| Net Income margin, % | -1.09% | 1.49% | 5.45% | 3.83% | 5.95% |
|---|
| |
| CAPEX | 3 | 1 | 25 | 25 | 8 |
|---|
| CAPEX/Revenue, % | 0.0921% | 0.325% | 2.40% | 1.56% | 0.351% |
|---|
| Debt | 310 | 253 | 191 | 283 | 126 |
|---|
| Cash | 4 | 54 | 51 | 126 | 101 |
|---|
| Net Debt/EBITDA | 169.7x | 3.8x | 1.3x | 1.3x | 0.1x |
|---|
| |
| ROIC, % | -2.6% | 2.9% | 10.8% | 11.3% | 22.5% |
|---|
| ROE, % | -7.4% | 1.5% | 11.1% | 10.5% | 18.5% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The company showed fast EBITDA margin growth of 2.70 pp from 7.70% to 10.4% in FY2014. In the last 3 years Waterbase's EBITDA margin decreased on 0.900 pp from 11.3% in FY2011 to 10.4% in FY2014.
We call Waterbase an attractive growth stock as together with the growth it delivers high ROIC at 22.5%. During the last three years it surged - it was 2.92% in FY2011. Average ROIC for the last three years was 14.9%.
Waterbase's Net Income margin surged on 2.10 pp from 3.80% to 5.90% in FY2014. In the last 3 years the company's Net Income margin surged on 4.40 pp from 1.50% in FY2011 to 5.90% in FY2014.
Waterbase operates at ROE of 18.5%. It's average level of ROE for the last three years was 13.3%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 0.351% in FY2014. Waterbase showed CAPEX/Revenue growth of 0.0265 pp from 0.325% in FY2011 to 0.351% in FY2014. For the last three years the average CAPEX/Revenue was 1.44%.
Leverage (Debt)
Having such a fast growth profile Waterbase keeps low debt level at 0.1x Net Debt/EBITDA. If we look for the longer period leverage dropped on 3.71x from 3.82x in FY2011 to 0.10x in FY2014.
Valuation vs. comparable companies
The market closed today at 3.7x EV/EBITDA for Waterbase which is 77.1% lower than 16.0x Other Food Products peer group avearge calculated on the basis of 25 companies. The company trades at 6.2x P/E which is not surprisingly 68.1% higher than 3.7x Other Food Products industry avearge calculated based on 3 companies.
Peers in Other Food Products
Below you can find Waterbase benchmarking vs. other companies in Other Food Products 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 |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | | -63.6% | 13.0% | 51.0% | 23.4% |
| |
|---|
| Median (1 company) | | -63.6% | 13.0% | 51.0% | 23.4% |
|---|
| Waterbase ($WATERBASE) | | -86.0% | 124.1% | 51.8% | 45.3% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 4.0% | 2.7% | 1.7% | 11.5% | 16.8% |
| |
|---|
| Median (1 company) | 4.0% | 2.7% | 1.7% | 11.5% | 16.8% |
|---|
| Waterbase ($WATERBASE) | 0.1% | 11.3% | 10.7% | 7.7% | 10.4% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 8.0% | 4.2% | 0.3% | 0.3% | 0.9% |
| |
|---|
| Median (1 company) | 8.0% | 4.2% | 0.3% | 0.3% | 0.9% |
|---|
| Waterbase ($WATERBASE) | 0.1% | 0.3% | 2.4% | 1.6% | 0.4% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 6.1% | -2.4% | -3.4% | 4.8% | 36.3% |
| Chordia Food Products ($CHORDIA) | | | 10.2% | | |
| |
|---|
| Median (2 companies) | 6.1% | -2.4% | 3.4% | 4.8% | 36.3% |
|---|
| Waterbase ($WATERBASE) | -2.6% | 2.9% | 10.8% | 11.3% | 22.5% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 6.1x | 26.3x | 34.3x | 3.4x | 0.6x |
| |
|---|
| Median (1 company) | 6.1x | 26.3x | 17.6x | 3.4x | 0.6x |
|---|
| Waterbase ($WATERBASE) | 169.7x | 3.8x | 1.3x | 1.3x | 0.1x |
