Looking for growth? Don't miss Cmi with its track record of fast growth
07-06-2014 • About Cmi (
$CMI) • By InTwits
Cmi is a fast-growing stock in Telecom Cables industry. Its revenue performance, profitability and financial model stands it out vs. other public companies on the market.
Growth story
Cmi showed fast growth in the last financial year. The company's revenue surged on 18.7% in FY2014. In addition to revenue Cmi also keeps delivering EBITDA growth. It was 15.0% in FY2014
In the last 3 years Cmi showed fast revenue growth of 21.3% from FY2011 to FY2014 annually. EBITDA surged on 16.8% from FY2011 to FY2014 annually.
Cmi ($CMI) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 1,544 | 590 | 728 | 886 | 1,051 |
|---|
| Revenue growth, % | | -61.8% | 23.5% | 21.6% | 18.7% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 42 | 55 | 66 | 76 | 88 |
|---|
| EBITDA growth, % | | 32.3% | 19.3% | 16.2% | 15.0% |
|---|
| EBITDA margin, % | 2.70% | 9.35% | 9.02% | 8.62% | 8.36% |
|---|
| Net Income | 19 | 24 | 22 | 17 | 18 |
|---|
| Net Income margin, % | 1.25% | 4.10% | 2.96% | 1.88% | 1.68% |
|---|
| |
| CAPEX | 0 | 7 | 8 | 16 | 7 |
|---|
| CAPEX/Revenue, % | 0% | 1.13% | 1.10% | 1.83% | 0.644% |
|---|
| Debt | 167 | 182 | 275 | 312 | 376 |
|---|
| Cash | 19 | 24 | 3 | 2 | 2 |
|---|
| Net Debt/EBITDA | 3.6x | 2.9x | 4.1x | 4.1x | 4.3x |
|---|
| |
| ROIC, % | 13.7% | 17.3% | 16.7% | 16.1% | 16.6% |
|---|
| ROE, % | 34.5% | 30.1% | 21.4% | 14.1% | 13.3% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 8.60% in FY2013 to 8.40% in FY2014. In the last 3 years Cmi showed decline of 0.900 pp from 9.30% in FY2011 to 8.40% in FY2014.
We call Cmi an attractive growth stock as together with the growth it delivers high ROIC at 16.6%. During the last three years it decreased slightly - it was 17.3% in FY2011. It's average level of ROIC for the last three years was 16.4%.
Cmi's Net Income margin dropped on 0.200 pp from 1.90% to 1.70% in FY2014. In the longer period Cmi's Net Income margin dropped on 2.40 pp from 4.10% in FY2011 to 1.70% in FY2014.
Cmi operates at ROE of 13.3%. It's average ROE for the last three years was 16.3%.
Capital expenditures (CAPEX)
In FY2014 Cmi had CAPEX/Revenue of 0.644%. Cmi's CAPEX/Revenue dropped on 0.487 pp from 1.13% in FY2011 to 0.644% in FY2014. Average CAPEX/Revenue for the last three years was 1.19%.
Leverage (Debt)
Having such a fast growth profile Cmi keeps high debt level at 4.3x Net Debt/EBITDA. This could become a risk fastor if the growth slows down but the company doesn't decrease debt level by that time. In the last 3 years the company's leverage surged on 1.39x from 2.88x in FY2011 to 4.26x in FY2014.
Peers in Telecom Cables
Below we provide Cmi benchmarking against other companies in Telecom Cables 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Himachal Futuristic Communications ($HFCL) | | | | 132.4% | 233.0% |
| Vindhya Telelinks ($VINDHYATEL) | | -74.2% | 25.6% | 35.9% | 29.8% |
| Aksh Optifibre ($AKSHOPTFBR) | | -68.7% | 108.8% | -6.1% | -7.0% |
| |
|---|
| Median (3 companies) | | -71.4% | 67.2% | 35.9% | 29.8% |
|---|
| Cmi ($CMI) | | -61.8% | 23.5% | 21.6% | 18.7% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | -2.1% | -6.9% | 11.1% | 14.7% | 14.5% |
| Himachal Futuristic Communications ($HFCL) | | | 8.7% | 11.4% | 12.9% |
| Vindhya Telelinks ($VINDHYATEL) | 1.8% | 3.2% | -0.4% | 6.8% | 11.3% |
| |
|---|
| Median (3 companies) | 1.8% | -1.8% | 8.7% | 11.4% | 12.9% |
|---|
| Cmi ($CMI) | 2.7% | 9.3% | 9.0% | 8.6% | 8.4% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 3.1% | 1.9% | 0.6% | 1.4% | 7.8% |
| Vindhya Telelinks ($VINDHYATEL) | 1.1% | 3.4% | 0.6% | 1.1% | 5.0% |
| Himachal Futuristic Communications ($HFCL) | | | 7.9% | 5.9% | 2.3% |
| |
|---|
| Median (3 companies) | 3.1% | 2.6% | 0.6% | 1.4% | 5.0% |
|---|
| Cmi ($CMI) | | 1.1% | 1.1% | 1.8% | 0.6% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Himachal Futuristic Communications ($HFCL) | | | | 9.0% | 30.9% |
| Vindhya Telelinks ($VINDHYATEL) | 3.2% | 0.5% | -1.8% | 4.7% | 9.9% |
| Aksh Optifibre ($AKSHOPTFBR) | | -6.0% | 4.2% | 5.4% | 4.3% |
| Tamilnadu Telecommunications ($TNTELE) | 6.0% | -22.0% | | | |
| |
|---|
| Median (4 companies) | 4.6% | -6.0% | 1.2% | 5.4% | 9.9% |
|---|
| Cmi ($CMI) | 13.7% | 17.3% | 16.7% | 16.1% | 16.6% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | | | 1.0x | 0.4x | 3.9x |
| Vindhya Telelinks ($VINDHYATEL) | 3.7x | 6.7x | | 4.5x | 2.6x |
| Himachal Futuristic Communications ($HFCL) | | | 17.8x | 5.3x | 1.1x |
| |
|---|
| Median (3 companies) | 7.4x | 6.7x | 9.4x | 4.5x | 2.6x |
|---|
| Cmi ($CMI) | 3.6x | 2.9x | 4.1x | 4.1x | 4.3x |
