Snowman Logistics reports 32.3% revenue growth in FY2015 and 2.8 pp EBITDA Margin decline from 26.0% to 23.2%
28-04-2015 • About Snowman Logistics (
$SNOWMAN) • By InTwits
Snowman Logistics reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Snowman Logistics has high CAPEX intensity: 5 year average CAPEX/Revenue was 66.3%. At the same time it's a lot of higher than industry average of 17.4%.
- CAPEX is quite volatile: 951 in FY2015, 1,180 in FY2014, 1,138 in FY2013, 284 in FY2012, 277 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Snowman Logistics ($SNOWMAN) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 452 | 614 | 1,137 | 1,534 | 2,029 | 32.3% |
| EBITDA | 115 | 158 | 260 | 399 | 471 | 18.0% |
| Net Income | 64 | 64 | 190 | 225 | 247 | 10.1% |
Balance Sheet
|
|---|
| Cash | 284 | 131 | 64 | 150 | 837 | 458.2% |
| Short Term Debt | 0 | 0 | 41 | 558 | 193 | -65.5% |
| Long Term Debt | 0 | 0 | 909 | 904 | 712 | -21.3% |
Cash flow
|
|---|
| Capex | 277 | 284 | 1,138 | 1,180 | 951 | -19.4% |
Ratios
|
|---|
| Revenue growth | -80.8% | 35.9% | 85.2% | 34.9% | 32.3% | |
| EBITDA growth | 47.1% | 37.6% | 64.7% | 53.5% | 18.0% | |
| EBITDA Margin | 25.4% | 25.7% | 22.8% | 26.0% | 23.2% | -2.8% |
| Net Income Margin | 14.3% | 10.4% | 16.7% | 14.7% | 12.2% | -2.5% |
| CAPEX, % of revenue | 61.4% | 46.2% | 100.1% | 76.9% | 46.9% | -30.0% |
| ROIC | 7.3% | 9.4% | 10.0% | 8.1% | 5.2% | -2.9% |
| ROE | 6.4% | 6.0% | 16.0% | 12.9% | 7.7% | -5.1% |
| Net Debt/EBITDA | -2.5x | -0.8x | 3.4x | 3.3x | 0.1x | -3.1x |
Revenue and profitability
Snowman Logistics's Revenue jumped on 32.3% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 2.8 pp from 26.0% to 23.2% in FY2015.
Net Income marign decreased on 2.5 pp from 14.7% to 12.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 46.9% in FY2015. The company's CAPEX/Revenue increased slightly on 0.62 pp from 46.2% in FY2012 to 46.9% in FY2015. Average CAPEX/Revenue for the last three years was 74.6%.The company has spent a lot to CAPEX (202% of EBITDA) to fuel its growth.
Return on investment
The company operates at low ROIC (5.20%) and ROE (7.74%). ROIC decreased on 2.9 pp from 8.1% to 5.2% in FY2015. ROE decreased on 5.1 pp from 12.9% to 7.7% in FY2015.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA dropped on 3.1x from 3.3x to 0.1x in FY2015. Debt dropped on 38.1% in FY2015 while cash jumped on 458% in FY2015.
Valuation
Snowman Logistics's trades at EV/EBITDA 29.6x and P/E 56.0x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Transportation - Logistics
Below we provide Snowman Logistics benchmarking against other companies in Transportation - Logistics 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sical Logistics ($SICAL) | -20.5% | 1.3% | -2.4% | 10.7% | |
| Gateway Distriparks ($GDL) | -54.7% | 36.6% | 16.1% | 6.2% | |
| Arshiya ($ARSHIYA) | 111.9% | 28.7% | 7.8% | -54.7% | |
| |
|---|
| Median (3 companies) | -20.5% | 15.0% | 7.1% | 6.2% | |
|---|
| Snowman Logistics ($SNOWMAN) | | 35.9% | 85.2% | 34.9% | 32.3% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gateway Distriparks ($GDL) | 27.3% | 30.4% | 25.6% | 25.4% | |
| Sical Logistics ($SICAL) | -0.2% | 10.4% | 12.2% | 11.9% | |
| Arshiya ($ARSHIYA) | 19.5% | 25.7% | 15.5% | -6.3% | |
| |
|---|
| Median (3 companies) | 13.6% | 18.0% | 13.9% | 11.9% | 8.6% |
|---|
| Snowman Logistics ($SNOWMAN) | 25.4% | 25.7% | 22.8% | 26.0% | 23.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gateway Distriparks ($GDL) | 27.3% | 13.7% | 25.1% | 19.6% | |
| Sical Logistics ($SICAL) | 24.5% | 19.4% | 21.9% | 10.2% | |
| Arshiya ($ARSHIYA) | 114.4% | 92.5% | 38.8% | 3.1% | |
| |
|---|
| Median (3 companies) | 25.9% | 19.4% | 23.5% | 10.2% | 7.4% |
|---|
| Snowman Logistics ($SNOWMAN) | 61.4% | 46.2% | 100.1% | 76.9% | 46.9% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gateway Distriparks ($GDL) | 10.6% | 15.3% | 13.0% | 11.7% | |
| Sical Logistics ($SICAL) | -2.3% | 4.1% | 4.3% | 4.2% | |
| Gati ($GATI) | 8.8% | 4.8% | 4.8% | 0.0% | 8.3% |
| Arshiya ($ARSHIYA) | 8.5% | 9.1% | 3.5% | -3.3% | |
| |
|---|
| Median (4 companies) | 8.7% | 7.0% | 4.6% | 2.1% | 8.3% |
|---|
| Snowman Logistics ($SNOWMAN) | 7.3% | 9.4% | 10.0% | 8.1% | 5.2% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sical Logistics ($SICAL) | | 6.4x | 7.3x | 8.1x | |
| Gateway Distriparks ($GDL) | 1.8x | 0.2x | 0.7x | 1.0x | |
| |
|---|
| Median (2 companies) | 4.6x | 5.2x | 6.3x | 4.5x | 2.9x |
|---|
| Snowman Logistics ($SNOWMAN) | -2.5x | -0.8x | 3.4x | 3.3x | 0.1x |
