Can Fin Homes revenue growth decelerated from 47.2% in FY2014 to 41.4% in FY2015
04-05-2015 • About Can Fin Homes (
$CANFINHOME) • By InTwits
Can Fin Homes reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 92.0% in FY2015 vs. 92.0% in FY2014 vs. 92.7% in FY2011
- Can Fin Homes has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has potentially unprofitable business model: ROIC is at 2.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 9.8x while industry average is 8.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Can Fin Homes ($CANFINHOME) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,313 | 2,868 | 3,926 | 5,780 | 8,174 | 41.4% |
| EBITDA | 2,144 | 2,644 | 3,592 | 5,316 | 7,518 | 41.4% |
| Net Income | 420 | 438 | 541 | 757 | 862 | 13.9% |
Balance Sheet
|
|---|
| Cash | 91 | 6 | 48 | 32 | 26 | -19.5% |
| Short Term Debt | 4,795 | 4,410 | 6,396 | 9,397 | 19,173 | 104.0% |
| Long Term Debt | 14,243 | 18,592 | 28,993 | 43,288 | 54,573 | 26.1% |
Cash flow
|
|---|
| Capex | 2 | 14 | 48 | 34 | 54 | 59.0% |
Ratios
|
|---|
| Revenue growth | -75.1% | 24.0% | 36.9% | 47.2% | 41.4% | |
| EBITDA growth | 7.2% | 23.3% | 35.8% | 48.0% | 41.4% | |
| EBITDA Margin | 92.7% | 92.2% | 91.5% | 92.0% | 92.0% | -0.0% |
| Net Income Margin | 18.2% | 15.3% | 13.8% | 13.1% | 10.6% | -2.5% |
| CAPEX, % of revenue | 0.1% | 0.5% | 1.2% | 0.6% | 0.7% | 0.1% |
| ROIC | | 2.8% | 2.3% | 2.2% | 2.0% | -0.2% |
| ROE | 14.3% | 13.3% | 14.6% | 17.9% | 14.1% | -3.8% |
| Net Debt/EBITDA | 8.8x | 8.7x | 9.8x | 9.9x | 9.8x | -0.1x |
Revenue and profitability
Can Fin Homes's Revenue surged on 41.4% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign decreased on 2.5 pp from 13.1% to 10.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.66% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.82%.
Return on investment
The company operates at good ROE (14.09%) while ROIC is low (2.01%). ROIC showed almost no change in FY2015. ROE decreased on 3.8 pp from 17.9% to 14.1% in FY2015.
Leverage (Debt)
Debt level is 9.8x Net Debt / EBITDA and 9.8x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from 9.9x to 9.8x in FY2015. Debt surged on 40.0% in FY2015 while cash dropped on 19.5% in FY2015.
Valuation
Can Fin Homes's trades at EV/EBITDA 12.3x and P/E 22.1x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Housing Finance
Below you can find Can Fin Homes benchmarking vs. other companies in Housing Finance 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, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lic Housing Finance ($LICHSGFIN) | | 28.1% | 23.9% | 20.7% | 15.8% |
| Housing Development Finance Corp ($HDFC) | | 17.5% | 18.8% | 13.4% | 18.6% |
| Gic Housing Finance ($GICHSGFIN) | -49.5% | 2.6% | 26.1% | 12.8% | |
| |
|---|
| Median (3 companies) | -49.5% | 17.5% | 23.9% | 13.4% | 17.2% |
|---|
| Can Fin Homes ($CANFINHOME) | | 24.0% | 36.9% | 47.2% | 41.4% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lic Housing Finance ($LICHSGFIN) | 90.1% | 93.4% | 94.9% | 96.2% | 96.4% |
| Gic Housing Finance ($GICHSGFIN) | 84.3% | 89.0% | 88.2% | 88.7% | |
| Housing Development Finance Corp ($HDFC) | 50.4% | 57.7% | 59.9% | 61.9% | 59.4% |
| |
|---|
| Median (3 companies) | 84.3% | 89.0% | 88.2% | 88.7% | 77.9% |
|---|
| Can Fin Homes ($CANFINHOME) | 92.7% | 92.2% | 91.5% | 92.0% | 92.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Housing Development Finance Corp ($HDFC) | 1.2% | 0.5% | 0.5% | 0.6% | 1.3% |
| Gic Housing Finance ($GICHSGFIN) | 0.2% | 0.4% | 0.3% | 0.1% | |
| Lic Housing Finance ($LICHSGFIN) | 0.4% | 0.6% | 0.1% | 0.1% | 0.2% |
| |
|---|
| Median (3 companies) | 0.4% | 0.5% | 0.3% | 0.1% | 0.7% |
|---|
| Can Fin Homes ($CANFINHOME) | 0.1% | 0.5% | 1.2% | 0.6% | 0.7% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Housing Development Finance Corp ($HDFC) | 4.8% | 4.6% | 4.8% | 4.8% | 4.6% |
| Gic Housing Finance ($GICHSGFIN) | | | | | |
| Lic Housing Finance ($LICHSGFIN) | | | | | |
| |
|---|
| Median (3 companies) | 4.8% | 4.6% | 4.8% | 4.8% | 4.6% |
|---|
| Can Fin Homes ($CANFINHOME) | | 2.8% | 2.3% | 2.2% | 2.0% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lic Housing Finance ($LICHSGFIN) | 10.5x | 9.6x | 9.4x | 9.0x | 9.3x |
| Gic Housing Finance ($GICHSGFIN) | 8.5x | 9.1x | 8.0x | 8.3x | |
| Housing Development Finance Corp ($HDFC) | 7.4x | 6.5x | 5.9x | 6.2x | 6.3x |
| |
|---|
| Median (3 companies) | 8.5x | 9.1x | 8.0x | 8.3x | 7.8x |
|---|
| Can Fin Homes ($CANFINHOME) | 8.8x | 8.7x | 9.8x | 9.9x | 9.8x |
