Honda Siel Power Products Net Income surged on 106% in 2015 and Revenue surged on 16.5%
18-05-2015 • About Honda Siel Power Products (
$HONDAPOWER) • By InTwits
Honda Siel Power Products reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Honda Siel Power Products has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's a lot of higher than industry average of 4.2%.
- CAPEX is quite volatile: 271 in FY2015, 201 in FY2014, 414 in FY2013, 335 in FY2012, 167 in FY2011
- The company has highly profitable business model: ROIC is at 15.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Honda Siel Power Products ($HONDAPOWER) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,929 | 5,034 | 5,155 | 5,413 | 6,307 | 16.5% |
| EBITDA | 449 | 516 | 380 | 520 | 701 | 34.9% |
| Net Income | 297 | 517 | 206 | 188 | 386 | 105.6% |
Balance Sheet
|
|---|
| Cash | 27 | 265 | 222 | 208 | 635 | 206.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 167 | 335 | 414 | 201 | 271 | 34.6% |
Ratios
|
|---|
| Revenue growth | -48.5% | 28.1% | 2.4% | 5.0% | 16.5% | |
| EBITDA growth | 15.5% | 15.1% | -26.3% | 36.6% | 34.9% | |
| EBITDA Margin | 11.4% | 10.3% | 7.4% | 9.6% | 11.1% | 1.5% |
| Net Income Margin | 7.5% | 10.3% | 4.0% | 3.5% | 6.1% | 2.7% |
| CAPEX, % of revenue | 4.3% | 6.7% | 8.0% | 3.7% | 4.3% | 0.6% |
| ROIC | 17.3% | 16.9% | 8.8% | 11.5% | 15.3% | 3.9% |
| ROE | 13.9% | 21.2% | 7.6% | 6.5% | 12.5% | 5.9% |
| Net Debt/EBITDA | -0.1x | -0.5x | -0.6x | -0.4x | -0.9x | -0.5x |
Revenue and profitability
Honda Siel Power Products's Revenue surged on 16.5% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.5 pp from 20.3% to 16.9% in FY2015.
Net Income marign increased on 2.7 pp from 3.5% to 6.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.3% in FY2015. CAPEX/Revenue decreased on 2.4 pp from 6.7% in FY2012 to 4.3% in FY2015. Average CAPEX/Revenue for the last three years was 5.3%.
Return on investment
The company operates at good ROIC (15.33%) and ROE (12.48%). ROIC increased on 3.9 pp from 11.5% to 15.3% in FY2015. ROE increased on 5.9 pp from 6.5% to 12.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 206% in FY2015.
Valuation
Honda Siel Power Products's trades at EV/EBITDA 17.4x and P/E 33.3x while industy averages are 10.5x and 26.1x. Honda Siel Power Products's EV/(EBITDA-CAPEX) is 28.4x with the industry average at 4.7x.
Management team
The company's CEO is Yoshifumi Lida. Yoshifumi Lida has 3 years tenure at the company. The company's CFO is Vinay Mittal. Vinay Mittal has 12 years tenure at the company.
Appendix 1: Peers in Industrial Machinery
Below we provide Honda Siel Power Products benchmarking against other companies in Industrial Machinery 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Forbes & Company ($FORBESCO) | -66.3% | 22.4% | 13.0% | 53.4% | |
| Nitin Fire Protection Industries ($NITINFIRE) | -67.4% | 22.3% | 31.5% | 44.2% | |
| Gmm Pfaudler ($GMM) | -47.2% | -26.1% | 47.8% | 31.0% | |
| Kabra Extrusiontechnik ($KABRAEXTRU) | -32.6% | -13.3% | -8.7% | 28.4% | |
| Veejay Lakshmi Engineering Works ($VJLAXMIE) | 27.9% | -28.8% | 5.7% | 26.6% | |
| |
|---|
| Median (26 companies) | -30.4% | 14.1% | 2.1% | 0.9% | 7.7% |
|---|
| Honda Siel Power Products ($HONDAPOWER) | | 28.1% | 2.4% | 5.0% | 16.5% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bell Agromachina ($BELAGRO) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lokesh Machines ($LOKESHMACH) | 14.7% | 18.9% | 21.9% | 24.0% | |
| Wendt (India) ($WENDT) | 30.8% | 28.3% | 21.6% | 18.6% | 19.0% |
| Mazda ($MAZDALTD) | 14.4% | 14.5% | 16.2% | 15.0% | |
| Ksb Pumps ($KSBPUMPS) | 9.9% | 13.1% | 14.1% | 12.6% | |
| Abc Bearings ($ABCBEARS) | 22.6% | 16.5% | 12.9% | 12.1% | 13.3% |
| |
|---|
| Median (22 companies) | 14.0% | 11.2% | 9.6% | 10.5% | 9.1% |
|---|
| Honda Siel Power Products ($HONDAPOWER) | 11.4% | 10.3% | 7.4% | 9.6% | 11.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lokesh Machines ($LOKESHMACH) | 18.5% | 22.1% | | 12.9% | |
| Elgi Equipments ($ELGIEQUIP) | 2.8% | 4.0% | 24.0% | 9.8% | |
| Wendt (India) ($WENDT) | 7.2% | 13.5% | 9.0% | 8.8% | 9.4% |
| Ksb Pumps ($KSBPUMPS) | 3.3% | 7.5% | 3.5% | 5.0% | |
| Ingersoll-Rand (India) ($INGERRAND) | 1.3% | 4.3% | 10.9% | 3.6% | 9.2% |
| |
|---|
| Median (19 companies) | 3.4% | 5.5% | 3.7% | 2.7% | 4.9% |
|---|
| Honda Siel Power Products ($HONDAPOWER) | 4.3% | 6.7% | 8.0% | 3.7% | 4.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rexnord Electronics & Controls ($REXNORD) | 10.4% | | | 18.8% | |
| Gmm Pfaudler ($GMM) | 14.2% | -76.2% | 6.8% | 17.4% | |
| Greaves Cotton ($GREAVESCOT) | | | 24.8% | 16.3% | 26.7% |
| Lakshmi Machine Works ($LAXMIMACH) | 16.8% | 18.0% | 11.7% | 16.2% | |
| Wendt (India) ($WENDT) | | 38.2% | 20.2% | 16.2% | 15.1% |
| |
|---|
| Median (51 companies) | 14.6% | 12.6% | 10.9% | 9.2% | 7.8% |
|---|
| Honda Siel Power Products ($HONDAPOWER) | 17.3% | 16.9% | 8.8% | 11.5% | 15.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chemtech Industrial Valves ($CHEMTECH) | 7.7x | 6.4x | 5.3x | 8.8x | |
| Forbes & Company ($FORBESCO) | 3.5x | 2.2x | 3.3x | 4.7x | |
| Lokesh Machines ($LOKESHMACH) | 4.0x | 3.7x | 3.3x | 4.6x | |
| Elecon Engineering Co ($ELECON) | 3.1x | 3.0x | 3.2x | 4.0x | 3.1x |
| Lloyd Electric & Engineering ($LLOYDELENG) | 4.0x | 3.2x | 3.0x | 3.7x | |
| |
|---|
| Median (34 companies) | 1.3x | 1.1x | 1.7x | 0.0x | 0.0x |
|---|
| Honda Siel Power Products ($HONDAPOWER) | -0.1x | -0.5x | -0.6x | -0.4x | -0.9x |
