Jbm Auto reports CAPEX growth
18-05-2015 • About Jbm Auto (
$JBMA) • By InTwits
Jbm Auto reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has highly profitable business model: ROIC is at 20.1%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jbm Auto ($JBMA) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,318 | 9,673 | 11,710 | 12,230 | 13,828 | 13.1% |
| EBITDA | 791 | 1,136 | 1,329 | 1,546 | 1,909 | 23.5% |
| Net Income | 215 | 259 | 326 | 502 | 764 | 52.2% |
Balance Sheet
|
|---|
| Cash | 102 | 71 | 55 | 74 | 112 | 51.7% |
| Short Term Debt | 1,969 | 1,732 | 2,258 | 1,831 | 3,063 | 67.3% |
| Long Term Debt | 1,225 | 1,740 | 1,490 | 805 | 1,860 | 131.1% |
Cash flow
|
|---|
| Capex | 1,326 | 943 | 981 | | 1,992 | |
Ratios
|
|---|
| Revenue growth | -55.6% | 32.2% | 21.1% | 4.4% | 13.1% | |
| EBITDA growth | 62.3% | 43.5% | 17.1% | 16.3% | 23.5% | |
| EBITDA Margin | 10.8% | 11.7% | 11.4% | 12.6% | 13.8% | 1.2% |
| Net Income Margin | 2.9% | 2.7% | 2.8% | 4.1% | 5.5% | 1.4% |
| CAPEX, % of revenue | 18.1% | 9.8% | 8.4% | | 14.4% | 14.4% |
| ROIC | 13.7% | 16.2% | 17.2% | 19.0% | 20.1% | 1.2% |
| ROE | 20.0% | 20.3% | 20.8% | 24.1% | 27.2% | 3.0% |
| Net Debt/EBITDA | 3.9x | 3.0x | 2.8x | 1.7x | 2.5x | 0.9x |
Revenue and profitability
The company's Revenue jumped on 13.1% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.2 pp from 12.6% to 13.8% in FY2015.
Net Income marign increased slightly on 1.4 pp from 4.1% to 5.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 14.4% in FY2015. CAPEX/Revenue increased on 4.7 pp from 9.8% in FY2012 to 14.4% in FY2015.The company has spent a lot to CAPEX (104% of EBITDA) to secure its growth.
Return on investment
The company operates at high and attractive ROIC (20.14%) and ROE (27.17%). ROIC increased slightly on 1.2 pp from 19.0% to 20.1% in FY2015. ROE increased on 3.0 pp from 24.1% to 27.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.5x and Debt / EBITDA is 2.6x. Net Debt / EBITDA surged on 0.9x from 1.7x to 2.5x in FY2015. Debt jumped on 86.8% in FY2015 while cash jumped on 51.7% in FY2015.
Valuation
Jbm Auto's trades at EV/EBITDA 7.5x and P/E 12.4x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Auto Parts & Equipment
Below we provide Jbm Auto benchmarking against other companies in Auto Parts & Equipment 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 |
|---|
| Exide Industries ($EXIDEIND) | | 11.5% | 19.7% | 30.6% | 14.8% |
| Motherson Sumi Systems ($MOTHERSUMI) | | 79.1% | 71.3% | 20.2% | 14.0% |
| Fiem Industries ($FIEMIND) | -54.4% | 25.2% | 13.4% | 18.7% | |
| Suprajit Engineering ($SUPRAJIT) | -53.1% | 22.2% | 9.4% | 17.9% | |
| Amara Raja Batteries ($AMARAJABAT) | -66.9% | 34.3% | 25.1% | 16.1% | |
| |
|---|
| Median (35 companies) | -35.6% | 16.9% | 2.4% | 5.0% | 7.0% |
|---|
| Jbm Auto ($JBMA) | | 32.2% | 21.1% | 4.4% | 13.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 33.7% | 18.4% | 24.4% | 28.3% | 30.0% |
| Shanthi Gears ($SHANTIGEAR) | 44.6% | 37.9% | 30.2% | 27.8% | 12.0% |
| Amtek Auto ($AMTEKAUTO) | | 25.1% | | 20.7% | 14.8% |
| Shivam Autotech ($SHIVAMAUTO) | 23.2% | 24.1% | 24.1% | 20.6% | 18.7% |
| Suprajit Engineering ($SUPRAJIT) | 16.5% | 16.2% | 17.0% | 17.2% | |
| |
|---|
| Median (34 companies) | 10.9% | 10.8% | 9.8% | 10.1% | 12.0% |
|---|
| Jbm Auto ($JBMA) | 10.8% | 11.7% | 11.4% | 12.6% | 13.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amtek Auto ($AMTEKAUTO) | | 18.9% | | 27.1% | 30.3% |
| Amara Raja Batteries ($AMARAJABAT) | 2.9% | 3.7% | 2.5% | 10.9% | |
| Subros ($SUBROS) | 11.6% | 16.6% | 10.7% | 9.3% | 7.9% |
| Lumax Auto Technologies ($LUMAXTECH) | 3.7% | 5.1% | 7.3% | 7.8% | |
| Sona Koyo Steering Systems ($SONASTEER) | 5.9% | 9.8% | 6.6% | 7.1% | 5.3% |
| |
|---|
| Median (25 companies) | 7.6% | 5.6% | 4.5% | 4.9% | 5.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 30.5% | 32.1% | 34.5% | 30.3% | |
| Exide Industries ($EXIDEIND) | 34.2% | 24.2% | 24.3% | 29.5% | 26.9% |
| Suprajit Engineering ($SUPRAJIT) | 32.4% | 31.8% | 28.0% | 26.1% | |
| Motherson Sumi Systems ($MOTHERSUMI) | 23.7% | 13.5% | 16.5% | 25.0% | 24.9% |
| Munjal Showa ($MUNJALSHOW) | 18.8% | 29.9% | 23.8% | 22.5% | |
| |
|---|
| Median (48 companies) | 16.5% | 15.9% | 11.8% | 12.7% | 12.3% |
|---|
| Jbm Auto ($JBMA) | 13.7% | 16.2% | 17.2% | 19.0% | 20.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 8.1x | 17.6x | 17.8x | 17.3x | 16.4x |
| Autoline Industries ($AUTOIND) | 3.1x | 3.2x | 4.0x | 12.0x | |
| Reil Electricals India ($REILELEC) | -0.1x | -0.0x | 1.5x | 9.1x | |
| Steel Strips Wheels ($SSWL) | 4.6x | 5.4x | 6.3x | 6.5x | 5.6x |
| Automotive Stampings & Assemblies ($ASAL) | 1.8x | 1.1x | 3.9x | 6.3x | |
| |
|---|
| Median (44 companies) | 2.1x | 1.2x | 1.8x | 0.7x | 1.8x |
|---|
| Jbm Auto ($JBMA) | 3.9x | 3.0x | 2.8x | 1.7x | 2.5x |
