Waterbase Net Income jumped on 43.8% in 2015 and Revenue jumped on 21.5%
22-05-2015 • About Waterbase (
$WATERBASE) • By InTwits
Waterbase reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Waterbase has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 1.3%.
- CAPEX is quite volatile: 49.8 in FY2015, 8.0 in FY2014, 24.6 in FY2013, 24.8 in FY2012, 1.5 in FY2011
- The company has highly profitable business model: ROIC is at 25.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Waterbase ($WATERBASE) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 462 | 1,035 | 1,570 | 2,282 | 2,772 | 21.5% |
| EBITDA | 52 | 111 | 122 | 237 | 309 | 30.4% |
| Net Income | 7 | 56 | 60 | 136 | 195 | 43.8% |
Balance Sheet
|
|---|
| Cash | 54 | 51 | 126 | 101 | 227 | 124.7% |
| Short Term Debt | 144 | 86 | 181 | 104 | 121 | 16.0% |
| Long Term Debt | 109 | 105 | 102 | 22 | 3 | -85.5% |
Cash flow
|
|---|
| Capex | 1 | 25 | 25 | 8 | 50 | 521.3% |
Ratios
|
|---|
| Revenue growth | -86.0% | 124.1% | 51.8% | 45.3% | 21.5% | |
| EBITDA growth | 2,781.7% | 113.0% | 9.8% | 95.3% | 30.4% | |
| EBITDA Margin | 11.3% | 10.7% | 7.7% | 10.4% | 11.2% | 0.8% |
| Net Income Margin | 1.5% | 5.4% | 3.8% | 5.9% | 7.0% | 1.1% |
| CAPEX, % of revenue | 0.3% | 2.4% | 1.6% | 0.4% | 1.8% | 1.4% |
| ROIC | 2.9% | 10.8% | 11.3% | 22.5% | 25.3% | 2.8% |
| ROE | 1.5% | 11.1% | 10.5% | 18.5% | 21.0% | 2.5% |
| Net Debt/EBITDA | 3.8x | 1.3x | 1.3x | 0.1x | -0.3x | -0.4x |
Revenue and profitability
Waterbase's Revenue surged on 21.5% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.76 pp from 10.4% to 11.2% in FY2015.
Net Income marign increased slightly on 1.1 pp from 5.9% to 7.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.8% in FY2015. Waterbase showed small CAPEX/Revenue decline of 0.60 pp from 2.4% in FY2012 to 1.8% in FY2015. Average CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at high and attractive ROIC (25.27%) and ROE (21.00%). ROIC increased on 2.8 pp from 22.5% to 25.3% in FY2015. ROE increased on 2.5 pp from 18.5% to 21.0% in FY2015.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 0.1x to -0.3x in FY2015. Debt decreased slightly on 1.8% in FY2015 while cash jumped on 125% in FY2015.
Valuation
Waterbase's trades at EV/EBITDA 6.2x and P/E 10.4x while industy averages are 10.5x and 26.1x. Waterbase's EV/(EBITDA-CAPEX) is 7.4x with the industry average at 4.7x.
Appendix 1: Peers in Other Food Products
Below we provide Waterbase benchmarking against other companies in Other Food Products 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 |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | | 13.0% | 51.0% | 23.4% | 10.0% |
| |
|---|
| Median (1 company) | | 13.0% | 51.0% | 23.4% | 10.0% |
|---|
| Waterbase ($WATERBASE) | | 124.1% | 51.8% | 45.3% | 21.5% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 2.7% | 1.7% | 11.5% | 16.8% | 11.9% |
| Chordia Food Products ($CHORDIA) | | | | | 8.6% |
| |
|---|
| Median (2 companies) | 2.7% | 1.7% | 11.5% | 16.8% | 10.3% |
|---|
| Waterbase ($WATERBASE) | 11.3% | 10.7% | 7.7% | 10.4% | 11.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 4.2% | 0.3% | 0.3% | 0.9% | 0.8% |
| |
|---|
| Median (1 company) | 4.2% | 0.3% | 0.3% | 0.9% | 0.8% |
|---|
| Waterbase ($WATERBASE) | 0.3% | 2.4% | 1.6% | 0.4% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | -2.4% | -3.4% | 4.8% | 36.3% | 29.4% |
| Saboo Sodium Chloro ($SABOOSOD) | 4.9% | -0.4% | | | |
| Lactose (India) ($LACTOSE) | 5.2% | | | | |
| Kothari Fermentation & Biochem ($KFBL) | | | | | |
| Chordia Food Products ($CHORDIA) | | 10.2% | | | |
| |
|---|
| Median (5 companies) | 4.9% | -0.4% | 4.8% | 36.3% | 29.4% |
|---|
| Waterbase ($WATERBASE) | 2.9% | 10.8% | 11.3% | 22.5% | 25.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Skm Egg Products Export (India) ($SKMEGGPROD) | 26.3x | 34.3x | 3.4x | 0.6x | 0.9x |
| Saboo Sodium Chloro ($SABOOSOD) | 6.1x | 6.2x | 0.0x | 0.0x | |
| Kothari Fermentation & Biochem ($KFBL) | | | 0.0x | 0.0x | |
| Lactose (India) ($LACTOSE) | 2.5x | 0.0x | 2.0x | 0.0x | |
| |
|---|
| Median (4 companies) | 6.1x | 3.5x | 1.0x | 0.0x | 0.4x |
|---|
| Waterbase ($WATERBASE) | 3.8x | 1.3x | 1.3x | 0.1x | -0.3x |
