Flexituff International CAPEX dropped on 30.6% in 2015 while Revenue increased on 8.4%
28-05-2015 • About Flexituff International (
$FLEXITUFF) • By InTwits
Flexituff International reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 9.7% in FY2015 vs. 11.1% in FY2014 vs. 13.1% in FY2011
- Flexituff International has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.6%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 1,179 in FY2015, 1,700 in FY2014, 998 in FY2013, 801 in FY2012, 637 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.9%
- It operates with high leverage: Net Debt/EBITDA is 5.3x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Flexituff International ($FLEXITUFF) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5,779 | 7,434 | 9,655 | 10,860 | 11,769 | 8.4% |
| EBITDA | 759 | 1,124 | 1,300 | 1,208 | 1,146 | -5.1% |
| Net Income | 310 | 378 | 259 | 183 | 188 | 2.7% |
Balance Sheet
|
|---|
| Cash | 36 | 67 | 53 | 84 | 84 | 0.3% |
| Short Term Debt | 1,087 | 1,326 | 2,734 | 2,886 | 3,252 | 12.7% |
| Long Term Debt | 1,577 | 1,234 | 1,396 | 2,397 | 2,960 | 23.5% |
Cash flow
|
|---|
| Capex | 637 | 801 | 998 | 1,700 | 1,179 | -30.6% |
Ratios
|
|---|
| Revenue growth | -58.1% | 28.6% | 29.9% | 12.5% | 8.4% | |
| EBITDA growth | 82.3% | 48.1% | 15.6% | -7.1% | -5.1% | |
| EBITDA Margin | 13.1% | 15.1% | 13.5% | 11.1% | 9.7% | -1.4% |
| Net Income Margin | 5.4% | 5.1% | 2.7% | 1.7% | 1.6% | -0.1% |
| CAPEX, % of revenue | 11.0% | 10.8% | 10.3% | 15.7% | 10.0% | -5.6% |
| ROIC | 14.7% | 18.6% | 15.9% | 11.0% | 6.9% | -4.0% |
| ROE | 25.3% | 17.5% | 9.0% | 5.4% | 5.1% | -0.4% |
| Net Debt/EBITDA | 3.5x | 2.2x | 3.1x | 4.3x | 5.3x | 1.0x |
Revenue and profitability
The company's Revenue increased on 8.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.4 pp from 18.8% to 20.2% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 10.0%. The company showed small CAPEX/Revenue decline of 0.76 pp from 10.8% in FY2012 to 10.0% in FY2015. It's average level of CAPEX/Revenue for the last three years was 12.0%.Flexituff International maintained rich investment policy and has spent a lot to CAPEX (103% of EBITDA).
Return on investment
The company operates at low ROIC (6.92%) and ROE (5.06%). ROIC decreased on 4.0 pp from 11.0% to 6.9% in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is 5.3x Net Debt / EBITDA and 5.4x Debt / EBITDA. Net Debt / EBITDA jumped on 1.0x from 4.3x to 5.3x in FY2015. Debt surged on 17.6% in FY2015 while cash showed almost no change in FY2015.
Valuation
Flexituff International's trades at EV/EBITDA 10.1x and P/E 29.0x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Plastic Products
Below you can find Flexituff International benchmarking vs. other companies in Plastic Products 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Astral Poly Technik ($ASTRAL) | | 41.7% | 41.6% | 30.8% | 32.4% |
| Max India ($MAX) | | 28.0% | 23.7% | 10.1% | 27.4% |
| Wim Plast ($WIMPLAST) | | 27.5% | 23.1% | 19.5% | 23.5% |
| Acrysil ($ACRYSIL) | | 11.3% | 29.6% | 33.8% | 19.4% |
| Shaily Engineering Plastics ($SHAILY) | | 14.9% | -16.0% | 23.3% | 19.2% |
| |
|---|
| Median (10 companies) | -18.6% | 15.3% | 23.4% | 15.5% | 13.9% |
|---|
| Flexituff International ($FLEXITUFF) | | 28.6% | 29.9% | 12.5% | 8.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Acrysil ($ACRYSIL) | 19.2% | 12.4% | 16.8% | 17.5% | 19.5% |
| Wim Plast ($WIMPLAST) | 18.5% | 18.1% | 17.9% | 18.1% | 17.0% |
| Shaily Engineering Plastics ($SHAILY) | 11.5% | 14.3% | 13.9% | 16.0% | 14.8% |
| Jain Irrigation Systems ($JISLJALEQS) | 18.6% | 16.6% | 12.6% | 12.6% | 12.4% |
| Responsive Industries ($RESPONIND) | 15.4% | 13.4% | 11.5% | 10.3% | 12.2% |
| |
|---|
| Median (11 companies) | 11.1% | 11.7% | 11.2% | 12.6% | 11.8% |
|---|
| Flexituff International ($FLEXITUFF) | 13.1% | 15.1% | 13.5% | 11.1% | 9.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shaily Engineering Plastics ($SHAILY) | 1.9% | 3.7% | | 10.7% | 17.2% |
| Acrysil ($ACRYSIL) | 21.2% | 7.8% | 11.0% | 9.6% | 9.3% |
| Wim Plast ($WIMPLAST) | 5.4% | 14.3% | 8.1% | 3.7% | 7.9% |
| Astral Poly Technik ($ASTRAL) | 9.3% | 11.9% | 8.4% | 8.6% | 6.0% |
| Responsive Industries ($RESPONIND) | 18.7% | 14.7% | 10.3% | 6.9% | 3.8% |
| |
|---|
| Median (7 companies) | 5.4% | 7.8% | 8.1% | 6.9% | 6.0% |
|---|
| Flexituff International ($FLEXITUFF) | 11.0% | 10.8% | 10.3% | 15.7% | 10.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Astral Poly Technik ($ASTRAL) | 22.6% | 29.3% | 31.1% | 33.3% | 19.7% |
| Wim Plast ($WIMPLAST) | 31.0% | 31.8% | 31.2% | 31.0% | 31.2% |
| Acrysil ($ACRYSIL) | | 7.7% | 16.2% | 20.2% | 21.0% |
| Shaily Engineering Plastics ($SHAILY) | 12.1% | 19.5% | 15.0% | 19.3% | 15.2% |
| Jain Irrigation Systems ($JISLJALEQS) | 15.0% | 13.4% | 8.3% | 9.0% | 8.6% |
| |
|---|
| Median (21 companies) | 12.1% | 10.0% | 10.9% | 19.3% | 15.2% |
|---|
| Flexituff International ($FLEXITUFF) | 14.7% | 18.6% | 15.9% | 11.0% | 6.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jain Irrigation Systems ($JISLJALEQS) | 3.4x | 3.8x | 5.1x | 4.8x | 4.8x |
| Acrysil ($ACRYSIL) | 1.9x | 2.9x | 2.2x | 2.0x | 2.7x |
| Shaily Engineering Plastics ($SHAILY) | 4.0x | 1.9x | 1.8x | 1.9x | 2.6x |
| Responsive Industries ($RESPONIND) | 1.9x | 3.3x | 2.9x | 2.4x | 1.9x |
| Astral Poly Technik ($ASTRAL) | 0.4x | 1.0x | 0.7x | 0.9x | 1.1x |
| |
|---|
| Median (11 companies) | 2.2x | 2.1x | 2.2x | 0.4x | 0.4x |
|---|
| Flexituff International ($FLEXITUFF) | 3.5x | 2.2x | 3.1x | 4.3x | 5.3x |
