Wonderla Holidays demonstrates fast growth
28-05-2015 • About Wonderla Holidays (
$WONDERLA) • By InTwits
Have you thought about Wonderla Holidays as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Wonderla Holidays showed fast growth in the last financial year. Wonderla Holidays's revenue surged on 18.4% in FY2015. In addition to revenue Wonderla Holidays also keeps delivering EBITDA growth. It was 15.7% in FY2015
If we look for the longer period Wonderla Holidays showed fast revenue growth of 17.1% from FY2012 to FY2015 annually. EBITDA surged on 13.6% from FY2012 to FY2015 annually.
Wonderla Holidays ($WONDERLA) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 896 | 1,131 | 1,379 | 1,536 | 1,819 |
|---|
| Revenue growth, % | | 26.2% | 21.8% | 11.4% | 18.4% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 459 | 555 | 626 | 704 | 814 |
|---|
| EBITDA growth, % | | 20.8% | 12.8% | 12.4% | 15.7% |
|---|
| EBITDA margin, % | 51.2% | 49.1% | 45.4% | 45.8% | 44.7% |
|---|
| Net Income | 315 | 299 | 336 | 399 | 506 |
|---|
| Net Income margin, % | 35.2% | 26.4% | 24.4% | 26.0% | 27.8% |
|---|
| |
| CAPEX | 131 | 393 | 374 | 275 | 371 |
|---|
| CAPEX/Revenue, % | 14.6% | 34.8% | 27.2% | 17.9% | 20.4% |
|---|
| Debt | 178 | 225 | 210 | 239 | 151 |
|---|
| Cash | 3 | 25 | 29 | 187 | 19 |
|---|
| Net Debt/EBITDA | 0.4x | 0.4x | 0.3x | 0.1x | 0.2x |
|---|
| |
| ROIC, % | 35.0% | 40.5% | 37.6% | 35.1% | 23.7% |
|---|
| ROE, % | 51.9% | 35.5% | 31.2% | 29.6% | 20.0% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 45.8% in FY2014 to 44.7% in FY2015. In the last 3 years Wonderla Holidays's EBITDA margin decreased on 4.40 pp from 49.1% in FY2012 to 44.7% in FY2015.
We call Wonderla Holidays an attractive growth stock as together with the growth it delivers high ROIC at 23.7%. Three years ago it was considerably higher at 40.5%. For the last three years the average ROIC was 32.1%.
Net Income margin increased on 1.80 pp from 26% to 27.8% in FY2015. In the last 3 years Wonderla Holidays's Net Income margin increased on 1.40 pp from 26.4% in FY2012 to 27.8% in FY2015.
Wonderla Holidays operates at ROE of 20.0%. It's average ROE for the last three years was 26.9%.
Capital expenditures (CAPEX)
To this fast growth Wonderla Holidays had to invest in CAPEX.In FY2015 Wonderla Holidays had CAPEX/Revenue of 20.4%. Wonderla Holidays showed big decline in CAPEX/Revenue of 14.4 pp from 34.8% in FY2012 to 20.4% in FY2015. It's average level of CAPEX/Revenue for the last three years was 21.8%.
Leverage (Debt)
Having such a fast growth profile Wonderla Holidays keeps low debt level at 0.2x Net Debt/EBITDA. In the longer period Wonderla Holidays's leverage dropped on 0.20x from 0.36x in FY2012 to 0.16x in FY2015.
Valuation vs. comparable companies
The market closed today at 18.2x EV/EBITDA for Wonderla Holidays which is 30.8% higher than 13.9x Other Leisure Facilities peer group avearge calculated on the basis of 10 companies. The company trades at 29.0x P/E which is the same as 29.0x Other Leisure Facilities industry avearge calculated based on 1 company.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Wonderla Holidays traded at 33.5x EV/(EBITDA-CAPEX) which is 9,980% higher than 0.3x Other Leisure Facilities peer group avearge calculated on the basis of 1 company.
