Looking for a profitable fast-growing stock? Look at Waterbase
29-05-2015 • About Waterbase (
$WATERBASE) • By InTwits
Waterbase is an attractive growth stock in Other Food Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Waterbase showed fast growth in the last financial year. Waterbase's revenue surged on 21.5% in FY2015. At the same time the company well managed its profitability and showed even faster growth in EBITDA of 30.4% for the same period.
In the last 3 years the company showed fast revenue growth of 38.9% from FY2012 to FY2015 annually. EBITDA surged on 40.9% from FY2012 to FY2015 annually.
Waterbase ($WATERBASE) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 462 | 1,035 | 1,570 | 2,282 | 2,772 |
|---|
| Revenue growth, % | | 124.1% | 51.8% | 45.3% | 21.5% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 52 | 111 | 122 | 237 | 309 |
|---|
| EBITDA growth, % | | 113.0% | 9.8% | 95.3% | 30.4% |
|---|
| EBITDA margin, % | 11.3% | 10.7% | 7.74% | 10.4% | 11.2% |
|---|
| Net Income | 7 | 56 | 60 | 136 | 195 |
|---|
| Net Income margin, % | 1.49% | 5.45% | 3.83% | 5.95% | 7.04% |
|---|
| |
| CAPEX | 1 | 25 | 25 | 8 | 50 |
|---|
| CAPEX/Revenue, % | 0.325% | 2.40% | 1.56% | 0.351% | 1.80% |
|---|
| Debt | 253 | 191 | 283 | 126 | 124 |
|---|
| Cash | 54 | 51 | 126 | 101 | 227 |
|---|
| Net Debt/EBITDA | 3.8x | 1.3x | 1.3x | 0.1x | -0.3x |
|---|
| |
| ROIC, % | 2.9% | 10.8% | 11.3% | 22.5% | 25.3% |
|---|
| ROE, % | 1.5% | 11.1% | 10.5% | 18.5% | 21.0% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. EBITDA margin increased on 0.800 pp from 10.4% to 11.2% in FY2015. In the longer period Waterbase showed small growth in EBITDA margin of 0.500 pp from 10.7% in FY2012 to 11.2% in FY2015.
Waterbase shows attractive ROIC at 25.3% for the last 12 months which assumes stable development model. Three years ago it was considerably lower at 10.8%. It's average ROIC for the last three years was 19.7%.
Waterbase showed fast Net Income margin growth of 1.10 pp from 5.90% to 7% in FY2015. If we look for the longer period the company's Net Income margin surged on 1.60 pp from 5.40% in FY2012 to 7% in FY2015.
Waterbase operates at ROE of 21.0%. It's average level of ROE for the last three years was 16.7%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 1.80% in FY2015. Waterbase's CAPEX/Revenue dropped on 0.602 pp from 2.40% in FY2012 to 1.80% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.24%.
Leverage (Debt)
The company has negative net debt at -0.3x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period the company's leverage dropped on 1.60x from 1.26x in FY2012 to -0.33x in FY2015.
Valuation vs. comparable companies
The market closed today at 6.3x EV/EBITDA for Waterbase which is 54.8% lower than 13.9x Other Food Products peer group avearge calculated on the basis of 25 companies. The market closed today at 10.5x P/E for Waterbase which is 39.5% lower than 17.4x Other Food Products peer group avearge calculated on the basis of 3 companies.
Peers in Other Food Products
Below you can find Waterbase benchmarking vs. other companies in Other Food 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| 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 ($WATERBASE) | 11.3% | 10.7% | 7.7% | 10.4% | 11.2% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Skm Egg Products Export (India) ($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 ($WATERBASE) | 0.3% | 2.4% | 1.6% | 0.4% | 1.8% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Skm Egg Products Export (India) ($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 ($WATERBASE) | 2.9% | 10.8% | 11.3% | 22.5% | 25.3% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Skm Egg Products Export (India) ($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 |
