Maxwell Industries EBITDA surged on 19.7% in 2015 and Revenue increased slightly on 1.4%
31-05-2015 • About Maxwell Industries (
$MAXWELL) • By InTwits
Maxwell Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Maxwell Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 1.2%.
- CAPEX is quite volatile: 46.3 in FY2015, 62.4 in FY2014, 47.3 in FY2013, 19.0 in FY2012, 26.2 in FY2011
- The company has business model with average profitability: ROIC is at 11.2%
- It operates with high leverage: Net Debt/EBITDA is 3.3x while industry average is 0.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Maxwell Industries ($MAXWELL) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,237 | 2,199 | 2,495 | 2,574 | 2,611 | 1.4% |
| EBITDA | 150 | 217 | 167 | 233 | 278 | 19.7% |
| Net Income | 16 | 46 | 28 | 53 | 70 | 31.2% |
Balance Sheet
|
|---|
| Cash | 14 | 24 | 24 | 25 | 24 | -6.0% |
| Short Term Debt | 859 | 825 | 990 | 832 | 944 | 13.4% |
| Long Term Debt | 13 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 26 | 19 | 47 | 62 | 46 | -25.8% |
Ratios
|
|---|
| Revenue growth | -27.0% | -1.7% | 13.4% | 3.2% | 1.4% | |
| EBITDA growth | -44.3% | 44.3% | -23.0% | 39.0% | 19.7% | |
| EBITDA Margin | 6.7% | 9.9% | 6.7% | 9.0% | 10.7% | 1.6% |
| Net Income Margin | 0.7% | 2.1% | 1.1% | 2.1% | 2.7% | 0.6% |
| CAPEX, % of revenue | 1.2% | 0.9% | 1.9% | 2.4% | 1.8% | -0.7% |
| ROIC | 5.3% | 9.0% | 6.6% | 9.6% | 11.2% | 1.6% |
| ROE | 0.8% | 4.0% | 2.4% | 5.3% | 7.3% | 2.0% |
| Net Debt/EBITDA | 5.7x | 3.7x | 5.8x | 3.5x | 3.3x | -0.2x |
Revenue and profitability
Maxwell Industries's Revenue increased slightly on 1.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.4 pp from 25.9% to 17.5% in FY2015.
Net Income marign increased slightly on 0.61 pp from 2.1% to 2.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.8% in FY2015. CAPEX/Revenue increased slightly on 0.91 pp from 0.87% in FY2012 to 1.8% in FY2015. Average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at low ROIC (11.22%) and ROE (7.29%). ROIC increased slightly on 1.6 pp from 9.6% to 11.2% in FY2015. ROE increased slightly on 2.0 pp from 5.3% to 7.3% in FY2015.
Leverage (Debt)
Debt level is 3.3x Net Debt / EBITDA and 3.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 3.5x to 3.3x in FY2015. Debt surged on 13.4% in FY2015 while cash decreased on 6.0% in FY2015.
Appendix 1: Peers in Comm.Trading & Distribution
Below we provide Maxwell Industries benchmarking against other companies in Comm.Trading & Distribution 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 |
|---|
| Shri Krishna Prasadam ($SKP) | | 69.6% | 57.3% | 1,074.7% | 148.2% |
| Sunil Industries ($SUNILTX) | | 15.9% | 57.2% | 12.1% | 59.6% |
| Gagan Polycot India ($GAGANPO) | | -59.4% | 76.3% | 18.2% | 43.2% |
| Ptl Enterprises ($PTL) | | 17.9% | 12.6% | 17.7% | 35.1% |
| Parker Agrochem Exports ($PARKERAC) | | -77.2% | 1,542.3% | 39.1% | 33.1% |
| |
|---|
| Median (17 companies) | -50.4% | 14.0% | 12.6% | 13.4% | 12.6% |
|---|
| Maxwell Industries ($MAXWELL) | | -1.7% | 13.4% | 3.2% | 1.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hexa Tradex ($HEXATRADEX) | | | | | 48.1% |
| Bombay Cycle & Motor Agency ($BOMBCYC) | | | | | 19.5% |
| Ptl Enterprises ($PTL) | 27.6% | 26.6% | 22.7% | 21.6% | 18.5% |
| Remi Elektrotechnik ($REMIELEK) | | | | | 15.1% |
| Vijay Textiles ($VIJAYTX) | | | | | 10.4% |
| |
|---|
| Median (30 companies) | 2.4% | 2.7% | 2.7% | 1.8% | 2.3% |
|---|
| Maxwell Industries ($MAXWELL) | 6.7% | 9.9% | 6.7% | 9.0% | 10.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ptl Enterprises ($PTL) | 1.0% | 5.0% | 4.5% | 2.4% | 4.2% |
| Redington (India) ($REDINGTON) | 0.3% | 0.2% | 0.7% | 0.2% | 0.2% |
| Mmtc ($MMTC) | 0.1% | 0.0% | 0.1% | 0.1% | 0.1% |
| Kothari Products ($KOTHARIPRO) | 0.9% | 2.5% | 0.1% | 0.2% | 0.0% |
| |
|---|
| Median (4 companies) | 0.5% | 0.2% | 0.1% | 0.2% | 0.1% |
|---|
| Maxwell Industries ($MAXWELL) | 1.2% | 0.9% | 1.9% | 2.4% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ptl Enterprises ($PTL) | 18.1% | 18.5% | 19.5% | 21.1% | 22.1% |
| Redington (India) ($REDINGTON) | 15.5% | 17.2% | 16.0% | 16.3% | 15.3% |
| Risa International ($RISAINTL) | | | -0.2% | 14.8% | 11.9% |
| Kothari Products ($KOTHARIPRO) | 7.4% | 23.4% | 20.0% | 28.3% | 10.6% |
| Edynamics Solutions ($EDSL) | 0.2% | 0.8% | 0.9% | 0.2% | 0.2% |
| |
|---|
| Median (43 companies) | 2.5% | 4.5% | 4.8% | 9.7% | 11.3% |
|---|
| Maxwell Industries ($MAXWELL) | 5.3% | 9.0% | 6.6% | 9.6% | 11.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Redington (India) ($REDINGTON) | 2.4x | 2.6x | 2.6x | 1.7x | 1.9x |
| Kothari Products ($KOTHARIPRO) | 1.6x | 1.2x | 0.6x | 0.4x | 1.4x |
| Ptl Enterprises ($PTL) | 3.7x | 2.2x | 2.0x | 2.0x | 1.2x |
| Rama Vision ($RAMAVISION) | 0.2x | -1.8x | 0.3x | 0.0x | 0.0x |
| Hexa Tradex ($HEXATRADEX) | | | 1.0x | 0.8x | 0.0x |
| |
|---|
| Median (24 companies) | 3.0x | 1.7x | 1.8x | 0.0x | 0.0x |
|---|
| Maxwell Industries ($MAXWELL) | 5.7x | 3.7x | 5.8x | 3.5x | 3.3x |
