Wim Plast is a growth stock to keep your eyes on
01-06-2015 • About Wim Plast (
$WIMPLAST) • By InTwits
Pay attention to Wim Plast as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Wim Plast showed fast growth in the last financial year. The company's revenue surged on 23.5% in FY2015. The growth also happened in EBITDA of 15.8% for the same period.
If we look for the longer period Wim Plast showed fast revenue growth of 22.0% from FY2012 to FY2015 annually. EBITDA surged on 19.3% from FY2012 to FY2015 annually.
Wim Plast ($WIMPLAST) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 1,580 | 2,015 | 2,481 | 2,964 | 3,660 |
|---|
| Revenue growth, % | | 27.5% | 23.1% | 19.5% | 23.5% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 293 | 366 | 444 | 536 | 621 |
|---|
| EBITDA growth, % | | 24.9% | 21.4% | 20.7% | 15.8% |
|---|
| EBITDA margin, % | 18.5% | 18.1% | 17.9% | 18.1% | 17.0% |
|---|
| Net Income | 182 | 227 | 283 | 325 | 384 |
|---|
| Net Income margin, % | 11.6% | 11.3% | 11.4% | 11.0% | 10.5% |
|---|
| |
| CAPEX | 85 | 288 | 200 | 109 | 290 |
|---|
| CAPEX/Revenue, % | 5.38% | 14.3% | 8.06% | 3.69% | 7.93% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 7 | 18 | 27 | 37 | 134 |
|---|
| Net Debt/EBITDA | -0.0x | -0.1x | -0.1x | -0.1x | -0.2x |
|---|
| |
| ROIC, % | 31.0% | 31.8% | 31.2% | 31.0% | 31.2% |
|---|
| ROE, % | 24.0% | 24.5% | 24.9% | 23.6% | 23.4% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 18.1% in FY2014 to 17% in FY2015. If we look for the longer period EBITDA margin decreased on 1.10 pp from 18.1% in FY2012 to 17% in FY2015.
We call Wim Plast an attractive growth stock as together with the growth it delivers high ROIC at 31.2%. Three years ago it was a bit higher at 31.8%. Average ROIC for the last three years was 31.1%.
The company's Net Income margin decreased slightly on 0.500 pp from 11% to 10.5% in FY2015. If we look for the longer period Wim Plast showed decline of 0.800 pp from 11.3% in FY2012 to 10.5% in FY2015.
Wim Plast operates at ROE of 23.4%. For the last three years the average ROE was 24.0%.
Capital expenditures (CAPEX)
To fuel this fast growth Wim Plast had to invest in CAPEX.In FY2015 the company had CAPEX/Revenue of 7.93%. CAPEX/Revenue dropped on 6.38 pp from 14.3% in FY2012 to 7.93% in FY2015. For the last three years the average CAPEX/Revenue was 6.56%.
Leverage (Debt)
Having such a fast growth profile Wim Plast keeps negative net debt at -0.2x Net Debt/EBITDA. In the last 3 years the company's leverage surged on 0.16x from -0.05x in FY2012 to -0.22x in FY2015.
Valuation vs. comparable companies
At the end of trading day today Wim Plast traded at 16.4x EV/EBITDA which is 17.8% higher than 13.9x Plastic Products peer group avearge calculated on the basis of 93 companies. The market closed today at 26.9x P/E for Wim Plast which is 17.8% lower than 32.7x Plastic Products peer group avearge calculated on the basis of 8 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The company trades at 30.8x EV/(EBITDA-CAPEX) which is not surprisingly 1,150% higher than 2.5x Plastic Products industry avearge calculated based on 5 companies.
Peers in Plastic Products
Below we provide Wim Plast benchmarking against other companies in Plastic 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Acrysil ($ACRYSIL) | | 11.3% | 29.6% | 33.8% | 19.4% |
| Astral Poly Technik ($ASTRAL) | 41.6% | 41.7% | 41.6% | 30.8% | |
| Shaily Engineering Plastics ($SHAILY) | | 14.9% | -16.0% | 23.3% | 19.2% |
| Jain Irrigation Systems ($JISLJALEQS) | | 20.9% | 2.1% | 16.1% | 5.6% |
| Responsive Industries ($RESPONIND) | -52.3% | 42.7% | 29.4% | 15.5% | |
| |
|---|
| Median (11 companies) | -51.4% | 15.3% | 24.4% | 12.6% | 8.5% |
|---|
| Wim Plast ($WIMPLAST) | | 27.5% | 23.1% | 19.5% | 23.5% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Acrysil ($ACRYSIL) | 19.2% | 12.4% | 16.8% | 17.5% | 19.5% |
| Shaily Engineering Plastics ($SHAILY) | 11.5% | 14.3% | 13.9% | 16.0% | 14.8% |
| Astral Poly Technik ($ASTRAL) | 13.5% | 14.2% | 14.2% | 14.8% | |
| Jain Irrigation Systems ($JISLJALEQS) | 18.6% | 16.6% | 12.6% | 12.6% | 12.4% |
| Flexituff International ($FLEXITUFF) | 13.1% | 15.1% | 13.5% | 11.1% | |
| |
|---|
| Median (9 companies) | 11.1% | 11.7% | 11.2% | 11.1% | 12.4% |
|---|
| Wim Plast ($WIMPLAST) | 18.5% | 18.1% | 17.9% | 18.1% | 17.0% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Flexituff International ($FLEXITUFF) | 11.0% | 10.8% | 10.3% | 15.7% | |
| Shaily Engineering Plastics ($SHAILY) | 1.9% | 3.7% | | 10.7% | 17.2% |
| Acrysil ($ACRYSIL) | 21.2% | 7.8% | 11.0% | 9.6% | 9.3% |
| Astral Poly Technik ($ASTRAL) | 9.3% | 11.9% | 8.4% | 8.6% | |
| Responsive Industries ($RESPONIND) | 18.7% | 14.7% | 10.3% | 6.9% | |
| |
|---|
| Median (7 companies) | 9.1% | 7.8% | 8.4% | 8.6% | 9.3% |
|---|
| Wim Plast ($WIMPLAST) | 5.4% | 14.3% | 8.1% | 3.7% | 7.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Astral Poly Technik ($ASTRAL) | 22.6% | 29.3% | 31.1% | 33.3% | |
| Acrysil ($ACRYSIL) | | 7.7% | 16.2% | 20.2% | 21.0% |
| Shaily Engineering Plastics ($SHAILY) | 12.1% | 19.5% | 15.0% | 19.3% | 15.2% |
| Flexituff International ($FLEXITUFF) | 14.7% | 18.6% | 15.9% | 11.0% | |
| Jain Irrigation Systems ($JISLJALEQS) | 15.0% | 13.4% | 8.3% | 9.0% | 8.6% |
| |
|---|
| Median (21 companies) | 12.1% | 10.0% | 10.9% | 11.0% | 15.2% |
|---|
| Wim Plast ($WIMPLAST) | 31.0% | 31.8% | 31.2% | 31.0% | 31.2% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Jain Irrigation Systems ($JISLJALEQS) | 3.4x | 3.8x | 5.1x | 4.8x | 4.8x |
| Flexituff International ($FLEXITUFF) | 3.5x | 2.2x | 3.1x | 4.3x | |
| Responsive Industries ($RESPONIND) | 1.9x | 3.3x | 2.9x | 2.4x | |
| Acrysil ($ACRYSIL) | 1.9x | 2.9x | 2.2x | 2.0x | 2.7x |
| Shaily Engineering Plastics ($SHAILY) | 4.0x | 1.9x | 1.8x | 1.9x | 2.6x |
| |
|---|
| Median (12 companies) | 2.4x | 2.2x | 2.3x | 0.8x | 2.6x |
|---|
| Wim Plast ($WIMPLAST) | -0.0x | -0.1x | -0.1x | -0.1x | -0.2x |
