Snowman Logistics CAPEX surged on 48.4% and Revenue surged on 18.3%
26-04-2016 • About Snowman Logistics (
$SNOWMAN) • By InTwits
Snowman Logistics reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Snowman Logistics is a fast growth stock: FY2016 revenue growth was 18.3%, 5 year revenue CAGR was 39.7% at FY2016 ROIC 3.9%
- Snowman Logistics has high CAPEX intensity: 5 year average CAPEX/Revenue was 65.8%. At the same time it's a lot of higher than industry average of 19.9%.
- CAPEX is quite volatile: ₹1,412m in FY2016, ₹951m in FY2015, ₹1,180m in FY2014, ₹1,138m in FY2013, ₹284m in FY2012
- The company has potentially unprofitable business model: ROIC is 3.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 18.3%. During the last 5 years Revenue growth topped in FY2013 at 85.2% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.2 pp from 3.2% to -0.0082% in FY2016.
Net Income margin decreased on 3.6 pp from 12.2% to 8.6% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2013 at 16.7% and was declining since that time.
Investments (CAPEX, working capital and M&A)
Snowman Logistics's CAPEX/Revenue was 58.8% in FY2016. Snowman Logistics's CAPEX/Revenue dropped on 41.3 pp from 100% in FY2013 to 58.8% in FY2016. Average CAPEX/Revenue for the last three years was 60.9%. To secure its fast growth the company made large investments to CAPEX (278% of EBITDA).
Return on investment
The company operates at low ROIC (3.9%) and ROE (4.8%). ROIC decreased slightly on 1.3 pp from 5.2% to 3.9% in FY2016. ROE decreased on 2.9 pp from 7.7% to 4.8% in FY2016. ROIC declined at -1.6 pp per annum in FY2012-FY2016. During FY2012-FY2016 ROE topped in FY2013 at 16.0% and was declining since that time.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and 2.9x Debt / EBITDA. Net Debt / EBITDA jumped on 2.3x from 0.1x to 2.5x in FY2016. Debt surged on 61.6% while cash dropped on 74.8%.
Snowman Logistics has short term refinancing risk: cash is only 55.7% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 23.3x and P/E 51.2x while industy averages are 17.8x and 21.9x.
Financial and operational results
Snowman Logistics ($SNOWMAN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 614 | 1,137 | 1,534 | 2,029 | 2,401 | 18.3% |
| EBITDA | 158 | 260 | 399 | 471 | 507 | 7.8% |
| Net Income | 64 | 190 | 225 | 247 | 206 | -16.7% |
Balance Sheet
|
|---|
| Cash | 131 | 64 | 150 | 837 | 211 | -74.8% |
| Short Term Debt | 0 | 41 | 558 | 193 | 379 | 96.8% |
| Long Term Debt | 0 | 909 | 904 | 712 | 1,082 | 52.1% |
Cash flow
|
|---|
| Capex | 284 | 1,138 | 1,180 | 951 | 1,412 | 48.4% |
Ratios
|
|---|
| Revenue growth | 35.9% | 85.2% | 34.9% | 32.3% | 18.3% | |
| EBITDA growth | 37.6% | 64.7% | 53.5% | 18.0% | 7.8% | |
|
|---|
| EBITDA Margin | 25.7% | 22.8% | 26.0% | 23.2% | 21.1% | -2.1% |
| Net Income Margin | 10.4% | 16.7% | 14.7% | 12.2% | 8.6% | -3.6% |
| CAPEX, % of revenue | 46.2% | 100.1% | 76.9% | 46.9% | 58.8% | 11.9% |
|
|---|
| ROIC | 9.4% | 10.0% | 8.1% | 5.2% | 3.9% | -1.3% |
| ROE | 6.0% | 16.0% | 12.9% | 7.7% | 4.8% | -2.9% |
| Net Debt/EBITDA | -0.8x | 3.4x | 3.3x | 0.1x | 2.5x | 2.3x |
Peers in Transportation - Logistics
Below we provide Snowman Logistics benchmarking against other companies in Transportation - Logistics 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gateway Distriparks ($GDL) | 36.6% | 16.1% | 6.2% | 9.7% | - |
| Sical Logistics ($SICAL) | 1.3% | -2.4% | 10.7% | -1.7% | - |
| Arshiya ($ARSHIYA) | 28.7% | 7.8% | -54.7% | -37.2% | - |
| |
|---|
| Median (3 companies) | 15.0% | 7.1% | 6.2% | -1.7% | - |
|---|
| Snowman Logistics ($SNOWMAN) | - | 85.2% | 34.9% | 32.3% | 18.3% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gateway Distriparks ($GDL) | 30.4% | 25.6% | 25.4% | 29.4% | - |
| Sical Logistics ($SICAL) | 10.4% | 12.2% | 11.9% | 10.1% | - |
| Arshiya ($ARSHIYA) | 25.7% | 15.5% | -6.3% | 9.7% | - |
| Gati ($GATI) | 6.7% | 6.5% | - | 8.6% | - |
| |
|---|
| Median (4 companies) | 18.0% | 13.9% | 11.9% | 9.9% | - |
|---|
| Snowman Logistics ($SNOWMAN) | 25.7% | 22.8% | 26.0% | 23.2% | 21.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sical Logistics ($SICAL) | 19.4% | 21.9% | 10.2% | 19.1% | - |
| Gateway Distriparks ($GDL) | 13.7% | 25.1% | 19.6% | 14.0% | - |
| Gati ($GATI) | - | 3.1% | - | 7.4% | - |
| Arshiya ($ARSHIYA) | 92.5% | 38.8% | 3.1% | 0.2% | - |
| |
|---|
| Median (4 companies) | 19.4% | 23.5% | 10.2% | 10.7% | - |
|---|
| Snowman Logistics ($SNOWMAN) | 46.2% | 100.1% | 76.9% | 46.9% | 58.8% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gateway Distriparks ($GDL) | 15.3% | 13.0% | 11.7% | 15.6% | - |
| Gati ($GATI) | 4.8% | 4.8% | 0.0% | 8.3% | - |
| Sical Logistics ($SICAL) | 4.1% | 4.3% | 4.2% | 2.6% | - |
| Arshiya ($ARSHIYA) | 9.1% | 3.5% | -3.3% | -2.2% | - |
| |
|---|
| Median (4 companies) | 7.0% | 4.6% | 2.1% | 5.5% | - |
|---|
| Snowman Logistics ($SNOWMAN) | 9.4% | 10.0% | 8.1% | 5.2% | 3.9% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Arshiya ($ARSHIYA) | 8.2x | 15.0x | - | 80.6x | - |
| Sical Logistics ($SICAL) | 6.4x | 7.3x | 8.1x | 9.9x | - |
| Gati ($GATI) | 4.1x | 5.2x | - | 2.9x | - |
| Gateway Distriparks ($GDL) | 0.2x | 0.7x | 1.0x | 0.4x | - |
| |
|---|
| Median (4 companies) | 5.2x | 6.3x | 4.5x | 6.4x | - |
|---|
| Snowman Logistics ($SNOWMAN) | -0.8x | 3.4x | 3.3x | 0.1x | 2.5x |
