Gic Housing Finance reports 20.9% Net Income growth in 2016 and almost no change in EBITDA Margin of 90.4%
29-04-2016 • About Gic Housing Finance (
$GICHSGFIN) • By InTwits
Gic Housing Finance reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Gic Housing Finance is a fast growth stock: FY2016 revenue growth was 19.7%, 5 year revenue CAGR was 15.4% at FY2016 ROIC 2.7%
- Gic Housing Finance has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has potentially unprofitable business model: ROIC is 2.7%
- It operates with high leverage: Net Debt/EBITDA is 8.8x while industry average is 8.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Gic Housing Finance's Revenue jumped on 19.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 18.7 pp from -17.6% to 1.2% in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Gic Housing Finance had CAPEX/Revenue of 0.041%. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.11%. CAPEX as a % of Revenue was relatively stable in the last 5 years.
Return on investment
The company operates at good ROE (17.9%) while ROIC is low (2.7%). ROE increased slightly on 1.7 pp from 16.2% to 17.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.8x and Debt / EBITDA is 8.8x. Net Debt / EBITDA surged on 0.1x from 8.6x to 8.8x in FY2016. Debt surged on 20.8% while cash jumped on 27.7%. During the last 5 years Net Debt/EBITDA bottomed in FY2013 at 8.0x and was growing since that time.
Gic Housing Finance has short term refinancing risk: cash is only 3.3% of short term debt.
Valuation and dividends
Gic Housing Finance's trades at EV/EBITDA 10.5x and P/E 11.2x while industy averages are 17.8x and 21.9x.
Financial and operational results
Gic Housing Finance ($GICHSGFIN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,394 | 5,539 | 6,249 | 7,324 | 8,764 | 19.7% |
| EBITDA | 3,909 | 4,884 | 5,545 | 6,658 | 7,926 | 19.0% |
| Net Income | 590 | 850 | 976 | 1,030 | 1,245 | 20.9% |
Balance Sheet
|
|---|
| Cash | 380 | 511 | 362 | 390 | 498 | 27.7% |
| Short Term Debt | 7,639 | 9,708 | 10,217 | 14,352 | 14,903 | 3.8% |
| Long Term Debt | 28,310 | 30,020 | 36,301 | 43,591 | 55,108 | 26.4% |
Cash flow
|
|---|
| Capex | 19 | 18 | 9 | 10 | 4 | -62.1% |
Ratios
|
|---|
| Revenue growth | 2.6% | 26.1% | 12.8% | 17.2% | 19.7% | |
| EBITDA growth | 8.2% | 24.9% | 13.5% | 20.1% | 19.0% | |
|
|---|
| EBITDA Margin | 89.0% | 88.2% | 88.7% | 90.9% | 90.4% | -0.5% |
| Net Income Margin | 13.4% | 15.4% | 15.6% | 14.1% | 14.2% | 0.1% |
| CAPEX, % of revenue | 0.4% | 0.3% | 0.1% | 0.1% | 0.0% | -0.1% |
|
|---|
| ROIC | | | | | 2.7% | |
| ROE | 12.3% | 16.2% | 16.8% | 16.2% | 17.9% | 1.7% |
| Net Debt/EBITDA | 9.1x | 8.0x | 8.3x | 8.6x | 8.8x | 0.1x |
Peers in Housing Finance
Below we provide Gic Housing Finance benchmarking against other companies in Housing Finance 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 |
|---|
| Can Fin Homes ($CANFINHOME) | - | 36.9% | 47.2% | 41.4% | 32.5% |
| Housing Development Finance Corp ($HDFC) | 17.5% | 18.8% | 13.4% | 18.6% | - |
| Lic Housing Finance ($LICHSGFIN) | - | 23.9% | 20.7% | 15.8% | 15.5% |
| |
|---|
| Median (3 companies) | 17.5% | 23.9% | 20.7% | 18.6% | 24.0% |
|---|
| Gic Housing Finance ($GICHSGFIN) | - | 26.1% | 12.8% | 17.2% | 19.7% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lic Housing Finance ($LICHSGFIN) | 93.4% | 94.9% | 96.2% | 96.4% | 95.0% |
| Can Fin Homes ($CANFINHOME) | 92.2% | 91.5% | 92.0% | 92.0% | 92.4% |
| Housing Development Finance Corp ($HDFC) | 57.7% | 59.9% | 61.9% | 59.4% | - |
| |
|---|
| Median (3 companies) | 92.2% | 91.5% | 92.0% | 92.0% | 93.7% |
|---|
| Gic Housing Finance ($GICHSGFIN) | 89.0% | 88.2% | 88.7% | 90.9% | 90.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Housing Development Finance Corp ($HDFC) | 0.5% | 0.5% | 0.6% | 1.3% | - |
| Can Fin Homes ($CANFINHOME) | 0.5% | 1.2% | 0.6% | 0.7% | 0.3% |
| Lic Housing Finance ($LICHSGFIN) | 0.6% | 0.1% | 0.1% | 0.2% | 0.2% |
| |
|---|
| Median (3 companies) | 0.5% | 0.5% | 0.6% | 0.7% | 0.2% |
|---|
| Gic Housing Finance ($GICHSGFIN) | 0.4% | 0.3% | 0.1% | 0.1% | 0.0% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Housing Development Finance Corp ($HDFC) | 4.6% | 4.8% | 4.8% | 4.6% | - |
| Can Fin Homes ($CANFINHOME) | 2.8% | 2.3% | 2.2% | 2.0% | 2.8% |
| Lic Housing Finance ($LICHSGFIN) | - | - | - | - | - |
| |
|---|
| Median (3 companies) | 3.7% | 3.5% | 3.5% | 3.3% | 2.8% |
|---|
| Gic Housing Finance ($GICHSGFIN) | - | - | - | - | 2.7% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Can Fin Homes ($CANFINHOME) | 8.7x | 9.8x | 9.9x | 9.8x | 9.5x |
| Lic Housing Finance ($LICHSGFIN) | 9.6x | 9.4x | 9.0x | 9.3x | 9.3x |
| Housing Development Finance Corp ($HDFC) | 6.5x | 5.9x | 6.2x | 6.3x | - |
| |
|---|
| Median (3 companies) | 8.7x | 9.4x | 9.0x | 9.3x | 9.4x |
|---|
| Gic Housing Finance ($GICHSGFIN) | 9.1x | 8.0x | 8.3x | 8.6x | 8.8x |
