Skipper CAPEX jumped on 206% and Revenue surged on 14.7%
18-05-2016 • About Skipper (
$SKIPPER) • By InTwits
Skipper reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Skipper is a fast growth stock: FY2016 revenue growth was 14.7%, 5 year revenue CAGR was 24.6% at FY2016 ROIC 24.4%
- Skipper has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's a lot of higher than industry average of 5.0%.
- CAPEX is quite volatile: ₹1,005m in FY2016, ₹329m in FY2015, ₹327m in FY2014, ₹591m in FY2013, ₹564m in FY2012
- The company has highly profitable business model: ROIC is 24.4%
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 jumped on 14.7%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 16.4% to 14.6% in FY2016. EBITDA Margin followed a growing trend at 1.9 pp per annum in the last 5 years.
Net Income margin showed almost no change in FY2016. Net Income margin stuck to a growing trend at 1.5 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 6.7% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 4.1%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2015 at 2.5%.
Return on investment
The company operates at high and attractive ROIC (24.4%) and ROE (27.8%). ROIC decreased on 2.9 pp from 27.4% to 24.4% in FY2016. ROE decreased on 5.6 pp from 33.3% to 27.8% in FY2016. ROIC followed a growing trend at 4.2 pp per annum in the last 5 years. ROE stuck to a growing trend at 6.6 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 2.1x. Net Debt / EBITDA surged on 0.4x from 1.5x to 1.9x in FY2016. Debt jumped on 22.3% while cash dropped on 11.2%. Net Debt/EBITDA followed a declining trend at -0.8x per annum in the last 5 years.
Skipper has short term refinancing risk: cash is only 18.5% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 8.5x and P/E 15.2x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 15.6x with the industry average at 22.8x.
Financial and operational results
Skipper ($SKIPPER) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,412 | 9,003 | 10,415 | 13,128 | 15,062 | 14.7% |
| EBITDA | 631 | 867 | 1,115 | 2,156 | 2,197 | 1.9% |
| Net Income | 99 | 187 | 269 | 892 | 951 | 6.7% |
Balance Sheet
|
|---|
| Cash | 86 | 128 | 263 | 561 | 498 | -11.2% |
| Short Term Debt | 1,222 | 1,990 | 2,088 | 2,122 | 2,699 | 27.2% |
| Long Term Debt | 1,772 | 1,986 | 2,307 | 1,707 | 1,983 | 16.2% |
Cash flow
|
|---|
| Capex | 564 | 591 | 327 | 329 | 1,005 | 205.8% |
Ratios
|
|---|
| Revenue growth | 47.5% | 21.5% | 15.7% | 26.0% | 14.7% | |
| EBITDA growth | 24.6% | 37.5% | 28.7% | 93.3% | 1.9% | |
|
|---|
| EBITDA Margin | 8.5% | 9.6% | 10.7% | 16.4% | 14.6% | -1.8% |
| Net Income Margin | 1.3% | 2.1% | 2.6% | 6.8% | 6.3% | -0.5% |
| CAPEX, % of revenue | 7.6% | 6.6% | 3.1% | 2.5% | 6.7% | 4.2% |
|
|---|
| ROIC | 10.4% | 13.5% | 14.7% | 27.4% | 24.4% | -2.9% |
| ROE | 5.8% | 11.0% | 12.3% | 33.3% | 27.8% | -5.6% |
| Net Debt/EBITDA | 4.6x | 4.4x | 3.7x | 1.5x | 1.9x | 0.4x |
Peers in Construction & Engineering
Below you can find Skipper benchmarking vs. other companies in Construction & Engineering 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, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thirthankar Infra ($THIRINFRA) | - | - | - | 258.2% | - |
| Welspun Projects ($WELPROJ) | 41.2% | -8.9% | -20.7% | 239.1% | - |
| Itd Cementation India ($ITDCEM) | -3.7% | -4.0% | 8.5% | 79.2% | - |
| Mukand Engineers ($MUKANDENGG) | -14.3% | 16.7% | 12.4% | 63.0% | - |
| Atlanta ($ATLANTA) | -47.6% | 115.1% | 28.1% | 50.2% | - |
| |
|---|
| Median (32 companies) | -1.5% | 6.7% | 6.6% | -0.0% | -8.2% |
|---|
| Skipper ($SKIPPER) | - | 21.5% | 15.7% | 26.0% | 14.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Madhucon Projects ($MADHUCON) | 8.4% | 31.9% | 22.1% | 32.1% | - |
| Jaiprakash Associates ($JPASSOCIAT) | 36.9% | 35.9% | 32.4% | 31.5% | - |
| Arss Infrastructure Projects ($ARSSINFRA) | 14.0% | 13.9% | 22.0% | 31.3% | - |
| Reliance Industrial Infrastructure ($RIIL) | - | - | - | 30.8% | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 27.2% | 30.0% | 30.0% | 29.8% | - |
| |
|---|
| Median (36 companies) | 12.4% | 11.3% | 10.2% | 10.1% | 10.5% |
|---|
| Skipper ($SKIPPER) | 8.5% | 9.6% | 10.7% | 16.4% | 14.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Madhucon Projects ($MADHUCON) | 234.5% | 155.1% | 76.0% | 67.4% | - |
| Supreme Infrastructure India ($SUPREMEINF) | 46.6% | 31.1% | 43.1% | 45.8% | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 0.0% | 11.2% | 14.1% | 40.8% | - |
| Jaiprakash Associates ($JPASSOCIAT) | 97.0% | 65.5% | 45.0% | 31.6% | - |
| Man Infraconstruction ($MANINFRA) | 7.8% | 1.6% | 25.0% | 18.6% | - |
| |
|---|
| Median (23 companies) | 7.4% | 8.6% | 6.9% | 3.2% | 1.4% |
|---|
| Skipper ($SKIPPER) | 7.6% | 6.6% | 3.1% | 2.5% | 6.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Voltas ($VOLTAS) | 19.6% | 11.7% | 11.8% | 19.3% | 18.2% |
| Coromandel Engineering Company ($COROENGG) | -21.9% | 3.4% | -0.3% | 15.0% | 7.9% |
| Mbl Infrastructures ($MBLINFRA) | 21.3% | 13.4% | 14.0% | 13.6% | - |
| Itd Cementation India ($ITDCEM) | 13.1% | 11.3% | 3.8% | 12.6% | - |
| Simplex Infrastructures ($SIMPLEXINF) | 10.7% | 8.7% | 8.9% | 10.7% | - |
| |
|---|
| Median (42 companies) | 8.6% | 7.1% | 5.6% | 6.6% | 7.1% |
|---|
| Skipper ($SKIPPER) | 10.4% | 13.5% | 14.7% | 27.4% | 24.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mcnally Bharat Engineering Company ($MBECL) | 4.3x | 7.0x | 7.6x | 28.3x | - |
| Jaiprakash Associates ($JPASSOCIAT) | 9.2x | 8.9x | 11.0x | 11.9x | - |
| Supreme Infrastructure India ($SUPREMEINF) | 6.0x | 6.1x | 6.8x | 11.3x | - |
| Madhucon Projects ($MADHUCON) | 96.8x | 19.0x | 16.4x | 9.8x | - |
| Shristi Infrastructure Development Corporation ($SHRISTI) | 11.8x | 8.6x | 7.9x | 9.4x | - |
| |
|---|
| Median (30 companies) | 4.6x | 5.7x | 6.6x | 3.1x | 1.2x |
|---|
| Skipper ($SKIPPER) | 4.6x | 4.4x | 3.7x | 1.5x | 1.9x |
