Cmi Fpe Net Income surged on 38.5% while Revenue decreased on 6.4%
19-05-2016 • About Cmi Fpe (
$CMIFPE) • By InTwits
Cmi Fpe reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cmi Fpe is a company in decline: FY2016 revenue growth was -6.4%, 5 years revenue CAGR was -13.3%
- EBITDA Margin is quite volatile: 2.1% in FY2016, -3.8% in FY2015, -2.9% in FY2014, -0.1% in FY2013, 7.5% in FY2012
- Cmi Fpe has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's in pair with industry average of 4.4%
- CAPEX is quite volatile: ₹36m in FY2016, ₹67m in FY2015, ₹74m in FY2014, ₹247m in FY2013, ₹262m in FY2012
- The company has unprofitable business model: ROIC is -0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Cmi Fpe's Revenue decreased on 6.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.9 pp from -3.8% to 2.1% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2015 at -3.8%.
Net Income margin increased on 2.1 pp from 4.3% to 6.4% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at -5.0% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 1.7%. CAPEX/Revenue decreased on 2.9 pp from 4.6% in FY2013 to 1.7% in FY2016. Average CAPEX/Revenue for the last three years was 2.2%. The company invested a big chunk of EBITDA (83.3%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-0.9%) and low but positive ROE (9.1%). ROIC increased on 7.0 pp from -7.8% to -0.88% in FY2016. ROE increased slightly on 2.0 pp from 7.1% to 9.1% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at -9.8% and was growing since that time. During the last 5 years ROE bottomed in FY2014 at -16.0% and was growing since that time.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash dropped on 93.5%.
Valuation and dividends
The company's trades at EV/EBITDA 46.2x and P/E 15.3x while industy averages are 17.8x and 21.9x. Cmi Fpe's EV/(EBITDA-CAPEX) is 276.6x with the industry average at 22.8x.
Financial and operational results
Cmi Fpe ($CMIFPE) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,518 | 5,329 | 4,428 | 2,193 | 2,054 | -6.4% |
| EBITDA | 262 | -3 | -129 | -84 | 43 | |
| Net Income | 110 | -10 | -223 | 95 | 131 | 38.5% |
Balance Sheet
|
|---|
| Cash | 209 | 70 | 26 | 193 | 13 | -93.5% |
| Short Term Debt | 2 | 454 | 167 | 138 | 0 | -100.0% |
| Long Term Debt | 33 | 231 | 173 | 115 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 262 | 247 | 74 | 67 | 36 | -46.6% |
Ratios
|
|---|
| Revenue growth | -15.9% | 51.5% | -16.9% | -50.5% | -6.4% | |
| EBITDA growth | -53.6% | -101.1% | 4,492.3% | -34.5% | -151.1% | |
|
|---|
| EBITDA Margin | 7.5% | -0.1% | -2.9% | -3.8% | 2.1% | 5.9% |
| Net Income Margin | 3.1% | -0.2% | -5.0% | 4.3% | 6.4% | 2.1% |
| CAPEX, % of revenue | 7.4% | 4.6% | 1.7% | 3.1% | 1.7% | -1.3% |
|
|---|
| ROIC | 14.2% | -2.4% | -9.8% | -7.8% | -0.9% | 7.0% |
| ROE | 7.4% | -0.7% | -16.0% | 7.1% | 9.1% | 2.0% |
| Net Debt/EBITDA | -0.7x | | | | -0.3x |
Peers in Industrial Machinery
Below you can find Cmi Fpe benchmarking vs. other companies in Industrial Machinery 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 |
|---|
| Lloyd Electric & Engineering ($LLOYDELENG) | - | - | - | 22.3% | 27.3% |
| Kabra Extrusiontechnik ($KABRAEXTRU) | -13.3% | -8.7% | 28.4% | 21.6% | - |
| Akar Tools ($AKARTOOL) | 21.1% | 2.1% | -2.3% | 16.7% | - |
| Honda Siel Power Products ($HONDAPOWER) | 28.1% | 2.4% | 5.0% | 16.5% | - |
| Mazda ($MAZDALTD) | 22.1% | 14.7% | -15.6% | 16.2% | - |
| |
|---|
| Median (27 companies) | 20.6% | 2.1% | 3.0% | 3.7% | 2.7% |
|---|
| Cmi Fpe ($CMIFPE) | - | 51.5% | -16.9% | -50.5% | -6.4% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bell Agromachina ($BELAGRO) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Texmaco Infrastructure & Holdings ($TEXINFRA) | - | - | - | 40.5% | - |
| Dhp India ($DHPIND) | - | - | - | 26.3% | - |
| Shilp Gravures ($SHILGRAVQ) | - | - | - | 19.4% | - |
| Solitaire Machine Tools ($SOLIMAC) | - | - | - | 19.4% | - |
| Wendt (India) ($WENDT) | 28.3% | 21.6% | 18.6% | 19.0% | 16.5% |
| |
|---|
| Median (43 companies) | 11.3% | 9.5% | 10.5% | 10.4% | 11.8% |
|---|
| Cmi Fpe ($CMIFPE) | 7.5% | -0.1% | -2.9% | -3.8% | 2.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Texmaco Infrastructure & Holdings ($TEXINFRA) | - | - | - | 14.0% | - |
| Wendt (India) ($WENDT) | 13.5% | 9.0% | 8.8% | 9.4% | 9.3% |
| Ingersoll-Rand (India) ($INGERRAND) | 4.3% | 10.9% | 3.6% | 9.2% | - |
| Kabra Extrusiontechnik ($KABRAEXTRU) | 6.5% | 1.8% | 0.5% | 8.8% | - |
| Forbes & Company ($FORBESCO) | 1.8% | 2.6% | 3.0% | 5.1% | - |
| |
|---|
| Median (21 companies) | 5.6% | 3.8% | 3.0% | 3.3% | 2.4% |
|---|
| Cmi Fpe ($CMIFPE) | 7.4% | 4.6% | 1.7% | 3.1% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Greaves Cotton ($GREAVESCOT) | - | 24.8% | 16.3% | 26.7% | 25.7% |
| Gmm Pfaudler ($GMM) | -76.2% | 6.8% | 17.4% | 18.2% | 16.1% |
| Lakshmi Machine Works ($LAXMIMACH) | 18.0% | 11.7% | 16.2% | 17.6% | - |
| Honda Siel Power Products ($HONDAPOWER) | 16.9% | 8.8% | 11.5% | 15.3% | - |
| Wendt (India) ($WENDT) | 38.2% | 20.2% | 16.2% | 15.1% | 12.6% |
| |
|---|
| Median (52 companies) | 12.8% | 10.9% | 10.2% | 13.0% | 12.6% |
|---|
| Cmi Fpe ($CMIFPE) | 14.2% | -2.4% | -9.8% | -7.8% | -0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Forbes & Company ($FORBESCO) | 2.2x | 3.3x | 4.7x | 6.3x | - |
| Nitin Fire Protection Industries ($NITINFIRE) | 3.6x | 3.5x | 3.0x | 3.7x | - |
| Elgi Equipments ($ELGIEQUIP) | -1.2x | 2.3x | 2.7x | 3.3x | - |
| Lloyd Electric & Engineering ($LLOYDELENG) | - | - | 3.7x | 3.2x | 2.7x |
| Elecon Engineering Co ($ELECON) | 3.0x | 3.2x | 4.0x | 3.1x | 3.9x |
| |
|---|
| Median (35 companies) | 0.9x | 1.4x | 0.0x | 0.0x | 0.0x |
|---|
