Flexituff International reports 44.0% CAPEX decline in 2016 while 11.5% Revenue growth
20-05-2016 • About Flexituff International (
$FLEXITUFF) • By InTwits
Flexituff International reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Flexituff International is a fast growth stock: FY2016 revenue growth was 11.5%, 5 year revenue CAGR was 17.8% at FY2016 ROIC 7.3%
- Flexituff International has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.4%. At the same time it's a lot of higher than industry average of 6.4%.
- CAPEX is quite volatile: ₹660m in FY2016, ₹1,179m in FY2015, ₹1,700m in FY2014, ₹998m in FY2013, ₹801m in FY2012
- The company has business model with low profitability: ROIC is 7.3%
- It operates with high leverage: Net Debt/EBITDA is 4.5x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Flexituff International's Revenue surged on 11.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.7 pp from 9.8% to 12.4% in FY2016. EBITDA Margin stuck to a declining trend at -1.2 pp per annum in FY2012-FY2016.
Net Income margin decreased slightly on 1.2 pp from 1.6% to 0.37% in FY2016. Net Income margin stuck to a declining trend at -1.1 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Flexituff International's CAPEX/Revenue was 5.0% in FY2016. Flexituff International showed decline in CAPEX/Revenue of 5.3 pp from 10.3% in FY2013 to 5.0% in FY2016. It's average CAPEX/Revenue for the last three years was 10.2%.
Return on investment
The company operates at low ROIC (7.3%) and ROE (1.3%). ROIC showed almost no change in FY2016. ROE decreased on 3.8 pp from 5.1% to 1.3% in FY2016. ROIC followed a declining trend at -3.2 pp per annum in FY2012-FY2016. ROE followed a declining trend at -3.6 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.5x and Debt / EBITDA is 4.5x. Net Debt / EBITDA dropped on 0.8x from 5.3x to 4.5x in FY2016. Debt increased on 4.8% while cash dropped on 61.4%. Net Debt/EBITDA grew at 0.7x per annum in the last 5 years.
Flexituff International has short term refinancing risk: cash is only 0.9% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 7.9x and P/E 98.7x while industy averages are 17.8x and 21.9x. Flexituff International's EV/(EBITDA-CAPEX) is 14.6x with the industry average at 22.8x.
Financial and operational results
Flexituff International ($FLEXITUFF) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,434 | 9,655 | 10,860 | 11,769 | 13,126 | 11.5% |
| EBITDA | 1,124 | 1,300 | 1,208 | 1,146 | 1,431 | 24.8% |
| Net Income | 378 | 259 | 183 | 188 | 48 | -74.4% |
Balance Sheet
|
|---|
| Cash | 67 | 53 | 84 | 84 | 32 | -61.4% |
| Short Term Debt | 1,326 | 2,734 | 2,886 | 3,252 | 3,606 | 10.9% |
| Long Term Debt | 1,234 | 1,396 | 2,397 | 2,960 | 2,902 | -2.0% |
Cash flow
|
|---|
| Capex | 801 | 998 | 1,700 | 1,179 | 660 | -44.0% |
Ratios
|
|---|
| Revenue growth | 28.6% | 29.9% | 12.5% | 8.4% | 11.5% | |
| EBITDA growth | 48.1% | 15.6% | -7.1% | -5.1% | 24.8% | |
|
|---|
| EBITDA Margin | 15.1% | 13.5% | 11.1% | 9.7% | 10.9% | 1.2% |
| Net Income Margin | 5.1% | 2.7% | 1.7% | 1.6% | 0.4% | -1.2% |
| CAPEX, % of revenue | 10.8% | 10.3% | 15.7% | 10.0% | 5.0% | -5.0% |
|
|---|
| ROIC | 18.6% | 15.9% | 11.0% | 6.9% | 7.3% | 0.4% |
| ROE | 17.5% | 9.0% | 5.4% | 5.1% | 1.3% | -3.8% |
| Net Debt/EBITDA | 2.2x | 3.1x | 4.3x | 5.3x | 4.5x | -0.8x |
Peers in Plastic Products
Below we provide Flexituff International 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, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Astral Poly Technik ($ASTRAL) | 41.7% | 41.6% | 30.8% | 32.4% | - |
| Max India ($MAX) | 28.0% | 23.7% | 10.1% | 27.4% | - |
| Wim Plast ($WIMPLAST) | 27.5% | 23.1% | 19.5% | 23.5% | - |
| Acrysil ($ACRYSIL) | 11.3% | 29.6% | 33.8% | 19.4% | - |
| Shaily Engineering Plastics ($SHAILY) | - | -16.0% | 23.3% | 19.2% | 25.5% |
| |
|---|
| Median (11 companies) | 18.2% | 23.4% | 15.5% | 8.5% | 10.2% |
|---|
| Flexituff International ($FLEXITUFF) | - | 29.9% | 12.5% | 8.4% | 11.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Acrysil ($ACRYSIL) | 12.4% | 16.8% | 17.5% | 19.5% | - |
| Wim Plast ($WIMPLAST) | 18.1% | 17.9% | 18.1% | 17.0% | - |
| Shaily Engineering Plastics ($SHAILY) | 14.3% | 13.9% | 16.0% | 14.8% | 17.3% |
| Jain Irrigation Systems ($JISLJALEQS) | 16.6% | 12.6% | 12.6% | 12.4% | - |
| Responsive Industries ($RESPONIND) | 13.4% | 11.5% | 10.3% | 12.2% | - |
| |
|---|
| Median (14 companies) | 11.7% | 11.2% | 12.6% | 11.7% | 13.1% |
|---|
| Flexituff International ($FLEXITUFF) | 15.1% | 13.5% | 11.1% | 9.7% | 10.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shaily Engineering Plastics ($SHAILY) | 3.7% | - | 10.7% | 17.2% | 13.0% |
| Acrysil ($ACRYSIL) | 7.8% | 11.0% | 9.6% | 9.3% | - |
| Wim Plast ($WIMPLAST) | 14.3% | 8.1% | 3.7% | 7.9% | - |
| Astral Poly Technik ($ASTRAL) | 11.9% | 8.4% | 8.6% | 6.0% | - |
| Responsive Industries ($RESPONIND) | 14.7% | 10.3% | 6.9% | 3.8% | - |
| |
|---|
| Median (7 companies) | 7.8% | 8.1% | 6.9% | 6.0% | 13.0% |
|---|
| Flexituff International ($FLEXITUFF) | 10.8% | 10.3% | 15.7% | 10.0% | 5.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wim Plast ($WIMPLAST) | 31.8% | 31.2% | 31.0% | 31.2% | - |
| Acrysil ($ACRYSIL) | 7.7% | 16.2% | 20.2% | 21.0% | - |
| Astral Poly Technik ($ASTRAL) | 29.3% | 31.1% | 33.3% | 19.7% | - |
| Shaily Engineering Plastics ($SHAILY) | 19.5% | 15.0% | 19.3% | 15.2% | 18.2% |
| Max India ($MAX) | 8.9% | 24.3% | 7.0% | 12.7% | - |
| |
|---|
| Median (21 companies) | 10.0% | 10.9% | 19.3% | 15.2% | 18.2% |
|---|
| Flexituff International ($FLEXITUFF) | 18.6% | 15.9% | 11.0% | 6.9% | 7.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jain Irrigation Systems ($JISLJALEQS) | 3.8x | 5.1x | 4.8x | 4.8x | - |
| Acrysil ($ACRYSIL) | 2.9x | 2.2x | 2.0x | 2.7x | - |
| Shaily Engineering Plastics ($SHAILY) | 1.9x | 1.8x | 1.9x | 2.6x | 1.5x |
| Responsive Industries ($RESPONIND) | 3.3x | 2.9x | 2.4x | 1.9x | - |
| Astral Poly Technik ($ASTRAL) | 1.0x | 0.7x | 0.9x | 1.1x | - |
| |
|---|
| Median (14 companies) | 2.1x | 2.2x | 0.4x | 0.0x | 0.0x |
|---|
| Flexituff International ($FLEXITUFF) | 2.2x | 3.1x | 4.3x | 5.3x | 4.5x |
