Wonderla Holidays CAPEX jumped on 296% and Revenue jumped on 12.9%
24-05-2016 • About Wonderla Holidays (
$WONDERLA) • By InTwits
Wonderla Holidays reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Wonderla Holidays is a fast growth stock: FY2016 revenue growth was 12.9%, 5 year revenue CAGR was 18.0% at FY2016 ROIC 18.2%
- Wonderla Holidays has high CAPEX intensity: 5 year average CAPEX/Revenue was 34.4%. At the same time it's in pair with industry average of 3.6%
- CAPEX is quite volatile: ₹1,470m in FY2016, ₹371m in FY2015, ₹275m in FY2014, ₹374m in FY2013, ₹393m in FY2012
- The company has highly profitable business model: ROIC is 18.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Wonderla Holidays's Revenue jumped on 12.9%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.5 pp from 5.6% to 2.1% in FY2016. EBITDA Margin followed a declining trend at -1.7 pp per annum in FY2012-FY2016.
Net Income margin increased slightly on 1.3 pp from 27.8% to 29.1% in FY2016. During the last 5 years Net Income margin bottomed in FY2013 at 24.4% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 71.6% in FY2016. Wonderla Holidays showed fast CAPEX/Revenue growth of 44.4 pp from 27.2% in FY2013 to 71.6% in FY2016. For the last three years the average CAPEX/Revenue was 36.6%. To fuel its fast growth Wonderla Holidays made large investments to CAPEX (175% of EBITDA). During the last 5 years CAPEX as a % of Revenue bottomed in FY2014 at 17.9% and was growing since that time.
Return on investment
The company operates at good ROIC (18.2%) and ROE (15.8%). ROIC decreased on 5.6 pp from 23.7% to 18.2% in FY2016. ROE decreased on 4.2 pp from 20.0% to 15.8% in FY2016. ROIC stuck to a declining trend at -5.9 pp per annum in FY2012-FY2016. ROE declined at -5.1 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 0.1x. Debt dropped on 65.9% while cash jumped on 1,373%.
Wonderla Holidays has no short term refinancing risk: cash is higher than short term debt (778,844.4%).
Valuation and dividends
The company's trades at EV/EBITDA 25.7x and P/E 36.5x while industy averages are 17.8x and 21.9x.
Financial and operational results
Wonderla Holidays ($WONDERLA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,131 | 1,379 | 1,536 | 1,819 | 2,054 | 12.9% |
| EBITDA | 555 | 626 | 704 | 814 | 842 | 3.5% |
| Net Income | 299 | 336 | 399 | 506 | 598 | 18.1% |
Balance Sheet
|
|---|
| Cash | 25 | 29 | 187 | 19 | 280 | 1,372.6% |
| Short Term Debt | 64 | 85 | 44 | 49 | 0 | -99.9% |
| Long Term Debt | 161 | 124 | 194 | 102 | 52 | -49.5% |
Cash flow
|
|---|
| Capex | 393 | 374 | 275 | 371 | 1,470 | 296.0% |
Ratios
|
|---|
| Revenue growth | 26.2% | 21.8% | 11.4% | 18.4% | 12.9% | |
| EBITDA growth | 20.8% | 12.8% | 12.4% | 15.7% | 3.5% | |
|
|---|
| EBITDA Margin | 49.1% | 45.4% | 45.8% | 44.7% | 41.0% | -3.7% |
| Net Income Margin | 26.4% | 24.4% | 26.0% | 27.8% | 29.1% | 1.3% |
| CAPEX, % of revenue | 34.8% | 27.2% | 17.9% | 20.4% | 71.6% | 51.2% |
|
|---|
| ROIC | 40.5% | 37.6% | 35.1% | 23.7% | 18.2% | -5.6% |
| ROE | 35.5% | 31.2% | 29.6% | 20.0% | 15.8% | -4.2% |
| Net Debt/EBITDA | 0.4x | 0.3x | 0.1x | 0.2x | -0.3x | -0.4x |
Peers in Other Leisure Facilities
Below we provide Wonderla Holidays benchmarking against other companies in Other Leisure Facilities 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 EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nicco Parks & Resorts ($NICCOPAR) | - | - | - | 20.3% | - |
| |
|---|
| Median (1 company) | - | - | - | 20.3% | - |
|---|
| Wonderla Holidays ($WONDERLA) | 49.1% | 45.4% | 45.8% | 44.7% | 41.0% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nicco Parks & Resorts ($NICCOPAR) | - | - | - | - | - |
| |
|---|
| Median (1 company) | - | - | - | - | - |
|---|
| Wonderla Holidays ($WONDERLA) | 40.5% | 37.6% | 35.1% | 23.7% | 18.2% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nicco Parks & Resorts ($NICCOPAR) | 0.5x | 0.0x | -1.7x | 0.0x | - |
| |
|---|
| Median (1 company) | 0.5x | 0.0x | -1.7x | 0.0x | - |
|---|
| Wonderla Holidays ($WONDERLA) | 0.4x | 0.3x | 0.1x | 0.2x | -0.3x |
