Enkei Wheels (India) ROIC increased on 4.8 pp from 8.8% to 13.6% in 2016 and EBITDA increased on 4.4%
27-05-2016 • About Enkei Wheels (India) (
$ENKEIWHEL) • By InTwits
Enkei Wheels (India) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- The company has highly profitable business model: ROIC is 13.6%
- It operates with high leverage: Net Debt/EBITDA is 1.8x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Enkei Wheels (India)'s Revenue showed almost no change in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 6.5 pp from 8.1% to 1.6% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2013 at 6.3% and was growing since that time.
Net Income margin decreased on 2.0 pp from 0.59% to -1.4% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 3.7%. CAPEX/Revenue increased on 3.7 pp from in FY2013 to 3.7% in FY2016.
Return on investment
The company operates at low but positive ROIC (13.6%) and negative ROE (-24.6%). ROIC increased on 4.8 pp from 8.8% to 13.6% in FY2016. ROE dropped on 37.9 pp from 13.3% to -24.6% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2014 at -1.9% and was growing since that time.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 1.9x to 1.8x in FY2016. Debt decreased slightly on 2.0% while cash decreased on 7.4%.
Enkei Wheels (India) has short term refinancing risk: cash is only 49.1% of short term debt.
Financial and operational results
Enkei Wheels (India) ($ENKEIWHEL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,792 | 2,828 | 3,158 | 3,839 | 3,855 | 0.4% |
| EBITDA | 199 | 178 | 212 | 380 | 397 | 4.4% |
| Net Income | -53 | 44 | 5 | 23 | -55 | -339.7% |
Balance Sheet
|
|---|
| Cash | 606 | 485 | 269 | 85 | 79 | -7.4% |
| Short Term Debt | 679 | 270 | 230 | 177 | 160 | -9.5% |
| Long Term Debt | 677 | 857 | 864 | 625 | 626 | 0.2% |
Cash flow
|
|---|
| Capex | 278 | | | 108 | 144 | 32.8% |
Ratios
|
|---|
| Revenue growth | 16.9% | 1.3% | 11.7% | 21.6% | 0.4% | |
| EBITDA growth | 4.5% | -10.6% | 19.4% | 79.3% | 4.4% | |
|
|---|
| EBITDA Margin | 7.1% | 6.3% | 6.7% | 9.9% | 10.3% | 0.4% |
| Net Income Margin | -1.9% | 1.5% | 0.2% | 0.6% | -1.4% | -2.0% |
| CAPEX, % of revenue | 10.0% | | | 2.8% | 3.7% | 0.9% |
|
|---|
| ROIC | 3.9% | 1.3% | -1.9% | 8.8% | 13.6% | 4.8% |
| ROE | | 54.3% | 3.8% | 13.3% | -24.6% | -37.9% |
| Net Debt/EBITDA | 3.8x | 3.6x | 3.9x | 1.9x | 1.8x | -0.1x |
Peers in Auto Parts & Equipment
Below we provide Enkei Wheels (India) benchmarking against other companies in Auto Parts & Equipment 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 |
|---|
| Spectra Industries ($SPECTRA) | 16.4% | 40.2% | -10.1% | 57.1% | - |
| Simmonds Marshall ($SIMMOND) | - | 4.6% | 13.4% | 28.5% | 0.1% |
| India Nippon Electricals ($INDNIPPON) | 13.6% | 3.2% | -2.4% | 24.8% | - |
| Amara Raja Batteries ($AMARAJABAT) | - | 25.1% | 16.1% | 22.6% | 11.4% |
| Ip Rings ($IPRINGLTD) | - | 2.4% | -0.1% | 19.5% | 16.7% |
| |
|---|
| Median (38 companies) | 17.9% | 2.7% | 4.9% | 8.7% | 1.8% |
|---|
| Enkei Wheels (India) ($ENKEIWHEL) | - | 1.3% | 11.7% | 21.6% | 0.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ist ($ISTLTD) | - | - | - | 71.6% | - |
| Tube Investments Of India ($TUBEINVEST) | 18.4% | 24.4% | 28.3% | 30.0% | 21.4% |
| Shivam Autotech ($SHIVAMAUTO) | 24.1% | 24.1% | 20.6% | 18.7% | - |
| Amara Raja Batteries ($AMARAJABAT) | 14.9% | 15.7% | 14.2% | 17.0% | 17.6% |
| Suprajit Engineering ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | - |
| |
|---|
| Median (45 companies) | 11.1% | 9.9% | 10.8% | 10.3% | 11.3% |
|---|
| Enkei Wheels (India) ($ENKEIWHEL) | 7.1% | 6.3% | 6.7% | 9.9% | 10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amtek Auto ($AMTEKAUTO) | 18.9% | - | 27.1% | 30.3% | - |
| Jbm Auto ($JBMA) | 9.8% | 8.4% | - | 14.4% | - |
| Rico Auto Industries ($RICOAUTO) | 5.8% | 10.9% | 5.7% | 14.2% | 7.4% |
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 4.1% | 4.9% | 12.5% | - |
| Amara Raja Batteries ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | 11.0% |
| |
|---|
| Median (25 companies) | 5.7% | 4.5% | 4.8% | 4.7% | 4.9% |
|---|
| Enkei Wheels (India) ($ENKEIWHEL) | 10.0% | - | - | 2.8% | 3.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 32.1% | 34.5% | 30.3% | 35.4% | 33.7% |
| Exide Industries ($EXIDEIND) | 24.2% | 24.3% | 29.5% | 26.9% | 20.5% |
| Munjal Showa ($MUNJALSHOW) | 29.9% | 23.8% | 22.5% | 24.9% | 19.8% |
| Motherson Sumi Systems ($MOTHERSUMI) | 13.5% | 16.5% | 25.0% | 24.9% | 25.1% |
| Gabriel India ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | 25.0% |
| |
|---|
| Median (51 companies) | 16.4% | 12.7% | 15.6% | 14.8% | 15.5% |
|---|
| Enkei Wheels (India) ($ENKEIWHEL) | 3.9% | 1.3% | -1.9% | 8.8% | 13.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tube Investments Of India ($TUBEINVEST) | 17.6x | 17.8x | 17.3x | 16.4x | 0.1x |
| Amtek Auto ($AMTEKAUTO) | 4.8x | - | 5.3x | 5.8x | - |
| Remsons Industries ($REMSONSIND) | 2.8x | 4.3x | 3.6x | 5.7x | - |
| Steel Strips Wheels ($SSWL) | 5.4x | 6.3x | 6.5x | 5.6x | 4.2x |
| Autopal Industries ($AUTOPAL) | - | 3.4x | 3.8x | 4.4x | 0.0x |
| |
|---|
| Median (43 companies) | 1.2x | 2.0x | 0.7x | 0.0x | 0.0x |
|---|
| Enkei Wheels (India) ($ENKEIWHEL) | 3.8x | 3.6x | 3.9x | 1.9x | 1.8x |
