Cmi reports 1,581% Net Income growth in 2016 and 77.0% Revenue growth
30-05-2016 • About Cmi (
$CMI) • By InTwits
Cmi reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cmi is a fast growth stock: FY2016 revenue growth was 77.0%, 5 year revenue CAGR was 32.4% at FY2016 ROIC 18.4%
- The company has highly profitable business model: ROIC is 18.4%
- It operates with high leverage: Net Debt/EBITDA is 3.0x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 77.0%. During FY2012-FY2016 Revenue growth bottomed in FY2014 at 18.7% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 23.5% to 24.9% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2014 at 8.4% and was growing since that time.
Net Income margin surged on 39.5 pp from 4.6% to 44.1% in FY2016. During the last 5 years Net Income margin bottomed in FY2014 at 1.7% and was growing since that time.
Return on investment
The company operates at high and attractive ROE (99.8%) while ROIC is a bit lower (18.4%). ROIC decreased on 3.8 pp from 22.2% to 18.4% in FY2016. ROE surged on 75.2 pp from 24.6% to 99.8% in FY2016. During FY2012-FY2016 ROE bottomed in FY2014 at 13.3% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.0x and Debt / EBITDA is 3.3x. Net Debt / EBITDA surged on 0.8x from 2.3x to 3.0x in FY2016. Debt jumped on 230% while cash jumped on 1,411%.
Cmi has short term refinancing risk: cash is only 15.2% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 12.3x and P/E 2.9x while industy averages are 17.8x and 21.9x.
Financial and operational results
Cmi ($CMI) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 728 | 886 | 1,051 | 1,358 | 2,402 | 77.0% |
| EBITDA | 66 | 76 | 88 | 144 | 337 | 134.1% |
| Net Income | 22 | 17 | 18 | 63 | 1,060 | 1,581.2% |
Balance Sheet
|
|---|
| Cash | 3 | 2 | 2 | 5 | 72 | 1,410.7% |
| Short Term Debt | 153 | 186 | 260 | 304 | 473 | 55.5% |
| Long Term Debt | 121 | 126 | 116 | 28 | 626 | 2,103.7% |
Cash flow
|
|---|
| Capex | 8 | 16 | 7 | 47 | | |
Ratios
|
|---|
| Revenue growth | 23.5% | 21.6% | 18.7% | 29.1% | 77.0% | |
| EBITDA growth | 19.3% | 16.2% | 15.0% | 63.8% | 134.1% | |
|
|---|
| EBITDA Margin | 9.0% | 8.6% | 8.4% | 10.6% | 14.0% | 3.4% |
| Net Income Margin | 3.0% | 1.9% | 1.7% | 4.6% | 44.1% | 39.5% |
| CAPEX, % of revenue | 1.1% | 1.8% | 0.6% | 3.5% | | |
|
|---|
| ROIC | 16.7% | 16.1% | 16.6% | 22.2% | 18.4% | -3.8% |
| ROE | 21.4% | 14.1% | 13.3% | 24.6% | 99.8% | 75.2% |
| Net Debt/EBITDA | 4.1x | 4.1x | 4.3x | 2.3x | 3.0x | 0.8x |
Peers in Telecom Cables
Below you can find Cmi benchmarking vs. other companies in Telecom Cables 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vindhya Telelinks ($VINDHYATEL) | - | 35.9% | 29.8% | 49.3% | 48.4% |
| Aksh Optifibre ($AKSHOPTFBR) | - | -6.1% | -7.0% | 46.7% | 25.3% |
| Himachal Futuristic Communications ($HFCL) | - | 132.4% | 233.0% | 26.4% | 2.3% |
| |
|---|
| Median (3 companies) | - | 35.9% | 29.8% | 46.7% | 25.3% |
|---|
| Cmi ($CMI) | - | 21.6% | 18.7% | 29.1% | 77.0% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vindhya Telelinks ($VINDHYATEL) | -0.4% | 6.8% | 11.3% | 15.0% | 17.0% |
| Aksh Optifibre ($AKSHOPTFBR) | 11.1% | 14.7% | 14.5% | 13.1% | 15.0% |
| Himachal Futuristic Communications ($HFCL) | 8.7% | 11.4% | 12.9% | 11.1% | 12.9% |
| |
|---|
| Median (3 companies) | 8.7% | 11.4% | 12.9% | 12.1% | 15.0% |
|---|
| Cmi ($CMI) | 9.0% | 8.6% | 8.4% | 10.6% | 14.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Aksh Optifibre ($AKSHOPTFBR) | 0.6% | 1.4% | 7.8% | 7.9% | 2.2% |
| Vindhya Telelinks ($VINDHYATEL) | 0.6% | 1.1% | 5.0% | 3.1% | 2.7% |
| Himachal Futuristic Communications ($HFCL) | 7.9% | 5.9% | 2.3% | 0.7% | 2.3% |
| |
|---|
| Median (3 companies) | 0.6% | 1.4% | 5.0% | 3.1% | 2.3% |
|---|
| Cmi ($CMI) | 1.1% | 1.8% | 0.6% | 3.5% | - |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Himachal Futuristic Communications ($HFCL) | - | 9.0% | 30.9% | 22.2% | 22.6% |
| Vindhya Telelinks ($VINDHYATEL) | -1.8% | 4.7% | 9.9% | 15.0% | 20.8% |
| Aksh Optifibre ($AKSHOPTFBR) | 4.2% | 5.4% | 4.3% | 5.5% | 8.4% |
| |
|---|
| Median (3 companies) | 1.2% | 5.4% | 9.9% | 15.0% | 20.8% |
|---|
| Cmi ($CMI) | 16.7% | 16.1% | 16.6% | 22.2% | 18.4% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vindhya Telelinks ($VINDHYATEL) | - | 4.5x | 2.6x | 2.7x | 1.6x |
| Aksh Optifibre ($AKSHOPTFBR) | 1.0x | 0.4x | 3.9x | 2.5x | 1.2x |
| Himachal Futuristic Communications ($HFCL) | 17.8x | 5.3x | 1.1x | 1.0x | 0.9x |
| |
|---|
| Median (3 companies) | 9.4x | 4.5x | 2.6x | 2.5x | 1.2x |
|---|
| Cmi ($CMI) | 4.1x | 4.1x | 4.3x | 2.3x | 3.0x |
