Hitachi Home And Life Solutions (India) EBITDA dropped on 12.1% and EBITDA Margin decreased slightly on 1.5 pp from 9.0% to 7.5%
30-05-2016 • About Hitachi Home And Life Solutions (India) (
$HITACHIHOM) • By InTwits
Hitachi Home And Life Solutions (India) reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Hitachi Home And Life Solutions (India) is a growth stock: FY2016 revenue growth was 5.5%, 5 year revenue CAGR was 16.8% at FY2016 ROIC 16.6%
- Hitachi Home And Life Solutions (India) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%. At the same time it's a lot of higher than industry average of 1.8%.
- CAPEX is quite volatile: ₹600m in FY2016, ₹658m in FY2015, ₹417m in FY2014, ₹1,115m in FY2013, ₹171m in FY2012
- The company has highly profitable business model: ROIC is 16.6%
- It operates with high leverage: Net Debt/EBITDA is 1.0x while industry average is 0.1x
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 increased on 5.5%. During the last 5 years Revenue growth topped in FY2015 at 43.0%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.66 pp from 10.2% to 9.5% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2015 at 9.0%.
Net Income margin decreased slightly on 1.9 pp from 4.9% to 3.0% in FY2016.
Investments (CAPEX, working capital and M&A)
Hitachi Home And Life Solutions (India)'s CAPEX/Revenue was 3.6% in FY2016. CAPEX/Revenue decreased on 8.4 pp from 12.0% in FY2013 to 3.6% in FY2016. Average CAPEX/Revenue for the last three years was 3.9%.
Return on investment
The company operates at good ROIC (16.6%) and ROE (14.9%). ROIC decreased on 9.0 pp from 25.6% to 16.6% in FY2016. ROE dropped on 13.2 pp from 28.1% to 14.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 1.1x. Net Debt / EBITDA increased on 0.1x from 1.0x to 1.0x in FY2016. Debt decreased on 4.8% while cash dropped on 33.7%.
Hitachi Home And Life Solutions (India) has short term refinancing risk: cash is only 2.5% of short term debt.
Financial and operational results
Hitachi Home And Life Solutions (India) ($HITACHIHOM) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7,981 | 9,300 | 10,997 | 15,728 | 16,595 | 5.5% |
| EBITDA | 347 | 498 | 611 | 1,413 | 1,241 | -12.1% |
| Net Income | 33 | 153 | 80 | 778 | 500 | -35.7% |
Balance Sheet
|
|---|
| Cash | 22 | 709 | 14 | 51 | 34 | -33.7% |
| Short Term Debt | 703 | 839 | 973 | 1,119 | 1,328 | 18.6% |
| Long Term Debt | 0 | 552 | 276 | 276 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 171 | 1,115 | 417 | 658 | 600 | -8.8% |
Ratios
|
|---|
| Revenue growth | 4.5% | 16.5% | 18.3% | 43.0% | 5.5% | |
| EBITDA growth | -40.9% | 43.5% | 22.7% | 131.3% | -12.1% | |
|
|---|
| EBITDA Margin | 4.3% | 5.4% | 5.6% | 9.0% | 7.5% | -1.5% |
| Net Income Margin | 0.4% | 1.6% | 0.7% | 4.9% | 3.0% | -1.9% |
| CAPEX, % of revenue | 2.1% | 12.0% | 3.8% | 4.2% | 3.6% | -0.6% |
|
|---|
| ROIC | 6.5% | 9.6% | 8.4% | 25.6% | 16.6% | -9.0% |
| ROE | 1.9% | 7.5% | 3.4% | 28.1% | 14.9% | -13.2% |
| Net Debt/EBITDA | 2.0x | 1.4x | 2.0x | 1.0x | 1.0x | 0.1x |
Peers in Consumer Electronics
Below you can find Hitachi Home And Life Solutions (India) benchmarking vs. other companies in Consumer Electronics 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 |
|---|
| Blue Star ($BLUESTARCO) | - | 3.9% | 1.3% | 8.4% | 14.8% |
| Whirlpool Of India ($WHIRLPOOL) | - | 4.3% | 2.2% | 16.2% | 5.9% |
| Mirc Electronics ($MIRCELECTR) | - | -21.4% | -0.9% | -17.7% | -28.1% |
| Sharp India ($SHARP) | - | -7.4% | 98.9% | 22.2% | -84.1% |
| |
|---|
| Median (4 companies) | - | -1.7% | 1.8% | 12.3% | -11.1% |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | - | 16.5% | 18.3% | 43.0% | 5.5% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 8.9% | 8.4% | 7.9% | 10.1% | 10.9% |
| Blue Star ($BLUESTARCO) | -0.8% | 3.1% | 5.4% | 5.5% | 5.7% |
| Mirc Electronics ($MIRCELECTR) | 1.4% | -0.0% | 0.5% | 4.1% | -0.0% |
| Sharp India ($SHARP) | 7.2% | 4.8% | 6.3% | 5.7% | -20.6% |
| |
|---|
| Median (4 companies) | 4.3% | 4.0% | 5.8% | 5.5% | 2.8% |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 4.3% | 5.4% | 5.6% | 9.0% | 7.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 4.5% | 3.0% | 3.0% | 2.6% | 2.1% |
| Blue Star ($BLUESTARCO) | 1.9% | 1.0% | 1.4% | 1.9% | 1.5% |
| Mirc Electronics ($MIRCELECTR) | 0.7% | 1.3% | 0.6% | 0.0% | 0.1% |
| |
|---|
| Median (3 companies) | 3.2% | 1.3% | 1.4% | 1.9% | 1.5% |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 2.1% | 12.0% | 3.8% | 4.2% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Whirlpool Of India ($WHIRLPOOL) | 34.9% | 27.0% | 21.1% | 29.3% | 28.2% |
| Blue Star ($BLUESTARCO) | -6.1% | 6.9% | 12.6% | 13.4% | 14.3% |
| Mirc Electronics ($MIRCELECTR) | -0.0% | -4.0% | -2.2% | 7.3% | -3.5% |
| Calcom Vision ($CALCOM) | - | -14.3% | - | - | - |
| Vxl Instruments ($VXLINSTR) | 13.7% | 4.5% | - | - | - |
| |
|---|
| Median (6 companies) | 7.9% | 0.2% | 12.6% | 13.4% | 14.3% |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 6.5% | 9.6% | 8.4% | 25.6% | 16.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mirc Electronics ($MIRCELECTR) | 5.8x | - | 45.1x | 4.9x | - |
| Blue Star ($BLUESTARCO) | - | 4.5x | 2.7x | 2.0x | 1.5x |
| Sharp India ($SHARP) | 1.2x | 0.4x | 0.0x | 0.6x | - |
| Vxl Instruments ($VXLINSTR) | 1.2x | 3.9x | - | 0.0x | - |
| Whirlpool Of India ($WHIRLPOOL) | -0.2x | -0.7x | -1.3x | -1.6x | -2.2x |
| |
|---|
| Median (5 companies) | 1.2x | 3.9x | 1.4x | 0.6x | -0.4x |
|---|
| Hitachi Home And Life Solutions (India) ($HITACHIHOM) | 2.0x | 1.4x | 2.0x | 1.0x | 1.0x |
