Jbm Auto reports 40.9% CAPEX decline in 2016 while 9.8% Revenue growth
30-05-2016 • About Jbm Auto (
$JBMA) • By InTwits
Jbm Auto reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Jbm Auto is a fast growth stock: FY2016 revenue growth was 9.8%, 5 year revenue CAGR was 15.7% at FY2016 ROIC 14.2%
- The company has highly profitable business model: ROIC is 14.2%
- It operates with high leverage: Net Debt/EBITDA is 2.7x while industry average is 0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 9.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 37.6 pp from 54.7% to 17.1% in FY2016.
Net Income margin decreased on 2.1 pp from 5.5% to 3.5% in FY2016. During the last 5 years Net Income margin topped in FY2015 at 5.5%.
Investments (CAPEX, working capital and M&A)
Jbm Auto's CAPEX/Revenue was 7.8% in FY2016. The company's CAPEX/Revenue decreased slightly on 0.62 pp from 8.4% in FY2013 to 7.8% in FY2016. Jbm Auto maintained rich investment policy and has spent a big chunk of EBITDA (60.4%) to CAPEX.
Return on investment
The company operates at good ROIC (14.2%) and ROE (15.7%). ROIC decreased on 6.0 pp from 20.1% to 14.2% in FY2016. ROE dropped on 11.5 pp from 27.2% to 15.7% in FY2016. During the last 5 years ROIC topped in FY2015 at 20.1%. During FY2012-FY2016 ROE topped in FY2015 at 27.2%.
Leverage (Debt)
Debt level is 2.7x Net Debt / EBITDA and 2.7x Debt / EBITDA. Net Debt / EBITDA surged on 0.1x from 2.5x to 2.7x in FY2016. Debt increased on 6.8% while cash dropped on 34.7%. During FY2012-FY2016 Net Debt/EBITDA bottomed in FY2014 at 1.7x and was growing since that time.
Jbm Auto has short term refinancing risk: cash is only 1.9% of short term debt.
Valuation and dividends
Jbm Auto's trades at EV/EBITDA 5.9x and P/E 11.9x while industy averages are 17.8x and 21.9x.
Financial and operational results
Jbm Auto ($JBMA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,673 | 11,710 | 12,230 | 13,828 | 15,178 | 9.8% |
| EBITDA | 1,136 | 1,329 | 1,546 | 1,909 | 1,950 | 2.1% |
| Net Income | 259 | 326 | 502 | 764 | 524 | -31.5% |
Balance Sheet
|
|---|
| Cash | 71 | 55 | 74 | 112 | 73 | -34.7% |
| Short Term Debt | 1,732 | 2,258 | 1,831 | 3,063 | 3,768 | 23.0% |
| Long Term Debt | 1,740 | 1,490 | 805 | 1,860 | 1,489 | -20.0% |
Cash flow
|
|---|
| Capex | 943 | 981 | | 1,992 | 1,177 | -40.9% |
Ratios
|
|---|
| Revenue growth | 32.2% | 21.1% | 4.4% | 13.1% | 9.8% | |
| EBITDA growth | 43.5% | 17.1% | 16.3% | 23.5% | 2.1% | |
|
|---|
| EBITDA Margin | 11.7% | 11.4% | 12.6% | 13.8% | 12.8% | -1.0% |
| Net Income Margin | 2.7% | 2.8% | 4.1% | 5.5% | 3.5% | -2.1% |
| CAPEX, % of revenue | 9.8% | 8.4% | | 14.4% | 7.8% | -6.6% |
|
|---|
| ROIC | 16.2% | 17.2% | 19.0% | 20.1% | 14.2% | -6.0% |
| ROE | 20.3% | 20.8% | 24.1% | 27.2% | 15.7% | -11.5% |
| Net Debt/EBITDA | 3.0x | 2.8x | 1.7x | 2.5x | 2.7x | 0.1x |
Peers in Auto Parts & Equipment
Below we provide Jbm Auto 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 |
|---|
| Suprajit Engineering ($SUPRAJIT) | - | 9.4% | 17.9% | 12.2% | 55.7% |
| Fiem Industries ($FIEMIND) | - | 13.4% | 18.7% | 14.5% | 19.4% |
| Ip Rings ($IPRINGLTD) | - | 2.4% | -0.1% | 19.5% | 16.7% |
| Amara Raja Batteries ($AMARAJABAT) | - | 25.1% | 16.1% | 22.6% | 11.4% |
| Spectra Industries ($SPECTRA) | - | 40.2% | -10.1% | 57.1% | 11.1% |
| |
|---|
| Median (35 companies) | 12.1% | 2.4% | 5.0% | 8.7% | 2.8% |
|---|
| Jbm Auto ($JBMA) | - | 21.1% | 4.4% | 13.1% | 9.8% |
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 ($SHIVAMAUTO) | 24.1% | 24.1% | 20.6% | 18.7% | 16.6% |
| Amara Raja Batteries ($AMARAJABAT) | 14.9% | 15.7% | 14.2% | 17.0% | 17.6% |
| Suprajit Engineering ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | 17.4% |
| |
|---|
| Median (45 companies) | 10.8% | 9.8% | 10.1% | 9.9% | 10.8% |
|---|
| Jbm Auto ($JBMA) | 11.7% | 11.4% | 12.6% | 13.8% | 12.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 4.1% | 4.9% | 12.5% | 27.9% |
| Fiem Industries ($FIEMIND) | 12.5% | 4.7% | 6.7% | 7.2% | 11.2% |
| Amara Raja Batteries ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | 11.0% |
| Steel Strips Wheels ($SSWL) | 13.3% | 11.4% | 5.8% | 4.5% | 9.7% |
| Rico Auto Industries ($RICOAUTO) | 5.8% | 10.9% | 5.7% | 14.2% | 7.4% |
| |
|---|
| Median (22 companies) | 5.7% | 4.5% | 4.8% | 4.5% | 4.9% |
|---|
| Jbm Auto ($JBMA) | 9.8% | 8.4% | - | 14.4% | 7.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 32.1% | 34.5% | 30.3% | 35.4% | 33.7% |
| Suprajit Engineering ($SUPRAJIT) | 31.8% | 28.0% | 26.1% | 22.9% | 25.1% |
| 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% |
| Fiem Industries ($FIEMIND) | 18.7% | 16.9% | 19.9% | 20.2% | 23.1% |
| |
|---|
| Median (48 companies) | 15.9% | 11.9% | 14.5% | 14.5% | 13.6% |
|---|
| Jbm Auto ($JBMA) | 16.2% | 17.2% | 19.0% | 20.1% | 14.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 2.0x | 1.5x | 1.5x | 2.2x | 4.3x |
| Steel Strips Wheels ($SSWL) | 5.4x | 6.3x | 6.5x | 5.6x | 4.2x |
| Rico Auto Industries ($RICOAUTO) | 3.6x | 4.2x | 2.3x | 1.5x | 2.1x |
| Subros ($SUBROS) | 3.1x | 2.8x | 3.1x | 3.1x | 1.9x |
| Wheels India ($WHEELS) | 2.0x | 2.4x | 2.2x | 2.5x | 1.9x |
| |
|---|
| Median (39 companies) | 1.2x | 2.0x | 0.7x | 0.0x | 0.0x |
|---|
| Jbm Auto ($JBMA) | 3.0x | 2.8x | 1.7x | 2.5x | 2.7x |
