Looking for a profitable fast-growing stock? Look at Cmi
06-06-2016 • About Cmi (
$CMI) • By InTwits
Cmi is a growth stock in Telecom Cables industry. Its revenue performance, profitability and financial model stands it out vs. other public companies on the market.
Growth story
Cmi showed growth in the last financial year. Cmi's revenue surged on 77.0% in FY2016. In addition to revenue Cmi also keeps delivering EBITDA growth. It was 134% in FY2016
In the longer period Cmi showed fast revenue growth of 39.5% from FY2013 to FY2016 annually. EBITDA surged on 64.0% from FY2013 to FY2016 annually.
Cmi ($CMI) financials for the last 5 years
| mln. INR | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 728 | 886 | 1,051 | 1,358 | 2,402 |
|---|
| Revenue growth, % | | 21.6% | 18.7% | 29.1% | 77.0% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 66 | 76 | 88 | 144 | 337 |
|---|
| EBITDA growth, % | | 16.2% | 15.0% | 63.8% | 134.1% |
|---|
| EBITDA margin, % | 9.02% | 8.62% | 8.36% | 10.6% | 14.0% |
|---|
| Net Income | 22 | 17 | 18 | 63 | 1,060 |
|---|
| Net Income margin, % | 2.96% | 1.88% | 1.68% | 4.64% | 44.1% |
|---|
| |
| CAPEX | 8 | 16 | 7 | 47 | 0 |
|---|
| CAPEX/Revenue, % | 1.10% | 1.83% | 0.644% | 3.48% | 0% |
|---|
| Debt | 275 | 312 | 376 | 333 | 1,099 |
|---|
| Cash | 3 | 2 | 2 | 5 | 72 |
|---|
| Net Debt/EBITDA | 4.1x | 4.1x | 4.3x | 2.3x | 3.0x |
|---|
| |
| ROIC, % | 16.7% | 16.1% | 16.6% | 22.2% | 18.4% |
|---|
| ROE, % | 21.4% | 14.1% | 13.3% | 24.6% | 99.8% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. Cmi's EBITDA margin surged on 3.40 pp from 10.6% to 14% in FY2016. In the longer period the company showed fast EBITDA margin growth of 5.40 pp from 8.60% in FY2013 to 14% in FY2016.
Cmi shows attractive ROIC at 18.4% for the last 12 months which assumes stable development model. During the last three years it surged - it was 16.1% in FY2013. It's average ROIC for the last three years was 19.0%.
The company showed fast Net Income margin growth of 39.5 pp from 4.60% to 44.1% in FY2016. In the last 3 years the company showed fast Net Income margin growth of 42.2 pp from 1.90% in FY2013 to 44.1% in FY2016.
Cmi operates at ROE of 99.8%. Average ROE for the last three years was 45.9%.
Capital expenditures (CAPEX)
In FY2016 the company had CAPEX/Revenue of 0%. The company's CAPEX/Revenue dropped on 1.83 pp from 1.83% in FY2013 to 0% in FY2016.
Leverage (Debt)
Having such a fast growth profile Cmi keeps medium debt level at 3.0x Net Debt/EBITDA. In the longer period leverage dropped on 1.01x from 4.06x in FY2013 to 3.05x in FY2016.
Peers in Telecom Cables
Below we provide Cmi benchmarking against other companies in Telecom Cables 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top |
|---|
| 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top |
|---|
| 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
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top |
|---|
| 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 |
