Maruwa Co Ltd Net Income dropped on 65.8% in 2015 and Revenue decreased slightly on 2.0%
28 Apr 2015 • About Maruwa Co Ltd (
$MAW) • By InTwits
Maruwa Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Maruwa Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.2%. At the same time it's a lot of higher than industry average of 2.9%.
- CAPEX is quite volatile: 2,139 in FY2015, 2,555 in FY2014, 3,721 in FY2013, 5,075 in FY2012, 2,542 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Maruwa Co Ltd ($MAW) key annual financial indicators
| mln. JPY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 20,011 | 21,313 | 24,399 | 33,475 | 32,811 | -2.0% |
| Gross Profit | 6,693 | 6,745 | 6,981 | 10,983 | 9,827 | -10.5% |
| SG&A | 3,658 | 3,813 | 4,694 | 7,634 | 7,423 | -2.8% |
| EBITDA | 4,619 | 4,759 | 4,318 | 5,947 | 4,832 | -18.8% |
| Net Income | 2,012 | 2,105 | 2,040 | 2,586 | 884 | -65.8% |
Balance Sheet
|
|---|
| Cash | 8,923 | 10,648 | 11,310 | 13,359 | 14,222 | 6.5% |
| Short Term Debt | 5 | 5 | 339 | 445 | 993 | 123.2% |
| Long Term Debt | 116 | 111 | 789 | 1,159 | 253 | -78.1% |
Cash flow
|
|---|
| Capex | 2,542 | 5,075 | 3,721 | 2,555 | 2,139 | -16.3% |
Ratios
|
|---|
| Revenue growth | 29.9% | 6.5% | 14.5% | 37.2% | -2.0% | |
| EBITDA growth | 57.9% | 3.0% | -9.3% | 37.7% | -18.8% | |
| Gross Margin | 33.4% | 31.6% | 28.6% | 32.8% | 30.0% | -2.9% |
| EBITDA Margin | 23.1% | 22.3% | 17.7% | 17.8% | 14.7% | -3.0% |
| Net Income Margin | 10.1% | 9.9% | 8.4% | 7.7% | 2.7% | -5.0% |
| SG&A, % of revenue | 18.3% | 17.9% | 19.2% | 22.8% | 22.6% | -0.2% |
| CAPEX, % of revenue | 12.7% | 23.8% | 15.3% | 7.6% | 6.5% | -1.1% |
| ROIC | 10.8% | 9.1% | 6.2% | 8.2% | 5.7% | -2.6% |
| ROE | 7.4% | 6.7% | 5.7% | 6.7% | 2.2% | -4.5% |
| Net Debt/EBITDA | -1.9x | -2.2x | -2.4x | -2.0x | -2.7x | -0.7x |
Revenue and profitability
The company's Revenue decreased slightly on 2.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.0 pp from 17.8% to 14.7% in FY2015.
Gross Margin decreased on 2.9 pp from 32.8% to 30.0% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign decreased on 5.0 pp from 7.7% to 2.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Maruwa Co Ltd had CAPEX/Revenue of 6.5%. The company showed big decline in CAPEX/Revenue of 17.3 pp from 23.8% in FY2012 to 6.5% in FY2015. Average CAPEX/Revenue for the last three years was 9.8%.
Return on investment
The company operates at low ROIC (5.67%) and ROE (2.18%). ROIC decreased on 2.6 pp from 8.2% to 5.7% in FY2015. ROE decreased on 4.5 pp from 6.7% to 2.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.7x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.7x from -2.0x to -2.7x in FY2015. Debt dropped on 22.3% in FY2015 while cash increased on 6.5% in FY2015.
Appendix 1: Peers in Electronic & Electrical Equipment
Below we provide Maruwa Co Ltd benchmarking against other companies in Electronic & Electrical 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Walsin Lihwa Corp ($WALS) | -0.1% | -17.1% | -5.6% | 9.7% | |
| Zytronic ($ZYT) | 10.8% | -0.3% | -15.4% | 9.3% | |
| Dewhurst ($DWHA) | 12.2% | 24.3% | -15.2% | 6.7% | |
| Solid State ($SSP) | 56.7% | 22.2% | 21.7% | 1.9% | |
| Stadium Group ($SDM) | 0.3% | -8.8% | 3.0% | -1.1% | |
| |
|---|
| Median (11 companies) | 15.0% | 2.7% | -5.6% | -3.8% | -1.1% |
|---|
| Maruwa Co Ltd ($MAW) | | 6.5% | 14.5% | 37.2% | -2.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Apc Technology Group ($APC) | 30.0% | 29.5% | 30.3% | 36.6% | |
| Zytronic ($ZYT) | 33.7% | 36.3% | 30.8% | 36.6% | |
| Elektron Technology ($EKT) | 42.1% | 40.6% | 37.5% | 34.8% | |
| Lpa Group ($LPA) | 23.4% | 28.3% | 27.2% | 29.6% | |
| Solid State ($SSP) | 27.8% | 27.8% | 26.1% | 29.2% | |
| |
|---|
| Median (9 companies) | 23.4% | 27.8% | 27.2% | 29.2% | |
|---|
| Maruwa Co Ltd ($MAW) | 33.4% | 31.6% | 28.6% | 32.8% | 30.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zytronic ($ZYT) | 23.7% | 25.3% | 18.8% | 22.9% | |
| Solid State ($SSP) | 5.7% | 6.7% | 6.3% | 17.3% | |
| Dewhurst ($DWHA) | 13.6% | 12.9% | 12.6% | 13.7% | |
| Stadium Group ($SDM) | 9.8% | 6.1% | 7.1% | 9.9% | |
| Morgan Advanced Materials ($BA29) | | 13.7% | 13.1% | 9.8% | 12.8% |
| |
|---|
| Median (11 companies) | 5.6% | 6.6% | 5.4% | 5.7% | 12.8% |
|---|
| Maruwa Co Ltd ($MAW) | 23.1% | 22.3% | 17.7% | 17.8% | 14.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lpa Group ($LPA) | 0.8% | 9.1% | 2.0% | 14.8% | |
| Morgan Advanced Materials ($BA29) | | 2.9% | 3.8% | 3.7% | 7.0% |
| Volex ($VLX) | 0.9% | 2.0% | 5.3% | 2.0% | |
| Elektron Technology ($EKT) | 1.5% | 3.0% | 2.7% | 1.5% | |
| Zytronic ($ZYT) | 2.6% | 3.6% | 2.8% | 1.4% | |
| |
|---|
| Median (11 companies) | 1.2% | 2.7% | 1.5% | 1.3% | 7.0% |
|---|
| Maruwa Co Ltd ($MAW) | 12.7% | 23.8% | 15.3% | 7.6% | 6.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Solid State ($SSP) | 20.3% | 22.3% | 19.7% | 44.5% | |
| Dewhurst ($DWHA) | 24.4% | 29.2% | 20.7% | 24.5% | |
| Stadium Group ($SDM) | 37.6% | 16.5% | 17.6% | 17.3% | |
| Zytronic ($ZYT) | 22.5% | 23.0% | 11.9% | 17.0% | |
| Morgan Advanced Materials ($BA29) | | 17.9% | 16.3% | 10.9% | 18.4% |
| |
|---|
| Median (11 companies) | 21.4% | 17.9% | 7.9% | 7.0% | 18.4% |
|---|
| Maruwa Co Ltd ($MAW) | 10.8% | 9.1% | 6.2% | 8.2% | 5.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Volex ($VLX) | 0.3x | -0.1x | 1.9x | 10.2x | |
| Walsin Lihwa Corp ($WALS) | 15.7x | 5.3x | 8.7x | 3.9x | |
| Elektron Technology ($EKT) | 0.6x | 0.7x | 1.7x | 3.8x | |
| Morgan Advanced Materials ($BA29) | | 1.4x | 1.5x | 2.3x | 1.8x |
| Lpa Group ($LPA) | 1.4x | 1.9x | 0.7x | 1.5x | |
| |
|---|
| Median (10 companies) | 0.5x | 0.7x | 0.7x | 1.4x | 1.8x |
|---|
| Maruwa Co Ltd ($MAW) | -1.9x | -2.2x | -2.4x | -2.0x | -2.7x |
