Mitsubishi Electric Corp Net Income surged on 52.9% in 2015 and Revenue increased on 6.6%
28 Apr 2015 • About Mitsubishi Electric Corp (
$MEL) • By InTwits
Mitsubishi Electric Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Mitsubishi Electric Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 2.6%.
- CAPEX is quite volatile: 70,960 in 2015, 27,565 in 2014, 44,395 in 2013, 80,467 in 2012, 91,666 in 2011
- The company has highly profitable business model: ROIC is at 14.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Mitsubishi Electric Corp ($MEL) key annual financial indicators
| mln. JPY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,645,331 | 3,639,468 | 3,567,184 | 4,054,359 | 4,323,041 | 6.6% |
| Gross Profit | 1,022,372 | 1,010,504 | 962,824 | 1,139,770 | 1,290,880 | 13.3% |
| SG&A | 645,779 | 625,283 | 648,890 | 737,042 | 790,563 | 7.3% |
| EBITDA | 339,041 | 352,688 | 280,037 | 368,128 | 473,809 | 28.7% |
| Net Income | 124,525 | 112,063 | 69,517 | 153,473 | 234,694 | 52.9% |
Balance Sheet
|
|---|
| Cash | 472,067 | 392,181 | 298,881 | 418,049 | 568,517 | 36.0% |
| Short Term Debt | 213,694 | 211,214 | 245,394 | 171,872 | 173,601 | 1.0% |
| Long Term Debt | 300,054 | 360,324 | 323,565 | 227,529 | 232,237 | 2.1% |
Cash flow
|
|---|
| Capex | 107,638 | 159,346 | 150,425 | 151,840 | 199,758 | 31.6% |
Ratios
|
|---|
| Revenue growth | 8.7% | -0.2% | -2.0% | 13.7% | 6.6% | |
| EBITDA growth | 58.4% | 4.0% | -20.6% | 31.5% | 28.7% | |
| Gross Margin | 28.0% | 27.8% | 27.0% | 28.1% | 29.9% | 1.7% |
| EBITDA Margin | 9.3% | 9.7% | 7.9% | 9.1% | 11.0% | 1.9% |
| Net Income Margin | 3.4% | 3.1% | 1.9% | 3.8% | 5.4% | 1.6% |
| SG&A, % of revenue | 17.7% | 17.2% | 18.2% | 18.2% | 18.3% | 0.1% |
| CAPEX, % of revenue | 3.0% | 4.4% | 4.2% | 3.7% | 4.6% | 0.9% |
| ROIC | 14.3% | 13.1% | 8.2% | 11.9% | 14.5% | 2.6% |
| ROE | 12.4% | 10.3% | 5.7% | 10.9% | 13.9% | 3.1% |
| Net Debt/EBITDA | 0.1x | 0.5x | 1.0x | -0.1x | -0.3x | -0.3x |
Revenue and profitability
Mitsubishi Electric Corp's Revenue increased on 6.6% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.7 pp from 19.9% to 22.6% in 2015.
Gross Margin increased slightly on 1.7 pp from 28.1% to 29.9% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 1.6 pp from 3.8% to 5.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Mitsubishi Electric Corp's CAPEX/Revenue was 4.6% in FY2015. Mitsubishi Electric Corp's CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at good ROIC (14.46%) and ROE (13.94%). ROIC increased on 2.6 pp from 11.9% to 14.5% in FY2015. ROE increased on 3.1 pp from 10.9% to 13.9% in FY2015.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from -0.1x to -0.3x in FY2015. Debt increased slightly on 1.6% in FY2015 while cash surged on 36.0% in FY2015.
Appendix 1: Peers in Industrial Engineering
Below you can find Mitsubishi Electric Corp benchmarking vs. other companies in Industrial Engineering 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pressure Technologies ($PRES) | 6.5% | 31.6% | 12.9% | 57.1% | |
| Avingtrans ($AVG) | 26.9% | -11.3% | 40.8% | 33.1% | |
| Somero Enterprise Inc ($SOMA) | 4.0% | 47.1% | 40.1% | 31.5% | |
| Energy Technique ($ETQ) | 10.2% | 22.6% | 6.4% | 26.7% | |
| Northbridge Industrial Services ($NBI) | 28.9% | 23.7% | 22.0% | 19.4% | |
| |
|---|
| Median (21 companies) | 11.3% | 11.7% | 6.1% | -0.1% | -4.8% |
|---|
| Mitsubishi Electric Corp ($MEL) | | -0.2% | -2.0% | 13.7% | 6.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Somero Enterprise Inc ($SOMA) | 46.7% | 48.7% | 52.2% | 54.0% | |
| Northbridge Industrial Services ($NBI) | 59.0% | 57.0% | 54.0% | 48.4% | |
| Rotork ($76ID) | | 46.8% | 47.4% | 48.0% | 45.7% |
| Hydro International ($HYD) | 40.0% | 37.3% | 39.4% | 45.3% | |
| Mincon Group ($MCON) | 51.6% | 42.6% | 49.1% | 43.2% | |
| |
|---|
| Median (19 companies) | 30.4% | 33.3% | 30.0% | 33.2% | 45.7% |
|---|
| Mitsubishi Electric Corp ($MEL) | 28.0% | 27.8% | 27.0% | 28.1% | 29.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northbridge Industrial Services ($NBI) | 30.9% | 30.3% | 29.2% | 32.4% | |
| Rotork ($76ID) | | 27.0% | 27.6% | 28.0% | 25.0% |
| Somero Enterprise Inc ($SOMA) | 3.8% | 12.6% | 23.9% | 27.4% | |
| Mincon Group ($MCON) | 34.0% | 22.9% | 30.0% | 22.7% | |
| Pressure Technologies ($PRES) | 8.4% | 9.9% | 13.0% | 14.5% | |
| |
|---|
| Median (21 companies) | 7.7% | 8.3% | 8.0% | 7.4% | 17.3% |
|---|
| Mitsubishi Electric Corp ($MEL) | 9.3% | 9.7% | 7.9% | 9.1% | 11.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Braime(T.F.& J.H.)(Hldgs) ($BMTO) | 1.6% | 2.3% | 9.6% | 5.6% | |
| Avingtrans ($AVG) | 2.7% | 8.6% | 4.6% | 5.0% | |
| Mincon Group ($MCON) | 3.4% | 8.0% | 4.1% | 4.3% | |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 4.1% | 4.4% | 4.5% | 3.6% | |
| Pressure Technologies ($PRES) | 5.0% | 2.4% | 2.3% | 3.3% | |
| |
|---|
| Median (21 companies) | 2.6% | 2.4% | 2.0% | 2.4% | 2.1% |
|---|
| Mitsubishi Electric Corp ($MEL) | 3.0% | 4.4% | 4.2% | 3.7% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Somero Enterprise Inc ($SOMA) | -7.0% | 6.0% | 34.1% | 51.7% | |
| Energy Technique ($ETQ) | -14.3% | 18.9% | 19.3% | 47.5% | |
| Rotork ($76ID) | | 50.0% | 45.4% | 38.1% | 21.9% |
| Pressure Technologies ($PRES) | 6.4% | 11.6% | 20.7% | 22.1% | |
| Northbridge Industrial Services ($NBI) | 13.0% | 12.6% | 12.5% | 12.6% | |
| |
|---|
| Median (21 companies) | 13.0% | 14.2% | 12.3% | 10.8% | 31.6% |
|---|
| Mitsubishi Electric Corp ($MEL) | 14.3% | 13.1% | 8.2% | 11.9% | 14.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tricorn Group ($TCN) | 0.0x | -0.3x | 0.9x | 5.8x | |
| Renold ($RNO) | | 1.3x | | 5.4x | 1.1x |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 0.9x | 2.3x | 2.0x | 5.2x | |
| Amiad Water Systems Ltd ($AFS) | | 1.2x | 1.4x | 3.0x | |
| 600 Group ($SIXH) | 2.7x | | 3.2x | 2.2x | |
| |
|---|
| Median (18 companies) | 0.6x | 0.1x | 0.1x | 0.6x | 0.8x |
|---|
| Mitsubishi Electric Corp ($MEL) | 0.1x | 0.5x | 1.0x | -0.1x | -0.3x |
