Konami Corp reports 45.4% CAPEX decline and almost no change in Revenue of 218,157
08 May 2015 • About Konami Corp (
$KNM) • By InTwits
Konami Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Konami Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.1%. At the same time it's a lot of higher than industry average of 5.4%.
- CAPEX is quite volatile: 25,769 in FY2015, 47,237 in FY2014, 9,927 in FY2013, 9,260 in FY2012, 10,554 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Konami Corp ($KNM) key annual financial indicators
| mln. JPY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 257,988 | 265,758 | 225,995 | 217,595 | 218,157 | 0.3% |
| Gross Profit | 68,956 | 91,343 | 73,182 | 68,141 | 71,454 | 4.9% |
| SG&A | 14,633 | 16,808 | 15,752 | 16,991 | 13,778 | -18.9% |
| EBITDA | 33,179 | 50,748 | 32,388 | 29,048 | 35,936 | 23.7% |
| Net Income | 12,934 | 23,012 | 13,174 | 4,465 | 9,918 | 122.1% |
Balance Sheet
|
|---|
| Cash | 59,541 | 76,451 | 63,669 | 50,024 | 64,654 | 29.2% |
| Short Term Debt | 10,783 | 9,758 | 11,847 | 8,536 | 8,005 | -6.2% |
| Long Term Debt | 35,516 | 29,803 | 22,588 | 35,412 | 33,391 | -5.7% |
Cash flow
|
|---|
| Capex | 10,554 | 9,260 | 9,927 | 47,237 | 25,769 | -45.4% |
Ratios
|
|---|
| Revenue growth | -1.6% | 3.0% | -15.0% | -3.7% | 0.3% | |
| EBITDA growth | 5.1% | 53.0% | -36.2% | -10.3% | 23.7% | |
| Gross Margin | 26.7% | 34.4% | 32.4% | 31.3% | 32.8% | 1.4% |
| EBITDA Margin | 12.9% | 19.1% | 14.3% | 13.3% | 16.5% | 3.1% |
| Net Income Margin | 5.0% | 8.7% | 5.8% | 2.1% | 4.5% | 2.5% |
| SG&A, % of revenue | 5.7% | 6.3% | 7.0% | 7.8% | 6.3% | -1.5% |
| CAPEX, % of revenue | 4.1% | 3.5% | 4.4% | 21.7% | 11.8% | -9.9% |
| ROIC | 8.7% | 16.2% | 8.4% | 3.2% | 6.6% | 3.4% |
| ROE | 6.8% | 11.2% | 6.0% | 2.1% | 4.7% | 2.6% |
| Net Debt/EBITDA | -0.4x | -0.7x | -0.9x | -0.2x | -0.6x | -0.4x |
Revenue and profitability
The company's Revenue showed almost no change in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.1 pp from 13.3% to 16.5% in FY2015.
Gross Margin increased slightly on 1.4 pp from 31.3% to 32.8% in FY2015. SG&A as a % of Revenue decreased slightly on 1.5 pp from 7.8% to 6.3% in FY2015.
Net Income marign increased on 2.5 pp from 2.1% to 4.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 11.8% in FY2015. Konami Corp showed CAPEX/Revenue growth of 8.3 pp from 3.5% in FY2012 to 11.8% in FY2015. For the last three years the average CAPEX/Revenue was 12.6%.The company maintained rich investment policy and has spent a big chunk of EBITDA (71.7%) to CAPEX.
Return on investment
The company operates at low ROIC (6.55%) and ROE (4.66%). ROIC increased on 3.4 pp from 3.2% to 6.6% in FY2015. ROE increased on 2.6 pp from 2.1% to 4.7% in FY2015.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from -0.2x to -0.6x in FY2015. Debt decreased on 5.8% in FY2015 while cash jumped on 29.2% in FY2015.
Appendix 1: Peers in Leisure Goods
Below you can find Konami Corp benchmarking vs. other companies in Leisure Goods 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vmoto Ltd ($VMT) | -60.4% | 15.9% | 205.5% | 70.6% | |
| Tandem Group ($TND) | -3.0% | -16.3% | -2.1% | 10.5% | |
| Lg Electronics Inc ($39IB) | -2.7% | 1.6% | 5.5% | 1.5% | |
| Hornby ($HRN) | -0.8% | 1.7% | -10.9% | -10.2% | |
| |
|---|
| Median (4 companies) | -2.8% | 1.6% | 1.7% | 6.0% | |
|---|
| Konami Corp ($KNM) | | 3.0% | -15.0% | -3.7% | 0.3% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hornby ($HRN) | 46.2% | 48.3% | 42.6% | 45.2% | |
| Tandem Group ($TND) | 28.4% | 29.7% | 29.2% | 30.5% | |
| Lg Electronics Inc ($39IB) | 22.5% | 23.3% | 23.1% | 23.3% | |
| Vmoto Ltd ($VMT) | 21.0% | 18.0% | 15.0% | 14.7% | |
| |
|---|
| Median (4 companies) | 25.4% | 26.5% | 26.2% | 26.9% | |
|---|
| Konami Corp ($KNM) | 26.7% | 34.4% | 32.4% | 31.3% | 32.8% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lg Electronics Inc ($39IB) | 2.8% | 5.4% | 5.5% | 6.4% | |
| Tandem Group ($TND) | 3.8% | 3.6% | 3.8% | 5.3% | |
| Vmoto Ltd ($VMT) | -50.8% | 31.8% | 3.2% | 2.0% | |
| Hornby ($HRN) | 14.9% | 14.5% | 1.8% | 1.8% | |
| |
|---|
| Median (4 companies) | 3.3% | 10.0% | 3.5% | 3.6% | |
|---|
| Konami Corp ($KNM) | 12.9% | 19.1% | 14.3% | 13.3% | 16.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hornby ($HRN) | 7.1% | 5.9% | 6.0% | 7.9% | |
| Lg Electronics Inc ($39IB) | 3.4% | 3.2% | 3.6% | 3.7% | |
| Vmoto Ltd ($VMT) | 29.5% | 14.2% | 1.6% | 2.6% | |
| Tandem Group ($TND) | 0.2% | 0.5% | 10.2% | 1.2% | |
| |
|---|
| Median (4 companies) | 5.2% | 4.5% | 4.8% | 3.1% | |
|---|
| Konami Corp ($KNM) | 4.1% | 3.5% | 4.4% | 21.7% | 11.8% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tandem Group ($TND) | 18.3% | 20.4% | 37.6% | 37.6% | |
| Lg Electronics Inc ($39IB) | 1.8% | 6.1% | 6.3% | 8.9% | |
| Vmoto Ltd ($VMT) | -25.3% | -16.1% | 1.8% | 1.4% | |
| Hornby ($HRN) | 10.2% | 10.4% | -6.8% | -7.7% | |
| |
|---|
| Median (4 companies) | 6.0% | 8.3% | 4.1% | 5.2% | |
|---|
| Konami Corp ($KNM) | 8.7% | 16.2% | 8.4% | 3.2% | 6.6% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hornby ($HRN) | 0.7x | 0.7x | 2.1x | 7.6x | |
| Lg Electronics Inc ($39IB) | 3.3x | 2.2x | 2.0x | 1.8x | |
| Vmoto Ltd ($VMT) | | 0.9x | 1.4x | 1.0x | |
| Tandem Group ($TND) | -2.1x | -1.4x | -1.4x | -1.1x | |
| |
|---|
| Median (4 companies) | 0.7x | 0.8x | 1.7x | 1.4x | |
|---|
| Konami Corp ($KNM) | -0.4x | -0.7x | -0.9x | -0.2x | -0.6x |
