Volex EBITDA dropped on 15.6% in 2015 and EBITDA Margin showed almost no change
11 Jun 2015 • About Volex (
$VLX) • By InTwits
Volex reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Volex doesn't have a profitable business model yet: FY2015 ROIC is -5.3%
- EBITDA Margin is quite volatile: 0.6% in FY2015, 0.8% in FY2014, 2.1% in FY2013, 5.1% in FY2012, 5.5% in FY2011
- Volex has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's in pair with industry average of 2.7%.
- CAPEX is quite volatile: 3.9 in FY2015, 8.2 in FY2014, 24.9 in FY2013, 10.3 in FY2012, 4.4 in FY2011
- The company has unprofitable business model: ROIC is at -5.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Volex ($VLX) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 490.0 | 517.8 | 473.2 | 400.2 | 423.4 | 5.8% |
| Gross Profit | 92.1 | 97.5 | 83.2 | 66.0 | 70.6 | 7.0% |
| EBITDA | 26.9 | 26.6 | 10.1 | 3.2 | 2.7 | -15.6% |
| Net Income | 16.7 | 17.2 | -0.9 | -14.2 | -10.7 | -24.5% |
Balance Sheet
|
|---|
| Cash | 20.4 | 43.6 | 25.0 | 13.7 | 33.7 | 146.7% |
| Short Term Debt | 27.7 | 2.5 | 1.3 | 0.0 | 7.5 | |
| Long Term Debt | 0.1 | 37.4 | 43.3 | 45.9 | 24.3 | -47.0% |
Cash flow
|
|---|
| Capex | 4.4 | 10.3 | 24.9 | 8.2 | 3.9 | -51.7% |
Ratios
|
|---|
| Revenue growth | 34.0% | 5.7% | -8.6% | -15.4% | 5.8% | |
| EBITDA growth | 34.3% | -1.0% | -61.9% | -68.9% | -15.6% | |
| Gross Margin | 18.8% | 18.8% | 17.6% | 16.5% | 16.7% | 0.2% |
| EBITDA Margin | 5.5% | 5.1% | 2.1% | 0.8% | 0.6% | -0.2% |
| Net Income Margin | 3.4% | 3.3% | -0.2% | -3.5% | -2.5% | 1.0% |
| CAPEX, % of revenue | 0.9% | 2.0% | 5.3% | 2.0% | 0.9% | -1.1% |
| ROIC | 37.1% | 29.3% | 4.7% | -5.6% | -5.3% | 0.3% |
| ROE | 57.9% | 38.4% | -1.8% | -34.4% | -23.5% | 10.9% |
| Net Debt/EBITDA | 0.3x | -0.1x | 1.9x | 10.2x | -0.7x | -10.9x |
Revenue and profitability
Volex's Revenue increased on 5.8% in FY2015. EBITDA Margin showed almost no change in FY2015.
Gross Margin showed almost no change in FY2015.
Net Income marign increased slightly on 1.0 pp from -3.5% to -2.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.93% in FY2015. The company showed small CAPEX/Revenue decline of 1.1 pp from 2.0% in FY2012 to 0.93% in FY2015. It's average CAPEX/Revenue for the last three years was 2.7%.The company maintained rich investment policy and has spent a lot to CAPEX (148% of EBITDA).
Return on investment
The company operates at negative ROIC (-5.26%) and ROE (-23.47%). ROIC showed almost no change in FY2015. ROE jumped on 10.9 pp from -34.4% to -23.5% in FY2015.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and 12.0x Debt / EBITDA. Net Debt / EBITDA dropped on 10.9x from 10.2x to -0.7x in FY2015. Debt dropped on 30.6% in FY2015 while cash surged on 147% in FY2015.
Appendix 1: Peers in Electronic & Electrical Equipment
Below you can find Volex benchmarking vs. other companies in Electronic & Electrical Equipment 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 |
|---|
| Flowgroup ($FLOW) | 492.3% | -92.9% | 125,263.6% | 141.9% | |
| Maruwa Co Ltd ($MAW) | | 6.5% | 14.5% | 37.2% | -2.0% |
| Walsin Lihwa Corp ($WALS) | -0.1% | -17.1% | -5.6% | 9.7% | |
| Zytronic ($ZYT) | 10.8% | -0.3% | -15.4% | 9.3% | |
| Dewhurst ($DWHA) | 12.2% | 24.3% | -15.2% | 6.7% | |
| |
|---|
| Median (12 companies) | 12.2% | -0.3% | -4.4% | 0.4% | -2.0% |
|---|
| Volex ($VLX) | | 5.7% | -8.6% | -15.4% | 5.8% |
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 ($EKT) | 42.1% | 40.6% | 37.5% | 34.8% | 35.6% |
| Maruwa Co Ltd ($MAW) | 33.4% | 31.6% | 28.6% | 32.8% | 30.0% |
| Lpa Group ($LPA) | 23.4% | 28.3% | 27.2% | 29.6% | |
| |
|---|
| Median (10 companies) | 25.6% | 28.1% | 27.9% | 29.4% | 32.8% |
|---|
| Volex ($VLX) | 18.8% | 18.8% | 17.6% | 16.5% | 16.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zytronic ($ZYT) | 23.7% | 25.3% | 18.8% | 22.9% | |
| Maruwa Co Ltd ($MAW) | 23.1% | 22.3% | 17.7% | 17.8% | 14.7% |
| Solid State ($SSP) | 5.7% | 6.7% | 6.3% | 17.3% | |
| Dewhurst ($DWHA) | 13.6% | 12.9% | 12.6% | 13.7% | |
| Stadium Group ($SDM) | 9.8% | 6.1% | 7.1% | 9.9% | |
| |
|---|
| Median (12 companies) | 5.7% | 6.7% | 5.9% | 7.8% | 12.8% |
|---|
| Volex ($VLX) | 5.5% | 5.1% | 2.1% | 0.8% | 0.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lpa Group ($LPA) | 0.8% | 9.1% | 2.0% | 14.8% | |
| Maruwa Co Ltd ($MAW) | 12.7% | 23.8% | 15.3% | 7.6% | 6.5% |
| Morgan Advanced Materials ($BA29) | | 2.9% | 3.8% | 3.7% | 7.0% |
| Elektron Technology ($EKT) | 1.5% | 3.0% | 2.7% | 1.5% | 1.1% |
| Zytronic ($ZYT) | 2.6% | 3.6% | 2.8% | 1.4% | |
| |
|---|
| Median (12 companies) | 2.3% | 3.0% | 1.7% | 1.2% | 6.5% |
|---|
| Volex ($VLX) | 0.9% | 2.0% | 5.3% | 2.0% | 0.9% |
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 ($BA29) | | 17.9% | 16.3% | 10.9% | 18.4% |
| |
|---|
| Median (12 companies) | 11.0% | 15.2% | 7.3% | 7.6% | 9.9% |
|---|
| Volex ($VLX) | 37.1% | 29.3% | 4.7% | -5.6% | -5.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Walsin Lihwa Corp ($WALS) | 15.7x | 5.3x | 8.7x | 3.9x | |
| Elektron Technology ($EKT) | 0.6x | 0.7x | 1.7x | 3.8x | 0.8x |
| Morgan Advanced Materials ($BA29) | | 1.4x | 1.5x | 2.3x | 1.8x |
| Lpa Group ($LPA) | 1.4x | 1.9x | 0.7x | 1.5x | |
| Stadium Group ($SDM) | -0.7x | -0.0x | -0.0x | 1.2x | |
| |
|---|
| Median (10 companies) | 0.3x | 0.7x | -0.0x | 0.8x | 0.8x |
|---|
| Volex ($VLX) | 0.3x | -0.1x | 1.9x | 10.2x | -0.7x |
