Dx Net Income jumped on 136% in 2015 while Revenue decreased on 4.6%
21 Sep 2015 • About Dx (
$DX.) • By InTwits
Dx reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dx has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 23.4%.
- CAPEX is quite volatile: 515 in FY2015, 123 in FY2014, 1.6 in FY2013, 9.2 in FY2012, 51.4 in FY2011
- The company has highly profitable business model: ROIC is at 12.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dx ($DX.) key annual financial indicators
| mln. £ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 164.0 | 206.6 | 305.7 | 312.0 | 297.5 | -4.6% |
| EBITDA | 28.8 | 32.1 | 34.4 | 34.3 | 33.7 | -1.7% |
| Net Income | -14.4 | -16.8 | -21.3 | -55.0 | 19.9 | -136.2% |
Balance Sheet
|
|---|
| Cash | 32.8 | 19.8 | 30.2 | 1.1 | 7.0 | 536.4% |
| Short Term Debt | 7.2 | 9.0 | 5.9 | 4.5 | 1.2 | -73.3% |
| Long Term Debt | 356.4 | 367.8 | 390.0 | 8.4 | 7.3 | -13.1% |
Cash flow
|
|---|
| Capex | 3.7 | 4.3 | 7.1 | 5.0 | 3.3 | -34.0% |
Ratios
|
|---|
| Revenue growth | -0.5% | 26.0% | 48.0% | 2.1% | -4.6% | |
| EBITDA growth | 3.2% | 11.5% | 7.2% | -0.3% | -1.7% | |
| EBITDA Margin | 17.6% | 15.5% | 11.3% | 11.0% | 11.3% | 0.3% |
| Net Income Margin | -8.8% | -8.1% | -7.0% | -17.6% | 6.7% | 24.3% |
| CAPEX, % of revenue | 2.3% | 2.1% | 2.3% | 1.6% | 1.1% | -0.5% |
| ROIC | 8.2% | 9.3% | 9.6% | 14.5% | 12.8% | -1.7% |
| ROE | | | | | 10.6% | 10.6% |
| Net Debt/EBITDA | 11.5x | 11.1x | 10.6x | 0.3x | 0.0x | -0.3x |
Revenue and profitability
The company's Revenue decreased on 4.6% in FY2015. EBITDA Margin showed almost no change in FY2015.
Net Income marign surged on 24.3 pp from -17.6% to 6.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Dx had CAPEX/Revenue of 1.1%. The company showed small CAPEX/Revenue decline of 0.97 pp from 2.1% in FY2012 to 1.1% in FY2015. It's average CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at good ROIC (12.81%) while ROE is low (10.58%). ROIC decreased slightly on 1.7 pp from 14.5% to 12.8% in FY2015.
Leverage (Debt)
Debt level is 0.0x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 0.3x to 0.045x in FY2015. Debt dropped on 34.1% in FY2015 while cash surged on 536% in FY2015.
Valuation
Dx's trades at EV/EBITDA 4.9x and P/E 8.2x while industy averages are 10.5x and 26.1x. Dx's EV/(EBITDA-CAPEX) is 5.4x with the industry average at 4.7x.
Appendix 1: Peers in Industrial Transportation
Below you can find Dx benchmarking vs. other companies in Industrial Transportation 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 |
|---|
| Hellenic Carriers Ltd ($HCL) | -42.3% | -60.3% | -17.0% | 88.5% | |
| Global Ports Investments ($GLPR) | 31.1% | 0.1% | -33.8% | 69.3% | |
| Zhejiang Expressway Co ($ZHEH) | 0.2% | 2.2% | 13.3% | 20.5% | |
| Yangming Marine Transport Corp ($YMTD) | -9.2% | 10.9% | -9.5% | 13.4% | |
| Dp World Ltd ($0P5M) | -6.6% | 4.8% | -1.5% | 12.7% | |
| |
|---|
| Median (14 companies) | 5.1% | 1.6% | -2.3% | 5.8% | -7.1% |
|---|
| Dx ($DX.) | | 26.0% | 48.0% | 2.1% | -4.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 52.8% | 57.9% | 54.3% | 61.0% | |
| Global Ports Investments ($GLPR) | 52.6% | 40.3% | 58.8% | 58.8% | |
| Dp World Ltd ($0P5M) | 32.7% | 35.8% | 39.8% | 41.9% | |
| Zhejiang Expressway Co ($ZHEH) | 39.9% | 34.0% | 36.9% | 37.7% | |
| Globaltrans Investment ($GLTR) | 30.1% | 31.4% | 25.8% | 23.2% | |
| |
|---|
| Median (10 companies) | 35.0% | 30.8% | 23.0% | 21.9% | 9.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital Lease Aviation ($CLA) | 105.0% | 101.2% | 88.5% | 89.2% | |
| Global Ports Investments ($GLPR) | 55.1% | 57.1% | 60.3% | 69.6% | |
| Frontline Ltd ($FRO) | 13.7% | 17.2% | -4.6% | 64.5% | |
| Novorossiysk Commercial Sea Port ($NCSP) | 52.7% | 48.4% | 26.8% | 58.3% | |
| Zhejiang Expressway Co ($ZHEH) | 52.8% | 49.6% | 51.1% | 53.5% | |
| |
|---|
| Median (14 companies) | 45.5% | 29.6% | 24.8% | 29.7% | 6.3% |
|---|
| Dx ($DX.) | 17.6% | 15.5% | 11.3% | 11.0% | 11.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Frontline Ltd ($FRO) | 10.2% | 2.5% | 0.5% | 83.6% | |
| Hellenic Carriers Ltd ($HCL) | 1.3% | 11.7% | 246.3% | 75.1% | |
| Dp World Ltd ($0P5M) | 15.1% | 20.6% | 33.4% | 20.7% | |
| Zhejiang Expressway Co ($ZHEH) | 6.6% | 5.3% | 3.2% | 13.4% | |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 13.7% | 15.6% | 16.9% | 11.5% | |
| |
|---|
| Median (14 companies) | 10.1% | 11.2% | 9.3% | 5.6% | 2.9% |
|---|
| Dx ($DX.) | 2.3% | 2.1% | 2.3% | 1.6% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 18.7% | 11.0% | 4.5% | 17.1% | |
| Zhejiang Expressway Co ($ZHEH) | 13.3% | 11.2% | 13.3% | 13.2% | |
| Global Ports Investments ($GLPR) | 18.5% | 17.0% | 7.1% | 12.1% | |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 18.2% | 20.2% | 17.6% | 8.8% | |
| Bba Aviation ($BBA) | | 9.6% | 9.6% | 8.1% | 5.1% |
| |
|---|
| Median (14 companies) | 7.8% | 7.3% | 5.4% | 6.7% | 1.3% |
|---|
| Dx ($DX.) | 8.2% | 9.3% | 9.6% | 14.5% | 12.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hellenic Carriers Ltd ($HCL) | 2.5x | 533.2x | 291.0x | 39.1x | |
| Yangming Marine Transport Corp ($YMTD) | | 19.7x | | 9.8x | |
| Wisdom Marine Lines Co Limited ($WML) | 7.9x | 8.5x | 9.0x | 9.1x | |
| Evergreen Marine Corp(Taiwan) ($EGMD) | | 7.9x | 33.6x | 6.7x | 18.3x |
| Interbulk Group ($INB) | 3.5x | 3.3x | 4.1x | 3.5x | |
| |
|---|
| Median (14 companies) | 3.1x | 3.1x | 4.1x | 2.8x | 8.1x |
|---|
| Dx ($DX.) | 11.5x | 11.1x | 10.6x | 0.3x | 0.0x |
