Samsung Electronics Co Net Income dropped on 19.0% in 2015 while EBITDA Margin increased on 2.7 pp from 20.9% to 23.6%
08 Jan 2016 • About Samsung Electronics Co (
$SMSN) • By InTwits
Samsung Electronics Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Samsung Electronics Co has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.7%. At the same time it's a lot of higher than industry average of 3.8%.
- CAPEX is quite volatile: 1,367 in FY2015, 604 in FY2014, 411 in FY2013, 744 in FY2012, 633 in FY2011
- The company has highly profitable business model: ROIC is at 14.0%
- It operates with high leverage: Net Debt/EBITDA is -0.2x while industry average is -2.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Samsung Electronics Co ($SMSN) key annual financial indicators
| mln. KRW | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 165,001,771 | 201,103,613 | 228,692,667 | 206,205,987 | 200,653,482 | -2.7% |
| Gross Profit | 52,856,651 | 74,451,682 | 90,996,358 | 77,927,187 | 77,171,364 | -1.0% |
| SG&A | 26,753,290 | 33,073,560 | 38,934,012 | 37,446,184 | 36,081,636 | -3.6% |
| EBITDA | 29,046,964 | 44,671,354 | 53,230,426 | 43,078,492 | 47,344,299 | 9.9% |
| Net Income | 13,359,200 | 23,185,400 | 29,821,200 | 23,082,500 | 18,694,600 | -19.0% |
Balance Sheet
|
|---|
| Cash | 14,691,761 | 18,791,460 | 16,284,780 | 16,840,766 | 22,636,744 | 34.4% |
| Short Term Debt | 9,684,014 | 9,442,762 | 8,864,348 | 9,807,966 | 11,376,973 | 16.0% |
| Long Term Debt | 4,962,596 | 5,452,402 | 2,296,185 | 1,457,553 | 1,496,990 | 2.7% |
Cash flow
|
|---|
| Capex | 21,965,678 | 22,965,271 | 23,157,587 | 22,042,943 | 25,880,222 | 17.4% |
Ratios
|
|---|
| Revenue growth | 6.7% | 21.9% | 13.7% | -9.8% | -2.7% | |
| EBITDA growth | 3.7% | 53.8% | 19.2% | -19.1% | 9.9% | |
| Gross Margin | 32.0% | 37.0% | 39.8% | 37.8% | 38.5% | 0.7% |
| EBITDA Margin | 17.6% | 22.2% | 23.3% | 20.9% | 23.6% | 2.7% |
| Net Income Margin | 8.1% | 11.5% | 13.0% | 11.2% | 9.3% | -1.9% |
| SG&A, % of revenue | 16.2% | 16.4% | 17.0% | 18.2% | 18.0% | -0.2% |
| CAPEX, % of revenue | 13.3% | 11.4% | 10.1% | 10.7% | 12.9% | 2.2% |
| ROIC | 13.9% | 22.4% | 24.0% | 14.4% | 14.0% | -0.4% |
| ROE | 12.7% | 18.8% | 19.8% | 13.1% | 9.7% | -3.3% |
| Net Debt/EBITDA | -0.0x | -0.1x | -0.1x | -0.1x | -0.2x | -0.1x |
Revenue and profitability
The company's Revenue decreased on 2.7% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.7 pp from 20.9% to 23.6% in 2015.
Gross Margin increased slightly on 0.67 pp from 37.8% to 38.5% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 1.9 pp from 11.2% to 9.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Samsung Electronics Co had CAPEX/Revenue of 12.9%. CAPEX/Revenue increased slightly on 1.5 pp from 11.4% in 2012 to 12.9% in 2015. Average CAPEX/Revenue for the last three years was 11.2%.Battling declining revenue the company invested a large share of EBITDA (54.7%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at good ROIC (14.03%) while ROE is low (9.75%). ROIC showed almost no change in 2015. ROE decreased on 3.3 pp from 13.1% to 9.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 0.3x. Net Debt / EBITDA decreased on 0.1x from -0.1x to -0.2x in 2015. Debt surged on 14.3% in 2015 while cash surged on 34.4% in 2015.
Appendix 1: Peers in Technology Hardware & Equipment
Below you can find Samsung Electronics Co benchmarking vs. other companies in Technology Hardware & 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 |
|---|
| Trakm8 Holdings ($TRAK) | | 24.6% | -8.9% | 93.5% | 94.2% |
| Seeing Machines ($SEE) | | 0.1% | 66.3% | 43.3% | 13.3% |
| Compal Electronics Inc ($CEIR) | -21.9% | -1.3% | 1.3% | 22.1% | |
| Toumaz Ld ($TMZ) | -12.9% | 279.7% | 150.3% | 19.5% | |
| Global Invacom Group Ltd ($GINV) | 0.3% | 19.0% | 55.0% | 15.9% | |
| |
|---|
| Median (19 companies) | 0.2% | 0.4% | 1.3% | 3.4% | 2.6% |
|---|
| Samsung Electronics Co ($SMSN) | | 21.9% | 13.7% | -9.8% | -2.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cml Microsystems ($CML) | 69.5% | 69.3% | 70.3% | 73.3% | 70.9% |
| Seeing Machines ($SEE) | 69.4% | 61.4% | 64.1% | 59.8% | 44.9% |
| Trakm8 Holdings ($TRAK) | 66.6% | 63.8% | 71.9% | 57.2% | 45.2% |
| Concurrent Technologies ($CNC) | 52.1% | 51.7% | 50.6% | 51.2% | |
| Vislink ($VLK) | 41.1% | 39.4% | 40.7% | 45.9% | |
| |
|---|
| Median (18 companies) | 34.8% | 33.2% | 34.1% | 36.0% | 40.1% |
|---|
| Samsung Electronics Co ($SMSN) | 32.0% | 37.0% | 39.8% | 37.8% | 38.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cml Microsystems ($CML) | 29.8% | 28.7% | 33.1% | 35.1% | 29.9% |
| Pure Wafer ($PUR) | 12.3% | 16.3% | 17.0% | 31.5% | 27.4% |
| Concurrent Technologies ($CNC) | 28.5% | 29.3% | 23.3% | 27.1% | |
| Vislink ($VLK) | 6.0% | 12.2% | 12.1% | 21.5% | |
| Trakm8 Holdings ($TRAK) | 14.1% | 7.1% | 6.8% | 12.9% | 14.0% |
| |
|---|
| Median (19 companies) | 6.0% | 3.8% | 6.8% | 5.6% | 3.1% |
|---|
| Samsung Electronics Co ($SMSN) | 17.6% | 22.2% | 23.3% | 20.9% | 23.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pure Wafer ($PUR) | 2.0% | 0.5% | 3.5% | 23.3% | 8.5% |
| Sunplus Technology Co Ltd ($SUPD) | 7.2% | 4.8% | 6.3% | 15.0% | |
| Tatung Co ($TAT) | 8.5% | 6.1% | 4.3% | 4.3% | |
| Lite-On Technology Corp ($LTTD) | 3.9% | 3.7% | 2.9% | 3.7% | |
| Trakm8 Holdings ($TRAK) | 1.2% | 1.7% | 2.1% | 3.3% | 2.0% |
| |
|---|
| Median (19 companies) | 2.0% | 2.1% | 2.0% | 1.9% | 1.5% |
|---|
| Samsung Electronics Co ($SMSN) | 13.3% | 11.4% | 10.1% | 10.7% | 12.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cml Microsystems ($CML) | 15.9% | 17.4% | 26.1% | 23.0% | 10.3% |
| Trakm8 Holdings ($TRAK) | 13.1% | 3.8% | 1.9% | 18.7% | 22.5% |
| Concurrent Technologies ($CNC) | 19.5% | 14.6% | 8.2% | 14.1% | |
| Vislink ($VLK) | -2.8% | 4.0% | 6.0% | 13.4% | |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 13.0% | 13.7% | 11.1% | 10.3% | |
| |
|---|
| Median (19 companies) | -1.6% | 0.6% | 5.8% | 5.7% | 2.1% |
|---|
| Samsung Electronics Co ($SMSN) | 13.9% | 22.4% | 24.0% | 14.4% | 14.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tatung Co ($TAT) | 7.0x | 41.1x | 6.1x | 6.7x | |
| Vislink ($VLK) | -3.4x | -1.2x | -0.5x | -0.0x | |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 0.1x | -0.1x | 0.0x | -0.2x | |
| Compal Electronics Inc ($CEIR) | -2.0x | -0.5x | 1.3x | -0.2x | |
| Pure Wafer ($PUR) | 4.9x | 2.1x | 0.2x | -0.3x | -20.2x |
| |
|---|
| Median (16 companies) | -0.6x | -1.1x | -0.8x | -1.4x | -2.0x |
|---|
| Samsung Electronics Co ($SMSN) | -0.0x | -0.1x | -0.1x | -0.1x | -0.2x |
