Hyundai Motor Co reports 143% CAPEX growth and 3.0% Revenue growth
26 Jan 2016 • About Hyundai Motor Co (
$HYUD) • By InTwits
Hyundai Motor Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 10.0% in 2015 vs. 11.3% in 2014 vs. 13.3% in 2011
- Hyundai Motor Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's a lot of higher than industry average of 3.8%.
- CAPEX is quite volatile: 8,141,729 in 2015, 3,353,809 in 2014, 3,171,093 in 2013, 3,000,038 in 2012, 2,899,177 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.9%
- It operates with high leverage: Net Debt/EBITDA is 6.3x while industry average is 4.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hyundai Motor Co ($HYUD) key annual financial indicators
| mln. KRW | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 77,797,895 | 84,469,721 | 87,307,636 | 89,256,319 | 91,958,736 | 3.0% |
| Gross Profit | 18,895,872 | 19,497,576 | 19,448,145 | 19,130,043 | 18,257,440 | -4.6% |
| SG&A | 10,271,727 | 10,374,023 | 10,409,916 | 10,787,342 | 10,970,254 | 1.7% |
| EBITDA | 10,326,899 | 10,960,866 | 10,866,835 | 10,099,883 | 9,151,940 | -9.4% |
| Net Income | 7,655,870 | 8,561,820 | 8,541,830 | 7,346,810 | 6,417,300 | -12.7% |
Balance Sheet
|
|---|
| Cash | 6,231,946 | 6,759,338 | 6,872,430 | 7,096,513 | 7,331,463 | 3.3% |
| Short Term Debt | 16,208,743 | 14,702,548 | 13,987,145 | 16,534,144 | 20,172,928 | 22.0% |
| Long Term Debt | 27,169,842 | 30,533,495 | 33,999,428 | 37,733,259 | 44,760,126 | 18.6% |
Cash flow
|
|---|
| Capex | 2,899,177 | 3,000,038 | 3,171,093 | 3,353,809 | 8,141,729 | 142.8% |
Ratios
|
|---|
| Revenue growth | 16.1% | 8.6% | 3.4% | 2.2% | 3.0% | |
| EBITDA growth | 28.5% | 6.1% | -0.9% | -7.1% | -9.4% | |
| Gross Margin | 24.3% | 23.1% | 22.3% | 21.4% | 19.9% | -1.6% |
| EBITDA Margin | 13.3% | 13.0% | 12.4% | 11.3% | 10.0% | -1.4% |
| Net Income Margin | 9.8% | 10.1% | 9.8% | 8.2% | 7.0% | -1.3% |
| SG&A, % of revenue | 13.2% | 12.3% | 11.9% | 12.1% | 11.9% | -0.2% |
| CAPEX, % of revenue | 3.7% | 3.6% | 3.6% | 3.8% | 8.9% | 5.1% |
| ROIC | 10.1% | 9.3% | 8.2% | 6.6% | 4.9% | -1.7% |
| ROE | 17.7% | 16.4% | 13.8% | 10.4% | 8.3% | -2.1% |
| Net Debt/EBITDA | 3.6x | 3.5x | 3.8x | 4.7x | 6.3x | 1.6x |
Revenue and profitability
The company's Revenue increased on 3.0% 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 decreased slightly on 1.6 pp from 21.4% to 19.9% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 1.3 pp from 8.2% to 7.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.9% in 2015. Hyundai Motor Co's CAPEX/Revenue increased on 5.3 pp from 3.6% in 2012 to 8.9% in 2015. For the last three years the average CAPEX/Revenue was 5.4%.The company maintained rich investment policy and has spent a big chunk of EBITDA (89.0%) to CAPEX.
Return on investment
The company operates at low ROIC (4.94%) and ROE (8.31%). ROIC decreased slightly on 1.7 pp from 6.6% to 4.9% in 2015. ROE decreased on 2.1 pp from 10.4% to 8.3% in 2015.
Leverage (Debt)
Debt level is 6.3x Net Debt / EBITDA and 7.1x Debt / EBITDA. Net Debt / EBITDA surged on 1.6x from 4.7x to 6.3x in 2015. Debt jumped on 19.7% in 2015 while cash increased on 3.3% in 2015.
Appendix 1: Peers in Automobiles & Parts
Below you can find Hyundai Motor Co benchmarking vs. other companies in Automobiles & Parts 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 |
|---|
| Toyota Motor Corp ($TYT) | | -2.2% | 18.7% | 16.4% | 6.0% |
| Kumho Tire Co Inc ($KHTC) | 10.9% | 4.0% | -9.1% | -7.0% | |
| |
|---|
| Median (2 companies) | 10.9% | 0.9% | 4.8% | 4.7% | 6.0% |
|---|
| Hyundai Motor Co ($HYUD) | | 8.6% | 3.4% | 2.2% | 3.0% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kumho Tire Co Inc ($KHTC) | 20.6% | 25.3% | 26.5% | 29.4% | |
| Toyota Motor Corp ($TYT) | 12.5% | 11.8% | 15.5% | 19.0% | 19.8% |
| |
|---|
| Median (2 companies) | 16.6% | 18.6% | 21.0% | 24.2% | 19.8% |
|---|
| Hyundai Motor Co ($HYUD) | 24.3% | 23.1% | 22.3% | 21.4% | 19.9% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kumho Tire Co Inc ($KHTC) | 9.6% | 13.7% | 14.4% | 15.8% | |
| Toyota Motor Corp ($TYT) | 8.7% | 7.7% | 11.0% | 13.8% | 15.3% |
| |
|---|
| Median (2 companies) | 9.1% | 10.7% | 12.7% | 14.8% | 15.3% |
|---|
| Hyundai Motor Co ($HYUD) | 13.3% | 13.0% | 12.4% | 11.3% | 10.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kumho Tire Co Inc ($KHTC) | 2.8% | 4.7% | 6.6% | 8.2% | |
| Toyota Motor Corp ($TYT) | 3.3% | 3.9% | 3.9% | 3.8% | 4.2% |
| |
|---|
| Median (2 companies) | 3.0% | 4.3% | 5.2% | 6.0% | 4.2% |
|---|
| Hyundai Motor Co ($HYUD) | 3.7% | 3.6% | 3.6% | 3.8% | 8.9% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kumho Tire Co Inc ($KHTC) | 5.4% | 10.2% | 9.3% | 9.7% | |
| Toyota Motor Corp ($TYT) | 1.9% | 1.5% | 5.0% | 7.3% | 7.5% |
| |
|---|
| Median (2 companies) | 3.7% | 5.8% | 7.1% | 8.5% | 7.5% |
|---|
| Hyundai Motor Co ($HYUD) | 10.1% | 9.3% | 8.2% | 6.6% | 4.9% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kumho Tire Co Inc ($KHTC) | 7.7x | 5.0x | 4.6x | 4.1x | |
| Toyota Motor Corp ($TYT) | 6.3x | 7.3x | 5.1x | 4.0x | 4.0x |
| |
|---|
| Median (2 companies) | 7.0x | 6.1x | 4.8x | 4.1x | 4.0x |
|---|
| Hyundai Motor Co ($HYUD) | 3.6x | 3.5x | 3.8x | 4.7x | 6.3x |
