Daishin Securities Co Net Income jumped on 212% in 2015 and EBITDA Margin surged on 10.5 pp from 38.8% to 49.2%
04 Feb 2016 • About Daishin Securities Co (
$DSS) • By InTwits
Daishin Securities Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Daishin Securities Co doesn't have a profitable business model yet: 2015 ROIC is 1.9%
- Daishin Securities Co has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.0%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: 48,807 in 2015, 97,081 in 2014, 175,675 in 2013, 46,845 in 2012, 18,464 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.9%
- It operates with high leverage: Net Debt/EBITDA is 8.0x while industry average is -1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Daishin Securities Co ($DSS) key annual financial indicators
| mln. KRW | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 654,267 | 777,862 | 710,109 | 649,046 | 749,983 | 15.6% |
| EBITDA | 326,635 | 418,518 | 365,858 | 251,514 | 369,284 | 46.8% |
| Net Income | 73,530 | 89,858 | 3,391 | 43,685 | 136,158 | 211.7% |
Balance Sheet
|
|---|
| Cash | 694,384 | 271,013 | 184,742 | 184,016 | 185,864 | 1.0% |
| Short Term Debt | 833,824 | 785,021 | 860,036 | 2,043,208 | 2,204,199 | 7.9% |
| Long Term Debt | 119,642 | 119,556 | 219,370 | 839,519 | 923,784 | 10.0% |
Cash flow
|
|---|
| Capex | 18,464 | 46,845 | 175,675 | 97,081 | 48,807 | -49.7% |
Ratios
|
|---|
| Revenue growth | 0.0% | 18.9% | -8.7% | -8.6% | 15.6% | |
| EBITDA growth | 2.8% | 28.1% | -12.6% | -31.3% | 46.8% | |
| EBITDA Margin | 49.9% | 53.8% | 51.5% | 38.8% | 49.2% | 10.5% |
| Net Income Margin | 11.2% | 11.6% | 0.5% | 6.7% | 18.2% | 11.4% |
| CAPEX, % of revenue | 2.8% | 6.0% | 24.7% | 15.0% | 6.5% | -8.4% |
| ROIC | 1.4% | 1.8% | 0.0% | 0.6% | 1.9% | 1.3% |
| ROE | 2.8% | 3.4% | 0.1% | 1.7% | 5.1% | 3.5% |
| Net Debt/EBITDA | 0.8x | 1.5x | 2.4x | 10.7x | 8.0x | -2.8x |
Revenue and profitability
The company's Revenue surged on 15.6% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 10.5 pp from 38.8% to 49.2% in 2015.
Net Income marign surged on 11.4 pp from 6.7% to 18.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
Daishin Securities Co's CAPEX/Revenue was 6.5% in 2015. Daishin Securities Co showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 15.4%.
Return on investment
The company operates at low ROIC (1.94%) and ROE (5.14%). ROIC increased slightly on 1.3 pp from 0.62% to 1.9% in 2015. ROE increased on 3.5 pp from 1.7% to 5.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.0x and Debt / EBITDA is 8.5x. Net Debt / EBITDA dropped on 2.8x from 10.7x to 8.0x in 2015. Debt increased on 8.5% in 2015 while cash increased slightly on 1.0% in 2015.
Appendix 1: Peers in Financial Services
Below we provide Daishin Securities Co benchmarking against other companies in Financial Services industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First Property Group ($FPO) | | 31.4% | 13.9% | 69.7% | 2.6% |
| Afh Financial Group ($AFHP) | | | 49.9% | 39.3% | 39.5% |
| Fairpoint Group ($FRP) | -12.0% | 32.7% | -17.5% | 35.1% | |
| Commercial Bank Of Qatar(The) ($CBQS) | | 5.7% | 19.3% | 26.1% | -4.2% |
| Hargreaves Lansdown ($HL.) | | 14.8% | 22.5% | 22.6% | 10.3% |
| |
|---|
| Median (30 companies) | 3.1% | 5.2% | 14.7% | 6.8% | 3.0% |
|---|
| Daishin Securities Co ($DSS) | | 18.9% | -8.7% | -8.6% | 15.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Record ($REC) | 99.6% | 98.8% | 98.8% | 99.6% | 99.3% |
| Panmure Gordon & Co ($PMR) | 93.9% | 95.2% | 95.0% | 95.3% | |
| Schroders ($SDRC) | 75.8% | 76.9% | 76.2% | 77.7% | |
| London Capital Group Hldgs ($LCG) | 64.7% | 64.2% | 70.5% | 73.6% | |
| Walker Crips Group ($WCW) | 74.5% | 71.8% | 58.0% | 68.2% | 66.7% |
| |
|---|
| Median (16 companies) | 56.8% | 54.3% | 52.7% | 52.2% | 58.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Livermore Investments Group Ltd ($LIV) | 92.1% | 84.9% | 64.8% | 78.8% | |
| Real Estate Credit Investments Pcc ($RECP) | | 58.6% | 89.3% | 77.0% | 80.3% |
| Efg Hermes Hldgs ($EFGD) | 67.0% | 66.0% | 61.4% | 63.1% | |
| Hargreaves Lansdown ($HL.) | 61.0% | 64.1% | 66.4% | 58.7% | 51.2% |
| Manx Financial Group ($MFX) | 24.2% | 39.8% | 49.2% | 56.5% | |
| |
|---|
| Median (26 companies) | 15.5% | 11.7% | 15.6% | 14.4% | 19.5% |
|---|
| Daishin Securities Co ($DSS) | 49.9% | 53.8% | 51.5% | 38.8% | 49.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Efg Hermes Hldgs ($EFGD) | 4.9% | 5.6% | 4.4% | 6.0% | |
| Fulcrum Utility Services Ld ($FCRM) | | 5.4% | 5.0% | 3.7% | 0.1% |
| London Capital Group Hldgs ($LCG) | 5.7% | 1.8% | 0.2% | 3.4% | |
| Guinness Peat Group ($GPG) | 3.7% | 2.6% | 0.6% | 2.9% | |
| Commercial Bank Of Qatar(The) ($CBQS) | 3.0% | 6.0% | 3.8% | 2.8% | 3.9% |
| |
|---|
| Median (29 companies) | 1.1% | 1.3% | 1.3% | 1.3% | 0.7% |
|---|
| Daishin Securities Co ($DSS) | 2.8% | 6.0% | 24.7% | 15.0% | 6.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hargreaves Lansdown ($HL.) | 133.9% | 108.7% | 111.7% | 101.0% | 87.5% |
| Manx Financial Group ($MFX) | -1.2% | 8.0% | 19.7% | 29.7% | |
| Record ($REC) | 44.4% | 23.8% | 19.6% | 20.2% | 20.2% |
| S & U ($46IE) | | 17.6% | 19.1% | 19.7% | 13.9% |
| Fairpoint Group ($FRP) | -2.1% | 18.6% | 9.0% | 19.4% | |
| |
|---|
| Median (30 companies) | 5.5% | 5.5% | 6.3% | 9.2% | 10.6% |
|---|
| Daishin Securities Co ($DSS) | 1.4% | 1.8% | 0.0% | 0.6% | 1.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Private & Commercial Finance Group ($PCF) | 16.0x | 12.8x | 14.3x | 13.9x | 12.9x |
| First Property Group ($FPO) | 5.6x | 3.6x | 3.0x | 5.6x | 12.3x |
| Livermore Investments Group Ltd ($LIV) | 4.9x | 3.8x | 4.6x | 3.4x | |
| S & U ($46IE) | | 1.4x | 1.3x | 1.7x | 3.1x |
| Fairpoint Group ($FRP) | -1.3x | -0.2x | -0.4x | 0.5x | |
| |
|---|
| Median (26 companies) | -1.6x | -1.2x | -1.7x | -2.3x | -0.4x |
|---|
| Daishin Securities Co ($DSS) | 0.8x | 1.5x | 2.4x | 10.7x | 8.0x |
