Walsin Lihwa Corp EBITDA dropped on 28.5% in 2015 and Revenue decreased on 8.4%
26 Feb 2016 • About Walsin Lihwa Corp (
$WALS) • By InTwits
Walsin Lihwa Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Walsin Lihwa Corp is a company in decline: 2015 revenue growth was -8.4%, 5 years revenue CAGR was -4.7%
- EBITDA Margin is quite volatile: 2.8% in 2015, 3.6% in 2014, 1.9% in 2013, 3.2% in 2012, 1.0% in 2011
- Walsin Lihwa Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 2.1%.
- CAPEX is quite volatile: 1,653 in 2015, 1,402 in 2014, 2,202 in 2013, 6,298 in 2012, 6,155 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.1%
- It operates with high leverage: Net Debt/EBITDA is 4.6x while industry average is 0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Walsin Lihwa Corp ($WALS) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 189,893 | 157,463 | 148,635 | 162,987 | 149,338 | -8.4% |
| Gross Profit | 5,331 | 7,539 | 4,631 | 7,563 | 5,810 | -23.2% |
| SG&A | | 5,256 | 4,586 | 4,060 | 3,852 | -5.1% |
| EBITDA | 1,819 | 4,981 | 2,765 | 5,862 | 4,189 | -28.5% |
| Net Income | -4,271 | -3,187 | -2,689 | 2,265 | 1,602 | -29.3% |
Balance Sheet
|
|---|
| Cash | 12,940 | 6,060 | 7,556 | 6,417 | 8,888 | 38.5% |
| Short Term Debt | 40,423 | 12,903 | 19,392 | 7,937 | 6,070 | -23.5% |
| Long Term Debt | 1,146 | 19,589 | 12,104 | 21,424 | 22,119 | 3.2% |
Cash flow
|
|---|
| Capex | 6,155 | 6,298 | 2,202 | 1,402 | 1,653 | 17.9% |
Ratios
|
|---|
| Revenue growth | -0.1% | -17.1% | -5.6% | 9.7% | -8.4% | |
| EBITDA growth | -67.5% | 173.8% | -44.5% | 112.0% | -28.5% | |
| Gross Margin | 2.8% | 4.8% | 3.1% | 4.6% | 3.9% | -0.8% |
| EBITDA Margin | 1.0% | 3.2% | 1.9% | 3.6% | 2.8% | -0.8% |
| Net Income Margin | -2.2% | -2.0% | -1.8% | 1.4% | 1.1% | -0.3% |
| SG&A, % of revenue | | 3.3% | 3.1% | 2.5% | 2.6% | 0.1% |
| CAPEX, % of revenue | 3.2% | 4.0% | 1.5% | 0.9% | 1.1% | 0.2% |
| ROIC | -0.5% | 2.3% | 0.0% | 3.7% | 2.1% | -1.6% |
| ROE | -6.7% | -5.3% | -4.6% | 3.7% | 2.6% | -1.1% |
| Net Debt/EBITDA | 15.7x | 5.3x | 8.7x | 3.9x | 4.6x | 0.7x |
Revenue and profitability
Walsin Lihwa Corp's Revenue decreased on 8.4% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 0.79 pp from 3.6% to 2.8% in 2015.
Gross Margin decreased slightly on 0.75 pp from 4.6% to 3.9% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Walsin Lihwa Corp's CAPEX/Revenue was 1.1% in 2015. The company showed decline in CAPEX/Revenue of 2.9 pp from 4.0% in 2012 to 1.1% in 2015. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at low ROIC (2.09%) and ROE (2.56%). ROIC decreased slightly on 1.6 pp from 3.7% to 2.1% in 2015. ROE decreased slightly on 1.1 pp from 3.7% to 2.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.6x and Debt / EBITDA is 6.7x. Net Debt / EBITDA surged on 0.7x from 3.9x to 4.6x in 2015. Debt decreased on 4.0% in 2015 while cash surged on 38.5% in 2015.
Appendix 1: Peers in Electronic & Electrical Equipment
Below you can find Walsin Lihwa Corp 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 |
|---|
| Solid State ($SSP) | | 22.2% | 21.7% | 1.9% | 13.9% |
| Zytronic ($ZYT) | | -0.3% | -15.4% | 9.3% | 12.6% |
| Apc Technology Group ($APC) | | -5.4% | 58.7% | -4.7% | 10.4% |
| Volex ($VLX) | | 5.7% | -8.6% | -15.4% | 5.8% |
| Morgan Advanced Materials ($BA29) | | | -4.9% | -3.8% | -1.1% |
| |
|---|
| Median (10 companies) | 246.3% | 5.7% | -4.4% | -2.4% | -1.3% |
|---|
| Walsin Lihwa Corp ($WALS) | | -17.1% | -5.6% | 9.7% | -8.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zytronic ($ZYT) | 33.7% | 36.3% | 30.8% | 36.6% | 41.9% |
| Elektron Technology ($EKT) | 42.1% | 40.6% | 37.5% | 34.8% | 35.6% |
| Solid State ($SSP) | 27.8% | 27.8% | 26.1% | 29.2% | 30.5% |
| Maruwa Co Ltd ($MAW) | 33.4% | 31.6% | 28.6% | 32.8% | 30.0% |
| Lpa Group ($LPA) | 23.4% | 28.3% | 27.2% | 29.6% | 27.4% |
| |
|---|
| Median (8 companies) | 25.6% | 28.1% | 27.9% | 29.4% | 28.7% |
|---|
| Walsin Lihwa Corp ($WALS) | 2.8% | 4.8% | 3.1% | 4.6% | 3.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zytronic ($ZYT) | 23.7% | 25.3% | 18.8% | 22.9% | 27.8% |
| Maruwa Co Ltd ($MAW) | 23.1% | 22.3% | 17.7% | 17.8% | 14.7% |
| Dewhurst ($DWHA) | 13.6% | 12.9% | 12.6% | 13.7% | 14.7% |
| Morgan Advanced Materials ($BA29) | | 13.7% | 13.1% | 9.8% | 12.8% |
| Solid State ($SSP) | 5.7% | 6.7% | 6.3% | 17.3% | 9.7% |
| |
|---|
| Median (10 companies) | 5.7% | 6.7% | 5.9% | 7.8% | 8.5% |
|---|
| Walsin Lihwa Corp ($WALS) | 1.0% | 3.2% | 1.9% | 3.6% | 2.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Morgan Advanced Materials ($BA29) | | 2.9% | 3.8% | 3.7% | 7.0% |
| Maruwa Co Ltd ($MAW) | 12.7% | 23.8% | 15.3% | 7.6% | 6.5% |
| Zytronic ($ZYT) | 2.6% | 3.6% | 2.8% | 1.4% | 4.7% |
| Dewhurst ($DWHA) | 12.4% | 2.7% | 1.3% | 0.9% | 1.9% |
| Lpa Group ($LPA) | 0.8% | 9.1% | 2.0% | 14.8% | 1.8% |
| |
|---|
| Median (10 companies) | 1.5% | 2.8% | 2.4% | 1.3% | 1.6% |
|---|
| Walsin Lihwa Corp ($WALS) | 3.2% | 4.0% | 1.5% | 0.9% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dewhurst ($DWHA) | 24.4% | 29.2% | 20.7% | 24.5% | 27.3% |
| Zytronic ($ZYT) | 22.5% | 23.0% | 11.9% | 17.0% | 22.7% |
| Solid State ($SSP) | 20.3% | 22.3% | 19.7% | 44.5% | 20.0% |
| Morgan Advanced Materials ($BA29) | | 17.9% | 16.3% | 10.9% | 18.4% |
| Elektron Technology ($EKT) | 35.2% | 24.1% | 7.9% | 3.3% | 9.9% |
| |
|---|
| Median (10 companies) | 20.3% | 17.2% | 7.3% | 7.6% | 7.8% |
|---|
| Walsin Lihwa Corp ($WALS) | -0.5% | 2.3% | 0.0% | 3.7% | 2.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lpa Group ($LPA) | 1.4x | 1.9x | 0.7x | 1.5x | 3.8x |
| Morgan Advanced Materials ($BA29) | | 1.4x | 1.5x | 2.3x | 1.8x |
| Elektron Technology ($EKT) | 0.6x | 0.7x | 1.7x | 3.8x | 0.8x |
| Solid State ($SSP) | 1.5x | 1.4x | 1.2x | 0.4x | 0.7x |
| Volex ($VLX) | 0.3x | -0.1x | 1.9x | 10.2x | -0.7x |
| |
|---|
| Median (8 companies) | 0.1x | -0.0x | -0.0x | 0.8x | -0.0x |
|---|
| Walsin Lihwa Corp ($WALS) | 15.7x | 5.3x | 8.7x | 3.9x | 4.6x |
