Wisdom Marine Lines Co Limited reports 51.5% CAPEX growth and 21.6% Revenue growth
26 Feb 2016 • About Wisdom Marine Lines Co Limited (
$WML) • By InTwits
Wisdom Marine Lines Co Limited reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wisdom Marine Lines Co Limited has high CAPEX intensity: 5 year average CAPEX/Revenue was 88.5%. At the same time it's a lot of higher than industry average of 17.1%.
- CAPEX is quite volatile: 573 in 2015, 378 in 2014, 9,025 in 2013, 13,751 in 2012, 12,143 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.2%
- It operates with high leverage: Net Debt/EBITDA is 8.4x while industry average is 5.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wisdom Marine Lines Co Limited ($WML) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,552 | 8,397 | 8,328 | 9,057 | 11,012 | 21.6% |
| Gross Profit | 2,826 | 2,541 | 1,687 | 1,872 | 2,653 | 41.8% |
| SG&A | | 128 | 148 | 142 | 214 | 50.9% |
| EBITDA | 4,536 | 4,781 | 4,334 | 4,783 | 6,075 | 27.0% |
| Net Income | 2,008 | 2,100 | 1,439 | 1,767 | 2,245 | 27.1% |
Balance Sheet
|
|---|
| Cash | 937 | 846 | 2,426 | 487 | 1,912 | 292.5% |
| Short Term Debt | 4,513 | 4,370 | 4,995 | 7,081 | 6,181 | -12.7% |
| Long Term Debt | 32,265 | 37,029 | 36,540 | 37,101 | 46,815 | 26.2% |
Cash flow
|
|---|
| Capex | 12,143 | 13,751 | 9,025 | 378 | 573 | 51.5% |
Ratios
|
|---|
| Revenue growth | 25.1% | 11.2% | -0.8% | 8.8% | 21.6% | |
| EBITDA growth | 35.2% | 5.4% | -9.4% | 10.4% | 27.0% | |
| Gross Margin | 37.4% | 30.3% | 20.3% | 20.7% | 24.1% | 3.4% |
| EBITDA Margin | 60.1% | 56.9% | 52.0% | 52.8% | 55.2% | 2.4% |
| Net Income Margin | 26.6% | 25.0% | 17.3% | 19.5% | 20.4% | 0.9% |
| SG&A, % of revenue | | 1.5% | 1.8% | 1.6% | 1.9% | 0.4% |
| CAPEX, % of revenue | 160.8% | 163.8% | 108.4% | 4.2% | 5.2% | 1.0% |
| ROIC | 6.9% | 4.9% | 2.6% | 2.6% | 3.2% | 0.6% |
| ROE | 28.0% | 20.4% | 8.6% | 7.5% | 8.0% | 0.6% |
| Net Debt/EBITDA | 7.9x | 8.5x | 9.0x | 9.1x | 8.4x | -0.7x |
Revenue and profitability
The company's Revenue jumped on 21.6% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.4 pp from 52.8% to 55.2% in 2015.
Gross Margin increased on 3.4 pp from 20.7% to 24.1% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.88 pp from 19.5% to 20.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
Wisdom Marine Lines Co Limited's CAPEX/Revenue was 5.2% in 2015. The company's CAPEX/Revenue dropped on 159 pp from 164% in 2012 to 5.2% in 2015. It's average CAPEX/Revenue for the last three years was 39.3%.
Return on investment
The company operates at low ROIC (3.18%) and ROE (8.01%). ROIC increased slightly on 0.58 pp from 2.6% to 3.2% in 2015. ROE increased slightly on 0.56 pp from 7.5% to 8.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.4x and Debt / EBITDA is 8.7x. Net Debt / EBITDA dropped on 0.7x from 9.1x to 8.4x in 2015. Debt surged on 20.0% in 2015 while cash surged on 293% in 2015.
Appendix 1: Peers in Industrial Transportation
Below you can find Wisdom Marine Lines Co Limited 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 ($0P5M) | -6.6% | 4.8% | -1.5% | 12.7% | |
| |
|---|
| Median (14 companies) | 0.2% | 1.6% | -2.3% | 3.4% | -7.3% |
|---|
| Wisdom Marine Lines Co Limited ($WML) | | 11.2% | -0.8% | 8.8% | 21.6% |
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 ($GLTR) | 30.1% | 31.4% | 25.8% | 23.2% | |
| |
|---|
| Median (9 companies) | 32.7% | 31.4% | 25.8% | 23.2% | 13.0% |
|---|
| Wisdom Marine Lines Co Limited ($WML) | 37.4% | 30.3% | 20.3% | 20.7% | 24.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital Lease Aviation ($CLA) | 105.0% | 101.2% | 88.5% | 89.2% | 80.5% |
| Global Ports Investments ($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 ($ZHEH) | 52.8% | 49.6% | 51.1% | 53.5% | |
| |
|---|
| Median (14 companies) | 33.8% | 22.6% | 17.1% | 17.0% | 9.6% |
|---|
| Wisdom Marine Lines Co Limited ($WML) | 60.1% | 56.9% | 52.0% | 52.8% | 55.2% |
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 ($TRCN) | 13.7% | 15.6% | 16.9% | 11.5% | |
| |
|---|
| Median (14 companies) | 9.5% | 8.0% | 7.7% | 5.6% | 1.1% |
|---|
| Wisdom Marine Lines Co Limited ($WML) | 160.8% | 163.8% | 108.4% | 4.2% | 5.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 18.7% | 11.0% | 4.5% | 17.1% | |
| Dx ($DX.) | 8.2% | 9.3% | 9.6% | 14.5% | 12.8% |
| 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 ($TRCN) | 18.2% | 20.2% | 17.6% | 8.8% | |
| |
|---|
| Median (14 companies) | 8.4% | 8.4% | 6.3% | 7.2% | 5.1% |
|---|
| Wisdom Marine Lines Co Limited ($WML) | 6.9% | 4.9% | 2.6% | 2.6% | 3.2% |
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 | |
| Evergreen Marine Corp(Taiwan) ($EGMD) | | 7.9x | 33.6x | 6.7x | 18.3x |
| Interbulk Group ($INB) | 3.5x | 3.3x | 4.1x | 3.5x | 3.6x |
| Capital Lease Aviation ($CLA) | 3.9x | 2.8x | 4.0x | 3.4x | 3.2x |
| |
|---|
| Median (14 companies) | 3.1x | 3.1x | 4.1x | 2.7x | 3.2x |
|---|
| Wisdom Marine Lines Co Limited ($WML) | 7.9x | 8.5x | 9.0x | 9.1x | 8.4x |
