Cathay Financial Hldg Co Net Income surged on 16.5% in 2015 and Revenue increased on 9.3%
17 Mar 2016 • About Cathay Financial Hldg Co (
$CFHS) • By InTwits
Cathay Financial Hldg Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cathay Financial Hldg Co doesn't have a profitable business model yet: 2015 ROIC is 1.3%
- Cathay Financial Hldg Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has potentially unprofitable business model: ROIC is at 1.3%
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cathay Financial Hldg Co ($CFHS) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 539,488 | 402,605 | 639,701 | 734,513 | 802,728 | 9.3% |
| Net Income | 11,129 | 16,116 | 28,816 | 49,369 | 57,514 | 16.5% |
Balance Sheet
|
|---|
| Cash | 126,781 | 127,943 | 105,181 | 241,253 | 133,031 | -44.9% |
| Short Term Debt | 1,284,712 | 1,278,593 | 1,404,446 | 1,552,160 | 1,632,201 | 5.2% |
| Long Term Debt | 76,024 | 89,831 | 92,417 | 107,614 | 71,800 | -33.3% |
Cash flow
|
|---|
| Capex | 935 | 4,575 | 2,037 | 1,376 | 1,287 | -6.4% |
Ratios
|
|---|
| Revenue growth | 41.4% | -25.4% | 58.9% | 14.8% | 9.3% | |
| Net Income Margin | 2.1% | 4.0% | 4.5% | 6.7% | 7.2% | 0.4% |
| CAPEX, % of revenue | 0.2% | 1.1% | 0.3% | 0.2% | 0.2% | -0.0% |
| ROIC | 0.5% | 0.6% | 0.9% | 1.3% | 1.3% | 0.1% |
| ROE | 5.1% | 7.0% | 11.0% | 13.8% | 12.9% | -0.9% |
Revenue and profitability
The company's Revenue increased on 9.3% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Cathay Financial Hldg Co's CAPEX/Revenue was 0.16% in 2015. CAPEX/Revenue decreased slightly on 0.98 pp from 1.1% in 2012 to 0.16% in 2015. For the last three years the average CAPEX/Revenue was 0.22%.
Return on investment
The company operates at good ROE (12.95%) while ROIC is low (1.35%). ROIC showed almost no change in 2015. ROE decreased slightly on 0.87 pp from 13.8% to 12.9% in 2015.
Leverage (Debt)
Debt increased on 2.7% in 2015 while cash dropped on 44.9% in 2015.
Appendix 1: Peers in Life Insurance
Below you can find Cathay Financial Hldg Co benchmarking vs. other companies in Life Insurance 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 |
|---|
| Shin Kong Financial Hldg Co ($SKFS) | | 2.2% | 0.8% | 21.5% | 6.2% |
| Torchmark Corp ($TMK) | | 6.3% | 5.1% | -4.0% | 4.0% |
| Prudential ($PRU) | | 49.1% | -3.8% | 14.8% | -31.3% |
| Partnership Assurance Group ($PA.) | | 30.0% | -19.5% | 30.9% | -36.2% |
| Aviva ($AV.A) | | 40.7% | -20.4% | 25.6% | -45.7% |
| |
|---|
| Median (6 companies) | -25.1% | 30.0% | -3.8% | 14.8% | -33.8% |
|---|
| Cathay Financial Hldg Co ($CFHS) | | -25.4% | 58.9% | 14.8% | 9.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Torchmark Corp ($TMK) | 0.2% | 0.1% | 0.3% | 0.5% | 1.0% |
| Shin Kong Financial Hldg Co ($SKFS) | 0.2% | 0.4% | 0.3% | 0.4% | 0.8% |
| Prudential ($PRU) | 0.3% | 0.3% | 0.4% | 0.3% | 0.6% |
| Aviva ($AV.A) | 0.3% | 0.5% | 0.1% | 0.3% | 0.2% |
| Standard Life ($SL.) | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% |
| |
|---|
| Median (6 companies) | 0.2% | 0.4% | 0.3% | 0.3% | 0.4% |
|---|
| Cathay Financial Hldg Co ($CFHS) | 0.2% | 1.1% | 0.3% | 0.2% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Torchmark Corp ($TMK) | 5.5% | 5.4% | 4.9% | 4.6% | 4.3% |
| Prudential ($PRU) | 0.8% | 1.1% | 0.6% | 0.8% | 0.9% |
| Aviva ($AV.A) | 0.5% | 0.4% | 0.7% | 1.0% | 0.6% |
| Shin Kong Financial Hldg Co ($SKFS) | 0.6% | 0.8% | 0.8% | 0.7% | 0.5% |
| Standard Life ($SL.) | 0.5% | 0.7% | 0.5% | 0.5% | 0.4% |
| |
|---|
| Median (6 companies) | 0.6% | 0.9% | 0.8% | 0.7% | 0.6% |
|---|
| Cathay Financial Hldg Co ($CFHS) | 0.5% | 0.6% | 0.9% | 1.3% | 1.3% |
