Dp World Ltd reports 63.2% CAPEX growth and 16.7% Revenue growth
17 Mar 2016 • About Dp World Ltd (
$0P5M) • By InTwits
Dp World Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 45.7% in 2015 vs. 42.4% in 2014 vs. 38.4% in 2011
- Dp World Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.7%. At the same time it's a lot of higher than industry average of 17.8%.
- CAPEX is quite volatile: 1,167 in 2015, 715 in 2014, 1,026 in 2013, 642 in 2012, 450 in 2011
- The company has business model with low profitability: ROIC is at 8.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.4x while industry average is 3.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dp World Ltd ($0P5M) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,978 | 3,121 | 3,073 | 3,463 | 4,043 | 16.7% |
| Gross Profit | 973 | 1,118 | 1,224 | 1,453 | 1,959 | 34.8% |
| SG&A | | 335 | 413 | 405 | 591 | 45.8% |
| EBITDA | 1,145 | 1,193 | 1,207 | 1,468 | 1,848 | 25.8% |
| Net Income | 683 | 738 | 640 | 701 | 883 | 26.0% |
Balance Sheet
|
|---|
| Cash | 4,159 | 1,882 | 2,572 | 3,723 | 1,437 | -61.4% |
| Short Term Debt | 3,179 | 703 | 260 | 251 | 143 | -43.1% |
| Long Term Debt | 4,563 | 4,050 | 4,777 | 5,604 | 7,527 | 34.3% |
Cash flow
|
|---|
| Capex | 450 | 642 | 1,026 | 715 | 1,167 | 63.2% |
Ratios
|
|---|
| Revenue growth | -6.6% | 4.8% | -1.5% | 12.7% | 16.7% | |
| EBITDA growth | 6.0% | 4.2% | 1.2% | 21.7% | 25.8% | |
| Gross Margin | 32.7% | 35.8% | 39.8% | 41.9% | 48.4% | 6.5% |
| EBITDA Margin | 38.4% | 38.2% | 39.3% | 42.4% | 45.7% | 3.3% |
| Net Income Margin | 22.9% | 23.7% | 20.8% | 20.2% | 21.8% | 1.6% |
| SG&A, % of revenue | | 10.7% | 13.4% | 11.7% | 14.6% | 2.9% |
| CAPEX, % of revenue | 15.1% | 20.6% | 33.4% | 20.7% | 28.9% | 8.2% |
| ROIC | 2.7% | 5.0% | 5.5% | 6.8% | 8.2% | 1.4% |
| ROE | 9.0% | 9.5% | 7.7% | 8.2% | 10.2% | 2.0% |
| Net Debt/EBITDA | 3.1x | 2.4x | 2.0x | 1.5x | 3.4x | 1.9x |
Revenue and profitability
The company's Revenue surged on 16.7% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.88 pp from 13.0% to 13.9% in 2015.
Gross Margin increased on 6.5 pp from 41.9% to 48.4% in 2015. SG&A as a % of Revenue increased on 2.9 pp from 11.7% to 14.6% in 2015.
Net Income marign increased slightly on 1.6 pp from 20.2% to 21.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Dp World Ltd had CAPEX/Revenue of 28.9%. The company's CAPEX/Revenue increased on 8.3 pp from 20.6% in 2012 to 28.9% in 2015. Average CAPEX/Revenue for the last three years was 27.6%.To maintain this fast growth the company invested a large share of EBITDA (63.2%) to CAPEX.
Return on investment
The company operates at low ROIC (8.16%) and ROE (10.23%). ROIC increased slightly on 1.4 pp from 6.8% to 8.2% in 2015. ROE increased on 2.0 pp from 8.2% to 10.2% in 2015.
Leverage (Debt)
Debt level is 3.4x Net Debt / EBITDA and 4.2x Debt / EBITDA. Net Debt / EBITDA surged on 1.9x from 1.5x to 3.4x in 2015. Debt surged on 31.0% in 2015 while cash dropped on 61.4% in 2015.
Appendix 1: Peers in Industrial Transportation
Below we provide Dp World Ltd benchmarking against other companies in Industrial Transportation 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 |
|---|
| Hellenic Carriers Ltd ($HCL) | | -60.3% | -17.0% | 88.5% | -36.7% |
| Global Ports Investments ($GLPR) | | 0.1% | -33.8% | 69.3% | -27.9% |
| Zhejiang Expressway Co ($ZHEH) | | 2.2% | 13.3% | 20.5% | 32.2% |
| Yangming Marine Transport Corp ($YMTD) | -9.2% | 10.9% | -9.5% | 13.4% | |
| Wisdom Marine Lines Co Limited ($WML) | | 11.2% | -0.8% | 8.8% | 21.6% |
| |
|---|
| Median (14 companies) | 28.3% | 1.6% | -2.2% | 3.4% | -7.1% |
|---|
| Dp World Ltd ($0P5M) | | 4.8% | -1.5% | 12.7% | 16.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 52.8% | 57.9% | 54.3% | 61.0% | |
| Global Ports Investments ($GLPR) | 52.6% | 40.3% | 58.8% | 58.8% | 68.0% |
| Zhejiang Expressway Co ($ZHEH) | 39.9% | 34.0% | 36.9% | 37.7% | 43.6% |
| Globaltrans Investment ($GLTR) | 30.1% | 31.4% | 25.8% | 23.2% | |
| Wisdom Marine Lines Co Limited ($WML) | 37.4% | 30.3% | 20.3% | 20.7% | 24.1% |
| |
|---|
| Median (9 companies) | 37.4% | 30.3% | 20.3% | 20.7% | 21.3% |
|---|
| Dp World Ltd ($0P5M) | 32.7% | 35.8% | 39.8% | 41.9% | 48.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital Lease Aviation ($CLA) | 105.0% | 101.2% | 88.5% | 89.2% | 80.5% |
| Global Ports Investments ($GLPR) | 55.1% | 57.1% | 60.3% | 69.6% | 71.2% |
| Frontline Ltd ($FRO) | 13.7% | 17.2% | -4.6% | 64.5% | 74.6% |
| 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% | 58.0% |
| |
|---|
| Median (14 companies) | 40.9% | 22.6% | 17.1% | 17.0% | 33.2% |
|---|
| Dp World Ltd ($0P5M) | 38.4% | 38.2% | 39.3% | 42.4% | 45.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Frontline Ltd ($FRO) | 10.2% | 2.5% | 0.5% | 83.6% | 171.4% |
| Hellenic Carriers Ltd ($HCL) | 1.3% | 11.7% | 246.3% | 75.1% | 0.7% |
| Zhejiang Expressway Co ($ZHEH) | 6.6% | 5.3% | 3.2% | 13.4% | 2.6% |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 13.7% | 15.6% | 16.9% | 11.5% | |
| Novorossiysk Commercial Sea Port ($NCSP) | 9.1% | 5.4% | 10.4% | 9.9% | |
| |
|---|
| Median (14 companies) | 9.5% | 8.0% | 7.7% | 4.2% | 2.2% |
|---|
| Dp World Ltd ($0P5M) | 15.1% | 20.6% | 33.4% | 20.7% | 28.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Novorossiysk Commercial Sea Port ($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% | 15.3% |
| Global Ports Investments ($GLPR) | 18.5% | 17.0% | 7.1% | 12.1% | 14.6% |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 18.2% | 20.2% | 17.6% | 8.8% | |
| |
|---|
| Median (14 companies) | 8.4% | 8.4% | 6.2% | 7.1% | 5.9% |
|---|
| Dp World Ltd ($0P5M) | 2.7% | 5.0% | 5.5% | 6.8% | 8.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hellenic Carriers Ltd ($HCL) | 2.5x | 533.2x | 291.0x | 39.1x | |
| Yangming Marine Transport Corp ($YMTD) | | 19.7x | | 9.8x | |
| Wisdom Marine Lines Co Limited ($WML) | 7.9x | 8.5x | 9.0x | 9.1x | 8.4x |
| 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 |
| |
|---|
| Median (14 companies) | 3.5x | 3.7x | 5.4x | 2.8x | 3.3x |
|---|
| Dp World Ltd ($0P5M) | 3.1x | 2.4x | 2.0x | 1.5x | 3.4x |
