Acer Inc reports 46.3% EBITDA decline and almost no change in EBITDA Margin of 0.89%
24 Mar 2016 • About Acer Inc (
$ACID) • By InTwits
Acer Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Acer Inc is a company in decline: 2015 revenue growth was -20.0%, 5 years revenue CAGR was -16.0%
- Acer Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -0.1%0
- Acer Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has potentially unprofitable business model: ROIC is at 0.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Acer Inc ($ACID) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 475,342 | 429,627 | 360,132 | 329,684 | 263,775 | -20.0% |
| Gross Profit | 38,607 | 35,222 | 22,550 | 28,942 | 24,884 | -14.0% |
| SG&A | | 34,597 | 34,194 | 26,567 | 24,222 | -8.8% |
| EBITDA | -3,526 | 3,965 | -8,945 | 4,369 | 2,348 | -46.3% |
| Net Income | -6,602 | -2,461 | -20,519 | 1,791 | 604 | -66.3% |
Balance Sheet
|
|---|
| Cash | 58,093 | 50,613 | 42,984 | 47,559 | 44,622 | -6.2% |
| Short Term Debt | 358 | 14,279 | 2,190 | 7,552 | 10,351 | 37.1% |
| Long Term Debt | 23,188 | 3,803 | 16,175 | 9,480 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 947 | 813 | 377 | 229 | 268 | 17.0% |
Ratios
|
|---|
| Revenue growth | -24.4% | -9.6% | -16.2% | -8.5% | -20.0% | |
| EBITDA growth | -117.0% | -212.5% | -325.6% | -148.8% | -46.3% | |
| Gross Margin | 8.1% | 8.2% | 6.3% | 8.8% | 9.4% | 0.7% |
| EBITDA Margin | -0.7% | 0.9% | -2.5% | 1.3% | 0.9% | -0.4% |
| Net Income Margin | -1.4% | -0.6% | -5.7% | 0.5% | 0.2% | -0.3% |
| SG&A, % of revenue | | 8.1% | 9.5% | 8.1% | 9.2% | 1.1% |
| CAPEX, % of revenue | 0.2% | 0.2% | 0.1% | 0.1% | 0.1% | 0.0% |
| ROIC | -5.7% | 0.6% | -13.7% | 3.1% | 0.8% | -2.2% |
| ROE | -7.8% | -3.3% | -31.5% | 3.1% | 1.0% | -2.1% |
| Net Debt/EBITDA | | -8.2x | | -7.0x | -14.6x | -7.6x |
Revenue and profitability
The company's Revenue dropped on 20.0% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin increased slightly on 0.66 pp from 8.8% to 9.4% in 2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 8.1% to 9.2% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.10%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.092%.
Return on investment
The company operates at low ROIC (0.84%) and ROE (0.95%). ROIC decreased on 2.2 pp from 3.1% to 0.84% in 2015. ROE decreased on 2.1 pp from 3.1% to 0.95% in 2015.
Leverage (Debt)
Debt level is -14.6x Net Debt / EBITDA and 4.4x Debt / EBITDA. Net Debt / EBITDA dropped on 7.6x from -7.0x to -14.6x in 2015. Debt dropped on 39.2% in 2015 while cash decreased on 6.2% in 2015.
Appendix 1: Peers in Technology Hardware & Equipment
Below you can find Acer Inc benchmarking vs. other companies in Technology Hardware & 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 |
|---|
| Trakm8 Holdings ($TRAK) | | 24.6% | -8.9% | 93.5% | 94.2% |
| Mti Wireless Edge ($MWE) | | -13.5% | 5.6% | 6.8% | 36.5% |
| Concurrent Technologies ($CNC) | | -7.3% | -7.3% | 8.0% | 33.3% |
| Toumaz Ld ($TMZ) | | 279.7% | 150.3% | 19.5% | 22.1% |
| Seeing Machines ($SEE) | | 0.1% | 66.3% | 43.3% | 13.3% |
| |
|---|
| Median (15 companies) | -14.6% | 1.5% | 3.4% | 3.4% | 4.1% |
|---|
| Acer Inc ($ACID) | | | -16.2% | -8.5% | -20.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cml Microsystems ($CML) | 69.5% | 69.3% | 70.3% | 73.3% | 70.9% |
| Seeing Machines ($SEE) | 69.4% | 61.4% | 64.1% | 59.8% | 44.9% |
| Trakm8 Holdings ($TRAK) | 66.6% | 63.8% | 71.9% | 57.2% | 45.2% |
| Concurrent Technologies ($CNC) | 52.1% | 51.7% | 50.6% | 51.2% | 50.6% |
| Vislink ($VLK) | 41.1% | 39.4% | 40.7% | 45.9% | 45.0% |
| |
|---|
| Median (18 companies) | 34.4% | 34.5% | 35.2% | 37.0% | 39.7% |
|---|
| Acer Inc ($ACID) | | 8.2% | 6.3% | 8.8% | 9.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cml Microsystems ($CML) | 29.8% | 28.7% | 33.1% | 35.1% | 29.9% |
| Concurrent Technologies ($CNC) | 28.5% | 29.3% | 23.3% | 27.1% | 28.6% |
| Pure Wafer ($PUR) | 12.3% | 16.3% | 17.0% | 31.5% | 27.4% |
| Samsung Electronics Co ($SMSN) | 17.6% | 22.2% | 23.3% | 20.9% | 23.6% |
| Trakm8 Holdings ($TRAK) | 14.1% | 7.1% | 6.8% | 12.9% | 14.0% |
| |
|---|
| Median (15 companies) | 6.2% | 4.5% | 8.0% | 6.4% | 5.6% |
|---|
| Acer Inc ($ACID) | | 0.9% | -2.5% | 1.3% | 0.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Samsung Electronics Co ($SMSN) | 13.3% | 11.4% | 10.1% | 10.7% | 12.9% |
| Pure Wafer ($PUR) | 2.0% | 0.5% | 3.5% | 23.3% | 8.5% |
| Seeing Machines ($SEE) | 3.4% | 0.3% | 2.2% | 1.0% | 3.9% |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 2.2% | 2.4% | 2.0% | 2.3% | 3.4% |
| Batm Advanced Communications ($BVC) | 1.5% | 1.2% | 1.5% | 1.6% | 2.5% |
| |
|---|
| Median (15 companies) | 2.1% | 2.2% | 2.0% | 2.3% | 1.8% |
|---|
| Acer Inc ($ACID) | | 0.2% | 0.1% | 0.1% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Trakm8 Holdings ($TRAK) | 13.1% | 3.8% | 1.9% | 18.7% | 22.5% |
| Concurrent Technologies ($CNC) | 19.5% | 14.6% | 8.2% | 14.1% | 20.9% |
| Samsung Electronics Co ($SMSN) | 13.9% | 22.4% | 24.0% | 14.4% | 14.0% |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 13.0% | 13.7% | 11.1% | 10.3% | 13.5% |
| Hon Hai Precision Industry ($HHPD) | | 9.9% | 8.7% | 10.3% | 11.7% |
| |
|---|
| Median (15 companies) | -0.2% | 0.7% | 6.0% | 6.7% | 3.4% |
|---|
| Acer Inc ($ACID) | | 0.6% | -13.7% | 3.1% | 0.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tatung Co ($TAT) | 7.0x | 41.1x | 6.1x | 6.7x | |
| Vislink ($VLK) | -3.4x | -1.2x | -0.5x | -0.0x | 1.8x |
| Samsung Electronics Co ($SMSN) | -0.0x | -0.1x | -0.1x | -0.1x | -0.2x |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 0.1x | -0.1x | 0.0x | -0.2x | 0.1x |
| Compal Electronics Inc ($CEIR) | -2.0x | -0.5x | 1.3x | -0.2x | |
| |
|---|
| Median (16 companies) | -0.4x | -0.8x | -0.7x | -1.3x | -1.0x |
|---|
| Acer Inc ($ACID) | | -8.2x | | -7.0x | -14.6x |
