Lite-On Technology Corp EBITDA increased on 7.6% in 2015 and EBITDA Margin increased slightly on 0.93 pp from 6.4% to 7.3%
29 Mar 2016 • About Lite-On Technology Corp (
$LTTD) • By InTwits
Lite-On Technology Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 7.3% in 2015 vs. 6.4% in 2014 vs. 8.3% in 2011
- Lite-On Technology Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 3.6%.
- CAPEX is quite volatile: 25,769 in FY2015, 47,237 in FY2014, 9,927 in FY2013, 9,260 in FY2012, 10,554 in FY2011
- The company has potentially unprofitable business model: ROIC is at 7.0%
- It operates with high leverage: Net Debt/EBITDA is -1.7x while industry average is -1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lite-On Technology Corp ($LTTD) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 230,520 | 216,047 | 213,214 | 230,632 | 216,929 | -5.9% |
| Gross Profit | 34,048 | 30,558 | 30,501 | 28,248 | 28,141 | -0.4% |
| SG&A | | 19,680 | 20,458 | 14,750 | 13,502 | -8.5% |
| EBITDA | 19,208 | 17,935 | 17,035 | 14,803 | 15,933 | 7.6% |
| Net Income | 7,226 | 7,402 | 8,755 | 6,461 | 7,223 | 11.8% |
Balance Sheet
|
|---|
| Cash | 56,515 | 51,225 | 65,931 | 66,483 | 65,502 | -1.5% |
| Short Term Debt | 6,410 | 11,724 | 24,709 | 31,478 | 22,741 | -27.8% |
| Long Term Debt | 23,611 | 20,189 | 18,681 | 13,666 | 16,361 | 19.7% |
Cash flow
|
|---|
| Capex | 8,931 | 7,964 | 6,198 | 8,645 | 5,151 | -40.4% |
Ratios
|
|---|
| Revenue growth | 0.2% | -6.3% | -1.3% | 8.2% | -5.9% | |
| EBITDA growth | -13.2% | -6.6% | -5.0% | -13.1% | 7.6% | |
| Gross Margin | 14.8% | 14.1% | 14.3% | 12.2% | 13.0% | 0.7% |
| EBITDA Margin | 8.3% | 8.3% | 8.0% | 6.4% | 7.3% | 0.9% |
| Net Income Margin | 3.1% | 3.4% | 4.1% | 2.8% | 3.3% | 0.5% |
| SG&A, % of revenue | | 9.1% | 9.6% | 6.4% | 6.2% | -0.2% |
| CAPEX, % of revenue | 3.9% | 3.7% | 2.9% | 3.7% | 2.4% | -1.4% |
| ROIC | 10.3% | 8.9% | 8.2% | 5.7% | 7.0% | 1.3% |
| ROE | 10.5% | 10.7% | 12.3% | 8.7% | 9.6% | 0.8% |
| Net Debt/EBITDA | -1.4x | -1.1x | -1.3x | -1.4x | -1.7x | -0.2x |
Revenue and profitability
Lite-On Technology Corp's Revenue decreased on 5.9% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.93 pp from 6.4% to 7.3% in 2015.
Gross Margin increased slightly on 0.72 pp from 12.2% to 13.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.53 pp from 2.8% to 3.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.4% in 2015. Lite-On Technology Corp's CAPEX/Revenue decreased slightly on 1.3 pp from 3.7% in 2012 to 2.4% in 2015. Average CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at low ROIC (6.95%) and ROE (9.57%). ROIC increased slightly on 1.3 pp from 5.7% to 7.0% in 2015. ROE increased slightly on 0.84 pp from 8.7% to 9.6% in 2015.
Leverage (Debt)
Debt level is -1.7x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from -1.4x to -1.7x in 2015. Debt dropped on 13.4% in 2015 while cash decreased slightly on 1.5% in 2015.
Appendix 1: Peers in Technology Hardware & Equipment
Below we provide Lite-On Technology Corp benchmarking against other companies in Technology Hardware & Equipment 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 |
|---|
| 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 ($SEE) | | 0.1% | 66.3% | 43.3% | 13.3% |
| |
|---|
| Median (16 companies) | -21.9% | 2.6% | 3.4% | 0.3% | 2.6% |
|---|
| Lite-On Technology Corp ($LTTD) | | -6.3% | -1.3% | 8.2% | -5.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cml Microsystems ($CML) | 69.5% | 69.3% | 70.3% | 73.3% | 70.9% |
| Concurrent Technologies ($CNC) | 52.1% | 51.7% | 50.6% | 51.2% | 50.6% |
| Trakm8 Holdings ($TRAK) | 66.6% | 63.8% | 71.9% | 57.2% | 45.2% |
| Vislink ($VLK) | 41.1% | 39.4% | 40.7% | 45.9% | 45.0% |
| Seeing Machines ($SEE) | 69.4% | 61.4% | 64.1% | 59.8% | 44.9% |
| |
|---|
| Median (15 companies) | 34.8% | 34.5% | 35.2% | 37.0% | 39.4% |
|---|
| Lite-On Technology Corp ($LTTD) | 14.8% | 14.1% | 14.3% | 12.2% | 13.0% |
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 ($TRAK) | 14.1% | 7.1% | 6.8% | 12.9% | 14.0% |
| |
|---|
| Median (16 companies) | 6.0% | 3.8% | 6.8% | 5.6% | 5.4% |
|---|
| Lite-On Technology Corp ($LTTD) | 8.3% | 8.3% | 8.0% | 6.4% | 7.3% |
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 (16 companies) | 2.0% | 2.1% | 2.0% | 1.9% | 1.7% |
|---|
| Lite-On Technology Corp ($LTTD) | 3.9% | 3.7% | 2.9% | 3.7% | 2.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Trakm8 Holdings ($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 (16 companies) | -1.6% | 0.6% | 5.8% | 6.7% | 2.1% |
|---|
| Lite-On Technology Corp ($LTTD) | 10.3% | 8.9% | 8.2% | 5.7% | 7.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tatung Co ($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) | -0.3x | -0.8x | -0.5x | -1.3x | -1.2x |
|---|
| Lite-On Technology Corp ($LTTD) | -1.4x | -1.1x | -1.3x | -1.4x | -1.7x |
