Compal Electronics Inc reports 2.6% EBITDA decline and almost no change in EBITDA Margin of 2.0%
30 Mar 2016 • About Compal Electronics Inc (
$CEIR) • By InTwits
Compal Electronics Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 2.0% in 2015 vs. 2.1% in 2014 vs. 2.7% in 2011
- Compal Electronics Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is at 6.5%
- It operates with high leverage: Net Debt/EBITDA is -0.3x while industry average is -1.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Compal Electronics Inc ($CEIR) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 693,127 | 683,914 | 692,748 | 845,701 | 847,306 | 0.2% |
| Gross Profit | 33,587 | 28,750 | 28,110 | 32,365 | 33,378 | 3.1% |
| SG&A | | 18,695 | 18,876 | 20,700 | 22,066 | 6.6% |
| EBITDA | 18,825 | 15,371 | 14,790 | 17,702 | 17,237 | -2.6% |
| Net Income | 11,015 | 6,400 | 2,467 | 7,024 | 8,685 | 23.6% |
Balance Sheet
|
|---|
| Cash | 52,348 | 44,155 | 46,966 | 74,708 | 62,752 | -16.0% |
| Short Term Debt | 14,989 | 36,581 | 52,395 | 50,327 | 43,698 | -13.2% |
| Long Term Debt | 25 | 551 | 14,107 | 20,504 | 14,357 | -30.0% |
Cash flow
|
|---|
| Capex | 6,499 | 8,117 | 5,677 | 6,566 | 5,493 | -16.3% |
Ratios
|
|---|
| Revenue growth | -21.9% | -1.3% | 1.3% | 22.1% | 0.2% | |
| EBITDA growth | -36.3% | -18.3% | -3.8% | 19.7% | -2.6% | |
| Gross Margin | 4.8% | 4.2% | 4.1% | 3.8% | 3.9% | 0.1% |
| EBITDA Margin | 2.7% | 2.2% | 2.1% | 2.1% | 2.0% | -0.1% |
| Net Income Margin | 1.6% | 0.9% | 0.4% | 0.8% | 1.0% | 0.2% |
| SG&A, % of revenue | | 2.7% | 2.7% | 2.4% | 2.6% | 0.2% |
| CAPEX, % of revenue | 0.9% | 1.2% | 0.8% | 0.8% | 0.6% | -0.1% |
| ROIC | 9.1% | 7.1% | 5.8% | 6.7% | 6.5% | -0.3% |
| ROE | 10.0% | 6.0% | 2.5% | 7.2% | 8.5% | 1.3% |
| Net Debt/EBITDA | -2.0x | -0.5x | 1.3x | -0.2x | -0.3x | -0.1x |
Revenue and profitability
Compal Electronics Inc's Revenue showed almost no change in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Compal Electronics Inc's CAPEX/Revenue was 0.65% in 2015. CAPEX/Revenue decreased slightly on 0.54 pp from 1.2% in 2012 to 0.65% in 2015. It's average level of CAPEX/Revenue for the last three years was 0.75%.
Return on investment
The company operates at low ROIC (6.47%) and ROE (8.47%). ROIC showed almost no change in 2015. ROE increased slightly on 1.3 pp from 7.2% to 8.5% in 2015.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 3.4x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from -0.2x to -0.3x in 2015. Debt dropped on 18.0% in 2015 while cash dropped on 16.0% in 2015.
Appendix 1: Peers in Technology Hardware & Equipment
Below we provide Compal Electronics Inc 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 ($SEE) | | 0.1% | 66.3% | 43.3% | 13.3% |
| |
|---|
| Median (18 companies) | -7.4% | 2.6% | 3.4% | 0.3% | 2.6% |
|---|
| Compal Electronics Inc ($CEIR) | | -1.3% | 1.3% | 22.1% | 0.2% |
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 ($SEE) | 69.4% | 61.4% | 64.1% | 59.8% | 44.9% |
| |
|---|
| Median (17 companies) | 34.8% | 34.5% | 35.2% | 37.0% | 39.4% |
|---|
| Compal Electronics Inc ($CEIR) | 4.8% | 4.2% | 4.1% | 3.8% | 3.9% |
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 ($TRAK) | 14.1% | 7.1% | 6.8% | 12.9% | 14.0% |
| |
|---|
| Median (18 companies) | 6.5% | 4.5% | 8.0% | 6.4% | 6.5% |
|---|
| Compal Electronics Inc ($CEIR) | 2.7% | 2.2% | 2.1% | 2.1% | 2.0% |
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% |
| Sunplus Technology Co Ltd ($SUPD) | 7.2% | 4.8% | 6.3% | 15.0% | 4.5% |
| Seeing Machines ($SEE) | 3.4% | 0.3% | 2.2% | 1.0% | 3.9% |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 2.2% | 2.4% | 2.0% | 2.3% | 3.4% |
| |
|---|
| Median (18 companies) | 2.2% | 2.2% | 2.0% | 2.3% | 1.8% |
|---|
| Compal Electronics Inc ($CEIR) | 0.9% | 1.2% | 0.8% | 0.8% | 0.6% |
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 (18 companies) | -1.6% | 0.6% | 6.0% | 5.7% | 3.8% |
|---|
| Compal Electronics Inc ($CEIR) | 9.1% | 7.1% | 5.8% | 6.7% | 6.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vislink ($VLK) | -3.4x | -1.2x | -0.5x | -0.0x | 1.8x |
| Mti Wireless Edge ($MWE) | 2.3x | -21.9x | 1.9x | -1.6x | 0.2x |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 0.1x | -0.1x | 0.0x | -0.2x | 0.1x |
| Samsung Electronics Co ($SMSN) | -0.0x | -0.1x | -0.1x | -0.1x | -0.2x |
| Trakm8 Holdings ($TRAK) | -1.6x | -2.3x | -3.8x | -0.5x | -0.2x |
| |
|---|
| Median (14 companies) | -0.3x | -1.1x | -0.8x | -1.4x | -1.5x |
|---|
| Compal Electronics Inc ($CEIR) | -2.0x | -0.5x | 1.3x | -0.2x | -0.3x |
