Sunplus Technology Co Ltd Net Income jumped on 39.4% in 2015 while EBITDA Margin decreased slightly on 1.6 pp from 12.6% to 11.0%
30 Mar 2016 • About Sunplus Technology Co Ltd (
$SUPD) • By InTwits
Sunplus Technology Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 11.0% in 2015, 12.6% in 2014, 5.4% in 2013, -0.3% in 2012, -1.4% in 2011
- Sunplus Technology Co Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.6%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: 381 in 2015, 1,184 in 2014, 540 in 2013, 410 in 2012, 670 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.3%
- It operates with high leverage: Net Debt/EBITDA is -2.1x while industry average is -1.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sunplus Technology Co Ltd ($SUPD) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9,252 | 8,615 | 8,522 | 7,872 | 8,466 | 7.6% |
| Gross Profit | 3,098 | 3,269 | 3,398 | 3,314 | 3,523 | 6.3% |
| SG&A | | 3,705 | 3,413 | 2,761 | 2,955 | 7.0% |
| EBITDA | -133 | -29 | 457 | 994 | 932 | -6.2% |
| Net Income | -1,985 | -934 | 53 | 423 | 589 | 39.4% |
Balance Sheet
|
|---|
| Cash | 4,775 | 4,493 | 4,331 | 3,577 | 4,443 | 24.2% |
| Short Term Debt | 1,209 | 983 | 1,104 | 1,209 | 1,266 | 4.7% |
| Long Term Debt | 0 | 1,368 | 705 | 657 | 1,256 | 91.2% |
Cash flow
|
|---|
| Capex | 670 | 410 | 540 | 1,184 | 381 | -67.8% |
Ratios
|
|---|
| Revenue growth | -27.5% | -6.9% | -1.1% | -7.6% | 7.6% | |
| EBITDA growth | -108.5% | -78.5% | -1,700.8% | 117.4% | -6.2% | |
| Gross Margin | 33.5% | 37.9% | 39.9% | 42.1% | 41.6% | -0.5% |
| EBITDA Margin | -1.4% | -0.3% | 5.4% | 12.6% | 11.0% | -1.6% |
| Net Income Margin | -21.5% | -10.8% | 0.6% | 5.4% | 7.0% | 1.6% |
| SG&A, % of revenue | | 43.0% | 40.0% | 35.1% | 34.9% | -0.2% |
| CAPEX, % of revenue | 7.2% | 4.8% | 6.3% | 15.0% | 4.5% | -10.5% |
| ROIC | -5.7% | -3.5% | -0.1% | 4.4% | 4.3% | -0.2% |
| ROE | -18.2% | -10.6% | 0.6% | 4.7% | 6.3% | 1.6% |
| Net Debt/EBITDA | | | -5.5x | -1.7x | -2.1x | -0.3x |
Revenue and profitability
Sunplus Technology Co Ltd's Revenue increased on 7.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 132 pp from 23.5% to -108% 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 increased slightly on 1.6 pp from 5.4% to 7.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Sunplus Technology Co Ltd's CAPEX/Revenue was 4.5% in 2015. Sunplus Technology Co Ltd's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 8.6%.
Return on investment
The company operates at low ROIC (4.28%) and ROE (6.25%). ROIC showed almost no change in 2015. ROE increased slightly on 1.6 pp from 4.7% to 6.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.1x and Debt / EBITDA is 2.7x. Net Debt / EBITDA dropped on 0.3x from -1.7x to -2.1x in 2015. Debt jumped on 35.1% in 2015 while cash jumped on 24.2% in 2015.
Appendix 1: Peers in Technology Hardware & Equipment
Below we provide Sunplus Technology Co Ltd 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 ($SEE) | | 0.1% | 66.3% | 43.3% | 13.3% |
| |
|---|
| Median (18 companies) | -7.4% | 2.6% | 3.4% | 3.4% | 0.7% |
|---|
| Sunplus Technology Co Ltd ($SUPD) | | -6.9% | -1.1% | -7.6% | 7.6% |
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 ($SEE) | 69.4% | 61.4% | 64.1% | 59.8% | 44.9% |
| |
|---|
| Median (17 companies) | 34.8% | 33.2% | 34.1% | 36.0% | 38.5% |
|---|
| Sunplus Technology Co Ltd ($SUPD) | 33.5% | 37.9% | 39.9% | 42.1% | 41.6% |
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 ($TRAK) | 14.1% | 7.1% | 6.8% | 12.9% | 14.0% |
| |
|---|
| Median (18 companies) | 6.5% | 4.5% | 8.0% | 5.6% | 5.4% |
|---|
| Sunplus Technology Co Ltd ($SUPD) | -1.4% | -0.3% | 5.4% | 12.6% | 11.0% |
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% |
| 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 (18 companies) | 2.0% | 2.1% | 2.0% | 1.9% | 1.7% |
|---|
| Sunplus Technology Co Ltd ($SUPD) | 7.2% | 4.8% | 6.3% | 15.0% | 4.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Trakm8 Holdings ($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) | 1.2% | 0.7% | 6.0% | 6.7% | 4.9% |
|---|
| Sunplus Technology Co Ltd ($SUPD) | -5.7% | -3.5% | -0.1% | 4.4% | 4.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vislink ($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 ($TRAK) | -1.6x | -2.3x | -3.8x | -0.5x | -0.2x |
| |
|---|
| Median (14 companies) | -0.4x | -0.9x | -0.5x | -1.3x | -1.2x |
|---|
| Sunplus Technology Co Ltd ($SUPD) | | | -5.5x | -1.7x | -2.1x |
