Teco Electric & Machinery Co Ltd Net Income dropped on 21.8% in 2015 and Revenue decreased on 9.6%
30 Mar 2016 • About Teco Electric & Machinery Co Ltd (
$TECD) • By InTwits
Teco Electric & Machinery Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 10.5% in 2015 vs. 10.7% in 2014 vs. 9.7% in 2011
- Teco Electric & Machinery Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's in pair with industry average of 2.4%.
- CAPEX is quite volatile: 1,697 in 2015, 1,946 in 2014, 798 in 2013, 696 in 2012, 1,260 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.8%
- It operates with high leverage: Net Debt/EBITDA is -0.3x while industry average is -0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Teco Electric & Machinery Co Ltd ($TECD) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 46,809 | 48,730 | 56,619 | 53,748 | 48,599 | -9.6% |
| Gross Profit | 10,738 | 11,450 | 13,485 | 13,392 | 12,400 | -7.4% |
| SG&A | | 7,621 | 8,859 | 8,969 | 8,613 | -4.0% |
| EBITDA | 4,518 | 5,246 | 6,068 | 5,748 | 5,095 | -11.4% |
| Net Income | 2,783 | 3,080 | 3,760 | 4,063 | 3,177 | -21.8% |
Balance Sheet
|
|---|
| Cash | 11,628 | 13,179 | 14,909 | 17,202 | 14,919 | -13.3% |
| Short Term Debt | 1,915 | 3,145 | 3,286 | 2,642 | 8,326 | 215.1% |
| Long Term Debt | 12,501 | 10,809 | 5,974 | 7,002 | 5,300 | -24.3% |
Cash flow
|
|---|
| Capex | 1,260 | 696 | 798 | 1,946 | 1,697 | -12.8% |
Ratios
|
|---|
| Revenue growth | 3.9% | 4.1% | 16.2% | -5.1% | -9.6% | |
| EBITDA growth | -12.7% | 16.1% | 15.7% | -5.3% | -11.4% | |
| Gross Margin | 22.9% | 23.5% | 23.8% | 24.9% | 25.5% | 0.6% |
| EBITDA Margin | 9.7% | 10.8% | 10.7% | 10.7% | 10.5% | -0.2% |
| Net Income Margin | 5.9% | 6.3% | 6.6% | 7.6% | 6.5% | -1.0% |
| SG&A, % of revenue | | 15.6% | 15.6% | 16.7% | 17.7% | 1.0% |
| CAPEX, % of revenue | 2.7% | 1.4% | 1.4% | 3.6% | 3.5% | -0.1% |
| ROIC | 6.3% | 7.1% | 8.3% | 7.3% | 5.8% | -1.5% |
| ROE | 7.6% | 8.3% | 9.4% | 8.8% | 6.6% | -2.3% |
| Net Debt/EBITDA | 0.6x | 0.1x | -0.9x | -1.3x | -0.3x | 1.1x |
Revenue and profitability
Teco Electric & Machinery Co Ltd's Revenue decreased on 9.6% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin increased slightly on 0.60 pp from 24.9% to 25.5% in 2015. SG&A as a % of Revenue increased slightly on 1.0 pp from 16.7% to 17.7% in 2015.
Net Income marign decreased slightly on 1.0 pp from 7.6% to 6.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.5% in 2015. Teco Electric & Machinery Co Ltd showed CAPEX/Revenue growth of 2.1 pp from 1.4% in 2012 to 3.5% in 2015. Average CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at low ROIC (5.77%) and ROE (6.57%). ROIC decreased slightly on 1.5 pp from 7.3% to 5.8% in 2015. ROE decreased on 2.3 pp from 8.8% to 6.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 2.7x. Net Debt / EBITDA surged on 1.1x from -1.3x to -0.3x in 2015. Debt surged on 41.3% in 2015 while cash dropped on 13.3% in 2015.
Appendix 1: Peers in Household Goods & Home Construction
Below you can find Teco Electric & Machinery Co Ltd benchmarking vs. other companies in Household Goods & Home Construction 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 |
|---|
| Taylor Wimpey ($TW.) | | 11.7% | 13.7% | 17.0% | 16.9% |
| Abbey ($ABBY) | | 5.6% | 40.0% | 15.9% | 51.0% |
| Colefax Group ($CFX) | | -9.4% | 0.3% | 10.5% | -1.6% |
| Reckitt Benckiser Group ($RB.) | | 0.9% | -3.1% | -4.6% | 0.4% |
| Havelock Europa ($HVE) | 0.3% | 1.3% | -11.1% | -6.9% | |
| |
|---|
| Median (7 companies) | -2.0% | 1.3% | 0.3% | -4.6% | 11.3% |
|---|
| Teco Electric & Machinery Co Ltd ($TECD) | | 4.1% | 16.2% | -5.1% | -9.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Reckitt Benckiser Group ($RB.) | 57.4% | 57.9% | 56.7% | 57.7% | 59.1% |
| Colefax Group ($CFX) | 55.1% | 55.1% | 55.4% | 53.3% | 54.7% |
| Abbey ($ABBY) | 24.5% | 23.6% | 17.3% | 25.8% | 30.6% |
| Taylor Wimpey ($TW.) | 15.9% | 17.6% | 21.6% | 23.8% | 25.1% |
| Depa Ltd ($DEPS) | 16.6% | 8.1% | 8.1% | 13.4% | |
| |
|---|
| Median (6 companies) | 20.5% | 20.6% | 19.5% | 24.8% | 42.7% |
|---|
| Teco Electric & Machinery Co Ltd ($TECD) | 22.9% | 23.5% | 23.8% | 24.9% | 25.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Reckitt Benckiser Group ($RB.) | 26.9% | 27.1% | 22.0% | 26.3% | 27.2% |
| Abbey ($ABBY) | 20.7% | 19.4% | 13.3% | 22.6% | 31.2% |
| Taylor Wimpey ($TW.) | 8.5% | 11.2% | 15.6% | 18.6% | 20.2% |
| Colefax Group ($CFX) | 10.9% | 6.6% | 7.6% | 9.1% | 8.7% |
| Airea ($AIEA) | 6.9% | 5.9% | 7.4% | 7.0% | 8.0% |
| |
|---|
| Median (7 companies) | 9.3% | 6.6% | 7.6% | 9.1% | 20.2% |
|---|
| Teco Electric & Machinery Co Ltd ($TECD) | 9.7% | 10.8% | 10.7% | 10.7% | 10.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Abbey ($ABBY) | 9.4% | 12.2% | 6.5% | 8.0% | 8.0% |
| Colefax Group ($CFX) | 3.7% | 4.9% | 3.1% | 2.0% | 2.9% |
| Reckitt Benckiser Group ($RB.) | 1.7% | 1.7% | 2.1% | 1.8% | 1.7% |
| Depa Ltd ($DEPS) | 4.1% | 2.4% | 1.1% | 1.1% | |
| Airea ($AIEA) | 2.1% | 2.7% | 1.0% | 0.7% | 1.8% |
| |
|---|
| Median (7 companies) | 2.1% | 2.4% | 1.3% | 1.1% | 1.8% |
|---|
| Teco Electric & Machinery Co Ltd ($TECD) | 2.7% | 1.4% | 1.4% | 3.6% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Colefax Group ($CFX) | 27.6% | 10.7% | 13.5% | 22.0% | 20.6% |
| Taylor Wimpey ($TW.) | 7.5% | 12.2% | 17.7% | 21.7% | 24.1% |
| Reckitt Benckiser Group ($RB.) | 24.8% | 23.3% | 17.3% | 19.7% | 20.3% |
| Abbey ($ABBY) | 5.8% | 5.4% | 4.7% | 11.2% | 21.1% |
| Airea ($AIEA) | 6.0% | 3.3% | 7.2% | 6.4% | 11.7% |
| |
|---|
| Median (7 companies) | 6.0% | 5.4% | 7.2% | 11.2% | 20.6% |
|---|
| Teco Electric & Machinery Co Ltd ($TECD) | 6.3% | 7.1% | 8.3% | 7.3% | 5.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Reckitt Benckiser Group ($RB.) | 0.7x | 0.9x | 1.0x | 0.7x | 0.7x |
| Havelock Europa ($HVE) | 3.7x | 1.4x | 0.1x | -0.2x | |
| Taylor Wimpey ($TW.) | 0.8x | 0.3x | -0.0x | -0.2x | -0.4x |
| Colefax Group ($CFX) | -0.7x | -1.8x | -1.4x | -0.6x | -1.0x |
| Abbey ($ABBY) | -1.8x | -1.5x | -2.6x | -1.2x | -1.3x |
| |
|---|
| Median (7 companies) | -0.4x | -0.3x | -0.7x | -0.6x | -0.9x |
|---|
| Teco Electric & Machinery Co Ltd ($TECD) | 0.6x | 0.1x | -0.9x | -1.3x | -0.3x |
