Evergreen Marine Corp(Taiwan) Net Debt / EBITDA surged on 11.5x from 6.7x to 18.3x in 2015 while EBITDA dropped on 56.6%
31 Mar 2016 • About Evergreen Marine Corp(Taiwan) (
$EGMD) • By InTwits
Evergreen Marine Corp(Taiwan) reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Evergreen Marine Corp(Taiwan) doesn't have a profitable business model yet: 2015 ROIC is -2.5%
- EBITDA Margin is quite volatile: 3.0% in 2015, 6.5% in 2014, 1.2% in 2013, 3.3% in 2012, 0.2% in 2011
- Evergreen Marine Corp(Taiwan) has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's in pair with industry average of 2.1%.
- CAPEX is quite volatile: 2,516 in 2015, 4,103 in 2014, 9,997 in 2013, 14,978 in 2012, 20,502 in 2011
- The company has unprofitable business model: ROIC is at -2.5%
- It operates with high leverage: Net Debt/EBITDA is 18.3x while industry average is 3.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Evergreen Marine Corp(Taiwan) ($EGMD) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 108,156 | 141,026 | 139,216 | 144,284 | 133,814 | -7.3% |
| Gross Profit | -169 | 4,162 | 389 | 7,345 | 1,540 | -79.0% |
| SG&A | 4,949 | 5,278 | 5,497 | 5,755 | 5,701 | -0.9% |
| EBITDA | 175 | 4,658 | 1,686 | 9,314 | 4,045 | -56.6% |
| Net Income | -3,092 | 313 | -1,497 | 1,156 | -4,408 | -481.3% |
Balance Sheet
|
|---|
| Cash | 23,006 | 31,985 | 33,502 | 32,827 | 32,835 | 0.0% |
| Short Term Debt | 11,013 | 9,021 | 13,768 | 16,366 | 18,851 | 15.2% |
| Long Term Debt | 39,817 | 59,856 | 76,293 | 79,221 | 87,921 | 11.0% |
Cash flow
|
|---|
| Capex | 20,502 | 14,978 | 9,997 | 4,103 | 2,516 | -38.7% |
Ratios
|
|---|
| Revenue growth | -1.1% | 30.4% | -1.3% | 3.6% | -7.3% | |
| EBITDA growth | -99.0% | 2,565.3% | -63.8% | 452.5% | -56.6% | |
| Gross Margin | -0.2% | 3.0% | 0.3% | 5.1% | 1.2% | -3.9% |
| EBITDA Margin | 0.2% | 3.3% | 1.2% | 6.5% | 3.0% | -3.4% |
| Net Income Margin | -2.9% | 0.2% | -1.1% | 0.8% | -3.3% | -4.1% |
| SG&A, % of revenue | 4.6% | 3.7% | 3.9% | 4.0% | 4.3% | 0.3% |
| CAPEX, % of revenue | 19.0% | 10.6% | 7.2% | 2.8% | 1.9% | -1.0% |
| ROIC | -4.5% | -0.9% | -3.6% | 1.0% | -2.5% | -3.5% |
| ROE | -4.9% | 0.5% | -2.6% | 2.0% | -7.4% | -9.4% |
| Net Debt/EBITDA | 159.2x | 7.9x | 33.6x | 6.7x | 18.3x | 11.5x |
Revenue and profitability
The company's Revenue decreased on 7.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.93 pp from 6.4% to 7.3% in 2015.
Gross Margin decreased on 3.9 pp from 5.1% to 1.2% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 4.1 pp from 0.80% to -3.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.9%. The company's CAPEX/Revenue decreased on 8.7 pp from 10.6% in 2012 to 1.9% in 2015. For the last three years the average CAPEX/Revenue was 4.0%.Battling declining revenue the company invested a large share of EBITDA (62.2%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-2.51%) and ROE (-7.42%). ROIC decreased on 3.5 pp from 1.0% to -2.5% in 2015. ROE decreased on 9.4 pp from 2.0% to -7.4% in 2015.
Leverage (Debt)
Debt level is 18.3x Net Debt / EBITDA and 26.4x Debt / EBITDA. Net Debt / EBITDA jumped on 11.5x from 6.7x to 18.3x in 2015. Debt surged on 11.7% in 2015 while cash showed almost no change in 2015.
Appendix 1: Peers in Industrial Transportation
Below we provide Evergreen Marine Corp(Taiwan) benchmarking against other companies in Industrial Transportation 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 |
|---|
| Frontline Ltd ($FRO) | | -27.8% | -9.4% | -55.6% | 104.5% |
| Zhejiang Expressway Co ($ZHEH) | | 2.2% | 13.3% | 20.5% | 32.2% |
| Wisdom Marine Lines Co Limited ($WML) | | 11.2% | -0.8% | 8.8% | 21.6% |
| Dp World Ltd ($0P5M) | | 4.8% | -1.5% | 12.7% | 16.7% |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | | 17.8% | 7.7% | -6.6% | 16.2% |
| |
|---|
| Median (13 companies) | 65.2% | 2.2% | -2.3% | 5.6% | -4.6% |
|---|
| Evergreen Marine Corp(Taiwan) ($EGMD) | | | -1.3% | 3.6% | -7.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Ports Investments ($GLPR) | 52.6% | 40.3% | 58.8% | 58.8% | 68.0% |
| Dp World Ltd ($0P5M) | 32.7% | 35.8% | 39.8% | 41.9% | 48.4% |
| Zhejiang Expressway Co ($ZHEH) | 39.9% | 34.0% | 36.9% | 37.7% | 43.6% |
| Wisdom Marine Lines Co Limited ($WML) | 37.4% | 30.3% | 20.3% | 20.7% | 24.1% |
| Globaltrans Investment ($GLTR) | 30.1% | 31.4% | 25.8% | 23.2% | 20.2% |
| |
|---|
| Median (8 companies) | 35.0% | 31.4% | 25.8% | 23.2% | 22.1% |
|---|
| Evergreen Marine Corp(Taiwan) ($EGMD) | | 3.0% | 0.3% | 5.1% | 1.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital Lease Aviation ($CLA) | 105.0% | 101.2% | 88.5% | 89.2% | 80.5% |
| Frontline Ltd ($FRO) | 13.7% | 17.2% | -4.6% | 64.5% | 74.6% |
| Global Ports Investments ($GLPR) | 55.1% | 57.1% | 60.3% | 69.6% | 71.2% |
| Zhejiang Expressway Co ($ZHEH) | 52.8% | 49.6% | 51.1% | 53.5% | 58.0% |
| Wisdom Marine Lines Co Limited ($WML) | 60.1% | 56.9% | 52.0% | 52.8% | 55.2% |
| |
|---|
| Median (13 companies) | 38.4% | 29.6% | 24.8% | 29.7% | 21.0% |
|---|
| Evergreen Marine Corp(Taiwan) ($EGMD) | | 3.3% | 1.2% | 6.5% | 3.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Frontline Ltd ($FRO) | 10.2% | 2.5% | 0.5% | 83.6% | 171.4% |
| Dp World Ltd ($0P5M) | 15.1% | 20.6% | 33.4% | 20.7% | 28.9% |
| Yangming Marine Transport Corp ($YMTD) | 11.0% | 13.1% | 8.2% | 7.0% | 7.7% |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 13.7% | 15.6% | 16.9% | 11.5% | 5.7% |
| Wisdom Marine Lines Co Limited ($WML) | 160.8% | 163.8% | 108.4% | 4.2% | 5.2% |
| |
|---|
| Median (13 companies) | 10.0% | 8.5% | 9.3% | 5.6% | 2.9% |
|---|
| Evergreen Marine Corp(Taiwan) ($EGMD) | | 10.6% | 7.2% | 2.8% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zhejiang Expressway Co ($ZHEH) | 13.3% | 11.2% | 13.3% | 13.2% | 15.3% |
| Global Ports Investments ($GLPR) | 18.5% | 17.0% | 7.1% | 12.1% | 14.6% |
| Dx ($DX.) | 8.2% | 9.3% | 9.6% | 14.5% | 12.8% |
| Frontline Ltd ($FRO) | -3.4% | -1.0% | -8.9% | 7.6% | 12.1% |
| Globaltrans Investment ($GLTR) | 30.3% | 25.5% | 16.3% | 6.4% | 10.3% |
| |
|---|
| Median (13 companies) | 8.2% | 8.4% | 6.3% | 7.2% | 6.7% |
|---|
| Evergreen Marine Corp(Taiwan) ($EGMD) | | -0.9% | -3.6% | 1.0% | -2.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wisdom Marine Lines Co Limited ($WML) | 7.9x | 8.5x | 9.0x | 9.1x | 8.4x |
| Interbulk Group ($INB) | 3.5x | 3.3x | 4.1x | 3.5x | 3.6x |
| Global Ports Investments ($GLPR) | 0.3x | 0.8x | 6.6x | 2.8x | 3.6x |
| Dp World Ltd ($0P5M) | 3.1x | 2.4x | 2.0x | 1.5x | 3.4x |
| Frontline Ltd ($FRO) | 12.7x | 12.7x | | 1.9x | 3.3x |
| |
|---|
| Median (11 companies) | 3.3x | 3.1x | 4.1x | 2.7x | 3.2x |
|---|
| Evergreen Marine Corp(Taiwan) ($EGMD) | | 7.9x | 33.6x | 6.7x | 18.3x |
