Depa Ltd reports 243% EBITDA decline and 15.4% Revenue decline
28 Apr 2016 • About Depa Ltd (
$DEPS) • By InTwits
Depa Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Depa Ltd doesn't have a profitable business model yet: 2015 ROIC is -10.8%
- The company operates at negative EBITDA Margin: -8.1%
- Depa Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -0.9% for the sames years0
- Depa Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's in pair with industry average of 2.5%.
- CAPEX is quite volatile: 9.3 in 2015, 20.6 in 2014, 26.2 in 2013, 46.5 in 2012, 70.7 in 2011
- The company has unprofitable business model: ROIC is at -10.8%
- It operates with high leverage: Net Debt/EBITDA is 0.7x while industry average is -1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Depa Ltd ($DEPS) key annual financial indicators
| mln. AED | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,736 | 1,947 | 2,318 | 1,940 | 1,641 | -15.4% |
| Gross Profit | 289 | 158 | 187 | 259 | 117 | -54.8% |
| SG&A | | | | 207 | 290 | 39.9% |
| EBITDA | 162 | -114 | -95 | 93 | -133 | -242.9% |
| Net Income | 54 | -120 | -131 | 44 | -266 | -710.3% |
Balance Sheet
|
|---|
| Cash | 332 | 307 | 399 | 441 | 383 | -13.2% |
| Short Term Debt | 196 | 215 | 265 | 208 | 214 | 3.2% |
| Long Term Debt | 66 | 84 | 127 | 95 | 44 | -54.0% |
Cash flow
|
|---|
| Capex | 71 | 47 | 26 | 21 | 9 | -54.7% |
Ratios
|
|---|
| Revenue growth | -4.3% | 12.1% | 19.1% | -16.3% | -15.4% | |
| EBITDA growth | -231.2% | -170.4% | -16.8% | -198.3% | -242.9% | |
| Gross Margin | 16.6% | 8.1% | 8.1% | 13.4% | 7.2% | -6.2% |
| EBITDA Margin | 9.3% | -5.8% | -4.1% | 4.8% | -8.1% | -12.9% |
| Net Income Margin | 3.1% | -6.1% | -5.7% | 2.2% | -16.2% | -18.4% |
| SG&A, % of revenue | | | | 10.7% | 17.7% | 7.0% |
| CAPEX, % of revenue | 4.1% | 2.4% | 1.1% | 1.1% | 0.6% | -0.5% |
| ROIC | 3.8% | -9.7% | -7.2% | 1.8% | -10.8% | -12.6% |
| ROE | 3.3% | -7.3% | -8.6% | 3.0% | -20.2% | -23.2% |
| Net Debt/EBITDA | -0.4x | | | -1.5x | | 1.5x |
Revenue and profitability
The company's Revenue dropped on 15.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 12.1 pp from 45.9% to 58.0% in 2015.
Gross Margin decreased on 6.2 pp from 13.4% to 7.2% in 2015. SG&A as a % of Revenue increased on 7.0 pp from 10.7% to 17.7% in 2015.
Net Income marign dropped on 18.4 pp from 2.2% to -16.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.57% in 2015. Depa Ltd's CAPEX/Revenue decreased slightly on 1.8 pp from 2.4% in 2012 to 0.57% in 2015. For the last three years the average CAPEX/Revenue was 0.92%.
Return on investment
The company operates at negative ROIC (-10.79%) and ROE (-20.20%). ROIC dropped on 12.6 pp from 1.8% to -10.8% in 2015. ROE dropped on 23.2 pp from 3.0% to -20.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is . Net Debt / EBITDA surged on 1.5x from -1.5x to in 2015. Debt dropped on 14.8% in 2015 while cash dropped on 13.2% in 2015.
Appendix 1: Peers in Household Goods & Home Construction
Below we provide Depa Ltd benchmarking against other companies in Household Goods & Home Construction 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 |
|---|
| Abbey ($ABBY) | | 5.6% | 40.0% | 15.9% | 51.0% |
| Taylor Wimpey ($TW.) | | 11.7% | 13.7% | 17.0% | 16.9% |
| Airea ($AIEA) | | -9.1% | -4.7% | -8.4% | 11.3% |
| Reckitt Benckiser Group ($RB.) | | 0.9% | -3.1% | -4.6% | 0.4% |
| Colefax Group ($CFX) | | -9.4% | 0.3% | 10.5% | -1.6% |
| |
|---|
| Median (7 companies) | | 1.3% | 0.3% | -4.6% | 0.4% |
|---|
| Depa Ltd ($DEPS) | | 12.1% | 19.1% | -16.3% | -15.4% |
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 ($ABBY) | 24.5% | 23.6% | 17.3% | 25.8% | 30.6% |
| Teco Electric & Machinery Co Ltd ($TECD) | 22.9% | 23.5% | 23.8% | 24.9% | 25.5% |
| Taylor Wimpey ($TW.) | 15.9% | 17.6% | 21.6% | 23.8% | 25.1% |
| |
|---|
| Median (6 companies) | 23.7% | 23.5% | 22.7% | 25.4% | 28.1% |
|---|
| Depa Ltd ($DEPS) | 16.6% | 8.1% | 8.1% | 13.4% | 7.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Abbey ($ABBY) | 20.7% | 19.4% | 13.3% | 22.6% | 31.2% |
| Reckitt Benckiser Group ($RB.) | 26.9% | 27.1% | 22.0% | 26.3% | 27.2% |
| Taylor Wimpey ($TW.) | 8.5% | 11.2% | 15.6% | 18.6% | 20.2% |
| Teco Electric & Machinery Co Ltd ($TECD) | 9.7% | 10.8% | 10.7% | 10.7% | 10.5% |
| Colefax Group ($CFX) | 10.9% | 6.6% | 7.6% | 9.1% | 8.7% |
| |
|---|
| Median (7 companies) | 9.7% | 10.8% | 10.7% | 10.7% | 10.5% |
|---|
| Depa Ltd ($DEPS) | 9.3% | -5.8% | -4.1% | 4.8% | -8.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Abbey ($ABBY) | 9.4% | 12.2% | 6.5% | 8.0% | 8.0% |
| Teco Electric & Machinery Co Ltd ($TECD) | 2.7% | 1.4% | 1.4% | 3.6% | 3.5% |
| Colefax Group ($CFX) | 3.7% | 4.9% | 3.1% | 2.0% | 2.9% |
| Airea ($AIEA) | 2.1% | 2.7% | 1.0% | 0.7% | 1.8% |
| Reckitt Benckiser Group ($RB.) | 1.7% | 1.7% | 2.1% | 1.8% | 1.7% |
| |
|---|
| Median (7 companies) | 2.1% | 1.7% | 1.4% | 1.8% | 1.8% |
|---|
| Depa Ltd ($DEPS) | 4.1% | 2.4% | 1.1% | 1.1% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Taylor Wimpey ($TW.) | 7.5% | 12.2% | 17.7% | 21.7% | 24.1% |
| Abbey ($ABBY) | 5.8% | 5.4% | 4.7% | 11.2% | 21.1% |
| Colefax Group ($CFX) | 27.6% | 10.7% | 13.5% | 22.0% | 20.6% |
| Reckitt Benckiser Group ($RB.) | 24.8% | 23.3% | 17.3% | 19.7% | 20.3% |
| Airea ($AIEA) | 6.0% | 3.3% | 7.2% | 6.4% | 11.7% |
| |
|---|
| Median (7 companies) | 6.3% | 7.1% | 8.3% | 11.2% | 20.3% |
|---|
| Depa Ltd ($DEPS) | 3.8% | -9.7% | -7.2% | 1.8% | -10.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Reckitt Benckiser Group ($RB.) | 0.7x | 0.9x | 1.0x | 0.7x | 0.7x |
| Teco Electric & Machinery Co Ltd ($TECD) | 0.6x | 0.1x | -0.9x | -1.3x | -0.3x |
| Taylor Wimpey ($TW.) | 0.8x | 0.3x | -0.0x | -0.2x | -0.4x |
| Airea ($AIEA) | -1.5x | -0.9x | -1.5x | -1.2x | -0.9x |
| Colefax Group ($CFX) | -0.7x | -1.8x | -1.4x | -0.6x | -1.0x |
| |
|---|
| Median (7 companies) | 0.6x | 0.1x | -0.9x | -0.6x | -0.9x |
|---|
