Maruwa Co Ltd Net Income jumped on 159% in 2016 while Revenue decreased on 6.8%
28 Apr 2016 • About Maruwa Co Ltd (
$MAW) • By InTwits
Maruwa Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Maruwa Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.5%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: 1,343 in FY2016, 2,139 in FY2015, 2,555 in FY2014, 3,721 in FY2013, 5,075 in FY2012
- The company has business model with low profitability: ROIC is at 9.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Maruwa Co Ltd ($MAW) key annual financial indicators
| mln. JPY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 21,313 | 24,399 | 33,475 | 32,811 | 30,578 | -6.8% |
| Gross Profit | 6,745 | 6,981 | 10,983 | 9,827 | 10,984 | 11.8% |
| SG&A | 3,813 | 4,694 | 7,634 | 7,423 | 6,127 | -17.5% |
| EBITDA | 4,759 | 4,318 | 5,947 | 4,832 | 6,006 | 24.3% |
| Net Income | 2,105 | 2,040 | 2,586 | 884 | 2,287 | 158.7% |
Balance Sheet
|
|---|
| Cash | 10,648 | 11,310 | 13,359 | 14,222 | 15,380 | 8.1% |
| Short Term Debt | 5 | 339 | 445 | 993 | 138 | -86.1% |
| Long Term Debt | 111 | 789 | 1,159 | 253 | 115 | -54.5% |
Cash flow
|
|---|
| Capex | 5,075 | 3,721 | 2,555 | 2,139 | 1,343 | -37.2% |
Ratios
|
|---|
| Revenue growth | 6.5% | 14.5% | 37.2% | -2.0% | -6.8% | |
| EBITDA growth | 3.0% | -9.3% | 37.7% | -18.8% | 24.3% | |
| Gross Margin | 31.6% | 28.6% | 32.8% | 30.0% | 35.9% | 6.0% |
| EBITDA Margin | 22.3% | 17.7% | 17.8% | 14.7% | 19.6% | 4.9% |
| Net Income Margin | 9.9% | 8.4% | 7.7% | 2.7% | 7.5% | 4.8% |
| SG&A, % of revenue | 17.9% | 19.2% | 22.8% | 22.6% | 20.0% | -2.6% |
| CAPEX, % of revenue | 23.8% | 15.3% | 7.6% | 6.5% | 4.4% | -2.1% |
| ROIC | 9.1% | 6.2% | 8.2% | 5.7% | 9.0% | 3.3% |
| ROE | 6.7% | 5.7% | 6.7% | 2.2% | 5.5% | 3.3% |
| Net Debt/EBITDA | -2.2x | -2.4x | -2.0x | -2.7x | -2.5x | 0.2x |
Revenue and profitability
Maruwa Co Ltd's Revenue decreased on 6.8% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.9 pp from 14.7% to 19.6% in FY2016.
Gross Margin increased on 6.0 pp from 30.0% to 35.9% in FY2016. SG&A as a % of Revenue decreased on 2.6 pp from 22.6% to 20.0% in FY2016.
Net Income marign increased on 4.8 pp from 2.7% to 7.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 4.4%. Maruwa Co Ltd's CAPEX/Revenue dropped on 10.9 pp from 15.3% in FY2013 to 4.4% in FY2016. It's average CAPEX/Revenue for the last three years was 6.2%.
Return on investment
The company operates at low ROIC (8.98%) and ROE (5.53%). ROIC increased on 3.3 pp from 5.7% to 9.0% in FY2016. ROE increased on 3.3 pp from 2.2% to 5.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.5x and Debt / EBITDA is 0.0x. Net Debt / EBITDA jumped on 0.2x from -2.7x to -2.5x in FY2016. Debt dropped on 79.7% in FY2016 while cash increased on 8.1% in FY2016.
Appendix 1: Peers in Electronic & Electrical Equipment
Below we provide Maruwa Co Ltd benchmarking against other companies in Electronic & Electrical 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Stadium Group ($SDM) | -8.8% | 3.0% | -1.1% | 29.0% | |
| Solid State ($SSP) | 22.2% | 21.7% | 1.9% | 13.9% | |
| Zytronic ($ZYT) | -0.3% | -15.4% | 9.3% | 12.6% | |
| Apc Technology Group ($APC) | -5.4% | 58.7% | -4.7% | 10.4% | |
| Volex ($VLX) | 5.7% | -8.6% | -15.4% | 5.8% | |
| |
|---|
| Median (11 companies) | 2.7% | -5.6% | -3.8% | -1.1% | 8.5% |
|---|
| Maruwa Co Ltd ($MAW) | | 14.5% | 37.2% | -2.0% | -6.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zytronic ($ZYT) | 36.3% | 30.8% | 36.6% | 41.9% | |
| Elektron Technology ($EKT) | 40.6% | 37.5% | 34.8% | 35.6% | |
| Solid State ($SSP) | 27.8% | 26.1% | 29.2% | 30.5% | |
| Lpa Group ($LPA) | 28.3% | 27.2% | 29.6% | 27.4% | |
| Holders Technology ($HDT) | 24.6% | 29.3% | 24.1% | 25.0% | |
| |
|---|
| Median (9 companies) | 27.3% | 26.1% | 24.1% | 25.0% | |
|---|
| Maruwa Co Ltd ($MAW) | 31.6% | 28.6% | 32.8% | 30.0% | 35.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zytronic ($ZYT) | 25.3% | 18.8% | 22.9% | 27.8% | |
| Dewhurst ($DWHA) | 12.9% | 12.6% | 13.7% | 14.7% | |
| Morgan Advanced Materials ($BA29) | 13.7% | 13.1% | 9.8% | 12.8% | 14.6% |
| Stadium Group ($SDM) | 6.1% | 7.1% | 9.9% | 12.1% | |
| Solid State ($SSP) | 6.7% | 6.3% | 17.3% | 9.7% | |
| |
|---|
| Median (11 companies) | 6.6% | 5.3% | 4.5% | 7.2% | 14.6% |
|---|
| Maruwa Co Ltd ($MAW) | 22.3% | 17.7% | 17.8% | 14.7% | 19.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Morgan Advanced Materials ($BA29) | 2.9% | 3.8% | 3.7% | 7.0% | 4.0% |
| Zytronic ($ZYT) | 3.6% | 2.8% | 1.4% | 4.7% | |
| Stadium Group ($SDM) | 1.0% | 0.8% | 0.5% | 2.7% | |
| Dewhurst ($DWHA) | 2.7% | 1.3% | 0.9% | 1.9% | |
| Lpa Group ($LPA) | 9.1% | 2.0% | 14.8% | 1.8% | |
| |
|---|
| Median (11 companies) | 2.9% | 2.0% | 1.3% | 1.4% | 4.0% |
|---|
| Maruwa Co Ltd ($MAW) | 23.8% | 15.3% | 7.6% | 6.5% | 4.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dewhurst ($DWHA) | 29.2% | 20.7% | 24.5% | 27.3% | |
| Zytronic ($ZYT) | 23.0% | 11.9% | 17.0% | 22.7% | |
| Solid State ($SSP) | 22.3% | 19.7% | 44.5% | 20.0% | |
| Stadium Group ($SDM) | 16.5% | 17.6% | 17.3% | 19.3% | |
| Morgan Advanced Materials ($BA29) | 17.9% | 16.3% | 10.9% | 18.4% | 21.9% |
| |
|---|
| Median (11 companies) | 16.5% | 6.8% | 4.7% | 9.9% | 21.9% |
|---|
| Maruwa Co Ltd ($MAW) | 9.1% | 6.2% | 8.2% | 5.7% | 9.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Walsin Lihwa Corp ($WALS) | 5.3x | 8.7x | 3.9x | 4.6x | |
| Lpa Group ($LPA) | 1.9x | 0.7x | 1.5x | 3.8x | |
| Morgan Advanced Materials ($BA29) | 1.4x | 1.5x | 2.3x | 1.8x | 1.7x |
| Elektron Technology ($EKT) | 0.7x | 1.7x | 3.8x | 0.8x | |
| Solid State ($SSP) | 1.4x | 1.2x | 0.4x | 0.7x | |
| |
|---|
| Median (9 companies) | 1.0x | 0.9x | 1.4x | 0.7x | 1.7x |
|---|
| Maruwa Co Ltd ($MAW) | -2.2x | -2.4x | -2.0x | -2.7x | -2.5x |
