Konami Corp EBITDA jumped on 49.6% in 2016 and Revenue surged on 14.6%
10 May 2016 • About Konami Corp (
$KNM) • By InTwits
Konami Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Konami Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.8%. At the same time it's a lot of higher than industry average of 4.0%.
- CAPEX is quite volatile: 19,079 in FY2016, 25,769 in FY2015, 47,237 in FY2014, 9,927 in FY2013, 9,260 in FY2012
- The company has business model with average profitability: ROIC is at 10.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Konami Corp ($KNM) key annual financial indicators
| mln. JPY | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 265,758 | 225,995 | 217,595 | 218,157 | 249,902 | 14.6% |
| Gross Profit | 91,343 | 73,182 | 68,141 | 71,454 | 87,452 | 22.4% |
| SG&A | 16,808 | 15,752 | 16,991 | 13,778 | 23,583 | 71.2% |
| EBITDA | 50,748 | 32,388 | 29,048 | 35,936 | 53,766 | 49.6% |
| Net Income | 23,012 | 13,174 | 4,465 | 9,918 | 10,516 | 6.0% |
Balance Sheet
|
|---|
| Cash | 76,451 | 63,669 | 50,024 | 64,654 | 113,907 | 76.2% |
| Short Term Debt | 9,758 | 11,847 | 8,536 | 8,005 | 9,014 | 12.6% |
| Long Term Debt | 29,803 | 22,588 | 35,412 | 33,391 | 27,293 | -18.3% |
Cash flow
|
|---|
| Capex | 9,260 | 9,927 | 47,237 | 25,769 | 19,079 | -26.0% |
Ratios
|
|---|
| Revenue growth | 3.0% | -15.0% | -3.7% | 0.3% | 14.6% | |
| EBITDA growth | 53.0% | -36.2% | -10.3% | 23.7% | 49.6% | |
| Gross Margin | 34.4% | 32.4% | 31.3% | 32.8% | 35.0% | 2.2% |
| EBITDA Margin | 19.1% | 14.3% | 13.3% | 16.5% | 21.5% | 5.0% |
| Net Income Margin | 8.7% | 5.8% | 2.1% | 4.5% | 4.2% | -0.3% |
| SG&A, % of revenue | 6.3% | 7.0% | 7.8% | 6.3% | 9.4% | 3.1% |
| CAPEX, % of revenue | 3.5% | 4.4% | 21.7% | 11.8% | 7.6% | -4.2% |
| ROIC | 16.2% | 8.4% | 3.2% | 6.6% | 10.4% | 3.8% |
| ROE | 11.2% | 6.0% | 2.1% | 4.7% | 4.9% | 0.2% |
| Net Debt/EBITDA | -0.7x | -0.9x | -0.2x | -0.6x | -1.4x | -0.8x |
Revenue and profitability
Konami Corp's Revenue surged on 14.6% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from 3.0% to 7.0% in FY2016.
Gross Margin increased on 2.2 pp from 32.8% to 35.0% in FY2016. SG&A as a % of Revenue increased on 3.1 pp from 6.3% to 9.4% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Konami Corp had CAPEX/Revenue of 7.6%. The company showed CAPEX/Revenue growth of 3.2 pp from 4.4% in FY2013 to 7.6% in FY2016. Average CAPEX/Revenue for the last three years was 13.7%.
Return on investment
The company operates at low ROIC (10.38%) and ROE (4.89%). ROIC increased on 3.8 pp from 6.6% to 10.4% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is -1.4x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from -0.6x to -1.4x in FY2016. Debt dropped on 12.3% in FY2016 while cash surged on 76.2% in FY2016.
Appendix 1: Peers in Leisure Goods
Below you can find Konami Corp benchmarking vs. other companies in Leisure Goods 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hornby ($HRN) | 1.7% | -10.9% | -10.2% | 12.8% | |
| Vmoto Ltd ($VMT) | 15.9% | 205.5% | 70.6% | 10.9% | |
| Tandem Group ($TND) | -16.3% | -2.1% | 10.5% | 9.8% | |
| Lg Electronics Inc ($39IB) | 1.6% | 5.5% | 1.5% | -4.3% | |
| |
|---|
| Median (4 companies) | 1.6% | 1.7% | 6.0% | 10.3% | |
|---|
| Konami Corp ($KNM) | | -15.0% | -3.7% | 0.3% | 14.6% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hornby ($HRN) | 48.3% | 42.6% | 45.2% | 46.7% | |
| Tandem Group ($TND) | 29.7% | 29.2% | 30.5% | 29.4% | |
| Lg Electronics Inc ($39IB) | 23.3% | 23.1% | 23.3% | 22.8% | |
| Vmoto Ltd ($VMT) | 18.0% | 15.0% | 14.7% | 16.7% | |
| |
|---|
| Median (4 companies) | 26.5% | 26.2% | 26.9% | 26.1% | |
|---|
| Konami Corp ($KNM) | 34.4% | 32.4% | 31.3% | 32.8% | 35.0% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vmoto Ltd ($VMT) | 31.8% | 3.2% | 2.0% | 18.3% | |
| Hornby ($HRN) | 14.5% | 1.8% | 1.8% | 7.4% | |
| Lg Electronics Inc ($39IB) | 5.4% | 5.5% | 6.4% | 5.5% | |
| Tandem Group ($TND) | 3.6% | 3.8% | 5.3% | 4.7% | |
| |
|---|
| Median (4 companies) | 10.0% | 3.5% | 3.6% | 6.5% | |
|---|
| Konami Corp ($KNM) | 19.1% | 14.3% | 13.3% | 16.5% | 21.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hornby ($HRN) | 5.9% | 6.0% | 7.9% | 7.0% | |
| Lg Electronics Inc ($39IB) | 3.2% | 3.6% | 3.7% | 3.1% | |
| Vmoto Ltd ($VMT) | 14.2% | 1.6% | 2.6% | 1.8% | |
| Tandem Group ($TND) | 0.5% | 10.2% | 1.2% | 0.4% | |
| |
|---|
| Median (4 companies) | 4.5% | 4.8% | 3.1% | 2.4% | |
|---|
| Konami Corp ($KNM) | 3.5% | 4.4% | 21.7% | 11.8% | 7.6% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vmoto Ltd ($VMT) | -16.1% | 1.8% | 1.4% | 24.2% | |
| Tandem Group ($TND) | 20.4% | 37.6% | 37.6% | 16.6% | |
| Lg Electronics Inc ($39IB) | 6.1% | 6.3% | 8.9% | 5.8% | |
| Hornby ($HRN) | 10.4% | -6.8% | -7.7% | 0.5% | |
| |
|---|
| Median (4 companies) | 8.3% | 4.1% | 5.2% | 11.2% | |
|---|
| Konami Corp ($KNM) | 16.2% | 8.4% | 3.2% | 6.6% | 10.4% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tandem Group ($TND) | -1.4x | -1.4x | -1.1x | 3.5x | |
| Lg Electronics Inc ($39IB) | 2.2x | 2.0x | 1.8x | 2.0x | |
| Hornby ($HRN) | 0.7x | 2.1x | 7.6x | 1.7x | |
| Vmoto Ltd ($VMT) | 0.9x | 1.4x | 1.0x | -0.5x | |
| |
|---|
| Median (4 companies) | 0.8x | 1.7x | 1.4x | 1.8x | |
|---|
| Konami Corp ($KNM) | -0.7x | -0.9x | -0.2x | -0.6x | -1.4x |
