Wintek Corp reports 99.5% revenue decline in 2015 and 189 pp EBITDA Margin decline from -25.7% to -214%
21 Jun 2016 • About Wintek Corp (
$WTKA) • By InTwits
Wintek Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Wintek Corp is a company in decline: 2015 revenue growth was -99.5%, 5 years revenue CAGR was -66.0%
- The company operates at negative EBITDA Margin: -214.3%
- Wintek Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -0.8% for the sames years0
- Wintek Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.5%. At the same time it's a lot of higher than industry average of 2.0%.
- CAPEX is quite volatile: 1.7 in 2015, 1,537 in 2014, 2,607 in 2013, 13,446 in 2012, 16,869 in 2011
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Wintek Corp ($WTKA) key annual financial indicators
| mln. TWD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 93,032 | 102,178 | 76,398 | 63,048 | 290 | -99.5% |
| Gross Profit | 2,388 | 2,475 | -3,243 | -11,340 | -1,061 | -90.6% |
| SG&A | | 4,037 | 3,896 | 9,708 | 586 | -94.0% |
| EBITDA | 5,993 | 6,913 | 1,388 | -16,199 | -621 | -96.2% |
| Net Income | -1,905 | -2,882 | -10,245 | -44,290 | -2,867 | -93.5% |
Balance Sheet
|
|---|
| Cash | 7,864 | 5,941 | 7,069 | 2,571 | 2,424 | -5.7% |
| Short Term Debt | 18,403 | 22,498 | 31,090 | 10,924 | 10,915 | -0.1% |
| Long Term Debt | 14,565 | 16,559 | 7,012 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 16,869 | 13,446 | 2,607 | 1,537 | 2 | -99.9% |
Ratios
|
|---|
| Revenue growth | 45.6% | 9.8% | -25.2% | -17.5% | -99.5% | |
| EBITDA growth | -33.9% | 15.3% | -79.9% | -1,267.3% | -96.2% | |
| Gross Margin | 2.6% | 2.4% | -4.2% | -18.0% | -366.4% | -348.4% |
| EBITDA Margin | 6.4% | 6.8% | 1.8% | -25.7% | -214.3% | -188.6% |
| Net Income Margin | -2.0% | -2.8% | -13.4% | -70.2% | -989.9% | -919.7% |
| SG&A, % of revenue | | 4.0% | 5.1% | 15.4% | 202.3% | 186.9% |
| CAPEX, % of revenue | 18.1% | 13.2% | 3.4% | 2.4% | 0.6% | -1.9% |
| ROIC | -2.6% | -2.2% | -10.5% | -72.5% | | 72.5% |
| ROE | -5.9% | -8.2% | -33.6% | | | 0.0% |
| Net Debt/EBITDA | 4.2x | 4.8x | 22.4x | | | 0.0x |
Revenue and profitability
Wintek Corp's Revenue dropped on 99.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.6 pp from 10.4% to 12.0% in FY2015.
Gross Margin dropped on 348 pp from -18.0% to -366% in 2015. SG&A as a % of Revenue surged on 187 pp from 15.4% to 202% in 2015.
Net Income marign dropped on 920 pp from -70.2% to -990% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.58%. CAPEX/Revenue dropped on 12.6 pp from 13.2% in 2012 to 0.58% in 2015. It's average level of CAPEX/Revenue for the last three years was 2.1%.
Leverage (Debt)
Debt level is 0.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt showed almost no change in 2015 while cash decreased on 5.7% in 2015.
Appendix 1: Peers in Electronic & Electrical Equipment
Below you can find Wintek Corp benchmarking vs. other companies in Electronic & Electrical Equipment 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 |
|---|
| Stadium Group ($SDM) | | -8.8% | 3.0% | -1.1% | 29.0% |
| Flowgroup ($FLOW) | | -92.9% | 125,263.6% | 141.9% | 21.1% |
| Solid State ($SSP) | | 22.2% | 21.7% | 1.9% | 13.9% |
| Zytronic ($ZYT) | | -0.3% | -15.4% | 9.3% | 12.6% |
| Apc Technology Group ($APC) | | -5.4% | 58.7% | -4.7% | 10.4% |
| |
|---|
| Median (13 companies) | | -5.4% | -4.9% | -1.1% | -1.1% |
|---|
| Wintek Corp ($WTKA) | | 9.8% | -25.2% | -17.5% | -99.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zytronic ($ZYT) | 33.7% | 36.3% | 30.8% | 36.6% | 41.9% |
| Elektron Technology ($EKT) | | 40.6% | 37.5% | 34.8% | 35.6% |
| Solid State ($SSP) | 27.8% | 27.8% | 26.1% | 29.2% | 30.5% |
| Maruwa Co Ltd ($MAW) | | 31.6% | 28.6% | 32.8% | 30.0% |
| Lpa Group ($LPA) | 23.4% | 28.3% | 27.2% | 29.6% | 27.4% |
| |
|---|
| Median (11 companies) | 23.2% | 27.8% | 27.2% | 29.2% | 25.0% |
|---|
| Wintek Corp ($WTKA) | 2.6% | 2.4% | -4.2% | -18.0% | -366.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zytronic ($ZYT) | 23.7% | 25.3% | 18.8% | 22.9% | 27.8% |
| Maruwa Co Ltd ($MAW) | | 22.3% | 17.7% | 17.8% | 14.7% |
| Dewhurst ($DWHA) | 13.6% | 12.9% | 12.6% | 13.7% | 14.7% |
| Morgan Advanced Materials ($BA29) | | 13.7% | 13.1% | 9.8% | 12.8% |
| Stadium Group ($SDM) | 9.8% | 6.1% | 7.1% | 9.9% | 12.1% |
| |
|---|
| Median (13 companies) | 4.6% | 6.6% | 5.4% | 5.7% | 7.2% |
|---|
| Wintek Corp ($WTKA) | 6.4% | 6.8% | 1.8% | -25.7% | -214.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Morgan Advanced Materials ($BA29) | | 2.9% | 3.8% | 3.7% | 7.0% |
| Maruwa Co Ltd ($MAW) | | 23.8% | 15.3% | 7.6% | 6.5% |
| Zytronic ($ZYT) | 2.6% | 3.6% | 2.8% | 1.4% | 4.7% |
| Stadium Group ($SDM) | 0.5% | 1.0% | 0.8% | 0.5% | 2.7% |
| Dewhurst ($DWHA) | 12.4% | 2.7% | 1.3% | 0.9% | 1.9% |
| |
|---|
| Median (13 companies) | 2.3% | 2.9% | 2.0% | 1.3% | 1.4% |
|---|
| Wintek Corp ($WTKA) | 18.1% | 13.2% | 3.4% | 2.4% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dewhurst ($DWHA) | 24.4% | 29.2% | 20.7% | 24.5% | 27.3% |
| Zytronic ($ZYT) | 22.5% | 23.0% | 11.9% | 17.0% | 22.7% |
| Solid State ($SSP) | 20.3% | 22.3% | 19.7% | 44.5% | 20.0% |
| Stadium Group ($SDM) | 37.6% | 16.5% | 17.6% | 17.3% | 19.3% |
| Morgan Advanced Materials ($BA29) | | 17.9% | 16.3% | 10.9% | 18.4% |
| |
|---|
| Median (13 companies) | 11.0% | 16.5% | 6.8% | 7.0% | 5.7% |
|---|
| Wintek Corp ($WTKA) | -2.6% | -2.2% | -10.5% | -72.5% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Walsin Lihwa Corp ($WALS) | 15.7x | 5.3x | 8.7x | 3.9x | 4.6x |
| Lpa Group ($LPA) | 1.4x | 1.9x | 0.7x | 1.5x | 3.8x |
| Morgan Advanced Materials ($BA29) | | 1.4x | 1.5x | 2.3x | 1.8x |
| Elektron Technology ($EKT) | | 0.7x | 1.7x | 3.8x | 0.8x |
| Solid State ($SSP) | 1.5x | 1.4x | 1.2x | 0.4x | 0.7x |
| |
|---|
| Median (10 companies) | 0.7x | 0.3x | 0.3x | 1.2x | 0.5x |
|---|
