Trending stocks

Ienergizer Ltd reports 201% Net Income growth and 5.8 pp EBITDA Margin growth from 17.1% to 22.9%

28 Jun 2016 • About Ienergizer Ltd ($IBPO) • By InTwits

Ienergizer Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Ienergizer Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 14.9%.
  • CAPEX is quite volatile: 0.71 in FY2016, 4.1 in FY2015, 4.0 in FY2014, 2.4 in FY2013, 1.3 in FY2012
  • The company has highly profitable business model: ROIC is at 17.4%
  • It operates with high leverage: Net Debt/EBITDA is 2.4x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Ienergizer Ltd ($IBPO) key annual financial indicators

mln. $201220132014201520162016/2015
P&L
Revenue71.7146.1153.7138.9139.70.5%
Gross Profit40.3114.6118.0101.099.6-1.4%
EBITDA19.840.636.323.832.134.6%
Net Income16.023.419.15.616.9201.5%
Balance Sheet
Cash11.520.912.513.410.2-24.4%
Short Term Debt134.9133.015.613.914.53.9%
Long Term Debt1.00.8106.995.073.7-22.4%
Cash flow
Capex1.32.44.04.10.7-82.5%
Ratios
Revenue growth45.4%103.7%5.2%-9.6%0.5%
EBITDA growth16.5%104.7%-10.7%-34.3%34.6%
Gross Margin56.2%78.4%76.8%72.7%71.3%-1.4%
EBITDA Margin27.6%27.8%23.6%17.1%22.9%5.8%
Net Income Margin22.3%16.0%12.4%4.0%12.1%8.1%
CAPEX, % of revenue1.9%1.6%2.6%2.9%0.5%-2.4%
ROIC20.6%20.9%17.9%10.4%17.4%7.0%
ROE63.8%72.3%45.9%10.9%26.8%15.9%
Net Debt/EBITDA6.3x2.8x3.0x4.0x2.4x-1.6x

Revenue and profitability


Ienergizer Ltd's Revenue increased slightly on 0.53% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 11.8 pp from -8.1% to 3.7% in FY2016.

Gross Margin decreased slightly on 1.4 pp from 72.7% to 71.3% in FY2016.

Net Income marign increased on 8.1 pp from 4.0% to 12.1% in FY2016.

Capital expenditures (CAPEX) and working capital investments


In FY2016 Ienergizer Ltd had CAPEX/Revenue of 0.51%. CAPEX/Revenue decreased slightly on 1.1 pp from 1.6% in FY2013 to 0.51% in FY2016. Average CAPEX/Revenue for the last three years was 2.0%.

Return on investment


The company operates at high and attractive ROE (26.75%) while ROIC is a bit lower (17.39%). ROIC increased on 7.0 pp from 10.4% to 17.4% in FY2016. ROE surged on 15.9 pp from 10.9% to 26.8% in FY2016.

Leverage (Debt)


Company's Net Debt / EBITDA is 2.4x and Debt / EBITDA is 2.8x. Net Debt / EBITDA dropped on 1.6x from 4.0x to 2.4x in FY2016. Debt dropped on 19.0% in FY2016 while cash dropped on 24.4% in FY2016.

Valuation


The company's trades at EV/EBITDA 5.2x and P/E 5.2x while industy averages are 15.6x and 19.1x. The company's EV/(EBITDA-CAPEX) is 5.3x with the industry average at 19.0x.

Appendix 1: Peers in Support Services


Below we provide Ienergizer Ltd benchmarking against other companies in Support Services 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
Camco Clean Energy ($CCE)88.0%-54.7%99.4%
Optimal Payments ($OPAY)39.9%41.5%44.0%68.1%
Inspired Energy ($INSE)83.8%44.8%42.2%40.2%
21St Century Technology ($C21)0.1%-22.8%-16.6%35.5%
Ibex Global Solutions ($IBEX)7.4%35.7%30.0%29.8%
 
Median (54 companies)5.2%6.9%4.7%6.7%1.5%
Ienergizer Ltd ($IBPO)103.7%5.2%-9.6%0.5%


Top companies by Gross margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Inspired Energy ($INSE)94.6%86.8%78.7%76.2%
Grafenia ($GRA)53.4%54.3%56.1%70.8%66.3%
Vianet Group ($VNET)53.3%51.3%58.8%69.2%70.1%
Prime People ($PRP)63.4%58.3%57.7%61.4%59.2%
Murgitroyd Group ($MUR)58.4%61.4%57.6%55.4%
 
Median (48 companies)28.2%28.5%29.2%28.6%31.1%
Ienergizer Ltd ($IBPO)56.2%78.4%76.8%72.7%71.3%


Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
21St Century Technology ($C21)13.4%-0.2%36.0%44.8%
Northgate ($67GX)41.2%40.4%40.6%39.4%38.3%
Inspired Energy ($INSE)46.2%48.5%1.5%35.4%
Vianet Group ($VNET)18.6%17.3%19.7%27.1%22.1%
Vp ($VP.)23.9%24.5%24.2%26.2%28.4%
 
Median (54 companies)6.7%6.3%6.8%7.2%7.9%
Ienergizer Ltd ($IBPO)27.6%27.8%23.6%17.1%22.9%


Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Vp ($VP.)21.4%17.7%21.6%25.7%24.1%
Sagentia Group ($SAG)1.9%1.4%1.5%25.2%
Nature Group ($NGR)14.3%7.2%5.6%22.9%
Augean ($AUG)9.8%15.9%12.3%12.3%
Falkland Islands Hldgs ($FKL)3.7%6.8%12.9%11.9%4.8%
 
Median (54 companies)1.0%1.1%1.0%1.1%1.2%
Ienergizer Ltd ($IBPO)1.9%1.6%2.6%2.9%0.5%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
21St Century Technology ($C21)20.3%-2.9%45.6%111.0%
Inspired Energy ($INSE)63.9%65.5%-7.5%28.0%
Petards Group ($PEG)35.5%-78.0%24.7%23.9%
Servoca ($SVCA)1.0%7.8%14.9%22.3%
Rtc Group ($RTC)14.6%17.6%19.9%22.2%
 
Median (54 companies)9.5%7.8%9.3%9.9%9.4%
Ienergizer Ltd ($IBPO)20.6%20.9%17.9%10.4%17.4%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Redhall Group ($RHL)22.8x5.8x6.6x16.8x
Mitsubishi Corp ($MBC)9.9x15.9x14.3x12.5x25.0x
Ceps ($CEPS)3.0x6.6x3.8x
Kellan Group(The ($KLN)6.5x3.6x
Premier Farnell ($PFLA)1.7x2.1x2.1x3.1x3.8x
 
Median (50 companies)0.8x0.5x0.6x0.4x-0.2x
Ienergizer Ltd ($IBPO)6.3x2.8x3.0x4.0x2.4x


Similar news

28 Jun 2016 Cropper(James) EBITDA jumped on 16.1% in 2016 and Revenue increased on 5.9%

28 Jun 2016 Creightons reports 56.2% Net Income growth and almost no change in EBITDA Margin of 4.7%

28 Jun 2016 Hml Hldgs Net Income increased on 9.1% in 2016 and Revenue increased on 7.8%

27 Jun 2016 Omega Diagnostics Group Net Income dropped on 22.6% in 2016 and EBITDA Margin decreased slightly on 1.3 pp from 11.4% to 10.2%

24 Jun 2016 Naspers Net Debt / EBITDA surged on 8.5x from 6.2x to 14.7x in 2016 while EBITDA dropped on 67.2%