Press Corp Net Income dropped on 60.9% in 2015 and EBITDA Margin decreased on 3.9 pp from 29.2% to 25.3%
15 Jul 2016 • About Press Corp (
$PESD) • By InTwits
Press Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Press Corp is a fast growth stock: 2015 revenue growth was 17.8%, 5 year revenue CAGR was 22.1% at 2015 ROIC 18.9%
- Press Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 14.7%. At the same time it's a lot of higher than industry average of 3.8%.
- CAPEX is quite volatile: 42,550 in 2015, 20,549 in 2014, 17,795 in 2013, 13,370 in 2012, 12,905 in 2011
- The company has highly profitable business model: ROIC is at 18.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Press Corp ($PESD) key annual financial indicators
| mln. MWK | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 35,305 | 74,544 | 113,717 | 136,787 | 161,136 | 17.8% |
| Gross Profit | 26,614 | 43,906 | 61,896 | 76,587 | 87,852 | 14.7% |
| SG&A | 23,342 | | | 51,854 | 63,320 | 22.1% |
| EBITDA | 13,100 | 22,027 | 33,656 | 39,906 | 40,722 | 2.0% |
| Net Income | 3,469 | 6,340 | 9,372 | 10,734 | 4,197 | -60.9% |
Balance Sheet
|
|---|
| Cash | 11,047 | 33,821 | 58,022 | 65,852 | 59,624 | -9.5% |
| Short Term Debt | 6,609 | 9,760 | 13,071 | 18,359 | 34,953 | 90.4% |
| Long Term Debt | 6,828 | 17,001 | 17,306 | 17,395 | 10,150 | -41.6% |
Cash flow
|
|---|
| Capex | 8,003 | 15,897 | 9,645 | 16,614 | 14,435 | -13.1% |
Ratios
|
|---|
| Revenue growth | -40.5% | 111.1% | 52.6% | 20.3% | 17.8% | |
| EBITDA growth | -6.0% | 68.1% | 52.8% | 18.6% | 2.0% | |
| Gross Margin | 75.4% | 58.9% | 54.4% | 56.0% | 54.5% | -1.5% |
| EBITDA Margin | 37.1% | 29.5% | 29.6% | 29.2% | 25.3% | -3.9% |
| Net Income Margin | 9.8% | 8.5% | 8.2% | 7.8% | 2.6% | -5.2% |
| SG&A, % of revenue | 66.1% | | | 37.9% | 39.3% | 1.4% |
| CAPEX, % of revenue | 22.7% | 21.3% | 8.5% | 12.1% | 9.0% | -3.2% |
| ROIC | 12.1% | 21.6% | 27.1% | 24.7% | 18.9% | -5.8% |
| ROE | 11.6% | 17.2% | 18.9% | 16.3% | 5.0% | -11.2% |
| Net Debt/EBITDA | 0.2x | -0.3x | -0.8x | -0.8x | -0.4x | 0.4x |
Revenue and profitability
The company's Revenue surged on 17.8% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 3.9 pp from 29.2% to 25.3% in 2015.
Gross Margin decreased slightly on 1.5 pp from 56.0% to 54.5% in 2015. SG&A as a % of Revenue increased slightly on 1.4 pp from 37.9% to 39.3% in 2015.
Net Income marign decreased on 5.2 pp from 7.8% to 2.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Press Corp had CAPEX/Revenue of 9.0%. The company's CAPEX/Revenue dropped on 12.4 pp from 21.3% in 2012 to 9.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 9.9%.
Return on investment
The company operates at good ROIC (18.88%) while ROE is low (5.04%). ROIC decreased on 5.8 pp from 24.7% to 18.9% in 2015. ROE dropped on 11.2 pp from 16.3% to 5.0% in 2015.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.4x from -0.8x to -0.4x in 2015. Debt jumped on 26.1% in 2015 while cash decreased on 9.5% in 2015.
Appendix 1: Peers in General Industrials
Below you can find Press Corp benchmarking vs. other companies in General Industrials 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 |
|---|
| Macfarlane Group ($MACF) | | -1.9% | 1.4% | 6.9% | 10.0% |
| Robinson ($RBN) | | -1.6% | 10.2% | 20.3% | 3.8% |
| Thyssenkrupp Ag ($0O1C) | | -2.8% | -7.2% | 6.9% | 3.8% |
| Coral Products ($CRU) | | 31.2% | -0.2% | -0.3% | 1.2% |
| Barloworld ($BWO) | | 17.5% | 1.6% | 4.4% | 1.0% |
| |
|---|
| Median (9 companies) | | 1.3% | 1.4% | 3.2% | 1.0% |
|---|
| Press Corp ($PESD) | | 111.1% | 52.6% | 20.3% | 17.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Macfarlane Group ($MACF) | 30.2% | 32.0% | 31.2% | 30.9% | 31.5% |
| Honeywell International Inc ($HON) | 21.8% | 24.9% | 27.4% | 28.2% | 30.7% |
| Smurfit Kappa Group ($SKG) | 27.9% | 28.6% | 28.9% | 29.5% | 30.0% |
| Coral Products ($CRU) | 18.5% | 22.1% | 24.6% | 23.7% | 29.6% |
| Jardine Strategic Hldgs ($88EI) | 24.7% | 24.0% | 24.0% | 25.4% | 25.5% |
| |
|---|
| Median (9 companies) | 22.2% | 24.0% | 24.6% | 24.5% | 25.5% |
|---|
| Press Corp ($PESD) | 75.4% | 58.9% | 54.4% | 56.0% | 54.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honeywell International Inc ($HON) | 9.7% | 13.5% | 16.6% | 16.8% | 20.0% |
| Jardine Strategic Hldgs ($88EI) | 28.8% | 15.0% | 13.3% | 13.5% | 15.1% |
| Smurfit Kappa Group ($SKG) | 13.1% | 13.4% | 12.8% | 12.7% | 14.3% |
| General Electric Co. ($GEC) | 17.6% | 17.2% | 16.5% | 13.3% | 10.4% |
| Barloworld ($BWO) | 8.0% | 8.4% | 9.1% | 10.0% | 10.3% |
| |
|---|
| Median (9 companies) | 9.7% | 13.4% | 12.8% | 12.7% | 10.3% |
|---|
| Press Corp ($PESD) | 37.1% | 29.5% | 29.6% | 29.2% | 25.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| General Electric Co. ($GEC) | 8.9% | 10.5% | 9.4% | 6.1% | 6.3% |
| Smurfit Kappa Group ($SKG) | 3.8% | 4.3% | 4.4% | 5.3% | 5.3% |
| Robinson ($RBN) | 4.9% | 4.3% | 6.0% | 3.5% | 3.7% |
| Jardine Strategic Hldgs ($88EI) | 4.4% | 5.8% | 5.2% | 4.1% | 2.9% |
| Honeywell International Inc ($HON) | 2.2% | 2.3% | 2.4% | 2.7% | 2.8% |
| |
|---|
| Median (9 companies) | 3.8% | 4.3% | 4.4% | 2.9% | 2.8% |
|---|
| Press Corp ($PESD) | 22.7% | 21.3% | 8.5% | 12.1% | 9.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Honeywell International Inc ($HON) | 14.4% | 21.8% | 23.0% | 21.3% | 23.2% |
| Macfarlane Group ($MACF) | 15.1% | 17.9% | 22.2% | 19.0% | 17.8% |
| Smurfit Kappa Group ($SKG) | 10.2% | 10.8% | 11.2% | 11.8% | 13.9% |
| Barloworld ($BWO) | 12.4% | 14.0% | 13.5% | 14.1% | 12.9% |
| Thyssenkrupp Ag ($0O1C) | 15.7% | -27.3% | -6.5% | 10.8% | 9.5% |
| |
|---|
| Median (9 companies) | 12.4% | 10.3% | 9.6% | 10.8% | 9.5% |
|---|
| Press Corp ($PESD) | 12.1% | 21.6% | 27.1% | 24.7% | 18.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| General Electric Co. ($GEC) | 11.8x | 10.5x | 8.9x | 12.0x | 10.6x |
| Coral Products ($CRU) | 1.5x | 1.5x | 2.9x | 3.4x | 2.7x |
| Smurfit Kappa Group ($SKG) | 2.9x | 2.9x | 2.6x | 2.7x | 2.6x |
| Thyssenkrupp Ag ($0O1C) | 1.1x | 3.4x | 4.5x | 2.0x | 1.8x |
| Barloworld ($BWO) | 1.1x | 1.5x | 1.4x | 1.2x | 1.7x |
| |
|---|
| Median (9 companies) | 1.1x | 1.5x | 1.4x | 1.3x | 1.7x |
|---|
| Press Corp ($PESD) | 0.2x | -0.3x | -0.8x | -0.8x | -0.4x |
