Dx reports 524% Net Income decline and 37.1 pp EBITDA Margin decline from 11.3% to -25.7%
21 Sep 2016 • About Dx (
$DX.) • By InTwits
Dx reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dx doesn't have a profitable business model yet: FY2016 ROIC is -52.4%
- EBITDA Margin is quite volatile: -25.7% in FY2016, 11.3% in FY2015, 11.0% in FY2014, 11.3% in FY2013, 15.5% in FY2012
- Dx has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 10.9%.
- CAPEX is quite volatile: 2.3 in FY2016, 3.3 in FY2015, 5 in FY2014, 7.1 in FY2013, 4.3 in FY2012
- The company has unprofitable business model: ROIC is at -52.4%
- It operates with high leverage: Net Debt/EBITDA is 4.1x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dx ($DX.) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 206.6 | 305.7 | 312.0 | 297.5 | 287.9 | -3.2% |
| EBITDA | 32.1 | 34.4 | 34.3 | 33.7 | -74.1 | -319.9% |
| Net Income | -16.8 | -21.3 | -55.0 | 19.9 | -84.4 | -524.1% |
Balance Sheet
|
|---|
| Cash | 19.8 | 30.2 | 1.1 | 7.0 | 4.3 | -38.6% |
| Short Term Debt | 9.0 | 5.9 | 4.5 | 1.2 | 7.7 | 541.7% |
| Long Term Debt | 367.8 | 390.0 | 8.4 | 7.3 | 6.2 | -15.1% |
Cash flow
|
|---|
| Capex | 4.3 | 7.1 | 5.0 | 3.3 | 2.3 | -30.3% |
Ratios
|
|---|
| Revenue growth | 26.0% | 48.0% | 2.1% | -4.6% | -3.2% | |
| EBITDA growth | 11.5% | 7.2% | -0.3% | -1.7% | -319.9% | |
| EBITDA Margin | 15.5% | 11.3% | 11.0% | 11.3% | -25.7% | -37.1% |
| Net Income Margin | -8.1% | -7.0% | -17.6% | 6.7% | -29.3% | -36.0% |
| CAPEX, % of revenue | 2.1% | 2.3% | 1.6% | 1.1% | 0.8% | -0.3% |
| ROIC | 9.3% | 9.6% | 14.5% | 12.8% | -52.4% | -65.2% |
| ROE | | | | 10.6% | -57.4% | -67.9% |
| Net Debt/EBITDA | 11.1x | 10.6x | 0.3x | 0.0x | | -0.0x |
Revenue and profitability
Dx's Revenue decreased on 3.2% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 37.1 pp from 11.3% to -25.7% in FY2016.
Net Income marign dropped on 36.0 pp from 6.7% to -29.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.80%. CAPEX/Revenue decreased slightly on 1.5 pp from 2.3% in FY2013 to 0.80% in FY2016. For the last three years the average CAPEX/Revenue was 1.2%.
Return on investment
The company operates at negative ROIC (-52.40%) and ROE (-57.36%). ROIC dropped on 65.2 pp from 12.8% to -52.4% in FY2016. ROE dropped on 67.9 pp from 10.6% to -57.4% in FY2016.
Leverage (Debt)
Debt level is 4.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA decreased on 0.045x from 0.045x to in FY2016. Debt jumped on 63.5% in FY2016 while cash dropped on 38.6% in FY2016.
Appendix 1: Peers in Industrial Transportation
Below you can find Dx benchmarking vs. other companies in Industrial Transportation 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Frontline Ltd ($FRO) | -27.8% | -9.4% | -55.6% | 104.5% | |
| Zhejiang Expressway Co ($ZHEH) | 2.2% | 13.3% | 20.5% | 32.2% | |
| Wisdom Marine Lines Co Limited ($WML) | 11.2% | -0.8% | 8.8% | 21.6% | |
| Dp World Ltd ($0P5M) | 4.8% | -1.5% | 12.7% | 16.7% | |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 17.8% | 7.7% | -6.6% | 16.2% | |
| |
|---|
| Median (14 companies) | 1.6% | -2.3% | 5.8% | -6.2% | 0.9% |
|---|
| Dx ($DX.) | | 48.0% | 2.1% | -4.6% | -3.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 57.9% | 54.3% | 61.0% | 72.9% | |
| Global Ports Investments ($GLPR) | 40.3% | 58.8% | 58.8% | 68.0% | |
| Dp World Ltd ($0P5M) | 35.8% | 39.8% | 41.9% | 48.4% | |
| Zhejiang Expressway Co ($ZHEH) | 34.0% | 36.9% | 37.7% | 43.6% | |
| Wisdom Marine Lines Co Limited ($WML) | 30.3% | 20.3% | 20.7% | 24.1% | |
| |
|---|
| Median (10 companies) | 30.8% | 23.0% | 21.9% | 22.1% | 23.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Lease Aviation ($CLA) | 101.2% | 88.5% | 89.2% | 80.5% | |
| Frontline Ltd ($FRO) | 17.2% | -4.6% | 64.5% | 74.6% | |
| Global Ports Investments ($GLPR) | 57.1% | 60.3% | 69.6% | 71.2% | |
| Zhejiang Expressway Co ($ZHEH) | 49.6% | 51.1% | 53.5% | 58.0% | |
| Wisdom Marine Lines Co Limited ($WML) | 56.9% | 52.0% | 52.8% | 55.2% | |
| |
|---|
| Median (14 companies) | 29.6% | 24.8% | 29.7% | 30.2% | 15.7% |
|---|
| Dx ($DX.) | 15.5% | 11.3% | 11.0% | 11.3% | -25.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Frontline Ltd ($FRO) | 2.5% | 0.5% | 83.6% | 171.4% | |
| Dp World Ltd ($0P5M) | 20.6% | 33.4% | 20.7% | 28.9% | |
| Yangming Marine Transport Corp ($YMTD) | 13.1% | 8.2% | 7.0% | 7.7% | |
| Novorossiysk Commercial Sea Port ($NCSP) | 5.4% | 10.4% | 9.9% | 7.3% | |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 15.6% | 16.9% | 11.5% | 5.7% | |
| |
|---|
| Median (14 companies) | 11.2% | 9.3% | 5.6% | 3.4% | 4.7% |
|---|
| Dx ($DX.) | 2.1% | 2.3% | 1.6% | 1.1% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 11.0% | 4.5% | 17.1% | 16.1% | |
| Zhejiang Expressway Co ($ZHEH) | 11.2% | 13.3% | 13.2% | 15.3% | |
| Global Ports Investments ($GLPR) | 17.0% | 7.1% | 12.1% | 14.6% | |
| Frontline Ltd ($FRO) | -1.0% | -8.9% | 7.6% | 12.1% | |
| Globaltrans Investment ($GLTR) | 25.5% | 16.3% | 6.4% | 10.3% | |
| |
|---|
| Median (14 companies) | 7.3% | 5.4% | 6.7% | 6.7% | 4.8% |
|---|
| Dx ($DX.) | 9.3% | 9.6% | 14.5% | 12.8% | -52.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Evergreen Marine Corp(Taiwan) ($EGMD) | 7.9x | 33.6x | 6.7x | 18.3x | |
| Wisdom Marine Lines Co Limited ($WML) | 8.5x | 9.0x | 9.1x | 8.4x | |
| Novorossiysk Commercial Sea Port ($NCSP) | 4.1x | 7.1x | 2.6x | 4.1x | |
| Interbulk Group ($INB) | 3.3x | 4.1x | 3.5x | 3.6x | |
| Global Ports Investments ($GLPR) | 0.8x | 6.6x | 2.8x | 3.6x | |
| |
|---|
| Median (12 companies) | 3.1x | 4.1x | 2.8x | 3.3x | 4.1x |
|---|
| Dx ($DX.) | 11.1x | 10.6x | 0.3x | 0.0x | |
