Samsung Electronics Co reports 19.9% Net Income growth and 1.2 pp EBITDA Margin growth from 23.6% to 24.7%
06 Jan 2017 • About Samsung Electronics Co (
$SMSN) • By InTwits
Samsung Electronics Co reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Samsung Electronics Co has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.4%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: 128 in FY2016, 8.9 in FY2015, 2.9 in FY2014, 10.9 in FY2013, 3.1 in FY2012
- The company has highly profitable business model: ROIC is at 14.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Samsung Electronics Co ($SMSN) key annual financial indicators
| mln. KRW | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 201,103,613 | 228,692,667 | 206,205,987 | 200,653,482 | 201,866,745 | 0.6% |
| Gross Profit | 74,451,682 | 90,996,358 | 77,927,187 | 77,171,364 | 81,589,030 | 5.7% |
| SG&A | 33,073,560 | 38,934,012 | 37,446,184 | 36,081,636 | 37,235,161 | 3.2% |
| EBITDA | 44,671,354 | 53,230,426 | 43,078,492 | 47,344,299 | 49,953,637 | 5.5% |
| Net Income | 23,185,400 | 29,821,200 | 23,082,500 | 18,694,600 | 22,415,700 | 19.9% |
Balance Sheet
|
|---|
| Cash | 18,791,460 | 16,284,780 | 16,840,766 | 22,636,744 | 32,111,442 | 41.9% |
| Short Term Debt | 9,442,762 | 8,864,348 | 9,807,966 | 11,376,973 | 13,979,606 | 22.9% |
| Long Term Debt | 5,452,402 | 2,296,185 | 1,457,553 | 1,496,990 | 1,302,780 | -13.0% |
Cash flow
|
|---|
| Capex | 22,965,271 | 23,157,587 | 22,042,943 | 25,880,222 | 24,142,973 | -6.7% |
Ratios
|
|---|
| Revenue growth | 21.9% | 13.7% | -9.8% | -2.7% | 0.6% | |
| EBITDA growth | 53.8% | 19.2% | -19.1% | 9.9% | 5.5% | |
| Gross Margin | 37.0% | 39.8% | 37.8% | 38.5% | 40.4% | 2.0% |
| EBITDA Margin | 22.2% | 23.3% | 20.9% | 23.6% | 24.7% | 1.2% |
| Net Income Margin | 11.5% | 13.0% | 11.2% | 9.3% | 11.1% | 1.8% |
| SG&A, % of revenue | 16.4% | 17.0% | 18.2% | 18.0% | 18.4% | 0.5% |
| CAPEX, % of revenue | 11.4% | 10.1% | 10.7% | 12.9% | 12.0% | -0.9% |
| ROIC | 22.4% | 24.0% | 14.4% | 14.0% | 14.3% | 0.3% |
| ROE | 18.8% | 19.8% | 13.1% | 9.7% | 10.9% | 1.2% |
| Net Debt/EBITDA | -0.1x | -0.1x | -0.1x | -0.2x | -0.3x | -0.1x |
Revenue and profitability
Samsung Electronics Co's Revenue increased slightly on 0.60% in 2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.2 pp from 23.6% to 24.7% in 2016.
Gross Margin increased slightly on 2.0 pp from 38.5% to 40.4% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign increased slightly on 1.8 pp from 9.3% to 11.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 12.0%. The company's CAPEX/Revenue increased slightly on 1.8 pp from 10.1% in 2013 to 12.0% in 2016. For the last three years the average CAPEX/Revenue was 11.8%.
Return on investment
The company operates at good ROIC (14.31%) while ROE is low (10.94%). ROIC showed almost no change in 2016. ROE increased slightly on 1.2 pp from 9.7% to 10.9% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.1x from -0.2x to -0.3x in 2016. Debt surged on 18.7% in 2016 while cash surged on 41.9% in 2016.
Appendix 1: Peers in Technology Hardware & Equipment
Below we provide Samsung Electronics Co benchmarking against other companies in Technology Hardware & Equipment 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 |
|---|
| Trakm8 Holdings ($TRAK) | | -8.9% | 93.5% | 94.2% | 43.7% |
| Mti Wireless Edge ($MWE) | -13.5% | 5.6% | 6.8% | 36.5% | |
| Concurrent Technologies ($CNC) | -7.3% | -7.3% | 8.0% | 33.3% | |
| Toumaz Ld ($TMZ) | 279.7% | 150.3% | 19.5% | 22.1% | |
| Seeing Machines ($SEE) | | 66.3% | 43.3% | 13.3% | 76.8% |
| |
|---|
| Median (19 companies) | -0.5% | 1.3% | 3.4% | 1.1% | 4.7% |
|---|
| Samsung Electronics Co ($SMSN) | | 13.7% | -9.8% | -2.7% | 0.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cml Microsystems ($CML) | 69.3% | 70.3% | 73.3% | 70.9% | 71.2% |
| Concurrent Technologies ($CNC) | 51.7% | 50.6% | 51.2% | 50.6% | |
| Trakm8 Holdings ($TRAK) | 63.8% | 71.9% | 57.2% | 45.2% | 48.3% |
| Vislink ($VLK) | 39.4% | 40.7% | 45.9% | 45.0% | |
| Seeing Machines ($SEE) | 61.4% | 64.1% | 59.8% | 44.9% | 81.3% |
| |
|---|
| Median (18 companies) | 33.2% | 34.1% | 36.0% | 37.1% | 59.8% |
|---|
| Samsung Electronics Co ($SMSN) | 37.0% | 39.8% | 37.8% | 38.5% | 40.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cml Microsystems ($CML) | 28.7% | 33.1% | 35.1% | 29.9% | 30.0% |
| Concurrent Technologies ($CNC) | 29.3% | 23.3% | 27.1% | 28.6% | |
| Pure Wafer ($PUR) | 16.3% | 17.0% | 31.5% | 27.4% | |
| Trakm8 Holdings ($TRAK) | 7.1% | 6.8% | 12.9% | 14.0% | 15.8% |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 13.9% | 12.4% | 11.8% | 13.0% | |
| |
|---|
| Median (19 companies) | 3.8% | 6.8% | 5.6% | 5.3% | -1.8% |
|---|
| Samsung Electronics Co ($SMSN) | 22.2% | 23.3% | 20.9% | 23.6% | 24.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Wafer ($PUR) | 0.5% | 3.5% | 23.3% | 8.5% | |
| Tatung Co ($TAT) | 6.1% | 4.3% | 4.3% | 6.7% | |
| Sunplus Technology Co Ltd ($SUPD) | 4.8% | 6.3% | 15.0% | 4.5% | |
| Seeing Machines ($SEE) | 0.3% | 2.2% | 1.0% | 3.9% | 1.6% |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 2.4% | 2.0% | 2.3% | 3.4% | |
| |
|---|
| Median (19 companies) | 2.1% | 2.0% | 1.9% | 1.8% | 1.6% |
|---|
| Samsung Electronics Co ($SMSN) | 11.4% | 10.1% | 10.7% | 12.9% | 12.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Trakm8 Holdings ($TRAK) | 3.8% | 1.9% | 18.7% | 22.5% | 20.8% |
| Concurrent Technologies ($CNC) | 14.6% | 8.2% | 14.1% | 20.9% | |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 13.7% | 11.1% | 10.3% | 13.5% | |
| Hon Hai Precision Industry ($HHPD) | 9.9% | 8.7% | 10.3% | 11.7% | |
| Cml Microsystems ($CML) | 17.4% | 26.1% | 23.0% | 10.3% | 10.1% |
| |
|---|
| Median (19 companies) | 0.6% | 5.8% | 5.7% | 3.4% | -6.5% |
|---|
| Samsung Electronics Co ($SMSN) | 22.4% | 24.0% | 14.4% | 14.0% | 14.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tatung Co ($TAT) | 41.1x | 6.1x | 6.7x | 40.1x | |
| Vislink ($VLK) | -1.2x | -0.5x | -0.0x | 1.8x | |
| Mti Wireless Edge ($MWE) | -21.9x | 1.9x | -1.6x | 0.2x | |
| Telefonaktiebolaget Lm Ericsson ($0O87) | -0.1x | 0.0x | -0.2x | 0.1x | |
| Trakm8 Holdings ($TRAK) | -2.3x | -3.8x | -0.5x | -0.2x | 0.3x |
| |
|---|
| Median (15 companies) | -1.1x | -0.8x | -1.4x | -1.4x | -0.9x |
|---|
| Samsung Electronics Co ($SMSN) | -0.1x | -0.1x | -0.1x | -0.2x | -0.3x |
