Hyundai Motor Co reports 15.8% Net Income decline and 0.82 pp EBITDA Margin decline from 10.0% to 9.1%
25 Jan 2017 • About Hyundai Motor Co (
$HYUD) • By InTwits
Hyundai Motor Co reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Hyundai Motor Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's a lot of higher than industry average of 3.0%.
- CAPEX is quite volatile: 2,971,161 in 2016, 8,141,729 in 2015, 3,353,809 in 2014, 3,171,093 in 2013, 3,000,038 in 2012
- The company has potentially unprofitable business model: ROIC is at 3.6%
- It operates with high leverage: Net Debt/EBITDA is 7.7x while industry average is 6.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hyundai Motor Co ($HYUD) key annual financial indicators
| mln. KRW | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 84,469,721 | 87,307,636 | 89,256,319 | 91,958,736 | 93,649,024 | 1.8% |
| Gross Profit | 19,497,576 | 19,448,145 | 19,130,043 | 18,257,440 | 17,689,304 | -3.1% |
| SG&A | 10,374,023 | 10,409,916 | 10,787,342 | 10,970,254 | 11,476,616 | 4.6% |
| EBITDA | 10,960,866 | 10,866,835 | 10,099,883 | 9,151,940 | 8,552,326 | -6.6% |
| Net Income | 8,561,820 | 8,541,830 | 7,346,810 | 6,417,300 | 5,406,440 | -15.8% |
Balance Sheet
|
|---|
| Cash | 6,759,338 | 6,872,430 | 7,096,513 | 7,331,463 | 7,890,089 | 7.6% |
| Short Term Debt | 14,702,548 | 13,987,145 | 16,534,144 | 20,172,928 | 23,597,645 | 17.0% |
| Long Term Debt | 30,533,495 | 33,999,428 | 37,733,259 | 44,760,126 | 49,846,375 | 11.4% |
Cash flow
|
|---|
| Capex | 3,000,038 | 3,171,093 | 3,353,809 | 8,141,729 | 2,971,161 | -63.5% |
Ratios
|
|---|
| Revenue growth | 8.6% | 3.4% | 2.2% | 3.0% | 1.8% | |
| EBITDA growth | 6.1% | -0.9% | -7.1% | -9.4% | -6.6% | |
| Gross Margin | 23.1% | 22.3% | 21.4% | 19.9% | 18.9% | -1.0% |
| EBITDA Margin | 13.0% | 12.4% | 11.3% | 10.0% | 9.1% | -0.8% |
| Net Income Margin | 10.1% | 9.8% | 8.2% | 7.0% | 5.8% | -1.2% |
| SG&A, % of revenue | 12.3% | 11.9% | 12.1% | 11.9% | 12.3% | 0.3% |
| CAPEX, % of revenue | 3.6% | 3.6% | 3.8% | 8.9% | 3.2% | -5.7% |
| ROIC | 9.3% | 8.2% | 6.6% | 4.9% | 3.6% | -1.3% |
| ROE | 16.4% | 13.8% | 10.4% | 8.3% | 6.5% | -1.8% |
| Net Debt/EBITDA | 3.5x | 3.8x | 4.7x | 6.3x | 7.7x | 1.4x |
Revenue and profitability
The company's Revenue increased slightly on 1.8% in 2016. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.82 pp from 10.0% to 9.1% in 2016.
Gross Margin decreased slightly on 0.97 pp from 19.9% to 18.9% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased slightly on 1.2 pp from 7.0% to 5.8% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 3.2%. The company's CAPEX/Revenue showed almost no change from 2013 to 2016. It's average level of CAPEX/Revenue for the last three years was 5.3%.
Return on investment
The company operates at low ROIC (3.63%) and ROE (6.48%). ROIC decreased slightly on 1.3 pp from 4.9% to 3.6% in 2016. ROE decreased slightly on 1.8 pp from 8.3% to 6.5% in 2016.
Leverage (Debt)
Debt level is 7.7x Net Debt / EBITDA and 8.6x Debt / EBITDA. Net Debt / EBITDA surged on 1.4x from 6.3x to 7.7x in 2016. Debt surged on 13.1% in 2016 while cash increased on 7.6% in 2016.
Appendix 1: Peers in Automobiles & Parts
Below you can find Hyundai Motor Co benchmarking vs. other companies in Automobiles & Parts 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Toyota Motor Corp ($TYT) | | 18.7% | 16.4% | 6.0% | 4.3% |
| Kumho Tire Co Inc ($KHTC) | 4.0% | -9.1% | -7.0% | -11.6% | |
| |
|---|
| Median (2 companies) | 4.0% | 4.8% | 4.7% | -2.8% | 4.3% |
|---|
| Hyundai Motor Co ($HYUD) | | 3.4% | 2.2% | 3.0% | 1.8% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kumho Tire Co Inc ($KHTC) | 25.3% | 26.5% | 29.4% | 25.5% | |
| Toyota Motor Corp ($TYT) | 11.8% | 15.5% | 19.0% | 19.8% | 20.4% |
| |
|---|
| Median (2 companies) | 18.6% | 21.0% | 24.2% | 22.7% | 20.4% |
|---|
| Hyundai Motor Co ($HYUD) | 23.1% | 22.3% | 21.4% | 19.9% | 18.9% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Toyota Motor Corp ($TYT) | 7.7% | 11.0% | 13.8% | 15.3% | 15.8% |
| Kumho Tire Co Inc ($KHTC) | 13.7% | 14.4% | 15.8% | 11.2% | |
| |
|---|
| Median (2 companies) | 10.7% | 12.7% | 14.8% | 13.2% | 15.8% |
|---|
| Hyundai Motor Co ($HYUD) | 13.0% | 12.4% | 11.3% | 10.0% | 9.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kumho Tire Co Inc ($KHTC) | 4.7% | 6.6% | 8.2% | 22.2% | |
| Toyota Motor Corp ($TYT) | 3.9% | 3.9% | 3.8% | 4.2% | 4.5% |
| |
|---|
| Median (2 companies) | 4.3% | 5.2% | 6.0% | 13.2% | 4.5% |
|---|
| Hyundai Motor Co ($HYUD) | 3.6% | 3.6% | 3.8% | 8.9% | 3.2% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Toyota Motor Corp ($TYT) | 1.5% | 5.0% | 7.3% | 7.5% | 7.3% |
| Kumho Tire Co Inc ($KHTC) | 10.2% | 9.3% | 9.7% | 3.6% | |
| |
|---|
| Median (2 companies) | 5.8% | 7.1% | 8.5% | 5.5% | 7.3% |
|---|
| Hyundai Motor Co ($HYUD) | 9.3% | 8.2% | 6.6% | 4.9% | 3.6% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kumho Tire Co Inc ($KHTC) | 5.0x | 4.6x | 4.1x | 7.4x | |
| Toyota Motor Corp ($TYT) | 7.3x | 5.1x | 4.0x | 4.0x | 3.4x |
| |
|---|
| Median (2 companies) | 6.1x | 4.8x | 4.1x | 5.7x | 3.4x |
|---|
| Hyundai Motor Co ($HYUD) | 3.5x | 3.8x | 4.7x | 6.3x | 7.7x |
