Daishin Securities Co CAPEX jumped on 108% in 2016 while Revenue dropped on 10.6%
09 Feb 2017 • About Daishin Securities Co (
$DSS) • By InTwits
Daishin Securities Co reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Daishin Securities Co doesn't have a profitable business model yet: 2016 ROIC is 1.0%
- Daishin Securities Co has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.5%. At the same time it's a lot of higher than industry average of 2.5%.
- CAPEX is quite volatile: 101,307 in 2016, 48,807 in 2015, 97,081 in 2014, 175,675 in 2013, 46,845 in 2012
- The company has potentially unprofitable business model: ROIC is at 1.0%
- It operates with high leverage: Net Debt/EBITDA is 13.4x while industry average is -4.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Daishin Securities Co ($DSS) key annual financial indicators
| mln. KRW | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 777,862 | 710,109 | 649,046 | 749,983 | 670,798 | -10.6% |
| EBITDA | 418,518 | 365,858 | 251,514 | 369,284 | 261,177 | -29.3% |
| Net Income | 89,858 | 3,391 | 43,685 | 136,158 | 74,018 | -45.6% |
Balance Sheet
|
|---|
| Cash | 271,013 | 184,742 | 184,016 | 185,864 | 307,533 | 65.5% |
| Short Term Debt | 785,021 | 860,036 | 2,043,208 | 2,204,199 | 2,681,458 | 21.7% |
| Long Term Debt | 119,556 | 219,370 | 839,519 | 923,784 | 1,116,437 | 20.9% |
Cash flow
|
|---|
| Capex | 46,845 | 175,675 | 97,081 | 48,807 | 101,307 | 107.6% |
Ratios
|
|---|
| Revenue growth | 18.9% | -8.7% | -8.6% | 15.6% | -10.6% | |
| EBITDA growth | 28.1% | -12.6% | -31.3% | 46.8% | -29.3% | |
| EBITDA Margin | 53.8% | 51.5% | 38.8% | 49.2% | 38.9% | -10.3% |
| Net Income Margin | 11.6% | 0.5% | 6.7% | 18.2% | 11.0% | -7.1% |
| CAPEX, % of revenue | 6.0% | 24.7% | 15.0% | 6.5% | 15.1% | 8.6% |
| ROIC | 1.8% | 0.0% | 0.6% | 1.9% | 1.0% | -0.9% |
| ROE | 3.4% | 0.1% | 1.7% | 5.1% | 2.7% | -2.5% |
| Net Debt/EBITDA | 1.5x | 2.4x | 10.7x | 8.0x | 13.4x | 5.4x |
Revenue and profitability
The company's Revenue dropped on 10.6% in 2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 10.3 pp from 49.2% to 38.9% in 2016.
Net Income marign decreased on 7.1 pp from 18.2% to 11.0% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 15.1% in 2016. Daishin Securities Co showed decline in CAPEX/Revenue of 9.6 pp from 24.7% in 2013 to 15.1% in 2016. Average CAPEX/Revenue for the last three years was 12.2%.
Return on investment
The company operates at low ROIC (1.02%) and ROE (2.66%). ROIC decreased slightly on 0.93 pp from 1.9% to 1.0% in 2016. ROE decreased on 2.5 pp from 5.1% to 2.7% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 13.4x and Debt / EBITDA is 14.5x. Net Debt / EBITDA surged on 5.4x from 8.0x to 13.4x in 2016. Debt surged on 21.4% in 2016 while cash jumped on 65.5% in 2016.
Appendix 1: Peers in Financial Services
Below you can find Daishin Securities Co benchmarking vs. other companies in Financial Services 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 |
|---|
| Volvere ($VLE) | -47.1% | 149.8% | -23.2% | 124.9% | |
| Real Estate Credit Investments Pcc ($RECP) | | 335.8% | -59.6% | 47.3% | -29.8% |
| Fairpoint Group ($FRP) | 32.7% | -17.5% | 35.1% | 41.2% | |
| Afh Financial Group ($AFHP) | | 49.9% | 39.3% | 39.5% | 15.0% |
| Manx Financial Group ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 5.6% | 14.7% | 6.8% | 2.7% | 5.4% |
|---|
| Daishin Securities Co ($DSS) | | -8.7% | -8.6% | 15.6% | -10.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Record ($REC) | 98.8% | 98.8% | 99.6% | 99.3% | 99.0% |
| Panmure Gordon & Co ($PMR) | 95.2% | 95.0% | 95.3% | 95.2% | |
| First Property Group ($FPO) | 86.0% | 69.5% | 67.9% | 83.0% | 80.6% |
| Schroders ($SDRC) | 76.9% | 76.2% | 77.7% | 78.3% | |
| London Capital Group Hldgs ($LCG) | 64.2% | 70.5% | 73.6% | 67.9% | |
| |
|---|
| Median (16 companies) | 54.3% | 52.7% | 52.2% | 52.5% | 59.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Livermore Investments Group Ltd ($LIV) | 84.9% | 64.8% | 78.8% | 83.5% | |
| Real Estate Credit Investments Pcc ($RECP) | 58.6% | 89.3% | 77.0% | 80.3% | 79.3% |
| Manx Financial Group ($MFX) | 39.8% | 49.2% | 56.5% | 58.8% | |
| Hargreaves Lansdown ($HL.) | 64.1% | 66.4% | 58.7% | 51.2% | 57.5% |
| S & U ($46IE) | 25.5% | 27.9% | 30.6% | 47.2% | 48.0% |
| |
|---|
| Median (28 companies) | 11.7% | 15.6% | 14.4% | 15.9% | 18.7% |
|---|
| Daishin Securities Co ($DSS) | 53.8% | 51.5% | 38.8% | 49.2% | 38.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| London Capital Group Hldgs ($LCG) | 1.8% | 0.2% | 3.4% | 7.7% | |
| Commercial Bank Of Qatar(The) ($CBQS) | 6.0% | 3.8% | 2.8% | 3.9% | |
| Nmbz Hldgs ($NMB) | 6.1% | 3.0% | 2.1% | 3.8% | |
| Afh Financial Group ($AFHP) | 1.6% | 1.5% | 0.7% | 3.8% | 1.8% |
| Volvere ($VLE) | 1.8% | 2.1% | 2.0% | 3.4% | |
| |
|---|
| Median (29 companies) | 1.3% | 1.3% | 1.3% | 0.9% | 0.9% |
|---|
| Daishin Securities Co ($DSS) | 6.0% | 24.7% | 15.0% | 6.5% | 15.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hargreaves Lansdown ($HL.) | 108.7% | 111.7% | 101.0% | 87.5% | 90.0% |
| Manx Financial Group ($MFX) | 8.0% | 19.7% | 29.7% | 40.2% | |
| Record ($REC) | 23.8% | 19.6% | 20.2% | 20.2% | 18.5% |
| Impax Asset Management Group ($IPX) | -13.7% | 17.2% | 18.7% | 16.1% | 15.0% |
| Lighthouse Group ($LGT) | 7.2% | -3.9% | 8.6% | 14.6% | |
| |
|---|
| Median (30 companies) | 5.5% | 6.3% | 9.2% | 7.7% | 11.3% |
|---|
| Daishin Securities Co ($DSS) | 1.8% | 0.0% | 0.6% | 1.9% | 1.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Private & Commercial Finance Group ($PCF) | 12.8x | 14.3x | 13.9x | 12.9x | 10.6x |
| First Property Group ($FPO) | 3.6x | 3.0x | 5.6x | 12.3x | 9.4x |
| Canaccord Genuity Group Inc ($CF.) | | | | 10.2x | |
| S & U ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| Livermore Investments Group Ltd ($LIV) | 3.8x | 4.6x | 3.4x | 2.5x | |
| |
|---|
| Median (25 companies) | -1.2x | -1.7x | -2.3x | -1.1x | -0.6x |
|---|
| Daishin Securities Co ($DSS) | 1.5x | 2.4x | 10.7x | 8.0x | 13.4x |
