Global Invacom Group Ltd reports 20% EBITDA decline and 1.4% Revenue decline
23 Feb 2017 • About Global Invacom Group Ltd (
$GINV) • By InTwits
Global Invacom Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Global Invacom Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is -1.3%
- Global Invacom Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 3.0%.
- CAPEX is quite volatile: 1.9 in FY2016, 1.0 in FY2015, 3.8 in FY2014, 3.4 in FY2013, 2.4 in FY2012
- The company has unprofitable business model: ROIC is at -1.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Global Invacom Group Ltd ($GINV) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 74.7 | 115.8 | 134.1 | 129.1 | 127.3 | -1.4% |
| Gross Profit | 14.1 | 29.2 | 31.8 | 24.9 | 26.0 | 4.5% |
| SG&A | | | 25.8 | 29.6 | 25.1 | -15.3% |
| EBITDA | -15.8 | 10.1 | 7.6 | 2.5 | 2.0 | -20.0% |
| Net Income | -16.0 | 8.0 | 5.1 | -1.1 | -2.7 | 139.6% |
Balance Sheet
|
|---|
| Cash | 20.8 | 14.7 | 21.2 | 8.9 | 7.9 | -10.4% |
| Short Term Debt | 0.6 | 0.1 | 0.0 | 5.3 | 6.1 | 14.2% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.4 | 3.4 | 3.8 | 1.0 | 1.9 | 85.6% |
Ratios
|
|---|
| Revenue growth | 19.0% | 55.0% | 15.9% | -3.7% | -1.4% | |
| EBITDA growth | -378.8% | -163.9% | -25.2% | -67.3% | -20.0% | |
| Gross Margin | 18.8% | 25.2% | 23.7% | 19.3% | 20.4% | 1.2% |
| EBITDA Margin | -21.2% | 8.7% | 5.6% | 1.9% | 1.6% | -0.4% |
| Net Income Margin | -21.5% | 6.9% | 3.8% | -0.9% | -2.1% | -1.2% |
| SG&A, % of revenue | | | 19.2% | 22.9% | 19.7% | -3.2% |
| CAPEX, % of revenue | 3.3% | 2.9% | 2.8% | 0.8% | 1.5% | 0.7% |
| ROIC | -63.1% | 19.0% | 9.6% | 0.2% | -1.3% | -1.5% |
| ROE | -66.4% | 19.9% | 9.7% | -2.0% | -5.1% | -3.1% |
| Net Debt/EBITDA | | -1.4x | -2.8x | -1.4x | -0.9x | 0.5x |
Revenue and profitability
Global Invacom Group Ltd's Revenue decreased slightly on 1.4% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 11.8 pp from -8.1% to 3.7% in FY2016.
Gross Margin increased slightly on 1.2 pp from 19.3% to 20.4% in FY2016. SG&A as a % of Revenue decreased on 3.2 pp from 22.9% to 19.7% in FY2016.
Net Income marign decreased slightly on 1.2 pp from -0.87% to -2.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Global Invacom Group Ltd had CAPEX/Revenue of 1.5%. Global Invacom Group Ltd's CAPEX/Revenue decreased slightly on 1.4 pp from 2.9% in FY2013 to 1.5% in FY2016. For the last three years the average CAPEX/Revenue was 1.7%.Battling declining revenue the company invested a large share of EBITDA (95.4%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-1.32%) and ROE (-5.06%). ROIC decreased slightly on 1.5 pp from 0.20% to -1.3% in FY2016. ROE decreased on 3.1 pp from -2.0% to -5.1% in FY2016.
Leverage (Debt)
Debt level is -0.9x Net Debt / EBITDA and 3.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.5x from -1.4x to -0.9x in FY2016. Debt jumped on 14.2% in FY2016 while cash dropped on 10.4% in FY2016.
Appendix 1: Peers in Technology Hardware & Equipment
Below you can find Global Invacom Group Ltd benchmarking vs. other companies in Technology Hardware & Equipment 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 |
|---|
| Trakm8 Holdings ($TRAK) | | -8.9% | 93.5% | 94.2% | 43.7% |
| Mti Wireless Edge ($MWE) | | 5.6% | 6.8% | 36.5% | 18.9% |
| Concurrent Technologies ($CNC) | -7.3% | -7.3% | 8.0% | 33.3% | |
| Toumaz Ld ($TMZ) | 279.7% | 150.3% | 19.5% | 22.1% | |
| Seeing Machines ($SEE) | | 66.3% | 43.3% | 13.3% | 76.8% |
| |
|---|
| Median (19 companies) | -1.3% | 1.3% | 0.3% | 1.1% | 2.7% |
|---|
| Global Invacom Group Ltd ($GINV) | | 55.0% | 15.9% | -3.7% | -1.4% |
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 ($SEE) | 61.4% | 64.1% | 59.8% | 44.9% | 81.3% |
| |
|---|
| Median (18 companies) | 34.5% | 35.2% | 37.0% | 38.9% | 40.4% |
|---|
| Global Invacom Group Ltd ($GINV) | 18.8% | 25.2% | 23.7% | 19.3% | 20.4% |
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 ($PUR) | 16.3% | 17.0% | 31.5% | 27.4% | |
| Samsung Electronics Co ($SMSN) | 22.2% | 23.3% | 20.9% | 23.6% | 24.7% |
| Trakm8 Holdings ($TRAK) | 7.1% | 6.8% | 12.9% | 14.0% | 15.8% |
| |
|---|
| Median (19 companies) | 4.5% | 6.8% | 6.4% | 5.6% | 8.0% |
|---|
| Global Invacom Group Ltd ($GINV) | -21.2% | 8.7% | 5.6% | 1.9% | 1.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Samsung Electronics Co ($SMSN) | 11.4% | 10.1% | 10.7% | 12.9% | 12.0% |
| Pure Wafer ($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 ($SEE) | 0.3% | 2.2% | 1.0% | 3.9% | 1.6% |
| |
|---|
| Median (19 companies) | 2.1% | 2.0% | 1.9% | 1.8% | 1.7% |
|---|
| Global Invacom Group Ltd ($GINV) | 3.3% | 2.9% | 2.8% | 0.8% | 1.5% |
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% | |
| Samsung Electronics Co ($SMSN) | 22.4% | 24.0% | 14.4% | 14.0% | 14.3% |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 13.7% | 11.1% | 10.3% | 13.5% | 3.9% |
| Hon Hai Precision Industry ($HHPD) | 9.9% | 8.7% | 10.3% | 11.7% | |
| |
|---|
| Median (19 companies) | 0.7% | 5.8% | 5.7% | 4.3% | 5.4% |
|---|
| Global Invacom Group Ltd ($GINV) | -63.1% | 19.0% | 9.6% | 0.2% | -1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tatung Co ($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 | -0.9x |
| Telefonaktiebolaget Lm Ericsson ($0O87) | -0.1x | 0.0x | -0.2x | 0.1x | 0.1x |
| Samsung Electronics Co ($SMSN) | -0.1x | -0.1x | -0.1x | -0.2x | -0.3x |
| |
|---|
| Median (15 companies) | -0.9x | -0.5x | -1.3x | -1.0x | -0.3x |
|---|
| Global Invacom Group Ltd ($GINV) | | -1.4x | -2.8x | -1.4x | -0.9x |
