Bagir Grp Ltd reports 185% Net Income growth while 14.8% Revenue decline
08 Mar 2017 • About Bagir Grp Ltd (
$BAGR) • By InTwits
Bagir Grp Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bagir Grp Ltd is a company in decline: 2016 revenue growth was -14.8%, 5 years revenue CAGR was -5.6%
- EBITDA Margin is quite volatile: 2.2% in 2016, -3.9% in 2015, 3.4% in 2014, 6.1% in 2013, 3.9% in 2012
- Bagir Grp Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has unprofitable business model: ROIC is at -1.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bagir Grp Ltd ($BAGR) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 86.645 | 99.490 | 96.982 | 75.207 | 64.071 | -14.8% |
| Gross Profit | 14.730 | 19.012 | 16.907 | 7.337 | 10.530 | 43.5% |
| SG&A | | | 13.014 | 13.779 | 9.222 | -33.1% |
| EBITDA | 3.346 | 6.091 | 3.344 | -2.941 | 1.392 | -147.3% |
| Net Income | -5.702 | -1.220 | -3.178 | -11.651 | 9.901 | -185.0% |
Balance Sheet
|
|---|
| Cash | 3.275 | 2.670 | 11.420 | 7.463 | 8.624 | 15.6% |
| Short Term Debt | 39.838 | 12.338 | 12.782 | 1.120 | 0.367 | -67.2% |
| Long Term Debt | 20.126 | 42.241 | 12.180 | 20.772 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 0.180 | 0.258 | 0.148 | 0.112 | 0.375 | 234.8% |
Ratios
|
|---|
| Revenue growth | 1.6% | 14.8% | -2.5% | -22.5% | -14.8% | |
| EBITDA growth | -116.8% | 82.0% | -45.1% | -187.9% | -147.3% | |
| Gross Margin | 17.0% | 19.1% | 17.4% | 9.8% | 16.4% | 6.7% |
| EBITDA Margin | 3.9% | 6.1% | 3.4% | -3.9% | 2.2% | 6.1% |
| Net Income Margin | -6.6% | -1.2% | -3.3% | -15.5% | 15.5% | 30.9% |
| SG&A, % of revenue | | | 13.4% | 18.3% | 14.4% | -3.9% |
| CAPEX, % of revenue | 0.2% | 0.3% | 0.2% | 0.1% | 0.6% | 0.4% |
| ROIC | 4.7% | 18.8% | 1.9% | -24.8% | -1.6% | 23.2% |
| Net Debt/EBITDA | 16.9x | 8.5x | 4.0x | | -5.9x | -5.9x |
Revenue and profitability
Bagir Grp Ltd's Revenue dropped on 14.8% in 2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 6.1 pp from -3.9% to 2.2% in 2016.
Gross Margin increased on 6.7 pp from 9.8% to 16.4% in 2016. SG&A as a % of Revenue decreased on 3.9 pp from 18.3% to 14.4% in 2016.
Net Income marign surged on 30.9 pp from -15.5% to 15.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
Bagir Grp Ltd's CAPEX/Revenue was 0.59% in 2016. CAPEX/Revenue showed almost no change from 2013 to 2016. It's average level of CAPEX/Revenue for the last three years was 0.30%.
Leverage (Debt)
Debt level is -5.9x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA dropped5.9x from to -5.9x in 2016. Debt dropped on 98.3% in 2016 while cash jumped on 15.6% in 2016.
Valuation
The company's trades at EV/EBITDA 4.1x and P/E 1.4x while industy averages are 15.6x and 19.1x.
Appendix 1: Peers in Personal Goods
Below you can find Bagir Grp Ltd benchmarking vs. other companies in Personal Goods 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 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | | 8.7% | 12.0% | 10.8% | 1.7% |
| Creightons ($CRL) | | 6.1% | 11.7% | 4.2% | 4.1% |
| Swallowfield ($SWL) | | -16.0% | 3.0% | -1.2% | 10.1% |
| Far Eastern New Century Corp ($FETD) | | 0.9% | -1.4% | -7.5% | |
| Pittards ($PTD) | -3.1% | -3.3% | -3.0% | -12.1% | |
| |
|---|
| Median (5 companies) | -3.1% | 0.9% | 3.0% | -1.2% | 4.1% |
|---|
| Bagir Grp Ltd ($BAGR) | | 14.8% | -2.5% | -22.5% | -14.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Creightons ($CRL) | 42.1% | 42.8% | 40.8% | 39.2% | 42.2% |
| Svenska Cellulosa Ab-Sca ($0MCK) | 24.2% | 24.8% | 25.1% | 25.9% | 26.9% |
| Far Eastern New Century Corp ($FETD) | 18.7% | 19.5% | 20.3% | 23.2% | |
| Pittards ($PTD) | 17.4% | 20.5% | 20.3% | 21.7% | |
| Swallowfield ($SWL) | 10.6% | 8.2% | 10.3% | 11.8% | 14.8% |
| |
|---|
| Median (5 companies) | 18.7% | 20.5% | 20.3% | 23.2% | 26.9% |
|---|
| Bagir Grp Ltd ($BAGR) | 17.0% | 19.1% | 17.4% | 9.8% | 16.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Far Eastern New Century Corp ($FETD) | 12.3% | 12.5% | 12.1% | 15.0% | |
| Svenska Cellulosa Ab-Sca ($0MCK) | 12.6% | 15.0% | 15.2% | 14.6% | 15.3% |
| Pittards ($PTD) | 4.6% | 6.6% | 6.9% | 6.2% | |
| Creightons ($CRL) | 4.0% | 4.6% | 4.7% | 5.0% | 4.7% |
| Swallowfield ($SWL) | 4.9% | 1.8% | 4.0% | 4.5% | 6.7% |
| |
|---|
| Median (5 companies) | 4.9% | 6.6% | 6.9% | 6.2% | 6.7% |
|---|
| Bagir Grp Ltd ($BAGR) | 3.9% | 6.1% | 3.4% | -3.9% | 2.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pittards ($PTD) | 1.7% | 1.0% | 1.7% | 14.3% | |
| Far Eastern New Century Corp ($FETD) | 7.4% | 10.5% | 12.0% | 11.1% | |
| Svenska Cellulosa Ab-Sca ($0MCK) | 6.6% | 6.1% | 5.5% | 6.6% | 8.0% |
| Swallowfield ($SWL) | 2.1% | 1.5% | 1.8% | 3.1% | 2.2% |
| Creightons ($CRL) | 1.9% | 0.6% | 1.1% | 0.8% | 3.7% |
| |
|---|
| Median (5 companies) | 2.1% | 1.5% | 1.8% | 6.6% | 3.7% |
|---|
| Bagir Grp Ltd ($BAGR) | 0.2% | 0.3% | 0.2% | 0.1% | 0.6% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Swallowfield ($SWL) | 10.9% | -3.1% | 5.1% | 8.4% | 18.7% |
| Svenska Cellulosa Ab-Sca ($0MCK) | 5.5% | 8.2% | 8.7% | 9.0% | 9.1% |
| Creightons ($CRL) | 6.3% | 7.0% | 8.4% | 8.8% | 6.7% |
| Far Eastern New Century Corp ($FETD) | 4.3% | 3.6% | 2.6% | 3.0% | |
| |
|---|
| Median (4 companies) | 5.5% | 7.0% | 8.2% | 8.4% | 9.1% |
|---|
| Bagir Grp Ltd ($BAGR) | 4.7% | 18.8% | 1.9% | -24.8% | -1.6% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 2.9x | 2.6x | 2.2x | 1.7x | 1.8x |
| Swallowfield ($SWL) | -0.0x | -0.8x | -0.3x | 0.3x | -0.1x |
| Creightons ($CRL) | 1.2x | 1.2x | 0.7x | 0.1x | -0.8x |
| |
|---|
| Median (3 companies) | 2.7x | 2.6x | 2.2x | 1.7x | -0.1x |
|---|
| Bagir Grp Ltd ($BAGR) | 16.9x | 8.5x | 4.0x | | -5.9x |
