Dp World Ltd Net Income surged on 16.0% in 2016 and Revenue increased on 4.7%
20 Mar 2017 • About Dp World Ltd (
$0P5M) • By InTwits
Dp World Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 48.8% in 2016 vs. 45.7% in 2015 vs. 38.2% in 2012
- Dp World Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 25.8%. At the same time it's a lot of higher than industry average of 11.2%.
- CAPEX is quite volatile: 187 in 2016, 208 in 2015, 293 in 2014, 397 in 2013, 445 in 2012
- The company has business model with low profitability: ROIC is at 8.5%
- It operates with medium-size leverage: Net Debt/EBITDA is 3.1x while industry average is 3.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dp World Ltd ($0P5M) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,121 | 3,073 | 3,463 | 4,043 | 4,232 | 4.7% |
| Gross Profit | 1,118 | 1,224 | 1,453 | 1,959 | 2,153 | 9.9% |
| SG&A | 335 | 413 | 405 | 591 | 629 | 6.5% |
| EBITDA | 1,193 | 1,207 | 1,468 | 1,848 | 2,066 | 11.8% |
| Net Income | 738 | 640 | 701 | 883 | 1,024 | 16.0% |
Balance Sheet
|
|---|
| Cash | 1,882 | 2,572 | 3,723 | 1,437 | 1,299 | -9.6% |
| Short Term Debt | 703 | 260 | 251 | 143 | 743 | 419.7% |
| Long Term Debt | 4,050 | 4,777 | 5,604 | 7,527 | 6,875 | -8.7% |
Cash flow
|
|---|
| Capex | 642 | 1,026 | 715 | 1,167 | 1,074 | -8.0% |
Ratios
|
|---|
| Revenue growth | 4.8% | -1.5% | 12.7% | 16.7% | 4.7% | |
| EBITDA growth | 4.2% | 1.2% | 21.7% | 25.8% | 11.8% | |
| Gross Margin | 35.8% | 39.8% | 41.9% | 48.4% | 50.9% | 2.4% |
| EBITDA Margin | 38.2% | 39.3% | 42.4% | 45.7% | 48.8% | 3.1% |
| Net Income Margin | 23.7% | 20.8% | 20.2% | 21.8% | 24.2% | 2.4% |
| SG&A, % of revenue | 10.7% | 13.4% | 11.7% | 14.6% | 14.9% | 0.3% |
| CAPEX, % of revenue | 20.6% | 33.4% | 20.7% | 28.9% | 25.4% | -3.5% |
| ROIC | 5.0% | 5.5% | 6.8% | 8.2% | 8.5% | 0.3% |
| ROE | 9.5% | 7.7% | 8.2% | 10.2% | 11.7% | 1.4% |
| Net Debt/EBITDA | 2.4x | 2.0x | 1.5x | 3.4x | 3.1x | -0.3x |
Revenue and profitability
Dp World Ltd's Revenue increased on 4.7% in 2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.1 pp from 45.7% to 48.8% in 2016.
Gross Margin increased on 2.4 pp from 48.4% to 50.9% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign increased on 2.4 pp from 21.8% to 24.2% in 2016.
Capital expenditures (CAPEX) and working capital investments
Dp World Ltd's CAPEX/Revenue was 25.4% in 2016. The company's CAPEX/Revenue decreased on 8.0 pp from 33.4% in 2013 to 25.4% in 2016. For the last three years the average CAPEX/Revenue was 25.0%.The company maintained rich investment policy and has spent a big chunk of EBITDA (52.0%) to CAPEX.
Return on investment
The company operates at low ROIC (8.50%) and ROE (11.66%). ROIC showed almost no change in 2016. ROE increased slightly on 1.4 pp from 10.2% to 11.7% in 2016.
Leverage (Debt)
Debt level is 3.1x Net Debt / EBITDA and 3.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 3.4x to 3.1x in 2016. Debt decreased slightly on 0.68% in 2016 while cash decreased on 9.6% in 2016.
Appendix 1: Peers in Industrial Transportation
Below we provide Dp World Ltd benchmarking against other companies in Industrial Transportation 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 |
|---|
| Frontline Ltd ($FRO) | | -9.4% | -55.6% | 104.5% | 86.0% |
| Zhejiang Expressway Co ($ZHEH) | 2.2% | 13.3% | 20.5% | 32.2% | |
| Wisdom Marine Lines Co Limited ($WML) | 11.2% | -0.8% | 8.8% | 21.6% | |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 17.8% | 7.7% | -6.6% | 16.2% | |
| Globaltrans Investment ($GLTR) | 28.9% | 12.9% | -7.4% | -0.7% | |
| |
|---|
| Median (14 companies) | 2.2% | -2.2% | 3.4% | -6.2% | -1.2% |
|---|
| Dp World Ltd ($0P5M) | | -1.5% | 12.7% | 16.7% | 4.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 57.9% | 54.3% | 61.0% | 72.9% | |
| Global Ports Investments ($GLPR) | 40.3% | 58.8% | 58.8% | 68.0% | |
| Zhejiang Expressway Co ($ZHEH) | 34.0% | 36.9% | 37.7% | 43.6% | |
| Wisdom Marine Lines Co Limited ($WML) | 30.3% | 20.3% | 20.7% | 24.1% | |
| Globaltrans Investment ($GLTR) | 31.4% | 25.8% | 23.2% | 20.2% | |
| |
|---|
| Median (9 companies) | 30.3% | 20.3% | 20.7% | 20.2% | 23.0% |
|---|
| Dp World Ltd ($0P5M) | 35.8% | 39.8% | 41.9% | 48.4% | 50.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Capital Lease Aviation ($CLA) | 101.2% | 88.5% | 89.2% | 80.5% | |
| Frontline Ltd ($FRO) | 17.2% | -4.6% | 64.5% | 74.6% | 42.5% |
| Global Ports Investments ($GLPR) | 57.1% | 60.3% | 69.6% | 71.2% | |
| Zhejiang Expressway Co ($ZHEH) | 49.6% | 51.1% | 53.5% | 58.0% | |
| Wisdom Marine Lines Co Limited ($WML) | 56.9% | 52.0% | 52.8% | 55.2% | |
| |
|---|
| Median (14 companies) | 22.6% | 17.1% | 17.0% | 16.8% | 15.7% |
|---|
| Dp World Ltd ($0P5M) | 38.2% | 39.3% | 42.4% | 45.7% | 48.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Frontline Ltd ($FRO) | 2.5% | 0.5% | 83.6% | 171.4% | 82.5% |
| Yangming Marine Transport Corp ($YMTD) | 13.1% | 8.2% | 7.0% | 7.7% | |
| Novorossiysk Commercial Sea Port ($NCSP) | 5.4% | 10.4% | 9.9% | 7.3% | |
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 15.6% | 16.9% | 11.5% | 5.7% | |
| Wisdom Marine Lines Co Limited ($WML) | 163.8% | 108.4% | 4.2% | 5.2% | |
| |
|---|
| Median (14 companies) | 8.0% | 7.7% | 4.2% | 2.8% | 4.7% |
|---|
| Dp World Ltd ($0P5M) | 20.6% | 33.4% | 20.7% | 28.9% | 25.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 11.0% | 4.5% | 17.1% | 16.1% | |
| Zhejiang Expressway Co ($ZHEH) | 11.2% | 13.3% | 13.2% | 15.3% | |
| Global Ports Investments ($GLPR) | 17.0% | 7.1% | 12.1% | 14.6% | |
| Dx ($DX.) | 9.3% | 9.6% | 14.5% | 12.8% | -52.4% |
| Frontline Ltd ($FRO) | -1.0% | -8.9% | 7.6% | 12.1% | 6.3% |
| |
|---|
| Median (14 companies) | 8.4% | 6.2% | 7.1% | 6.7% | 4.8% |
|---|
| Dp World Ltd ($0P5M) | 5.0% | 5.5% | 6.8% | 8.2% | 8.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Evergreen Marine Corp(Taiwan) ($EGMD) | 7.9x | 33.6x | 6.7x | 18.3x | |
| Wisdom Marine Lines Co Limited ($WML) | 8.5x | 9.0x | 9.1x | 8.4x | |
| Novorossiysk Commercial Sea Port ($NCSP) | 4.1x | 7.1x | 2.6x | 4.1x | |
| Interbulk Group ($INB) | 3.3x | 4.1x | 3.5x | 3.6x | |
| Global Ports Investments ($GLPR) | 0.8x | 6.6x | 2.8x | 3.6x | |
| |
|---|
| Median (12 companies) | 3.7x | 5.4x | 2.8x | 3.2x | 4.1x |
|---|
| Dp World Ltd ($0P5M) | 2.4x | 2.0x | 1.5x | 3.4x | 3.1x |
