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Wistron Corp EBITDA surged on 31.8% in 2016 and Revenue increased on 5.9%

20 Mar 2017 • About Wistron Corp ($WIS) • By InTwits

Wistron Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • EBITDA Margin is relatively stable: 2.1% in 2016 vs. 1.7% in 2015 vs. 2.3% in 2012
  • Wistron Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
  • The company has potentially unprofitable business model: ROIC is at 4.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Wistron Corp ($WIS) key annual financial indicators

mln. TWD201220132014201520162016/2015
P&L
Revenue657,845624,009592,347623,274659,9085.9%
Gross Profit29,80030,20331,11729,41631,6457.6%
SG&A21,56624,11727,35113,64411,838-13.2%
EBITDA15,05113,99011,90510,66514,06231.8%
Net Income7,2555,7513,5801,3342,961122.0%
Balance Sheet
Cash72,57970,08755,69258,56057,561-1.7%
Short Term Debt77,01157,07372,23677,22146,285-40.1%
Long Term Debt11,06128,36319,85114,06811,568-17.8%
Cash flow
Capex7,9514,8125,7083,7856,49371.6%
Ratios
Revenue growth-0.1%-5.1%-5.1%5.2%5.9%
EBITDA growth-10.2%-7.0%-14.9%-10.4%31.8%
Gross Margin4.5%4.8%5.3%4.7%4.8%0.1%
EBITDA Margin2.3%2.2%2.0%1.7%2.1%0.4%
Net Income Margin1.1%0.9%0.6%0.2%0.4%0.2%
SG&A, % of revenue3.3%3.9%4.6%2.2%1.8%-0.4%
CAPEX, % of revenue1.2%0.8%1.0%0.6%1.0%0.4%
ROIC6.0%4.0%2.4%1.5%4.2%2.7%
ROE11.8%9.0%5.3%1.9%4.4%2.4%
Net Debt/EBITDA1.0x1.1x3.1x3.1x0.0x-3.0x

Revenue and profitability


The company's Revenue increased on 5.9% in 2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 10.3 pp from 49.2% to 38.9% in 2016.

Gross Margin showed almost no change in 2016. SG&A as a % of Revenue showed almost no change in 2016.

Net Income marign showed almost no change in 2016.

Capital expenditures (CAPEX) and working capital investments


In 2016 Wistron Corp had CAPEX/Revenue of 0.98%. The company showed almost no change in CAPEX/Revenue from 2013 to 2016. It's average CAPEX/Revenue for the last three years was 0.85%.

Return on investment


The company operates at low ROIC (4.20%) and ROE (4.36%). ROIC increased on 2.7 pp from 1.5% to 4.2% in 2016. ROE increased on 2.4 pp from 1.9% to 4.4% in 2016.

Leverage (Debt)


Debt level is 0.0x Net Debt / EBITDA and 4.1x Debt / EBITDA. Net Debt / EBITDA dropped on 3.0x from 3.1x to 0.021x in 2016. Debt dropped on 36.6% in 2016 while cash decreased slightly on 1.7% in 2016.

Valuation


The company's trades at EV/EBITDA 0.0x and P/E 0.0x while industy averages are 15.6x and 19.1x.

Appendix 1: Peers in


Below you can find Wistron Corp benchmarking vs. other companies in 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
Development Securities(Investments) ($36JS)-20.4%156.8%18.9%
Palm Hills Developments Sae ($PHDC)208.5%74.2%72.9%54.6%
Wereldhave Property Corp ($93IA)-9.0%13.5%65.7%9.4%
Bld Property Hldgs ($09GE)-1.1%16.0%39.3%6.1%
Grosvenor Uk Finance ($62QE)0.8%15.1%14.3%
 
Median (48 companies)-33.7%2.3%3.1%1.0%0.7%
Wistron Corp ($WIS)-5.1%-5.1%5.2%5.9%


Top companies by Gross margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Sanctuary Housing ($BB21)98.2%97.0%97.6%97.1%
Glh Hotels Ltd ($97KI)57.8%57.6%57.8%
Lewis(John)Partnership ($BD32)33.4%33.4%33.4%33.8%33.9%
Lewis(John) ($BC32)33.4%33.4%33.4%33.8%33.9%
Corus Finance ($BD84)26.1%29.2%31.7%35.4%32.7%
 
Median (7 companies)30.9%31.8%33.5%33.8%33.9%
Wistron Corp ($WIS)4.5%4.8%5.3%4.7%4.8%


Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Bld Property Hldgs ($09GE)108.3%91.0%218.5%215.1%165.3%
Intu Debenture ($69ZM)70.3%79.8%163.8%107.2%67.1%
T.H.F.C.(Indexed) ($96JS)0.7%1.0%2.4%97.9%97.1%
T.H.F.C.(Social Housing Finance) ($96JP)0.7%1.0%2.4%97.9%97.1%
T.H.F.C.(Indexed 2) ($90IL)0.7%1.0%2.4%97.9%97.1%
 
Median (30 companies)26.1%32.4%37.3%45.8%51.6%
Wistron Corp ($WIS)2.3%2.2%2.0%1.7%2.1%


Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Wereldhave Property Corp ($93IA)145.6%147.1%848.7%379.0%48.2%
Sanctuary Housing ($BB21)0.0%0.0%60.0%31.0%
Bld Property Hldgs ($09GE)146.6%195.3%186.5%59.2%84.6%
Mid Kent Water ($48HO)46.7%43.9%47.1%37.7%41.2%
Chagala Group Ltd ($CHGG)11.6%6.2%11.7%25.9%
 
Median (39 companies)3.8%3.0%3.3%4.4%3.3%
Wistron Corp ($WIS)1.2%0.8%1.0%0.6%1.0%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Lewis(John)Partnership ($BD32)12.5%15.6%16.4%18.6%19.8%
Lewis(John) ($BC32)12.5%15.6%16.4%18.6%19.8%
Calgary & Edmonton Railway Co ($05GM)8.2%10.5%16.0%17.0%15.0%
Canadian Pacific Railways ($BC87)8.2%10.5%16.0%17.0%15.0%
Bet ($83GK)16.0%12.9%16.1%13.7%13.9%
 
Median (44 companies)1.7%3.2%3.4%3.2%5.1%
Wistron Corp ($WIS)6.0%4.0%2.4%1.5%4.2%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Skipton Building Society ($SBSA)29.7x30.3x30.2x34.7x
T.H.F.C.(Indexed) ($96JS)2,312.9x1,673.5x718.9x20.3x22.6x
Housing Finance Corp ($68HB)2,312.9x1,673.5x718.9x20.3x22.6x
T.H.F.C.(Social Housing Finance) ($96JP)2,312.9x1,673.5x718.9x20.3x22.6x
T.H.F.C.(Indexed 2) ($90IL)2,312.9x1,673.5x718.9x20.3x22.6x
 
Median (28 companies)3.4x4.2x3.8x3.1x4.8x
Wistron Corp ($WIS)1.0x1.1x3.1x3.1x0.0x


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