Depa Ltd EBITDA Margin surged on 14.7 pp from -8.1% to 6.6% in 2016 and Revenue increased on 5.5%
26 Mar 2017 • About Depa Ltd (
$DEPS) • By InTwits
Depa Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Depa Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 is 0.0%. Average EBITDA Margin for the same period was -1.4%0
- Depa Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 22.5%.
- CAPEX is quite volatile: 10.7 in 2016, 9.3 in 2015, 20.6 in 2014, 26.2 in 2013, 46.5 in 2012
- The company has potentially unprofitable business model: ROIC is at 4.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Depa Ltd ($DEPS) key annual financial indicators
| mln. AED | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,947 | 2,318 | 1,940 | 1,641 | 1,730 | 5.5% |
| Gross Profit | 158 | 187 | 259 | 117 | 324 | 176.3% |
| SG&A | | | 207 | 290 | 259 | -10.7% |
| EBITDA | -114 | -95 | 93 | -133 | 114 | -186.0% |
| Net Income | -120 | -131 | 44 | -266 | 46 | -117.1% |
Balance Sheet
|
|---|
| Cash | 307 | 399 | 441 | 383 | 481 | 25.7% |
| Short Term Debt | 215 | 265 | 208 | 214 | 158 | -26.5% |
| Long Term Debt | 84 | 127 | 95 | 44 | 46 | 3.8% |
Cash flow
|
|---|
| Capex | 47 | 26 | 21 | 9 | 11 | 14.5% |
Ratios
|
|---|
| Revenue growth | 12.1% | 19.1% | -16.3% | -15.4% | 5.5% | |
| EBITDA growth | -170.4% | -16.8% | -198.3% | -242.9% | -186.0% | |
| Gross Margin | 8.1% | 8.1% | 13.4% | 7.2% | 18.7% | 11.6% |
| EBITDA Margin | -5.8% | -4.1% | 4.8% | -8.1% | 6.6% | 14.7% |
| Net Income Margin | -6.1% | -5.7% | 2.2% | -16.2% | 2.6% | 18.8% |
| SG&A, % of revenue | | | 10.7% | 17.7% | 15.0% | -2.7% |
| CAPEX, % of revenue | 2.4% | 1.1% | 1.1% | 0.6% | 0.6% | 0.0% |
| ROIC | -9.7% | -7.2% | 1.8% | -10.8% | 4.1% | 14.9% |
| ROE | -7.3% | -8.6% | 3.0% | -20.2% | 3.8% | 24.0% |
| Net Debt/EBITDA | | | -1.5x | | -2.4x | -2.4x |
Revenue and profitability
The company's Revenue increased on 5.5% in 2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 14.7 pp from -8.1% to 6.6% in 2016.
Gross Margin jumped on 11.6 pp from 7.2% to 18.7% in 2016. SG&A as a % of Revenue decreased on 2.7 pp from 17.7% to 15.0% in 2016.
Net Income marign surged on 18.8 pp from -16.2% to 2.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
Depa Ltd's CAPEX/Revenue was 0.62% in 2016. CAPEX/Revenue decreased slightly on 0.51 pp from 1.1% in 2013 to 0.62% in 2016. Average CAPEX/Revenue for the last three years was 0.75%.
Return on investment
The company operates at low ROIC (4.10%) and ROE (3.82%). ROIC jumped on 14.9 pp from -10.8% to 4.1% in 2016. ROE jumped on 24.0 pp from -20.2% to 3.8% in 2016.
Leverage (Debt)
Debt level is -2.4x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA dropped2.4x from to -2.4x in 2016. Debt dropped on 21.3% in 2016 while cash jumped on 25.7% in 2016.
Appendix 1: Peers in Household Goods & Home Construction
Below you can find Depa Ltd benchmarking vs. other companies in Household Goods & Home Construction 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 |
|---|
| Abbey ($ABBY) | | 40.0% | 15.9% | 51.0% | 27.9% |
| Taylor Wimpey ($TW.) | | 13.7% | 17.0% | 16.9% | 17.1% |
| Airea ($AIEA) | | -4.7% | -8.4% | 11.3% | -3.8% |
| Reckitt Benckiser Group ($RB.) | | -3.1% | -4.6% | 0.4% | 11.5% |
| Colefax Group ($CFX) | | 0.3% | 10.5% | -1.6% | 0.1% |
| |
|---|
| Median (7 companies) | 2.7% | 0.3% | -4.6% | 0.4% | 11.5% |
|---|
| Depa Ltd ($DEPS) | | 19.1% | -16.3% | -15.4% | 5.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Reckitt Benckiser Group ($RB.) | 57.9% | 56.7% | 57.7% | 59.1% | 60.9% |
| Colefax Group ($CFX) | 55.1% | 55.4% | 53.3% | 54.7% | 56.3% |
| Abbey ($ABBY) | 23.6% | 17.3% | 25.8% | 30.6% | 33.1% |
| Teco Electric & Machinery Co Ltd ($TECD) | 23.5% | 23.8% | 24.9% | 25.5% | |
| Taylor Wimpey ($TW.) | 17.6% | 21.6% | 23.8% | 25.1% | 25.6% |
| |
|---|
| Median (6 companies) | 23.5% | 22.7% | 25.4% | 28.1% | 44.7% |
|---|
| Depa Ltd ($DEPS) | 8.1% | 8.1% | 13.4% | 7.2% | 18.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Abbey ($ABBY) | 19.4% | 13.3% | 22.6% | 31.2% | 31.7% |
| Reckitt Benckiser Group ($RB.) | 27.1% | 22.0% | 26.3% | 27.2% | 26.2% |
| Taylor Wimpey ($TW.) | 11.2% | 15.6% | 18.6% | 20.2% | 20.8% |
| Teco Electric & Machinery Co Ltd ($TECD) | 10.8% | 10.7% | 10.7% | 10.5% | |
| Colefax Group ($CFX) | 6.6% | 7.6% | 9.1% | 8.7% | 9.4% |
| |
|---|
| Median (7 companies) | 10.8% | 10.7% | 10.7% | 10.5% | 20.8% |
|---|
| Depa Ltd ($DEPS) | -5.8% | -4.1% | 4.8% | -8.1% | 6.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Abbey ($ABBY) | 12.2% | 6.5% | 8.0% | 8.0% | 5.3% |
| Teco Electric & Machinery Co Ltd ($TECD) | 1.4% | 1.4% | 3.6% | 3.5% | |
| Colefax Group ($CFX) | 4.9% | 3.1% | 2.0% | 2.9% | 3.0% |
| Airea ($AIEA) | 2.7% | 1.0% | 0.7% | 1.8% | 2.9% |
| Reckitt Benckiser Group ($RB.) | 1.7% | 2.1% | 1.8% | 1.7% | 1.8% |
| |
|---|
| Median (7 companies) | 1.7% | 1.4% | 1.8% | 1.8% | 2.9% |
|---|
| Depa Ltd ($DEPS) | 2.4% | 1.1% | 1.1% | 0.6% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Taylor Wimpey ($TW.) | 12.2% | 17.7% | 21.7% | 24.1% | 26.8% |
| Abbey ($ABBY) | 5.4% | 4.7% | 11.2% | 21.1% | 22.9% |
| Colefax Group ($CFX) | 10.7% | 13.5% | 22.0% | 20.6% | 20.2% |
| Reckitt Benckiser Group ($RB.) | 23.3% | 17.3% | 19.7% | 20.3% | 20.3% |
| Airea ($AIEA) | 3.3% | 7.2% | 6.4% | 11.7% | 18.2% |
| |
|---|
| Median (7 companies) | 7.1% | 8.3% | 11.2% | 20.3% | 20.3% |
|---|
| Depa Ltd ($DEPS) | -9.7% | -7.2% | 1.8% | -10.8% | 4.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Reckitt Benckiser Group ($RB.) | 0.9x | 1.0x | 0.7x | 0.7x | 0.6x |
| Taylor Wimpey ($TW.) | 0.3x | -0.0x | -0.2x | -0.4x | -0.5x |
| Airea ($AIEA) | -0.9x | -1.5x | -1.2x | -0.9x | -1.1x |
| Abbey ($ABBY) | -1.5x | -2.6x | -1.2x | -1.3x | -1.3x |
| Colefax Group ($CFX) | -1.8x | -1.4x | -0.6x | -1.0x | -1.4x |
| |
|---|
| Median (5 companies) | 0.1x | -0.9x | -0.6x | -0.9x | -1.1x |
|---|
| Depa Ltd ($DEPS) | | | -1.5x | | -2.4x |
