CP Pokphand Co Ltd reports 14.8% EBITDA growth while 6.9% Revenue decline
29/02/2016 • About CP Pokphand Co Ltd (
$43) • By InTwits
CP Pokphand Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CP Pokphand Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's in pair with industry average of 8.9%.
- CAPEX is quite volatile: 333 in 2015, 326 in 2014, 280 in 2013, 179 in 2012, 85.1 in 2011
- The company has highly profitable business model: ROIC is at 16.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CP Pokphand Co Ltd ($43) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,623 | 4,959 | 5,414 | 5,509 | 5,130 | -6.9% |
| Gross Profit | 554 | 673 | 690 | 856 | 904 | 5.7% |
| SG&A | 299 | 396 | 453 | 507 | 519 | 2.5% |
| EBITDA | 302 | 375 | 329 | 441 | 506 | 14.8% |
| Net Income | 173 | 204 | 186 | 251 | 268 | 6.4% |
Balance Sheet
|
|---|
| Cash | 158 | 183 | 374 | 287 | 288 | 0.4% |
| Short Term Debt | 520 | 500 | 534 | 516 | 483 | -6.4% |
| Long Term Debt | 10 | 41 | 443 | 609 | 620 | 1.8% |
Cash flow
|
|---|
| Capex | 85 | 179 | 280 | 326 | 333 | 2.0% |
Ratios
|
|---|
| Revenue growth | 85.7% | 36.9% | 9.2% | 1.7% | -6.9% | |
| EBITDA growth | 67.8% | 24.1% | -12.4% | 34.2% | 14.8% | |
| Gross Margin | 15.3% | 13.6% | 12.7% | 15.5% | 17.6% | 2.1% |
| EBITDA Margin | 8.3% | 7.6% | 6.1% | 8.0% | 9.9% | 1.9% |
| Net Income Margin | 4.8% | 4.1% | 3.4% | 4.6% | 5.2% | 0.7% |
| SG&A, % of revenue | 8.2% | 8.0% | 8.4% | 9.2% | 10.1% | 0.9% |
| CAPEX, % of revenue | 2.3% | 3.6% | 5.2% | 5.9% | 6.5% | 0.6% |
| ROIC | 22.3% | 19.7% | 13.5% | 15.2% | 16.7% | 1.4% |
| ROE | 28.0% | 24.9% | 19.7% | 22.8% | 23.9% | 1.1% |
| Net Debt/EBITDA | 1.2x | 1.0x | 1.8x | 1.9x | 1.6x | -0.3x |
Revenue and profitability
CP Pokphand Co Ltd's Revenue decreased on 6.9% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.9 pp from 8.0% to 9.9% in 2015.
Gross Margin increased on 2.1 pp from 15.5% to 17.6% in 2015. SG&A as a % of Revenue increased slightly on 0.92 pp from 9.2% to 10.1% in 2015.
Net Income marign increased slightly on 0.65 pp from 4.6% to 5.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 CP Pokphand Co Ltd had CAPEX/Revenue of 6.5%. The company's CAPEX/Revenue increased on 2.9 pp from 3.6% in 2012 to 6.5% in 2015. Average CAPEX/Revenue for the last three years was 5.9%.Battling declining revenue CP Pokphand Co Ltd invested a large share of EBITDA (65.8%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at high and attractive ROE (23.90%) while ROIC is a bit lower (16.67%). ROIC increased slightly on 1.4 pp from 15.2% to 16.7% in 2015. ROE increased slightly on 1.1 pp from 22.8% to 23.9% in 2015.
Leverage (Debt)
Debt level is 1.6x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 1.9x to 1.6x in 2015. Debt decreased slightly on 2.0% in 2015 while cash showed almost no change in 2015.
Appendix 1: Peers in Agriculture
Below you can find CP Pokphand Co Ltd benchmarking vs. other companies in Agriculture 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Putian Food Holdings Ltd ($1699) | 16.9% | 11.7% | 7.9% | -0.3% | |
| China Agri-Industries Holdings Ltd ($606) | 53.9% | 10.9% | 3.5% | -1.4% | |
| Chaoda Modern Agriculture Holdings Ltd ($682) | | -60.8% | -27.8% | -36.0% | -9.8% |
| Cypress Jade Agricultural Holdings Ltd ($875) | 4.7% | 1,594.6% | 0.2% | -61.3% | |
| |
|---|
| Median (4 companies) | 16.9% | 11.3% | 1.9% | -18.7% | -9.8% |
|---|
| CP Pokphand Co Ltd ($43) | | 36.9% | 9.2% | 1.7% | -6.9% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Putian Food Holdings Ltd ($1699) | 23.5% | 25.8% | 25.9% | 23.0% | |
| China Agri-Industries Holdings Ltd ($606) | 8.2% | 6.4% | 6.0% | 4.6% | |
| Chaoda Modern Agriculture Holdings Ltd ($682) | 61.8% | -7.8% | -6.2% | -18.6% | -29.1% |
| Cypress Jade Agricultural Holdings Ltd ($875) | 2.6% | 32.8% | 30.6% | -19.2% | |
| |
|---|
| Median (4 companies) | 15.9% | 16.1% | 15.9% | -7.0% | -29.1% |
|---|
| CP Pokphand Co Ltd ($43) | 15.3% | 13.6% | 12.7% | 15.5% | 17.6% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Putian Food Holdings Ltd ($1699) | 20.0% | 20.1% | 20.7% | 16.1% | |
| China Agri-Industries Holdings Ltd ($606) | 5.3% | 3.7% | 2.7% | 1.7% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | -76.7% | 1.9% | -5.7% | -68.5% | |
| Chaoda Modern Agriculture Holdings Ltd ($682) | 46.8% | -130.5% | -101.7% | -79.4% | -458.9% |
| |
|---|
| Median (4 companies) | 12.7% | 2.8% | -1.5% | -33.4% | -458.9% |
|---|
| CP Pokphand Co Ltd ($43) | 8.3% | 7.6% | 6.1% | 8.0% | 9.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chaoda Modern Agriculture Holdings Ltd ($682) | 55.4% | 52.1% | 10.9% | 19.2% | 12.4% |
| Cypress Jade Agricultural Holdings Ltd ($875) | 0.0% | 17.7% | 16.2% | 14.6% | |
| China Putian Food Holdings Ltd ($1699) | 5.7% | 18.8% | 26.8% | 9.0% | |
| China Agri-Industries Holdings Ltd ($606) | 7.4% | 5.4% | 3.5% | 2.0% | |
| |
|---|
| Median (4 companies) | 6.5% | 18.2% | 13.6% | 11.8% | 12.4% |
|---|
| CP Pokphand Co Ltd ($43) | 2.3% | 3.6% | 5.2% | 5.9% | 6.5% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Putian Food Holdings Ltd ($1699) | 39.3% | 27.8% | 20.4% | 11.4% | |
| China Agri-Industries Holdings Ltd ($606) | 6.5% | 3.5% | 1.8% | -0.1% | |
| Chaoda Modern Agriculture Holdings Ltd ($682) | 12.8% | -20.2% | -16.8% | -11.6% | -56.2% |
| Cypress Jade Agricultural Holdings Ltd ($875) | | -15.4% | -17.7% | -52.2% | |
| |
|---|
| Median (4 companies) | 12.8% | -5.9% | -7.5% | -5.8% | -56.2% |
|---|
| CP Pokphand Co Ltd ($43) | 22.3% | 19.7% | 13.5% | 15.2% | 16.7% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Agri-Industries Holdings Ltd ($606) | 5.4x | 6.7x | 7.6x | 13.8x | |
| China Putian Food Holdings Ltd ($1699) | 0.6x | 0.1x | 1.1x | 2.0x | |
| |
|---|
| Median (2 companies) | 0.6x | 1.3x | 4.3x | 7.9x | |
|---|
| CP Pokphand Co Ltd ($43) | 1.2x | 1.0x | 1.8x | 1.9x | 1.6x |
