United Co RUSAL PLC Net Income surged on 713% in 2015 while Revenue decreased on 7.2%
09/03/2016 • About United Co RUSAL PLC (
$486) • By InTwits
United Co RUSAL PLC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- United Co RUSAL PLC is a company in decline: 2015 revenue growth was -7.2%, 5 years revenue CAGR was -4.6%
- EBITDA Margin is quite volatile: 21.5% in 2015, 15.0% in 2014, -13.2% in 2013, 5.5% in 2012, 18.4% in 2011
- United Co RUSAL PLC has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 1,013 in 2015, 827 in 2014, 919 in 2013, 863 in 2012, 1,951 in 2011
- The company has highly profitable business model: ROIC is at 12.3%
- It operates with high leverage: Net Debt/EBITDA is 4.5x while industry average is 1.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
United Co RUSAL PLC ($486) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,291 | 10,891 | 9,760 | 9,357 | 8,680 | -7.2% |
| Gross Profit | 3,505 | 1,659 | 1,331 | 2,134 | 2,465 | 15.5% |
| SG&A | 1,343 | 1,217 | 1,106 | 983 | 847 | -13.8% |
| EBITDA | 2,267 | 603 | -1,284 | 1,401 | 1,866 | 33.2% |
| Net Income | 237 | -528 | -3,322 | -91 | 558 | -713.2% |
Balance Sheet
|
|---|
| Cash | 613 | 490 | 701 | 557 | 494 | -11.3% |
| Short Term Debt | 629 | 931 | 1,676 | 447 | 1,355 | 203.1% |
| Long Term Debt | 11,066 | 10,403 | 9,149 | 8,960 | 7,525 | -16.0% |
Cash flow
|
|---|
| Capex | 608 | 486 | 538 | 465 | 510 | 9.7% |
Ratios
|
|---|
| Revenue growth | 12.0% | -11.4% | -10.4% | -4.1% | -7.2% | |
| EBITDA growth | -10.4% | -73.4% | -312.9% | -209.1% | 33.2% | |
| Gross Margin | 28.5% | 15.2% | 13.6% | 22.8% | 28.4% | 5.6% |
| EBITDA Margin | 18.4% | 5.5% | -13.2% | 15.0% | 21.5% | 6.5% |
| Net Income Margin | 1.9% | -4.8% | -34.0% | -1.0% | 6.4% | 7.4% |
| SG&A, % of revenue | 10.9% | 11.2% | 11.3% | 10.5% | 9.8% | -0.7% |
| CAPEX, % of revenue | 4.9% | 4.5% | 5.5% | 5.0% | 5.9% | 0.9% |
| ROIC | 7.5% | 0.3% | -9.0% | 6.3% | 12.3% | 6.0% |
| ROE | 2.2% | -5.0% | -38.4% | -2.1% | 30.8% | 32.8% |
| Net Debt/EBITDA | 4.9x | 18.0x | | 6.3x | 4.5x | -1.8x |
Revenue and profitability
United Co RUSAL PLC's Revenue decreased on 7.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.5 pp from 15.0% to 21.5% in 2015.
Gross Margin increased on 5.6 pp from 22.8% to 28.4% in 2015. SG&A as a % of Revenue decreased slightly on 0.75 pp from 10.5% to 9.8% in 2015.
Net Income marign increased on 7.4 pp from -0.97% to 6.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 5.9%. United Co RUSAL PLC showed small growth in CAPEX/Revenue of 1.4 pp from 4.5% in 2012 to 5.9% in 2015. It's average CAPEX/Revenue for the last three years was 5.5%.
Return on investment
The company operates at high and attractive ROE (30.76%) while ROIC is a bit lower (12.28%). ROIC increased on 6.0 pp from 6.3% to 12.3% in 2015. ROE jumped on 32.8 pp from -2.1% to 30.8% in 2015.
Leverage (Debt)
Debt level is 4.5x Net Debt / EBITDA and 4.8x Debt / EBITDA. Net Debt / EBITDA dropped on 1.8x from 6.3x to 4.5x in 2015. Debt decreased on 5.6% in 2015 while cash dropped on 11.3% in 2015.
Management team
Vladislav Soloviev is a the company's CEO. Vladislav Soloviev has spent 4 years at the company. The company's CFO Alexandra Bouriko has spent 5 years at the company.
Appendix 1: Peers in Mining
Below you can find United Co RUSAL PLC benchmarking vs. other companies in Mining 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 24.0% | 4.8% | -44.7% | 303.0% | |
| Huili Resources Group Ltd ($1303) | -47.8% | -33.6% | -91.6% | 219.4% | |
| North Mining Shares Co Ltd ($433) | 1.7% | -5.5% | -57.1% | 187.0% | |
| China Kingstone Mining Holdings Ltd ($1380) | 4,275.3% | -94.5% | -55.6% | 155.2% | |
| Ding He Mining Holdings Ltd ($705) | 31.6% | 29.9% | 43.8% | 89.8% | |
| |
|---|
| Median (47 companies) | 34.8% | 5.4% | 2.4% | -6.5% | -14.4% |
|---|
| United Co RUSAL PLC ($486) | | -11.4% | -10.4% | -4.1% | -7.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Billion Resources Ltd ($274) | 20.3% | 71.4% | 47.2% | 73.4% | |
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% |
| China Polymetallic Mining Ltd ($2133) | 76.9% | 81.8% | 74.2% | 51.8% | 38.9% |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 64.7% | 63.9% | 54.9% | 51.2% | |
| Hengshi Mining Investments Ltd ($1370) | 54.6% | 32.4% | 55.3% | 50.1% | |
| |
|---|
| Median (47 companies) | 19.1% | 13.4% | 14.7% | 15.3% | 28.2% |
|---|
| United Co RUSAL PLC ($486) | 28.5% | 15.2% | 13.6% | 22.8% | 28.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | |
| China Polymetallic Mining Ltd ($2133) | -322.0% | 62.8% | 58.5% | 54.1% | 2.8% |
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | |
| China Gold International Resources Corp Ltd ($2099) | | 41.7% | 38.3% | 47.3% | 33.7% |
| Hengshi Mining Investments Ltd ($1370) | 45.7% | 22.8% | 52.0% | 45.4% | |
| |
|---|
| Median (47 companies) | 5.9% | 4.7% | 8.3% | 4.4% | 6.9% |
|---|
| United Co RUSAL PLC ($486) | 18.4% | 5.5% | -13.2% | 15.0% | 21.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% |
| Huili Resources Group Ltd ($1303) | 3.9% | 181.0% | 1,508.6% | 279.5% | |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | 168.7% |
| China Gold International Resources Corp Ltd ($2099) | | 64.7% | 156.1% | 95.6% | 81.4% |
| IRC Ltd ($1029) | 129.7% | 102.1% | 70.6% | 82.5% | |
| |
|---|
| Median (47 companies) | 16.3% | 17.4% | 16.0% | 15.8% | 17.1% |
|---|
| United Co RUSAL PLC ($486) | 4.9% | 4.5% | 5.5% | 5.0% | 5.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Silver Group Ltd ($815) | 48.0% | 57.6% | 31.6% | 35.8% | |
| Hengshi Mining Investments Ltd ($1370) | 153.0% | 50.1% | 60.1% | 20.7% | |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | |
| China Nonferrous Mining Corp Ltd ($1258) | 10.9% | 14.7% | 10.8% | 11.8% | |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | |
| |
|---|
| Median (48 companies) | 2.9% | 2.2% | 3.1% | 0.7% | -1.0% |
|---|
| United Co RUSAL PLC ($486) | 7.5% | 0.3% | -9.0% | 6.3% | 12.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 0.9x | 8.4x | 39.4x | 10.3x | |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | 20.2x |
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | |
| Midas Holdings Ltd ($1021) | 1.4x | 4.3x | 6.5x | 8.7x | 8.0x |
| Lingbao Gold Co Ltd ($3330) | 3.5x | 5.3x | | 8.3x | |
| |
|---|
| Median (26 companies) | 0.9x | 1.5x | 1.9x | 3.8x | 3.4x |
|---|
| United Co RUSAL PLC ($486) | 4.9x | 18.0x | | 6.3x | 4.5x |
