CP Pokphand Co Ltd Debt jumped on 29.1% in 2016 and EBITDA increased on 5.8%
24/02/2017 • About CP Pokphand Co Ltd (
$43) • By InTwits
CP Pokphand Co Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has highly profitable business model: ROIC is at 16.2%.
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. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,959 | 5,414 | 5,509 | 5,130 | 5,281 | 3.0% |
| Gross Profit | 673 | 690 | 856 | 904 | 933 | 3.1% |
| SG&A | 396 | 453 | 507 | 519 | 487 | -6.3% |
| EBITDA | 375 | 329 | 441 | 506 | 535 | 5.8% |
| Net Income | 204 | 186 | 251 | 268 | 260 | -2.7% |
Balance Sheet
|
|---|
| Cash | 183 | 374 | 287 | 288 | 269 | -6.7% |
| Short Term Debt | 500 | 534 | 516 | 483 | 376 | -22.1% |
| Long Term Debt | 41 | 443 | 609 | 620 | 1,048 | 68.9% |
Cash flow
|
|---|
| Capex | 179 | 280 | 326 | 333 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 36.9% | 9.2% | 1.7% | -6.9% | 3.0% | |
| EBITDA growth | 24.1% | -12.4% | 34.2% | 14.8% | 5.8% | |
| Gross Margin | 13.6% | 12.7% | 15.5% | 17.6% | 17.7% | 0.0% |
| EBITDA Margin | 7.6% | 6.1% | 8.0% | 9.9% | 10.1% | 0.3% |
| Net Income Margin | 4.1% | 3.4% | 4.6% | 5.2% | 4.9% | -0.3% |
| SG&A, % of revenue | 8.0% | 8.4% | 9.2% | 10.1% | 9.2% | -0.9% |
| CAPEX, % of revenue | 3.6% | 5.2% | 5.9% | 6.5% | | -6.5% |
| ROIC | 19.7% | 13.5% | 15.2% | 16.7% | 16.2% | -0.5% |
| ROE | 24.9% | 19.7% | 22.8% | 23.9% | 23.7% | -0.2% |
| Net Debt/EBITDA | 1.0x | 1.8x | 1.9x | 1.6x | 2.2x | 0.5x |
Revenue and profitability
The company's Revenue increased on 3.0%. EBITDA Margin showed almost no change in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue decreased slightly on 0.91 pp from 10.1% to 9.2% in FY2016.
Net Income marign showed almost no change in FY2016.
Return on investment
The company operates at high and attractive ROE (23.70%) while ROIC is a bit lower (16.19%). ROIC showed almost no change in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 2.2x Net Debt / EBITDA and 2.7x Debt / EBITDA. Net Debt / EBITDA jumped on 0.5x from 1.6x to 2.2x in FY2016. Debt surged on 29.1% while cash decreased on 6.7%.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Putian Food Holdings Ltd ($1699) | 11.7% | 7.9% | -0.3% | 5.7% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | 1,594.6% | 0.2% | -61.3% | -2.5% | |
| Chaoda Modern Agriculture Holdings Ltd ($682) | | -27.8% | -36.0% | -9.8% | -15.0% |
| China Agri-Industries Holdings Ltd ($606) | 10.9% | 3.5% | -1.4% | -11.5% | |
| |
|---|
| Median (4 companies) | 11.7% | 1.9% | -18.7% | -6.1% | -15.0% |
|---|
| CP Pokphand Co Ltd ($43) | | 9.2% | 1.7% | -6.9% | 3.0% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Putian Food Holdings Ltd ($1699) | 25.8% | 25.9% | 23.0% | 19.6% | |
| China Agri-Industries Holdings Ltd ($606) | 6.4% | 6.0% | 4.6% | 5.2% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | 32.8% | 30.6% | -19.2% | 3.4% | |
| Chaoda Modern Agriculture Holdings Ltd ($682) | -7.8% | -6.2% | -18.6% | -29.1% | -45.8% |
| |
|---|
| Median (4 companies) | 16.1% | 15.9% | -7.0% | 4.3% | -45.8% |
|---|
| CP Pokphand Co Ltd ($43) | 13.6% | 12.7% | 15.5% | 17.6% | 17.7% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cypress Jade Agricultural Holdings Ltd ($875) | 1.9% | -5.7% | -68.5% | 13.2% | |
| China Putian Food Holdings Ltd ($1699) | 20.1% | 20.7% | 16.1% | 9.2% | |
| China Agri-Industries Holdings Ltd ($606) | 3.7% | 2.7% | 1.7% | 3.1% | |
| Chaoda Modern Agriculture Holdings Ltd ($682) | -130.5% | -101.7% | -79.4% | -458.9% | -321.5% |
| |
|---|
| Median (4 companies) | 2.8% | -1.5% | -33.4% | 6.1% | -321.5% |
|---|
| CP Pokphand Co Ltd ($43) | 7.6% | 6.1% | 8.0% | 9.9% | 10.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Putian Food Holdings Ltd ($1699) | 18.8% | 26.8% | 9.0% | 16.7% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | 17.7% | 16.2% | 14.6% | 13.1% | |
| Chaoda Modern Agriculture Holdings Ltd ($682) | 52.1% | 10.9% | 19.2% | 12.4% | 8.6% |
| China Agri-Industries Holdings Ltd ($606) | 5.4% | 3.5% | 2.0% | 1.9% | |
| |
|---|
| Median (4 companies) | 18.2% | 13.6% | 11.8% | 12.8% | 8.6% |
|---|
| CP Pokphand Co Ltd ($43) | 3.6% | 5.2% | 5.9% | 6.5% | |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Putian Food Holdings Ltd ($1699) | 27.8% | 20.4% | 11.4% | 5.0% | |
| China Agri-Industries Holdings Ltd ($606) | 3.5% | 1.8% | -0.1% | 1.3% | |
| Cypress Jade Agricultural Holdings Ltd ($875) | -15.4% | -17.7% | -52.2% | -0.1% | |
| Chaoda Modern Agriculture Holdings Ltd ($682) | -20.2% | -16.8% | -11.6% | -56.2% | -62.7% |
| |
|---|
| Median (4 companies) | -5.9% | -7.5% | -5.8% | 0.6% | -62.7% |
|---|
| CP Pokphand Co Ltd ($43) | 19.7% | 13.5% | 15.2% | 16.7% | 16.2% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Agri-Industries Holdings Ltd ($606) | 6.7x | 7.6x | 13.8x | 8.8x | |
| Cypress Jade Agricultural Holdings Ltd ($875) | 1.3x | | | 6.2x | |
| China Putian Food Holdings Ltd ($1699) | 0.1x | 1.1x | 2.0x | 5.2x | |
| |
|---|
| Median (3 companies) | 1.3x | 4.3x | 7.9x | 6.2x | |
|---|
| CP Pokphand Co Ltd ($43) | 1.0x | 1.8x | 1.9x | 1.6x | 2.2x |
