Krbl's growth is outstanding: revenue grew 23.5% and EBITDA 24.6% annually over the last three years
15-05-2014 • About Krbl (
$KRBL) • By InTwits
Krbl is an attractive growth stock in Packaged Foods industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Krbl showed growth in the last financial year. Krbl's revenue surged on 39.9% in FY2014. In addition to revenue Krbl also keeps delivering EBITDA growth. It was 48.4% in FY2014
In the last 3 years the company showed fast revenue growth of 23.5% from FY2011 to FY2014 annually. EBITDA surged on 24.6% from FY2011 to FY2014 annually.
Krbl ($KRBL) financials for the last 5 years
| mln. INR | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 15,790 | 15,446 | 16,310 | 20,804 | 29,105 |
|---|
| Revenue growth, % | | -2.2% | 5.6% | 27.6% | 39.9% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 1,979 | 2,269 | 2,303 | 2,960 | 4,393 |
|---|
| EBITDA growth, % | | 14.6% | 1.5% | 28.5% | 48.4% |
|---|
| EBITDA margin, % | 12.5% | 14.7% | 14.1% | 14.2% | 15.1% |
|---|
| Net Income | 1,245 | 1,203 | 730 | 1,299 | 2,551 |
|---|
| Net Income margin, % | 7.89% | 7.79% | 4.48% | 6.24% | 8.77% |
|---|
| |
| CAPEX | 1,304 | 893 | 666 | 829 | 1,772 |
|---|
| CAPEX/Revenue, % | 8.26% | 5.78% | 4.08% | 3.99% | 6.09% |
|---|
| Debt | 6,049 | 8,393 | 9,380 | 8,703 | 13,795 |
|---|
| Cash | 421 | 46 | 31 | 107 | 658 |
|---|
| Net Debt/EBITDA | 2.8x | 3.7x | 4.1x | 2.9x | 3.0x |
|---|
| |
| ROIC, % | 15.6% | 14.4% | 11.7% | 14.5% | 18.3% |
|---|
| ROE, % | 26.0% | 20.4% | 10.7% | 16.8% | 27.2% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. Krbl showed EBITDA margin growth of 0.900 pp from 14.2% to 15.1% in FY2014. If we look for the longer period Krbl showed small growth in EBITDA margin of 0.400 pp from 14.7% in FY2011 to 15.1% in FY2014.
Krbl shows attractive ROIC at 18.3% for the last 12 months which assumes stable development model. Three years ago it was a bit lower at 14.4%. For the last three years the average ROIC was 14.8%.
The company showed fast Net Income margin growth of 2.60 pp from 6.20% to 8.80% in FY2014. In the longer period Net Income margin surged on 1 pp from 7.80% in FY2011 to 8.80% in FY2014.
Krbl operates at ROE of 27.2%. Average ROE for the last three years was 18.2%.
Capital expenditures (CAPEX)
To this fast growth Krbl had to invest in CAPEX.In FY2014 the company had CAPEX/Revenue of 6.09%. CAPEX/Revenue increased on 0.305 pp from 5.78% in FY2011 to 6.09% in FY2014. For the last three years the average CAPEX/Revenue was 4.72%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 3.0x Net Debt/EBITDA. In the last 3 years the company showed big decline in leverage of 0.69x from 3.68x in FY2011 to 2.99x in FY2014.
Valuation vs. comparable companies
The company trades at 6.2x EV/EBITDA which is 61.2% lower than 16.0x Packaged Foods industry avearge calculated based on 72 companies. The company trades at 5.5x P/E which is 69.9% lower than 18.4x Packaged Foods industry avearge calculated based on 13 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Krbl traded at 10.4x EV/(EBITDA-CAPEX) which is 186% higher than 3.6x Packaged Foods peer group avearge calculated on the basis of 7 companies.
