Cheviot Co Net Income jumped on 29.0% in 2015 while EBITDA Margin decreased on 3.4 pp from 13.5% to 10.1%
19-05-2015 • About Cheviot Co (
$CHEVIOT) • By InTwits
Cheviot Co reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cheviot Co is a company in decline: FY2015 revenue growth was -4.1%, 5 years revenue CAGR was -3.6%
- The company has potentially unprofitable business model: ROIC is at 5.7%
- It operates with high leverage: Net Debt/EBITDA is 0.3x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cheviot Co ($CHEVIOT) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,024 | 2,950 | 2,902 | 2,784 | 2,670 | -4.1% |
| EBITDA | 348 | 392 | 421 | 376 | 270 | -28.1% |
| Net Income | 288 | 289 | 307 | 268 | 346 | 29.0% |
Balance Sheet
|
|---|
| Cash | | 33 | 68 | 75 | 68 | -9.5% |
| Short Term Debt | 0 | 143 | 108 | 131 | 142 | 8.7% |
| Long Term Debt | 0 | 6 | 4 | 2 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | | 86 | 77 | 83 | 26 | -68.2% |
Ratios
|
|---|
| Revenue growth | -5.7% | -2.5% | -1.6% | -4.1% | -4.1% | |
| EBITDA growth | 77.4% | 12.4% | 7.5% | -10.8% | -28.1% | |
| EBITDA Margin | 11.5% | 13.3% | 14.5% | 13.5% | 10.1% | -3.4% |
| Net Income Margin | 9.5% | 9.8% | 10.6% | 9.6% | 13.0% | 3.3% |
| CAPEX, % of revenue | | 2.9% | 2.6% | 3.0% | 1.0% | -2.0% |
| ROIC | 23.5% | 22.7% | 11.8% | 9.5% | 5.7% | -3.7% |
| ROE | | | 10.1% | 8.3% | 10.0% | 1.7% |
| Net Debt/EBITDA | 0.0x | 0.3x | 0.1x | 0.2x | 0.3x | 0.1x |
Revenue and profitability
Cheviot Co's Revenue decreased on 4.1% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.8 pp from 4.1% to 10.0% in FY2015.
Net Income marign increased on 3.3 pp from 9.6% to 13.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.98%. Cheviot Co showed small CAPEX/Revenue decline of 1.9 pp from 2.9% in FY2012 to 0.98% in FY2015. For the last three years the average CAPEX/Revenue was 2.2%.
Return on investment
The company operates at low ROIC (5.71%) and ROE (10.03%). ROIC decreased on 3.7 pp from 9.5% to 5.7% in FY2015. ROE increased slightly on 1.7 pp from 8.3% to 10.0% in FY2015.
Leverage (Debt)
Debt level is 0.3x Net Debt / EBITDA and 0.5x Debt / EBITDA. Net Debt / EBITDA surged on 0.1x from 0.2x to 0.3x in FY2015. Debt increased on 7.5% in FY2015 while cash decreased on 9.5% in FY2015.
Valuation
Cheviot Co's trades at EV/EBITDA 6.9x and P/E 5.2x while industy averages are 10.5x and 26.1x.
Appendix 1: Peers in Jute & Jute Products
Below you can find Cheviot Co benchmarking vs. other companies in Jute & Jute Products 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 |
|---|
| Ludlow Jute & Specialities ($LUDLOWJUT) | | -11.6% | 1.1% | -2.6% | -15.7% |
| Ai Champdany Industries ($AICHAMP) | -5.1% | 14.5% | -8.8% | -4.4% | |
| |
|---|
| Median (2 companies) | -5.1% | 1.4% | -3.9% | -3.5% | -15.7% |
|---|
| Cheviot Co ($CHEVIOT) | | -2.5% | -1.6% | -4.1% | -4.1% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ai Champdany Industries ($AICHAMP) | 2.9% | 4.3% | 4.0% | 4.9% | |
| Ludlow Jute & Specialities ($LUDLOWJUT) | 7.6% | 4.3% | 6.4% | 3.7% | -2.5% |
| |
|---|
| Median (2 companies) | 5.2% | 4.3% | 5.2% | 4.3% | -2.5% |
|---|
| Cheviot Co ($CHEVIOT) | 11.5% | 13.3% | 14.5% | 13.5% | 10.1% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ludlow Jute & Specialities ($LUDLOWJUT) | 42.8% | 18.5% | 29.3% | | |
| Ai Champdany Industries ($AICHAMP) | | 4.7% | 3.5% | | |
| |
|---|
| Median (2 companies) | 42.8% | 11.6% | 16.4% | | |
|---|
| Cheviot Co ($CHEVIOT) | 23.5% | 22.7% | 11.8% | 9.5% | 5.7% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ludlow Jute & Specialities ($LUDLOWJUT) | 0.3x | -0.3x | 0.2x | 0.0x | |
| Ai Champdany Industries ($AICHAMP) | 10.3x | 5.6x | 6.9x | 0.0x | |
| |
|---|
| Median (2 companies) | 5.3x | 2.7x | 3.6x | 0.0x | |
|---|
| Cheviot Co ($CHEVIOT) | 0.0x | 0.3x | 0.1x | 0.2x | 0.3x |
