Cosmo Films Debt dropped on 29.8% in 2015 while Revenue surged on 12.2%
22-05-2015 • About Cosmo Films (
$COSMOFILMS) • By InTwits
Cosmo Films reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 6.6% in FY2015 vs. 7.4% in FY2014 vs. 8.3% in FY2011
- Cosmo Films has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.0%. At the same time it's in pair with industry average of 7.2%.
- CAPEX is quite volatile: 477 in FY2015, 888 in FY2014, 1,658 in FY2013, 556 in FY2012, 335 in FY2011
- The company has business model with low profitability: ROIC is at 7.9%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cosmo Films ($COSMOFILMS) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,350 | 11,362 | 12,656 | 14,684 | 16,468 | 12.2% |
| EBITDA | 940 | 946 | 990 | 1,090 | 1,079 | -1.0% |
| Net Income | 348 | 315 | 113 | -55 | 277 | |
Balance Sheet
|
|---|
| Cash | 298 | 414 | 324 | 550 | 250 | -54.5% |
| Short Term Debt | 2,344 | 2,522 | 2,604 | 2,693 | 1,732 | -35.7% |
| Long Term Debt | 1,684 | 1,770 | 2,487 | 3,176 | 2,386 | -24.9% |
Cash flow
|
|---|
| Capex | 335 | 556 | 1,658 | 888 | 477 | -46.3% |
Ratios
|
|---|
| Revenue growth | -42.0% | 0.1% | 11.4% | 16.0% | 12.2% | |
| EBITDA growth | -1.1% | 0.6% | 4.7% | 10.1% | -1.0% | |
| EBITDA Margin | 8.3% | 8.3% | 7.8% | 7.4% | 6.6% | -0.9% |
| Net Income Margin | 3.1% | 2.8% | 0.9% | -0.4% | 1.7% | 2.1% |
| CAPEX, % of revenue | 2.9% | 4.9% | 13.1% | 6.0% | 2.9% | -3.2% |
| ROIC | 7.8% | 7.3% | 6.9% | 6.7% | 7.9% | 1.3% |
| ROE | 11.4% | 9.6% | 3.3% | -1.6% | 7.5% | 9.0% |
| Net Debt/EBITDA | 4.0x | 4.1x | 4.8x | 4.9x | 3.6x | -1.3x |
Revenue and profitability
The company's Revenue surged on 12.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 20.4 pp from 58.3% to 78.8% in FY2015.
Net Income marign increased on 2.1 pp from -0.37% to 1.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Cosmo Films had CAPEX/Revenue of 2.9%. CAPEX/Revenue decreased on 2.0 pp from 4.9% in FY2012 to 2.9% in FY2015. It's average CAPEX/Revenue for the last three years was 7.3%.
Return on investment
The company operates at low ROIC (7.92%) and ROE (7.47%). ROIC increased slightly on 1.3 pp from 6.7% to 7.9% in FY2015. ROE increased on 9.0 pp from -1.6% to 7.5% in FY2015.
Leverage (Debt)
Debt level is 3.6x Net Debt / EBITDA and 3.8x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 4.9x to 3.6x in FY2015. Debt dropped on 29.8% in FY2015 while cash dropped on 54.5% in FY2015.
Valuation
Cosmo Films's trades at EV/EBITDA 5.2x and P/E 6.4x while industy averages are 10.5x and 26.1x. Cosmo Films's EV/(EBITDA-CAPEX) is 9.4x with the industry average at 4.7x.
Appendix 1: Peers in Commodity Chemicals
Below we provide Cosmo Films benchmarking against other companies in Commodity Chemicals industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shree Hari Chemicals Export ($SHHARICH) | -52.2% | -2.5% | -78.0% | 299.5% | |
| Jindal Poly Films ($JINDPOLBBPH) | -66.5% | -17.2% | -6.3% | 131.7% | |
| Bodal Chemicals ($BODALCHEM) | -51.3% | 5.4% | -12.6% | 80.0% | |
| Kanoria Chemicals & Industries ($KANORICHEM) | -22.3% | -40.7% | 27.2% | 47.9% | |
| Camphor & Allied Products ($CAMPHOR) | -49.0% | -6.7% | 7.2% | 42.7% | |
| |
|---|
| Median (35 companies) | -39.8% | 19.0% | 10.9% | 10.6% | 4.9% |
|---|
| Cosmo Films ($COSMOFILMS) | | 0.1% | 11.4% | 16.0% | 12.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shree Hari Chemicals Export ($SHHARICH) | 8.3% | 1.8% | -19.4% | 29.4% | |
| Chemfab Alkalis ($CHEMFALKAL) | 19.0% | 22.3% | 32.9% | 24.2% | 19.8% |
| Aditya Birla Chemicals (India) ($ABCIL) | 33.6% | 26.8% | 27.1% | 23.6% | 21.9% |
| Bodal Chemicals ($BODALCHEM) | 10.6% | 1.8% | 5.6% | 20.4% | |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 13.3% | 15.9% | 16.0% | 19.0% | 18.3% |
| |
|---|
| Median (31 companies) | 13.3% | 11.6% | 8.4% | 8.6% | 9.8% |
|---|
| Cosmo Films ($COSMOFILMS) | 8.3% | 8.3% | 7.8% | 7.4% | 6.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Chemfab Alkalis ($CHEMFALKAL) | 5.1% | 2.2% | 15.8% | 55.6% | |
| Aditya Birla Chemicals (India) ($ABCIL) | 5.9% | 136.9% | 24.2% | 30.8% | 15.0% |
| Jindal Poly Films ($JINDPOLBBPH) | 2.9% | 6.9% | 2.1% | 27.5% | |
| Polyplex Corporation ($POLYPLEX) | 6.0% | 10.7% | 41.3% | 19.2% | |
| Kanoria Chemicals & Industries ($KANORICHEM) | 12.9% | 25.1% | 6.0% | 13.4% | |
| |
|---|
| Median (19 companies) | 5.9% | 5.3% | 6.3% | 5.4% | 7.0% |
|---|
| Cosmo Films ($COSMOFILMS) | 2.9% | 4.9% | 13.1% | 6.0% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Riddhi Siddhi Gluco Biols ($RIDDHI) | -0.2% | -1.3% | -0.6% | 61.1% | |
| Bodal Chemicals ($BODALCHEM) | | -1.3% | 3.3% | 39.0% | |
| Elantas Beck India ($ELANTAS) | 17.5% | 20.4% | 33.9% | 31.0% | |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 10.3% | 16.0% | 18.7% | 25.0% | 23.7% |
| Aarti Industries ($AARTIIND) | 13.1% | 15.9% | 19.1% | 17.2% | 17.9% |
| |
|---|
| Median (59 companies) | 10.7% | 9.2% | 9.8% | 9.9% | 15.0% |
|---|
| Cosmo Films ($COSMOFILMS) | 7.8% | 7.3% | 6.9% | 6.7% | 7.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| India Glycols ($INDIAGLYCO) | 8.2x | 4.8x | 3.7x | 8.5x | |
| Godrej Industries ($GODREJIND) | 6.8x | 9.9x | 5.7x | 7.9x | |
| Polyplex Corporation ($POLYPLEX) | 0.6x | 0.9x | 6.8x | 7.1x | |
| Link Pharma Chem ($LINKPH) | 71.1x | 3.4x | 4.1x | 6.2x | |
| Refnol Resins & Chemicals ($REFNOL) | | | 4.1x | 5.6x | 0.0x |
| |
|---|
| Median (41 companies) | 2.4x | 2.6x | 3.0x | 0.8x | 1.3x |
|---|
| Cosmo Films ($COSMOFILMS) | 4.0x | 4.1x | 4.8x | 4.9x | 3.6x |
