Linc Pen & Plastics reports 3.4% EBITDA growth and almost no change in EBITDA Margin of 7.7%
22-05-2015 • About Linc Pen & Plastics (
$LINCPENQ) • By InTwits
Linc Pen & Plastics reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Linc Pen & Plastics has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.8%. At the same time it's a lot of higher than industry average of 1.9%.
- CAPEX is quite volatile: 48.3 in FY2015, 94.1 in FY2014, 64.7 in FY2013, 64.9 in FY2012, 116 in FY2011
- The company has highly profitable business model: ROIC is at 16.3%
- It operates with high leverage: Net Debt/EBITDA is 0.7x while industry average is 0.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Linc Pen & Plastics ($LINCPENQ) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,481 | 2,710 | 2,997 | 3,089 | 3,109 | 0.6% |
| EBITDA | 146 | 104 | 168 | 232 | 240 | 3.4% |
| Net Income | 84 | 17 | 54 | 115 | 143 | 24.5% |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 2 | 1 | 15 | 1,113.3% |
| Short Term Debt | 386 | 410 | 305 | 335 | 179 | -46.7% |
| Long Term Debt | 27 | 18 | 10 | 1 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 116 | 65 | 65 | 94 | 48 | -48.6% |
Ratios
|
|---|
| Revenue growth | -33.6% | 9.2% | 10.6% | 3.1% | 0.6% | |
| EBITDA growth | -10.3% | -29.2% | 61.8% | 38.4% | 3.4% | |
| EBITDA Margin | 5.9% | 3.8% | 5.6% | 7.5% | 7.7% | 0.2% |
| Net Income Margin | 3.4% | 0.6% | 1.8% | 3.7% | 4.6% | 0.9% |
| CAPEX, % of revenue | 4.7% | 2.4% | 2.2% | 3.0% | 1.6% | -1.5% |
| ROIC | 14.1% | 6.6% | 12.5% | 16.6% | 16.3% | -0.3% |
| ROE | 18.9% | 3.6% | 9.2% | 15.4% | 17.2% | 1.8% |
| Net Debt/EBITDA | 2.8x | 4.1x | 1.9x | 1.4x | 0.7x | -0.8x |
Revenue and profitability
Linc Pen & Plastics's Revenue increased slightly on 0.64% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 16.0 pp from -6.3% to 9.7% in FY2015.
Net Income marign increased slightly on 0.88 pp from 3.7% to 4.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.6%. CAPEX/Revenue decreased slightly on 0.84 pp from 2.4% in FY2012 to 1.6% in FY2015. For the last three years the average CAPEX/Revenue was 2.3%.
Return on investment
The company operates at good ROIC (16.29%) and ROE (17.18%). ROIC showed almost no change in FY2015. ROE increased slightly on 1.8 pp from 15.4% to 17.2% in FY2015.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 1.4x to 0.7x in FY2015. Debt dropped on 46.8% in FY2015 while cash surged on 1,113% in FY2015.
Valuation
The company's trades at EV/EBITDA 10.4x and P/E 16.3x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 13.0x with the industry average at 4.7x.
Appendix 1: Peers in Non-Durable Household Prod.
Below we provide Linc Pen & Plastics benchmarking against other companies in Non-Durable Household Prod. 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eveready Industries India ($EVEREADY) | | 2.4% | -5.9% | 11.4% | 10.9% |
| Panasonic Energy India Company ($PANAENERG) | -35.2% | 5.5% | 11.4% | 8.9% | |
| Kokuyo Camlin ($KOKUYOCMLN) | | 7.4% | 13.6% | 7.3% | 15.6% |
| |
|---|
| Median (3 companies) | -35.2% | 5.5% | 11.4% | 8.9% | 13.3% |
|---|
| Linc Pen & Plastics ($LINCPENQ) | | 9.2% | 10.6% | 3.1% | 0.6% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eveready Industries India ($EVEREADY) | 6.5% | 4.0% | 6.3% | 7.9% | 9.7% |
| Panasonic Energy India Company ($PANAENERG) | 4.8% | 3.4% | 3.4% | 6.3% | |
| Kokuyo Camlin ($KOKUYOCMLN) | 7.3% | 3.3% | -1.2% | 0.7% | 3.2% |
| |
|---|
| Median (3 companies) | 6.5% | 3.4% | 3.4% | 6.3% | 6.4% |
|---|
| Linc Pen & Plastics ($LINCPENQ) | 5.9% | 3.8% | 5.6% | 7.5% | 7.7% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kokuyo Camlin ($KOKUYOCMLN) | 4.3% | 2.6% | 3.2% | 8.3% | 3.5% |
| Eveready Industries India ($EVEREADY) | 1.7% | 2.7% | 1.3% | 1.7% | 2.6% |
| Panasonic Energy India Company ($PANAENERG) | 0.4% | 0.4% | 0.8% | 0.1% | |
| |
|---|
| Median (3 companies) | 1.7% | 2.6% | 1.3% | 1.7% | 3.0% |
|---|
| Linc Pen & Plastics ($LINCPENQ) | 4.7% | 2.4% | 2.2% | 3.0% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eveready Industries India ($EVEREADY) | 3.5% | 1.6% | 3.5% | 5.7% | 10.8% |
| Kokuyo Camlin ($KOKUYOCMLN) | 17.6% | 3.6% | -7.6% | -2.4% | 2.3% |
| High Energy Batteries (India) ($HIGHENE) | -0.9% | 11.6% | 10.0% | -10.2% | |
| Panasonic Energy India Company ($PANAENERG) | 7.6% | | | | |
| Todays Writing Instruments ($TODAYS) | -12.0% | -111.5% | -39.0% | | |
| |
|---|
| Median (5 companies) | 3.5% | 2.6% | -2.0% | -2.4% | 6.6% |
|---|
| Linc Pen & Plastics ($LINCPENQ) | 14.1% | 6.6% | 12.5% | 16.6% | 16.3% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kokuyo Camlin ($KOKUYOCMLN) | 1.6x | 2.1x | | 2.8x | -0.1x |
| Eveready Industries India ($EVEREADY) | 5.4x | 8.2x | 4.1x | 2.5x | 1.8x |
| Todays Writing Instruments ($TODAYS) | | | | 0.0x | |
| Panasonic Energy India Company ($PANAENERG) | -1.7x | -3.3x | -2.4x | -1.6x | |
| |
|---|
| Median (4 companies) | 3.5x | 3.0x | 4.1x | 1.2x | 0.9x |
|---|
| Linc Pen & Plastics ($LINCPENQ) | 2.8x | 4.1x | 1.9x | 1.4x | 0.7x |
