Rubfila International demonstrates profitable growth
05-06-2015 • About Rubfila International (
$RUBFILA) • By InTwits
Rubfila International is an attractive growth stock in Auto Tyres & Rubber Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Rubfila International showed fast growth in the last financial year. The company's revenue surged on 28.7% in FY2015. EBITDA also increased considerably: 38.3% for the same period.
In the longer period Rubfila International showed fast revenue growth of 19.0% from FY2012 to FY2015 annually. EBITDA surged on 22.9% from FY2012 to FY2015 annually.
Rubfila International ($RUBFILA) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 792 | 957 | 1,002 | 1,254 | 1,615 |
|---|
| Revenue growth, % | | 20.9% | 4.7% | 25.1% | 28.7% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 48 | 117 | 149 | 158 | 218 |
|---|
| EBITDA growth, % | | 145.8% | 27.1% | 5.5% | 38.3% |
|---|
| EBITDA margin, % | 6.03% | 12.3% | 14.9% | 12.6% | 13.5% |
|---|
| Net Income | 21 | 328 | 133 | 93 | 136 |
|---|
| Net Income margin, % | 2.71% | 34.2% | 13.3% | 7.41% | 8.42% |
|---|
| |
| CAPEX | 17 | 3 | 91 | 63 | 36 |
|---|
| CAPEX/Revenue, % | 2.18% | 0.301% | 9.09% | 5.04% | 2.23% |
|---|
| Debt | 243 | 0 | 0 | 0 | 0 |
|---|
| Cash | 17 | 23 | 20 | 48 | 48 |
|---|
| Net Debt/EBITDA | 4.7x | -0.2x | -0.1x | -0.3x | -0.2x |
|---|
| |
| ROIC, % | 12.5% | 35.1% | 26.2% | 22.7% | 29.4% |
|---|
| ROE, % | | | 29.0% | 17.1% | 21.9% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. Rubfila International showed EBITDA margin growth of 0.900 pp from 12.6% to 13.5% in FY2015. In the longer period the company showed EBITDA margin growth of 1.20 pp from 12.3% in FY2012 to 13.5% in FY2015.
We call Rubfila International an attractive growth stock as together with the growth it delivers high ROIC at 29.4%. During the last three years it dropped - it was 35.1% in FY2012. It's average ROIC for the last three years was 26.1%.
Rubfila International's Net Income margin surged on 1 pp from 7.40% to 8.40% in FY2015. In the longer period Net Income margin dropped on 25.8 pp from 34.2% in FY2012 to 8.40% in FY2015.
Rubfila International operates at ROE of 21.9%. Average ROE for the last three years was 22.7%.
Capital expenditures (CAPEX)
In FY2015 the company had CAPEX/Revenue of 2.23%. Rubfila International showed fast CAPEX/Revenue growth of 1.93 pp from 0.301% in FY2012 to 2.23% in FY2015. It's average level of CAPEX/Revenue for the last three years was 5.45%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -0.2x Net Debt/EBITDA. If we look for the longer period the company's leverage surged on 0.02x from -0.19x in FY2012 to -0.22x in FY2015.
Valuation vs. comparable companies
The company trades at 8.3x EV/EBITDA which is 40.2% lower than 13.9x Auto Tyres & Rubber Products industry avearge calculated based on 36 companies. At the end of trading day today Rubfila International traded at 13.7x P/E which is 2.08% lower than 14.0x Auto Tyres & Rubber Products peer group avearge calculated on the basis of 4 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Rubfila International traded at 10.0x EV/(EBITDA-CAPEX) which is 287% higher than 2.6x Auto Tyres & Rubber Products peer group avearge calculated on the basis of 2 companies.
Peers in Auto Tyres & Rubber Products
Below we provide Rubfila International benchmarking against other companies in Auto Tyres & Rubber Products 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Ceat ($CEATLTD) | | 28.0% | 8.7% | 9.9% | 3.6% |
| Balkrishna Industries ($BALKRISIND) | | 41.5% | 12.5% | 11.1% | 1.2% |
| Pix Transmissions ($PIXTRANS) | | -5.8% | 12.3% | -14.1% | -3.6% |
| Apollo Tyres ($APOLLOTYRE) | | 37.1% | 5.3% | 4.0% | -4.4% |
| |
|---|
| Median (4 companies) | -12.8% | 28.0% | 8.7% | 4.0% | -1.2% |
|---|
| Rubfila International ($RUBFILA) | | 20.9% | 4.7% | 25.1% | 28.7% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Balkrishna Industries ($BALKRISIND) | 17.6% | 17.0% | 20.1% | 26.0% | 19.1% |
| Pix Transmissions ($PIXTRANS) | 19.0% | 20.4% | 21.7% | 16.9% | 18.1% |
| Apollo Tyres ($APOLLOTYRE) | 11.0% | 9.7% | 11.4% | 14.2% | 15.2% |
| Ceat ($CEATLTD) | 4.6% | 6.1% | 9.0% | 11.9% | 13.7% |
| |
|---|
| Median (4 companies) | 14.3% | 13.3% | 11.4% | 14.2% | 16.6% |
|---|
| Rubfila International ($RUBFILA) | 6.0% | 12.3% | 14.9% | 12.6% | 13.5% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Balkrishna Industries ($BALKRISIND) | 10.8% | 23.4% | 29.9% | 23.5% | 9.7% |
| Ceat ($CEATLTD) | 16.7% | 3.1% | 1.7% | 2.7% | 5.3% |
| Apollo Tyres ($APOLLOTYRE) | 12.6% | 6.5% | 4.9% | 3.7% | 5.0% |
| |
|---|
| Median (3 companies) | 10.8% | 4.8% | 4.0% | 3.4% | 5.3% |
|---|
| Rubfila International ($RUBFILA) | 2.2% | 0.3% | 9.1% | 5.0% | 2.2% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Ceat ($CEATLTD) | 8.5% | 11.4% | 19.1% | 27.6% | 28.8% |
| Goodyear India ($GOODYEAR) | 33.1% | 25.5% | 30.3% | 26.7% | |
| Apollo Tyres ($APOLLOTYRE) | 15.0% | 14.7% | 16.8% | 23.6% | 23.9% |
| Multibase India ($MULTIBASE) | 17.6% | 12.3% | 22.8% | 22.0% | |
| Balkrishna Industries ($BALKRISIND) | 17.4% | 17.7% | 17.3% | 19.7% | 10.4% |
| |
|---|
| Median (8 companies) | 15.5% | 11.8% | 17.7% | 23.6% | 23.9% |
|---|
| Rubfila International ($RUBFILA) | 12.5% | 35.1% | 26.2% | 22.7% | 29.4% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Balkrishna Industries ($BALKRISIND) | 1.7x | 3.2x | 3.2x | 2.5x | 2.6x |
| Ceat ($CEATLTD) | 5.8x | 4.5x | 2.1x | 1.3x | 0.8x |
| Apollo Tyres ($APOLLOTYRE) | 2.3x | 2.4x | 1.3x | 0.3x | 0.3x |
| Tirupati Foam ($TIRFOAM) | 3.8x | 6.4x | 5.4x | 0.0x | |
| Pix Transmissions ($PIXTRANS) | 4.6x | 4.8x | -0.6x | 0.0x | 0.0x |
| |
|---|
| Median (7 companies) | 3.8x | 4.5x | 1.3x | 0.0x | 0.5x |
|---|
| Rubfila International ($RUBFILA) | 4.7x | -0.2x | -0.1x | -0.3x | -0.2x |
