Century Plyboards (I) CAPEX jumped on 104% and Revenue increased on 4.7%
10-05-2016 • About Century Plyboards (I) (
$CENTURYPLY) • By InTwits
Century Plyboards (I) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Century Plyboards (I) has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.8%. At the same time it's in pair with industry average of 14.9%
- CAPEX is quite volatile: ₹1,533m in FY2016, ₹751m in FY2015, ₹665m in FY2014, ₹1,592m in FY2013, ₹4,471m in FY2012
- The company has highly profitable business model: ROIC is 26.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Century Plyboards (I)'s Revenue increased on 4.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.2 pp from 6.6% to 11.8% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2013 at 10.6% and was growing since that time.
Net Income margin increased slightly on 0.67 pp from 9.4% to 10.0% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at 4.5% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 Century Plyboards (I) had CAPEX/Revenue of 9.2%. The company's CAPEX/Revenue decreased on 4.3 pp from 13.5% in FY2013 to 9.2% in FY2016. It's average level of CAPEX/Revenue for the last three years was 6.3%. Century Plyboards (I) maintained rich investment policy and has spent a big chunk of EBITDA (53.0%) to CAPEX. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2015 at 4.7%.
Return on investment
The company operates at high and attractive ROIC (26.4%) and ROE (36.3%). ROIC increased on 2.8 pp from 23.7% to 26.4% in FY2016. ROE decreased on 7.4 pp from 43.7% to 36.3% in FY2016. During FY2012-FY2016 ROIC bottomed in FY2013 at 7.0% and was growing since that time.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 1.7x to 1.3x in FY2016. Debt dropped on 10.3% while cash increased on 3.7%. Net Debt/EBITDA followed a declining trend at -0.6x per annum in FY2012-FY2016.
Century Plyboards (I) has short term refinancing risk: cash is only 10.9% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 15.4x and P/E 24.3x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 32.7x with the industry average at 22.8x.
Financial and operational results
Century Plyboards (I) ($CENTURYPLY) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 16,674 | 11,816 | 13,477 | 15,884 | 16,637 | 4.7% |
| EBITDA | 2,923 | 1,249 | 1,795 | 2,559 | 2,890 | 12.9% |
| Net Income | 1,228 | 552 | 603 | 1,490 | 1,672 | 12.2% |
Balance Sheet
|
|---|
| Cash | 652 | 982 | 333 | 373 | 386 | 3.7% |
| Short Term Debt | 4,273 | 3,270 | 4,024 | 3,863 | 3,553 | -8.0% |
| Long Term Debt | 6,209 | 2,148 | 1,777 | 814 | 641 | -21.3% |
Cash flow
|
|---|
| Capex | 4,471 | 1,592 | 665 | 751 | 1,533 | 104.0% |
Ratios
|
|---|
| Revenue growth | 22.6% | -29.1% | 14.0% | 17.9% | 4.7% | |
| EBITDA growth | 13.6% | -57.3% | 43.7% | 42.5% | 12.9% | |
|
|---|
| EBITDA Margin | 17.5% | 10.6% | 13.3% | 16.1% | 17.4% | 1.3% |
| Net Income Margin | 7.4% | 4.7% | 4.5% | 9.4% | 10.0% | 0.7% |
| CAPEX, % of revenue | 26.8% | 13.5% | 4.9% | 4.7% | 9.2% | 4.5% |
|
|---|
| ROIC | 14.3% | 7.0% | 16.6% | 23.7% | 26.4% | 2.8% |
| ROE | 18.1% | 11.2% | 22.0% | 43.7% | 36.3% | -7.4% |
| Net Debt/EBITDA | 3.4x | 3.6x | 3.0x | 1.7x | 1.3x | -0.4x |
Peers in Forest Products
Below you can find Century Plyboards (I) benchmarking vs. other companies in Forest 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Archidply Industries ($ARCHIDPLY) | 11.4% | 17.3% | 12.6% | 14.5% | - |
| |
|---|
| Median (1 company) | 11.4% | 17.3% | 12.6% | 14.5% | - |
|---|
| Century Plyboards (I) ($CENTURYPLY) | - | -29.1% | 14.0% | 17.9% | 4.7% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oriental Veneer Products ($ORVENPR) | - | - | - | 4.5% | - |
| Uv Boards ($UVBOARDS) | - | - | - | 2.6% | - |
| Ecoboard Industries ($ECOBOAR) | - | - | - | -18.9% | - |
| Mangalam Timber Products ($MANGTIMBER) | - | - | - | -35.3% | - |
| |
|---|
| Median (4 companies) | -1.5% | 6.1% | - | -8.1% | - |
|---|
| Century Plyboards (I) ($CENTURYPLY) | 17.5% | 10.6% | 13.3% | 16.1% | 17.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oriental Veneer Products ($ORVENPR) | - | - | - | 20.6% | - |
| |
|---|
| Median (1 company) | 15.2% | - | - | 20.6% | - |
|---|
| Century Plyboards (I) ($CENTURYPLY) | 26.8% | 13.5% | 4.9% | 4.7% | 9.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oriental Veneer Products ($ORVENPR) | - | - | - | 4.3% | - |
| Ecoboard Industries ($ECOBOAR) | -1.9% | -5.4% | - | - | - |
| Mangalam Timber Products ($MANGTIMBER) | 1.5% | -2.6% | - | - | - |
| Uv Boards ($UVBOARDS) | - | 12.4% | - | - | - |
| Archidply Industries ($ARCHIDPLY) | -4.4% | 4.6% | - | - | - |
| |
|---|
| Median (5 companies) | -1.9% | 1.0% | - | 4.3% | - |
|---|
| Century Plyboards (I) ($CENTURYPLY) | 14.3% | 7.0% | 16.6% | 23.7% | 26.4% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oriental Veneer Products ($ORVENPR) | - | - | 17.8x | 11.2x | - |
| Uv Boards ($UVBOARDS) | 3.8x | 1.9x | 0.0x | 0.0x | - |
| |
|---|
| Median (2 companies) | 8.1x | 20.8x | 8.9x | 5.6x | - |
|---|
| Century Plyboards (I) ($CENTURYPLY) | 3.4x | 3.6x | 3.0x | 1.7x | 1.3x |
