Cheviot Co reports 65.8% EBITDA growth in 2016 and 28.5% Revenue growth
25-05-2016 • About Cheviot Co (
$CHEVIOT) • By InTwits
Cheviot Co reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Cheviot Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 1.9%
- CAPEX is quite volatile: ₹66m in FY2016, ₹26m in FY2015, ₹83m in FY2014, ₹77m in FY2013, ₹86m in FY2012
- The company has business model with low profitability: ROIC is 9.7%
- It operates with high leverage: Net Debt/EBITDA is 0.1x while industry average is 0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Cheviot Co's Revenue surged on 28.5%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.5 pp from 3.5% to 1.9% in FY2016.
Net Income margin decreased on 2.3 pp from 13.0% to 10.6% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Cheviot Co had CAPEX/Revenue of 1.9%. CAPEX/Revenue decreased slightly on 0.71 pp from 2.6% in FY2013 to 1.9% in FY2016. Average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at low ROIC (9.7%) and ROE (9.4%). ROIC increased on 4.0 pp from 5.7% to 9.7% in FY2016. ROE decreased slightly on 0.62 pp from 10.0% to 9.4% in FY2016. During the last 5 years ROIC bottomed in FY2015 at 5.7%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.2x from 0.3x to 0.1x in FY2016. Debt dropped on 11.5% while cash increased on 6.6%.
Cheviot Co has short term refinancing risk: cash is only 57.7% of short term debt.
Valuation and dividends
Cheviot Co's trades at EV/EBITDA 6.4x and P/E 7.8x while industy averages are 17.8x and 21.9x. Cheviot Co's EV/(EBITDA-CAPEX) is 7.5x with the industry average at 22.8x.
Financial and operational results
Cheviot Co ($CHEVIOT) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,950 | 2,902 | 2,784 | 2,670 | 3,430 | 28.5% |
| EBITDA | 392 | 421 | 376 | 270 | 448 | 65.8% |
| Net Income | 289 | 307 | 268 | 346 | 365 | 5.5% |
Balance Sheet
|
|---|
| Cash | 33 | 68 | 75 | 68 | 73 | 6.6% |
| Short Term Debt | 143 | 108 | 131 | 142 | 126 | -11.5% |
| Long Term Debt | 6 | 4 | 2 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 86 | 77 | 83 | 26 | 66 | 152.7% |
Ratios
|
|---|
| Revenue growth | -2.5% | -1.6% | -4.1% | -4.1% | 28.5% | |
| EBITDA growth | 12.4% | 7.5% | -10.8% | -28.1% | 65.8% | |
|
|---|
| EBITDA Margin | 13.3% | 14.5% | 13.5% | 10.1% | 13.1% | 2.9% |
| Net Income Margin | 9.8% | 10.6% | 9.6% | 13.0% | 10.6% | -2.3% |
| CAPEX, % of revenue | 2.9% | 2.6% | 3.0% | 1.0% | 1.9% | 1.0% |
|
|---|
| ROIC | 22.7% | 11.8% | 9.5% | 5.7% | 9.7% | 4.0% |
| ROE | | 10.1% | 8.3% | 10.0% | 9.4% | -0.6% |
| Net Debt/EBITDA | 0.3x | 0.1x | 0.2x | 0.3x | 0.1x | -0.2x |
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gloster ($GLOSTER2) | - | 10.8% | -3.1% | -2.1% | 30.1% |
| Ai Champdany Industries ($AICHAMP) | 14.5% | -8.8% | -4.4% | -11.4% | - |
| Ludlow Jute & Specialities ($LUDLOWJUT) | - | 1.1% | -2.6% | -15.7% | 52.7% |
| |
|---|
| Median (3 companies) | 14.5% | 1.1% | -3.1% | -11.4% | 41.4% |
|---|
| Cheviot Co ($CHEVIOT) | - | -1.6% | -4.1% | -4.1% | 28.5% |
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Gloster ($GLOSTER2) | 10.6% | 11.6% | 8.6% | 9.0% | 8.8% |
| Ai Champdany Industries ($AICHAMP) | 4.3% | 4.0% | 4.9% | 3.7% | - |
| Ludlow Jute & Specialities ($LUDLOWJUT) | 4.3% | 6.4% | 3.7% | -2.5% | 4.9% |
| |
|---|
| Median (3 companies) | 4.3% | 6.4% | 4.9% | 3.7% | 6.8% |
|---|
| Cheviot Co ($CHEVIOT) | 13.3% | 14.5% | 13.5% | 10.1% | 13.1% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ludlow Jute & Specialities ($LUDLOWJUT) | 18.5% | 29.3% | - | - | - |
| Ai Champdany Industries ($AICHAMP) | 4.7% | 3.5% | - | - | - |
| Gloster ($GLOSTER2) | - | 8.1% | 4.6% | - | - |
| |
|---|
| Median (3 companies) | 11.6% | 8.1% | 4.6% | - | - |
|---|
| Cheviot Co ($CHEVIOT) | 22.7% | 11.8% | 9.5% | 5.7% | 9.7% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ludlow Jute & Specialities ($LUDLOWJUT) | -0.3x | 0.2x | 0.0x | - | 0.0x |
| Gloster ($GLOSTER2) | 1.2x | 1.1x | 1.8x | 0.0x | 0.0x |
| |
|---|
| Median (2 companies) | 1.2x | 1.1x | 0.0x | 0.0x | 0.0x |
|---|
| Cheviot Co ($CHEVIOT) | 0.3x | 0.1x | 0.2x | 0.3x | 0.1x |
