Gulf Oil Corporation Net Debt / EBITDA jumped on 70.0x from 5.2x to 75.2x in 2020 while Revenue decreased on 6.3%14-09-2020
• About Gulf Oil Corporation ($GULFOILCOR
) • By InTwits
Gulf Oil Corporation reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company has potentially unprofitable business model: ROIC is 0.5%
- It operates with high leverage: Net Debt/EBITDA is 75.2x while industry average is 27.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Gulf Oil Corporation's Revenue decreased on 6.3%. Revenue decline showed acceleration in FY20Q4 - it was 13.3% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.1 pp from 6.4% to 7.5% in FY2020.
Net Income margin increased on 2.3 pp from 7.6% to 9.9% in FY2020. Net Income margin grew at 0.98 pp per annum in the last 5 years.
Return on investment
The company operates at low ROIC (0.5%) and ROE (5.4%). ROIC decreased slightly on 1.6 pp from 2.0% to 0.50% in FY2020. ROE increased slightly on 0.76 pp from 4.6% to 5.4% in FY2020. During the last 5 years ROIC topped in FY2019 at 2.0%.
Debt level is 75.2x Net Debt / EBITDA and 77.7x Debt / EBITDA. Net Debt / EBITDA surged on 70.0x from 5.2x to 75.2x in FY2020. Debt surged on 433% while cash dropped on 33.1%. During FY2016-FY2020 Net Debt/EBITDA bottomed in FY2019 at 5.2x.
Gulf Oil Corporation has short term refinancing risk: cash is only 79.4% of short term debt.
Ravi Jain is a Gulf Oil Corporation's CFO. Ravi Jain has spent 4 years at the company.
Financial and operational results
FY ended 31-03-2020
Gulf Oil Corporation ($GULFOILCOR) key annual financial indicators
Gulf Oil Corporation ($GULFOILCOR) key quoterly financial indicators
|Short Term Debt||2,341||390||556||397||483||21.7%|
|Long Term Debt||10,134||7,336||4,616||1,833||11,399||521.7%|
|Net Income Margin||5.6%||6.5%||7.1%||7.6%||9.9%||2.3%|
|CAPEX, % of revenue||1.8%||2.2%||4.3%||2.6%|
|mln. INR||FY20Q1||FY20Q2||FY20Q3||FY20Q4|| ||YoY change|
|Net Income||59||51||249||138|| ||-26.2%||-15.4%||96.1%||-1.0%|
|EBITDA Margin|| 3.6%|| 2.5%|| 2.8%|| 3.3%|| ||-2.7%||-1.9%||-1.6%||-5.0%|
|Net Income Margin|| 4.4%|| 4.5%|| 20.9%|| 10.3%|| ||-1.6%||-1.5%||12.2%||1.3%|
Peers in Oil Marketing & Distribution
Below you can find Gulf Oil Corporation benchmarking vs. other companies in Oil Marketing & Distribution 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.