Looking for growth? Don't miss Frutarom Industries with its track record of fast growth
23 Mar 2015 • About Frutarom Industries (
$FRUT) • By InTwits
Pay attention to Frutarom Industries as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Frutarom Industries showed fast growth in the last financial year. The company's revenue surged on 21.6% in FY2014. In addition to revenue Frutarom Industries also keeps delivering EBITDA growth. It was 30.6% in FY2014
In the last 3 years Frutarom Industries showed fast revenue growth of 16.5% from 2011 to 2014 annually. EBITDA surged on 23.5% from 2011 to 2014 annually.
Frutarom Industries ($FRUT) financials for the last 5 years
| mln. $ | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 451 | 518 | 618 | 674 | 820 |
|---|
| Revenue growth, % | | 14.9% | 19.2% | 9.0% | 21.6% |
|---|
| Gross margin, % | 38.8% | 36.4% | 36.6% | 38.1% | 39.1% |
|---|
| SG&A, % | 23.1% | 18.2% | 22.9% | 22.8% | 22.5% |
|---|
| EBITDA | 81 | 79 | 99 | 114 | 149 |
|---|
| EBITDA growth, % | | -2.2% | 24.7% | 15.8% | 30.6% |
|---|
| EBITDA margin, % | 18.0% | 15.3% | 16.0% | 17.0% | 18.2% |
|---|
| Net Income | 44 | 42 | 52 | 63 | 87 |
|---|
| Net Income margin, % | 9.78% | 8.11% | 8.34% | 9.37% | 10.6% |
|---|
| |
| CAPEX | 8 | 8 | 13 | 20 | 21 |
|---|
| CAPEX/Revenue, % | 1.88% | 1.51% | 2.03% | 2.99% | 2.61% |
|---|
| Debt | 64 | 142 | 190 | 248 | 231 |
|---|
| Cash | 44 | 36 | 54 | 58 | 64 |
|---|
| Net Debt/EBITDA | 0.2x | 1.3x | 1.4x | 1.7x | 1.1x |
|---|
| |
| ROIC, % | 14.0% | 11.7% | 12.0% | 11.9% | 15.1% |
|---|
| ROE, % | 13.0% | 11.2% | 12.3% | 13.1% | 16.7% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The company showed EBITDA margin growth of 1.20 pp from 17% to 18.2% in 2014. In the last 3 years the company showed fast EBITDA margin growth of 2.90 pp from 15.3% in 2011 to 18.2% in 2014.
Frutarom Industries shows attractive ROIC at 15.1% for the last 12 months which assumes stable development model. During the last three years it surged - it was 11.7% in FY2011. It's average level of ROIC for the last three years was 13.0%.
Frutarom Industries showed fast Net Income margin growth of 1.20 pp from 9.40% to 10.6% in 2014. In the longer period Frutarom Industries's Net Income margin surged on 2.50 pp from 8.10% in 2011 to 10.6% in 2014.
Frutarom Industries operates at ROE of 16.7%. It's average level of ROE for the last three years was 14.1%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 2.61% in FY2014. CAPEX/Revenue surged on 1.10 pp from 1.51% in 2011 to 2.61% in 2014. Average CAPEX/Revenue for the last three years was 2.54%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 1.1x Net Debt/EBITDA. In the last 3 years Frutarom Industries's leverage dropped on 0.21x from 1.33x in 2011 to 1.12x in 2014.
Valuation vs. comparable companies
The market closed today at 1.2x EV/EBITDA for Frutarom Industries which is 93.4% lower than 18.3x Chemicals peer group avearge calculated on the basis of 70 companies. The company trades at 0.2x P/E which is 98.7% lower than 12.5x Chemicals industry avearge calculated based on 11 companies.
Peers in Chemicals
Below you can find Frutarom Industries benchmarking vs. other companies in Chemicals 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Halosource Inc ($HALO) | | -14.9% | 10.3% | 21.0% | 11.6% |
| Uralkali PJSC ($URKA) | | 105.7% | 13.0% | -15.9% | 7.1% |
| Plastics Capital ($PLA) | | 25.6% | -4.2% | -2.1% | 3.3% |
| Basf Se ($BFA) | | 15.1% | -1.9% | 2.6% | 0.5% |
| Lg Chem ($LGCD) | | 16.5% | 2.6% | -0.5% | -2.4% |
| |
|---|
| Median (6 companies) | | 16.5% | 2.6% | 0.9% | 1.9% |
|---|
| Frutarom Industries ($FRUT) | | 14.9% | 19.2% | 9.0% | 21.6% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Uralkali PJSC ($URKA) | 77.1% | 74.6% | | 71.6% | 74.3% |
| Halosource Inc ($HALO) | 46.4% | 34.8% | 32.9% | 40.7% | 44.8% |
| Plastics Capital ($PLA) | 38.3% | 40.6% | 36.2% | 36.6% | 36.0% |
| Croda International ($50GP) | | | 33.9% | 33.7% | 32.8% |
| Basf Se ($BFA) | 29.1% | 26.5% | 24.8% | 24.9% | 24.9% |
| |
|---|
| Median (6 companies) | 38.3% | 34.8% | 32.9% | 35.1% | 34.4% |
|---|
| Frutarom Industries ($FRUT) | 38.8% | 36.4% | 36.6% | 38.1% | 39.1% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Uralkali PJSC ($URKA) | 47.1% | 59.2% | | 44.5% | 48.6% |
| Croda International ($50GP) | | | 27.2% | 27.6% | 26.7% |
| Plastics Capital ($PLA) | 19.0% | 16.4% | 14.7% | 14.4% | 15.5% |
| Basf Se ($BFA) | 17.6% | 16.4% | 13.4% | 13.9% | 14.6% |
| Lg Chem ($LGCD) | 18.0% | 15.8% | 12.0% | 12.0% | 10.9% |
| |
|---|
| Median (6 companies) | 18.0% | 16.4% | 13.4% | 14.1% | 15.1% |
|---|
| Frutarom Industries ($FRUT) | 18.0% | 15.3% | 16.0% | 17.0% | 18.2% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Uralkali PJSC ($URKA) | 20.0% | 10.4% | | 12.5% | 9.8% |
| Basf Se ($BFA) | 4.0% | 4.6% | 5.6% | 6.6% | 7.1% |
| Lg Chem ($LGCD) | 8.3% | 9.7% | 8.2% | 5.9% | 6.3% |
| Croda International ($50GP) | | | 4.8% | 4.1% | 6.0% |
| Plastics Capital ($PLA) | 3.0% | 3.1% | 2.5% | 3.0% | 5.8% |
| |
|---|
| Median (6 companies) | 4.0% | 9.7% | 5.6% | 6.2% | 6.1% |
|---|
| Frutarom Industries ($FRUT) | 1.9% | 1.5% | 2.0% | 3.0% | 2.6% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Croda International ($50GP) | | | 46.5% | 42.3% | 35.3% |
| Basf Se ($BFA) | 21.1% | 20.8% | 15.4% | 16.6% | 16.6% |
| Uralkali PJSC ($URKA) | 32.3% | 23.7% | | | 13.2% |
| Lg Chem ($LGCD) | 30.1% | 24.6% | 14.4% | 12.0% | 8.6% |
| Plastics Capital ($PLA) | 9.3% | 10.4% | 8.3% | 7.3% | 8.6% |
| |
|---|
| Median (6 companies) | 21.1% | 20.8% | 14.4% | 12.0% | 10.9% |
|---|
| Frutarom Industries ($FRUT) | 14.0% | 11.7% | 12.0% | 11.9% | 15.1% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Uralkali PJSC ($URKA) | -0.1x | 1.1x | | 2.8x | 1.8x |
| Plastics Capital ($PLA) | 3.3x | 2.3x | 2.1x | 1.9x | 1.4x |
| Basf Se ($BFA) | 1.2x | 0.9x | 1.2x | 1.2x | 1.3x |
| Lg Chem ($LGCD) | 0.2x | 0.3x | 0.8x | 0.6x | 0.8x |
| Croda International ($50GP) | | | 0.7x | 0.7x | 0.6x |
| |
|---|
| Median (5 companies) | 0.7x | 1.0x | 1.0x | 1.2x | 1.3x |
|---|
| Frutarom Industries ($FRUT) | 0.2x | 1.3x | 1.4x | 1.7x | 1.1x |
