Lucky Cement Ltd CAPEX surged on 75.9% in 2015 and Revenue increased slightly on 1.2%
08 Sep 2015 • About Lucky Cement Ltd (
$LKCS) • By InTwits
Lucky Cement Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lucky Cement Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.9%. At the same time it's a lot of higher than industry average of 4.1%.
- CAPEX is quite volatile: 9,857 in FY2015, 5,603 in FY2014, 2,893 in FY2013, 1,051 in FY2012, 1,905 in FY2011
- The company has highly profitable business model: ROIC is at 20.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lucky Cement Ltd ($LKCS) key annual financial indicators
| mln. PKR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 26,018 | 33,323 | 56,050 | 81,148 | 82,118 | 1.2% |
| Gross Profit | 8,711 | 12,721 | 18,539 | 23,127 | 25,687 | 11.1% |
| EBITDA | 6,498 | 10,481 | 15,043 | 19,788 | 21,780 | 10.1% |
| Net Income | 3,970 | 6,782 | 9,808 | 11,892 | 13,758 | 15.7% |
Balance Sheet
|
|---|
| Cash | 287 | 436 | 1,439 | 3,744 | 18,156 | 384.9% |
| Short Term Debt | 6,568 | 265 | 2,920 | 1,601 | 3,630 | 126.8% |
| Long Term Debt | 658 | 393 | 7,792 | 9,983 | 8,854 | -11.3% |
Cash flow
|
|---|
| Capex | 1,905 | 1,051 | 2,893 | 5,603 | 9,857 | 75.9% |
Ratios
|
|---|
| Revenue growth | 6.2% | 28.1% | 68.2% | 44.8% | 1.2% | |
| EBITDA growth | 18.1% | 61.3% | 43.5% | 31.5% | 10.1% | |
| Gross Margin | 33.5% | 38.2% | 33.1% | 28.5% | 31.3% | 2.8% |
| EBITDA Margin | 25.0% | 31.5% | 26.8% | 24.4% | 26.5% | 2.1% |
| Net Income Margin | 15.3% | 20.4% | 17.5% | 14.7% | 16.8% | 2.1% |
| CAPEX, % of revenue | 7.3% | 3.2% | 5.2% | 6.9% | 12.0% | 5.1% |
| ROIC | 13.5% | 23.8% | 22.9% | 20.3% | 20.0% | -0.2% |
| ROE | 15.0% | 22.2% | 26.4% | 26.0% | 24.6% | -1.4% |
| Net Debt/EBITDA | 1.1x | 0.0x | 0.6x | 0.4x | -0.3x | -0.7x |
Revenue and profitability
The company's Revenue increased slightly on 1.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.6 pp from 22.9% to 19.3% in 2015.
Gross Margin increased on 2.8 pp from 28.5% to 31.3% in FY2015.
Net Income marign increased on 2.1 pp from 14.7% to 16.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Lucky Cement Ltd had CAPEX/Revenue of 12.0%. The company's CAPEX/Revenue increased on 8.8 pp from 3.2% in FY2012 to 12.0% in FY2015. It's average level of CAPEX/Revenue for the last three years was 8.0%.
Return on investment
The company operates at high and attractive ROIC (20.02%) and ROE (24.61%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.4 pp from 26.0% to 24.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 0.6x. Net Debt / EBITDA dropped on 0.7x from 0.4x to -0.3x in FY2015. Debt increased on 7.8% in FY2015 while cash surged on 385% in FY2015.
Appendix 1: Peers in Construction & Materials
Below you can find Lucky Cement Ltd benchmarking vs. other companies in Construction & Materials 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Aukett Swanke Group ($AUK) | -4.0% | 13.7% | 5.5% | 107.0% | |
| Accsys Technologies ($AXS) | | 9.5% | 25.5% | 78.0% | 37.5% |
| Inch Kenneth Kajang Rubber ($IKK) | -28.4% | -18.7% | -14.2% | 68.0% | |
| LSR Group OJSC ($LSRG) | 4.0% | 17.6% | -1.4% | 54.1% | |
| Swp Group ($SWP) | -7.7% | -14.7% | -31.6% | 42.0% | |
| |
|---|
| Median (25 companies) | 2.8% | 2.6% | 5.5% | 8.8% | 1.7% |
|---|
| Lucky Cement Ltd ($LKCS) | | 28.1% | 68.2% | 44.8% | 1.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Heath(Samuel)& Sons ($HSM) | 49.2% | 49.5% | 47.3% | 48.6% | 47.6% |
| James Halstead ($JHD) | | 41.2% | 41.6% | 41.0% | 41.7% |
| Swp Group ($SWP) | 39.2% | 43.0% | 48.1% | 39.2% | |
| Billington Hldgs ($BILN) | 30.4% | 41.1% | 41.7% | 38.8% | |
| Alumasc Group ($ALU) | 26.6% | 23.6% | 26.3% | 31.6% | 32.7% |
| |
|---|
| Median (24 companies) | 24.4% | 23.6% | 24.2% | 26.3% | 31.7% |
|---|
| Lucky Cement Ltd ($LKCS) | 33.5% | 38.2% | 33.1% | 28.5% | 31.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| LSR Group OJSC ($LSRG) | 19.8% | 20.2% | 19.5% | 22.9% | |
| James Halstead ($JHD) | | 20.2% | 19.8% | 20.1% | 20.9% |
| Asia Cement Corp ($ASCD) | 20.2% | 13.5% | 16.3% | 18.3% | |
| Suez Cement Co ($SZCD) | 20.9% | 19.4% | 19.3% | 17.9% | |
| Steppe Cement ($STCM) | 21.3% | 20.8% | 23.2% | 14.3% | |
| |
|---|
| Median (25 companies) | 7.9% | 8.5% | 7.3% | 9.5% | 9.7% |
|---|
| Lucky Cement Ltd ($LKCS) | 25.0% | 31.5% | 26.8% | 24.4% | 26.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Steppe Cement ($STCM) | 1.8% | 8.4% | 13.0% | 18.7% | |
| Inch Kenneth Kajang Rubber ($IKK) | 15.9% | 74.2% | 5.4% | 12.8% | |
| Swp Group ($SWP) | 0.8% | 0.9% | 2.5% | 8.5% | |
| Michelmersh Brick Hldgs ($MBH) | 1.3% | 1.1% | 3.6% | 7.3% | |
| Asia Cement Corp ($ASCD) | 4.0% | 6.0% | 12.1% | 5.4% | |
| |
|---|
| Median (25 companies) | 2.1% | 2.1% | 2.4% | 2.4% | 2.0% |
|---|
| Lucky Cement Ltd ($LKCS) | 7.3% | 3.2% | 5.2% | 6.9% | 12.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| James Halstead ($JHD) | | 49.3% | 46.2% | 46.7% | 45.3% |
| Aukett Swanke Group ($AUK) | -41.2% | 2.7% | 11.4% | 27.3% | |
| Alumasc Group ($ALU) | 12.6% | 6.5% | 17.5% | 22.6% | 36.0% |
| LSR Group OJSC ($LSRG) | 9.3% | 10.2% | 8.8% | 20.1% | |
| Heath(Samuel)& Sons ($HSM) | 8.1% | 9.7% | 8.7% | 19.7% | 32.0% |
| |
|---|
| Median (25 companies) | 5.2% | 4.0% | 7.2% | 5.4% | 8.0% |
|---|
| Lucky Cement Ltd ($LKCS) | 13.5% | 23.8% | 22.9% | 20.3% | 20.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountfield Group ($MOGP) | | 26.3x | 4.8x | 52.0x | |
| Asia Cement Corp ($ASCD) | 4.3x | 7.8x | 6.9x | 6.8x | |
| Steppe Cement ($STCM) | 2.6x | 1.6x | 1.2x | 2.9x | |
| Low & Bonar ($BD46) | | 2.7x | 2.1x | 2.1x | 2.4x |
| Saint-Gobain(Compagnie De) ($COD) | 1.8x | 2.1x | 2.0x | 2.1x | |
| |
|---|
| Median (19 companies) | 1.3x | 1.7x | 0.8x | 0.5x | -0.1x |
|---|
| Lucky Cement Ltd ($LKCS) | 1.1x | 0.0x | 0.6x | 0.4x | -0.3x |
