Paints & Chemical Industries EBITDA dropped on 41.4% in 2015 and EBITDA Margin decreased on 3.8 pp from 10.7% to 6.9%
02 Nov 2015 • About Paints & Chemical Industries (
$PCLD) • By InTwits
Paints & Chemical Industries reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.9% in FY2015, 10.7% in FY2014, 13.4% in FY2013, 12.9% in FY2012, 18.7% in FY2011
- Paints & Chemical Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has potentially unprofitable business model: ROIC is at 6.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Paints & Chemical Industries ($PCLD) key annual financial indicators
| mln. EGP | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 717 | 839 | 951 | 1,002 | 910 | -9.2% |
| Gross Profit | 148 | 121 | 142 | 130 | 148 | 14.0% |
| SG&A | | | | | 91 | |
| EBITDA | 134 | 108 | 127 | 107 | 63 | -41.4% |
| Net Income | 133 | 91 | 93 | 66 | 44 | -33.0% |
Balance Sheet
|
|---|
| Cash | 32 | 57 | 90 | 115 | 137 | 18.6% |
| Short Term Debt | 0 | 85 | 92 | 127 | 136 | 7.2% |
| Long Term Debt | 1 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 15 | 8 | 8 | 4 | 3 | -30.9% |
Ratios
|
|---|
| Revenue growth | 1.8% | 17.0% | 13.4% | 5.3% | -9.2% | |
| EBITDA growth | -18.5% | -19.2% | 17.3% | -15.8% | -41.4% | |
| Gross Margin | 20.6% | 14.4% | 14.9% | 13.0% | 16.3% | 3.3% |
| EBITDA Margin | 18.7% | 12.9% | 13.4% | 10.7% | 6.9% | -3.8% |
| Net Income Margin | 18.6% | 10.9% | 9.8% | 6.6% | 4.9% | -1.7% |
| SG&A, % of revenue | | | | | 10.0% | 10.0% |
| CAPEX, % of revenue | 2.1% | 0.9% | 0.9% | 0.4% | 0.3% | -0.1% |
| ROIC | 19.1% | 13.9% | 15.5% | 12.5% | 6.4% | -6.2% |
| ROE | 22.2% | 15.2% | 15.7% | 11.5% | 8.2% | -3.3% |
| Net Debt/EBITDA | -0.2x | 0.3x | 0.0x | 0.1x | -0.0x | -0.1x |
Revenue and profitability
Paints & Chemical Industries's Revenue decreased on 9.2% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.8 pp from 10.7% to 6.9% in FY2015.
Gross Margin increased on 3.3 pp from 13.0% to 16.3% in FY2015.
Net Income marign decreased slightly on 1.7 pp from 6.6% to 4.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Paints & Chemical Industries had CAPEX/Revenue of 0.33%. The company's CAPEX/Revenue decreased slightly on 0.59 pp from 0.92% in FY2012 to 0.33% in FY2015. It's average level of CAPEX/Revenue for the last three years was 0.54%.
Return on investment
The company operates at low ROIC (6.36%) and ROE (8.16%). ROIC decreased on 6.2 pp from 12.5% to 6.4% in FY2015. ROE decreased on 3.3 pp from 11.5% to 8.2% in FY2015.
Leverage (Debt)
Debt level is -0.0x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 0.1x to -0.020x in FY2015. Debt increased on 7.2% in FY2015 while cash surged on 18.6% in FY2015.
Appendix 1: Peers in Construction & Materials
Below we provide Paints & Chemical Industries benchmarking against other companies in Construction & Materials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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% | |
| Lucky Cement Ltd ($LKCS) | | 28.1% | 68.2% | 44.8% | 1.2% |
| |
|---|
| Median (25 companies) | 3.5% | 2.6% | 5.5% | 8.9% | 1.6% |
|---|
| Paints & Chemical Industries ($PCLD) | | 17.0% | 13.4% | 5.3% | -9.2% |
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 ($ALU) | 26.6% | 23.6% | 26.3% | 31.6% | 32.7% |
| |
|---|
| Median (24 companies) | 25.6% | 25.4% | 25.2% | 27.0% | 31.0% |
|---|
| Paints & Chemical Industries ($PCLD) | 20.6% | 14.4% | 14.9% | 13.0% | 16.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucky Cement Ltd ($LKCS) | 25.0% | 31.5% | 26.8% | 24.4% | 26.5% |
| LSR Group OJSC ($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 ($SZCD) | 20.9% | 19.4% | 19.3% | 17.9% | |
| |
|---|
| Median (25 companies) | 7.9% | 8.5% | 7.3% | 9.5% | 10.2% |
|---|
| Paints & Chemical Industries ($PCLD) | 18.7% | 12.9% | 13.4% | 10.7% | 6.9% |
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% | |
| Lucky Cement Ltd ($LKCS) | 7.3% | 3.2% | 5.2% | 6.9% | 12.0% |
| |
|---|
| Median (25 companies) | 2.1% | 2.2% | 2.5% | 2.6% | 2.0% |
|---|
| Paints & Chemical Industries ($PCLD) | 2.1% | 0.9% | 0.9% | 0.4% | 0.3% |
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 ($ALU) | 12.6% | 6.5% | 17.5% | 22.6% | 36.0% |
| Lucky Cement Ltd ($LKCS) | 13.5% | 23.8% | 22.9% | 20.3% | 20.0% |
| LSR Group OJSC ($LSRG) | 9.3% | 10.2% | 8.8% | 20.1% | |
| |
|---|
| Median (25 companies) | 5.2% | 4.0% | 7.2% | 5.4% | 8.0% |
|---|
| Paints & Chemical Industries ($PCLD) | 19.1% | 13.9% | 15.5% | 12.5% | 6.4% |
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) ($COD) | 1.8x | 2.1x | 2.0x | 2.1x | |
| |
|---|
| Median (19 companies) | 1.3x | 1.7x | 0.8x | 0.5x | -0.3x |
|---|
| Paints & Chemical Industries ($PCLD) | -0.2x | 0.3x | 0.0x | 0.1x | -0.0x |
