Magnit PJSC revenue jumped on 24.4% in 2015 and EBITDA Margin showed almost no change
27 Jan 2016 • About Magnit PJSC (
$MGNT) • By InTwits
Magnit PJSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Magnit PJSC is a fast growth stock: 2015 revenue growth was 24.4%, 5 year revenue CAGR was 32.2% at 2015 ROIC 32.6%
- Magnit PJSC has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.3%. At the same time it's a lot of higher than industry average of 6.1%.
- CAPEX is quite volatile: 349,036 in 2015, 271,330 in 2014, 208,611 in 2013, 169,213 in 2012, 118,449 in 2011
- The company has highly profitable business model: ROIC is at 32.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.9x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Magnit PJSC ($MGNT) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 335,835 | 448,234 | 579,994 | 767,556 | 955,100 | 24.4% |
| Gross Profit | 81,696 | 118,939 | 165,348 | 221,684 | 272,099 | 22.7% |
| SG&A | 55,525 | 72,829 | 102,005 | 135,111 | 168,616 | 24.8% |
| EBITDA | 26,348 | 46,231 | 63,575 | 86,867 | 103,978 | 19.7% |
| Net Income | 12,309 | 25,093 | 35,639 | 47,937 | 59,340 | 23.8% |
Balance Sheet
|
|---|
| Cash | 17,167 | 12,528 | 5,961 | 18,318 | 8,396 | -54.2% |
| Short Term Debt | 6,174 | 25,275 | 36,503 | 53,072 | 43,108 | -18.8% |
| Long Term Debt | 45,761 | 38,479 | 37,631 | 45,983 | 59,446 | 29.3% |
Cash flow
|
|---|
| Capex | 48,711 | 47,265 | 50,077 | 56,006 | 54,255 | -3.1% |
Ratios
|
|---|
| Revenue growth | 42.2% | 33.5% | 29.4% | 32.3% | 24.4% | |
| EBITDA growth | 41.4% | 75.5% | 37.5% | 36.6% | 19.7% | |
| Gross Margin | 24.3% | 26.5% | 28.5% | 28.9% | 28.5% | -0.4% |
| EBITDA Margin | 7.8% | 10.3% | 11.0% | 11.3% | 10.9% | -0.4% |
| Net Income Margin | 3.7% | 5.6% | 6.1% | 6.2% | 6.2% | -0.0% |
| SG&A, % of revenue | 16.5% | 16.2% | 17.6% | 17.6% | 17.7% | 0.1% |
| CAPEX, % of revenue | 14.5% | 10.5% | 8.6% | 7.3% | 5.7% | -1.6% |
| ROIC | 17.9% | 23.1% | 26.0% | 33.2% | 32.6% | -0.6% |
| ROE | 20.1% | 28.3% | 31.4% | 38.7% | 40.2% | 1.5% |
| Net Debt/EBITDA | 1.3x | 1.1x | 1.1x | 0.9x | 0.9x | -0.0x |
Revenue and profitability
The company's Revenue jumped on 24.4% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.7 pp from 5.9% to 8.6% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Magnit PJSC had CAPEX/Revenue of 5.7%. The company's CAPEX/Revenue decreased on 4.9 pp from 10.5% in 2012 to 5.7% in 2015. For the last three years the average CAPEX/Revenue was 7.2%.Magnit PJSC invested a big chunk of EBITDA (52.2%) to CAPEX to fuel its growth.
Return on investment
The company operates at high and attractive ROIC (32.61%) and ROE (40.21%). ROIC decreased slightly on 0.56 pp from 33.2% to 32.6% in 2015. ROE increased slightly on 1.5 pp from 38.7% to 40.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is 1.0x. Net Debt / EBITDA decreased on 0.024x from 0.9x to 0.9x in 2015. Debt increased on 3.5% in 2015 while cash dropped on 54.2% in 2015.
Appendix 1: Peers in Food & Drug Retailers
Below we provide Magnit PJSC benchmarking against other companies in Food & Drug Retailers 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 |
|---|
| Lenta Ltd ($LNTA) | 27.1% | 22.4% | 31.3% | 34.5% | |
| X5 Retail Group N.V ($89VS) | 32.6% | 8.0% | 9.0% | 18.5% | |
| Crawshaw Group ($CRAW) | | -0.9% | -0.6% | 11.9% | 17.1% |
| O'Key Group Sa ($OKEY) | 12.7% | 26.0% | 18.9% | 9.0% | |
| Dairy Farm International Hldgs ($DFIB) | 14.6% | 7.3% | 5.7% | 6.3% | |
| |
|---|
| Median (8 companies) | 26.3% | 7.6% | 7.1% | 7.6% | 17.1% |
|---|
| Magnit PJSC ($MGNT) | | 33.5% | 29.4% | 32.3% | 24.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Snacktime ($SNAK) | 55.0% | 56.6% | 51.8% | 55.1% | |
| Crawshaw Group ($CRAW) | 43.6% | 43.3% | 43.7% | 43.8% | 44.4% |
| Dairy Farm International Hldgs ($DFIB) | 29.4% | 28.9% | 29.8% | 29.9% | |
| O'Key Group Sa ($OKEY) | 22.8% | 23.5% | 23.9% | 24.5% | |
| X5 Retail Group N.V ($89VS) | 23.8% | 23.6% | 24.4% | 24.5% | |
| |
|---|
| Median (8 companies) | 23.3% | 23.6% | 24.1% | 24.5% | 44.4% |
|---|
| Magnit PJSC ($MGNT) | 24.3% | 26.5% | 28.5% | 28.9% | 28.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jardine Matheson Hldgs ($J36) | 24.4% | 13.1% | 11.6% | 11.8% | |
| Lenta Ltd ($LNTA) | 9.3% | 10.7% | 11.2% | 11.0% | |
| X5 Retail Group N.V ($89VS) | 7.3% | 6.9% | 7.1% | 7.7% | |
| O'Key Group Sa ($OKEY) | 7.9% | 8.1% | 7.3% | 7.3% | |
| Dairy Farm International Hldgs ($DFIB) | 7.6% | 6.6% | 6.9% | 6.6% | |
| |
|---|
| Median (8 companies) | 7.8% | 6.7% | 7.0% | 6.9% | 6.4% |
|---|
| Magnit PJSC ($MGNT) | 7.8% | 10.3% | 11.0% | 11.3% | 10.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lenta Ltd ($LNTA) | 4.4% | 13.4% | 16.2% | 17.9% | |
| O'Key Group Sa ($OKEY) | 9.3% | 7.1% | 8.7% | 10.6% | |
| X5 Retail Group N.V ($89VS) | 5.1% | 4.6% | 3.8% | 4.5% | |
| Jardine Matheson Hldgs ($J36) | 3.6% | 4.9% | 4.4% | 3.5% | |
| Snacktime ($SNAK) | 2.6% | 5.3% | 4.3% | 3.4% | |
| |
|---|
| Median (8 companies) | 3.6% | 4.7% | 4.1% | 3.4% | 6.3% |
|---|
| Magnit PJSC ($MGNT) | 14.5% | 10.5% | 8.6% | 7.3% | 5.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dairy Farm International Hldgs ($DFIB) | 39.6% | 32.8% | 34.6% | 31.1% | |
| Lenta Ltd ($LNTA) | 44.1% | 42.9% | 34.0% | 24.5% | |
| O'Key Group Sa ($OKEY) | 21.7% | 25.0% | 21.8% | 17.1% | |
| X5 Retail Group N.V ($89VS) | 11.9% | 3.1% | 13.0% | 14.9% | |
| Total Produce ($TOT) | 8.8% | 9.0% | 11.9% | 10.3% | |
| |
|---|
| Median (8 companies) | 15.0% | 8.5% | 12.4% | 12.6% | 7.1% |
|---|
| Magnit PJSC ($MGNT) | 17.9% | 23.1% | 26.0% | 33.2% | 32.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Snacktime ($SNAK) | 0.8x | 2.0x | 6.0x | 4.4x | |
| Lenta Ltd ($LNTA) | 2.4x | 2.2x | 2.5x | 2.8x | |
| O'Key Group Sa ($OKEY) | 1.2x | 1.0x | 1.3x | 2.4x | |
| X5 Retail Group N.V ($89VS) | 3.1x | 3.3x | 2.7x | 2.2x | |
| Jardine Matheson Hldgs ($J36) | 0.6x | 1.4x | 1.3x | 1.3x | |
| |
|---|
| Median (8 companies) | 1.0x | 1.2x | 1.3x | 1.7x | -5.8x |
|---|
| Magnit PJSC ($MGNT) | 1.3x | 1.1x | 1.1x | 0.9x | 0.9x |
