Aluminium Bahrain Bsc reports 37.8% Net Income decline and 6.7% Revenue decline
21 Feb 2016 • About Aluminium Bahrain Bsc (
$ALBH) • By InTwits
Aluminium Bahrain Bsc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aluminium Bahrain Bsc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.7%. At the same time it's a lot of higher than industry average of 3.7%.
- CAPEX is quite volatile: 23.9 in 2015, 21.4 in 2014, 20.1 in 2013, 12.6 in 2012, 7.8 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aluminium Bahrain Bsc ($ALBH) key annual financial indicators
| mln. BHD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 883.3 | 743.7 | 749.3 | 821.7 | 766.7 | -6.7% |
| Gross Profit | 221.1 | 105.2 | 108.6 | 147.8 | 103.3 | -30.1% |
| SG&A | | | | 49.4 | 44.6 | -9.8% |
| EBITDA | 253.0 | 137.4 | 138.0 | 177.8 | 132.4 | -25.5% |
| Net Income | 211.9 | 96.5 | 79.8 | 96.4 | 60.0 | -37.8% |
Balance Sheet
|
|---|
| Cash | 99.5 | 61.6 | 64.5 | 67.2 | 116.0 | 72.6% |
| Short Term Debt | 162.8 | 177.5 | 116.4 | 72.4 | 56.4 | -22.1% |
| Long Term Debt | 167.1 | 77.1 | 84.4 | 64.1 | 33.0 | -48.5% |
Cash flow
|
|---|
| Capex | 34.4 | 32.7 | 57.5 | 50.6 | 48.6 | -3.9% |
Ratios
|
|---|
| Revenue growth | 17.6% | -15.8% | 0.8% | 9.7% | -6.7% | |
| EBITDA growth | 11.3% | -45.7% | 0.5% | 28.8% | -25.5% | |
| Gross Margin | 25.0% | 14.1% | 14.5% | 18.0% | 13.5% | -4.5% |
| EBITDA Margin | 28.6% | 18.5% | 18.4% | 21.6% | 17.3% | -4.4% |
| Net Income Margin | 24.0% | 13.0% | 10.6% | 11.7% | 7.8% | -3.9% |
| SG&A, % of revenue | | | | 6.0% | 5.8% | -0.2% |
| CAPEX, % of revenue | 3.9% | 4.4% | 7.7% | 6.2% | 6.3% | 0.2% |
| ROIC | 15.6% | 5.4% | 5.6% | 9.3% | 5.6% | -3.7% |
| ROE | 28.1% | 11.8% | 9.4% | 10.8% | 6.4% | -4.4% |
| Net Debt/EBITDA | 0.9x | 1.4x | 1.0x | 0.4x | -0.2x | -0.6x |
Revenue and profitability
The company's Revenue decreased on 6.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 4.4 pp from 21.6% to 17.3% in 2015.
Gross Margin decreased on 4.5 pp from 18.0% to 13.5% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 3.9 pp from 11.7% to 7.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Aluminium Bahrain Bsc's CAPEX/Revenue was 6.3% in 2015. Aluminium Bahrain Bsc's CAPEX/Revenue increased slightly on 1.9 pp from 4.4% in 2012 to 6.3% in 2015. It's average CAPEX/Revenue for the last three years was 6.7%.
Return on investment
The company operates at low ROIC (5.59%) and ROE (6.43%). ROIC decreased on 3.7 pp from 9.3% to 5.6% in 2015. ROE decreased on 4.4 pp from 10.8% to 6.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 0.6x from 0.4x to -0.2x in 2015. Debt dropped on 34.5% in 2015 while cash jumped on 72.6% in 2015.
Appendix 1: Peers in Industrial Metals & Mining
Below we provide Aluminium Bahrain Bsc benchmarking against other companies in Industrial Metals & Mining 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 |
|---|
| Afarak Group ($AFRK) | | -19.2% | 5.4% | 27.4% | 8.7% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 8.2% | 2.4% | -0.1% | 26.4% | |
| Norsk Hydro Asa ($NHY) | | -10.2% | 1.1% | 20.1% | 12.6% |
| Ambrian ($AMBR) | 28,056.2% | -26.8% | 44.6% | 6.8% | |
| Posco ($PIDD) | | -7.7% | -2.7% | 5.2% | -10.6% |
| |
|---|
| Median (14 companies) | 18.5% | -4.4% | -1.4% | 0.7% | -9.8% |
|---|
| Aluminium Bahrain Bsc ($ALBH) | | -15.8% | 0.8% | 9.7% | -6.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 59.0% | 49.1% | 43.4% | 52.2% | |
| Severstal PJSC ($SVST) | 31.0% | 23.5% | 29.9% | 34.4% | 40.4% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 22.5% | 17.7% | 15.1% | 28.6% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 28.6% | 23.8% | 19.4% | 28.3% | |
| First Quantum Minerals ($FQM) | 50.6% | 37.3% | 31.9% | 28.2% | 11.4% |
| |
|---|
| Median (13 companies) | 19.0% | 16.6% | 15.1% | 19.5% | 16.3% |
|---|
| Aluminium Bahrain Bsc ($ALBH) | 25.0% | 14.1% | 14.5% | 18.0% | 13.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 49.5% | 38.6% | 29.2% | 46.8% | |
| First Quantum Minerals ($FQM) | 47.7% | 80.0% | 38.1% | 39.9% | 17.8% |
| Severstal PJSC ($SVST) | 22.5% | 14.9% | 19.3% | 26.4% | 32.4% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 17.1% | 12.7% | 5.7% | 25.3% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 19.2% | 15.6% | 13.8% | 21.8% | |
| |
|---|
| Median (15 companies) | 15.3% | 12.9% | 12.1% | 12.6% | 16.2% |
|---|
| Aluminium Bahrain Bsc ($ALBH) | 28.6% | 18.5% | 18.4% | 21.6% | 17.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Base Resources Ltd ($BSE) | | | | 401.9% | 6.3% |
| First Quantum Minerals ($FQM) | 40.6% | 46.5% | 73.2% | 81.7% | 72.5% |
| Mmc Norilsk Nickel ($MNOD) | 15.6% | 22.3% | 17.1% | 10.8% | |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 9.0% | 7.0% | 7.9% | 9.9% | |
| Vimetco Nv ($VICO) | | | | 8.8% | |
| |
|---|
| Median (15 companies) | 7.7% | 7.0% | 7.6% | 6.4% | 6.0% |
|---|
| Aluminium Bahrain Bsc ($ALBH) | 3.9% | 4.4% | 7.7% | 6.2% | 6.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | | 41.7% | 56.6% | 55.8% | 26.6% |
| Mmc Norilsk Nickel ($MNOD) | 32.4% | 21.8% | 14.2% | 34.1% | |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 13.6% | 6.2% | -2.7% | 25.6% | |
| Severstal PJSC ($SVST) | 21.3% | 10.3% | 9.6% | 17.7% | 30.3% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 11.8% | 7.2% | 4.1% | 12.0% | |
| |
|---|
| Median (15 companies) | 11.0% | 6.2% | 4.1% | 7.4% | 7.0% |
|---|
| Aluminium Bahrain Bsc ($ALBH) | 15.6% | 5.4% | 5.6% | 9.3% | 5.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ambrian ($AMBR) | 3,395.4x | | 42.6x | 176.1x | |
| Ezz Steel ($AEZD) | 3.4x | 4.8x | 3.6x | 19.4x | |
| Vimetco Nv ($VICO) | 5.4x | 7.7x | | 10.9x | |
| First Quantum Minerals ($FQM) | -0.3x | 0.0x | 2.5x | 4.0x | 10.5x |
| OAO TMK ($TMKS) | 3.5x | 3.6x | 3.9x | 3.8x | |
| |
|---|
| Median (14 companies) | 3.0x | 2.0x | 2.1x | 1.2x | 0.6x |
|---|
| Aluminium Bahrain Bsc ($ALBH) | 0.9x | 1.4x | 1.0x | 0.4x | -0.2x |
