Inter RAO JSC reports 19.9% EBITDA growth and 12.3% Revenue growth
29 Feb 2016 • About Inter RAO JSC (
$IRAO) • By InTwits
Inter RAO JSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 5.9% in 2015, 5.6% in 2014, 0.8% in 2013, -2.7% in 2012, 1.6% in 2011
- Inter RAO JSC has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.6%. At the same time it's a lot of higher than industry average of 7.3%.
- CAPEX is quite volatile: 349,036 in 2015, 271,330 in 2014, 208,611 in 2013, 169,213 in 2012, 118,449 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Inter RAO JSC ($IRAO) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 536,244 | 556,189 | 662,321 | 741,101 | 831,987 | 12.3% |
| EBITDA | 8,533 | -15,027 | 5,260 | 41,170 | 49,352 | 19.9% |
| Net Income | 36,144 | -22,737 | -23,067 | 7,837 | 22,601 | 188.4% |
Balance Sheet
|
|---|
| Cash | 43,518 | 48,049 | 39,882 | 75,599 | 66,280 | -12.3% |
| Short Term Debt | 3,458 | 14,911 | 12,446 | 42,208 | 33,332 | -21.0% |
| Long Term Debt | 44,514 | 44,377 | 40,198 | 64,185 | 42,617 | -33.6% |
Cash flow
|
|---|
| Capex | 26,430 | 48,884 | 40,982 | 35,980 | 28,966 | -19.5% |
Ratios
|
|---|
| Revenue growth | 15.5% | 3.7% | 19.1% | 11.9% | 12.3% | |
| EBITDA growth | -76.7% | -276.1% | -135.0% | 682.7% | 19.9% | |
| EBITDA Margin | 1.6% | -2.7% | 0.8% | 5.6% | 5.9% | 0.4% |
| Net Income Margin | 6.7% | -4.1% | -3.5% | 1.1% | 2.7% | 1.7% |
| CAPEX, % of revenue | 4.9% | 8.8% | 6.2% | 4.9% | 3.5% | -1.4% |
| ROIC | -1.4% | -6.9% | -4.3% | 4.4% | 5.5% | 1.1% |
| ROE | 15.6% | -6.5% | -6.8% | 2.3% | 6.4% | 4.1% |
| Net Debt/EBITDA | 0.5x | | 2.4x | 0.7x | 0.2x | -0.6x |
Revenue and profitability
The company's Revenue jumped on 12.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.7 pp from 5.9% to 8.6% in 2015.
Net Income marign increased slightly on 1.7 pp from 1.1% to 2.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 3.5%. CAPEX/Revenue decreased on 5.3 pp from 8.8% in 2012 to 3.5% in 2015. It's average CAPEX/Revenue for the last three years was 4.8%.To deliver this fast growth Inter RAO JSC invested a large share of EBITDA (58.7%) to CAPEX.
Return on investment
The company operates at low ROIC (5.46%) and ROE (6.40%). ROIC increased slightly on 1.1 pp from 4.4% to 5.5% in 2015. ROE increased on 4.1 pp from 2.3% to 6.4% in 2015.
Leverage (Debt)
Debt level is 0.2x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 0.7x to 0.2x in 2015. Debt dropped on 28.6% in 2015 while cash dropped on 12.3% in 2015.
Appendix 1: Peers in Gas, Water & Multiutilities
Below you can find Inter RAO JSC benchmarking vs. other companies in Gas, Water & Multiutilities 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dee Valley Group ($DVW) | | 3.5% | 3.2% | 4.3% | 3.4% |
| National Grid ($NG.) | | -3.6% | 3.8% | 3.1% | 2.6% |
| United Utilities Group ($UU.) | | 3.4% | 4.5% | 3.2% | 1.9% |
| |
|---|
| Median (3 companies) | | 3.4% | 3.8% | 3.2% | 2.6% |
|---|
| Inter RAO JSC ($IRAO) | | 3.7% | 19.1% | 11.9% | 12.3% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dee Valley Group ($DVW) | 96.9% | 97.0% | 96.9% | 97.0% | 96.9% |
| |
|---|
| Median (1 company) | 96.9% | 97.0% | 96.9% | 97.0% | 96.9% |
|---|
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Utilities Group ($UU.) | 57.5% | 56.8% | 56.9% | 57.3% | 58.5% |
| Dee Valley Group ($DVW) | 53.7% | 56.4% | 53.5% | 50.5% | 49.2% |
| National Grid ($NG.) | 34.8% | 34.9% | 35.6% | 34.8% | 34.7% |
| |
|---|
| Median (3 companies) | 53.7% | 56.4% | 53.5% | 50.5% | 49.2% |
|---|
| Inter RAO JSC ($IRAO) | 1.6% | -2.7% | 0.8% | 5.6% | 5.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Utilities Group ($UU.) | 31.4% | 32.1% | 38.2% | 39.2% | 38.7% |
| Dee Valley Group ($DVW) | 11.9% | 32.0% | 66.9% | 28.1% | 27.3% |
| National Grid ($NG.) | 20.6% | 22.8% | 22.4% | 19.9% | 20.2% |
| |
|---|
| Median (3 companies) | 20.6% | 32.0% | 38.2% | 28.1% | 27.3% |
|---|
| Inter RAO JSC ($IRAO) | 4.9% | 8.8% | 6.2% | 4.9% | 3.5% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| National Grid ($NG.) | 10.9% | 9.8% | 9.6% | 8.9% | 9.0% |
| Dee Valley Group ($DVW) | 9.4% | 8.2% | 7.9% | 7.5% | 7.4% |
| United Utilities Group ($UU.) | 7.0% | 6.9% | 6.6% | 6.8% | 6.7% |
| |
|---|
| Median (3 companies) | 9.4% | 8.2% | 7.9% | 7.5% | 7.4% |
|---|
| Inter RAO JSC ($IRAO) | -1.4% | -6.9% | -4.3% | 4.4% | 5.5% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Utilities Group ($UU.) | 5.8x | 6.2x | 6.4x | 6.1x | 6.4x |
| National Grid ($NG.) | 4.6x | 4.7x | 5.4x | 5.0x | 4.9x |
| Dee Valley Group ($DVW) | 3.3x | 3.2x | 4.0x | 4.2x | 4.2x |
| |
|---|
| Median (3 companies) | 4.6x | 4.7x | 5.4x | 5.0x | 4.9x |
|---|
| Inter RAO JSC ($IRAO) | 0.5x | | 2.4x | 0.7x | 0.2x |
