Suez Cement Co Net Income dropped on 111% in 2015 and EBITDA Margin dropped on 12.9 pp from 17.9% to 5.0%
06 Mar 2016 • About Suez Cement Co (
$SZCD) • By InTwits
Suez Cement Co reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Suez Cement Co doesn't have a profitable business model yet: 2015 ROIC is -2.3%
- EBITDA Margin is declining: 5.0% in 2015 vs. 17.9% in 2014 vs. 20.9% in 2011
- EBITDA Margin is quite volatile: 5.0% in 2015, 17.9% in 2014, 19.3% in 2013, 19.4% in 2012, 20.9% in 2011
- Suez Cement Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 12.2%.
- CAPEX is quite volatile: 42.1 in 2015, 248 in 2014, 50.2 in 2013, 6.2 in 2012, 35.9 in 2011
- The company has unprofitable business model: ROIC is at -2.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Suez Cement Co ($SZCD) key annual financial indicators
| mln. EGP | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,820 | 4,597 | 5,049 | 6,152 | 5,642 | -8.3% |
| Gross Profit | 1,087 | 852 | 934 | 1,086 | 423 | -61.1% |
| SG&A | | | | 436 | 544 | 24.8% |
| EBITDA | 1,009 | 894 | 972 | 1,098 | 280 | -74.5% |
| Net Income | 569 | 524 | 538 | 500 | -57 | -111.5% |
Balance Sheet
|
|---|
| Cash | 1,448 | 1,622 | 1,817 | 1,626 | 1,060 | -34.8% |
| Short Term Debt | 29 | 38 | 55 | 67 | 252 | 275.4% |
| Long Term Debt | 81 | 57 | 58 | 147 | 147 | -0.0% |
Cash flow
|
|---|
| Capex | 36 | 6 | 50 | 248 | 42 | -83.0% |
Ratios
|
|---|
| Revenue growth | -21.6% | -4.6% | 9.8% | 21.8% | -8.3% | |
| EBITDA growth | -51.9% | -11.4% | 8.8% | 13.0% | -74.5% | |
| Gross Margin | 22.5% | 18.5% | 18.5% | 17.7% | 7.5% | -10.2% |
| EBITDA Margin | 20.9% | 19.4% | 19.3% | 17.9% | 5.0% | -12.9% |
| Net Income Margin | 11.8% | 11.4% | 10.7% | 8.1% | -1.0% | -9.1% |
| SG&A, % of revenue | | | | 7.1% | 9.6% | 2.6% |
| CAPEX, % of revenue | 0.7% | 0.1% | 1.0% | 4.0% | 0.7% | -3.3% |
| ROIC | 7.9% | 6.7% | 7.2% | 7.8% | -2.3% | -10.0% |
| ROE | 7.9% | 7.4% | 7.5% | 6.9% | -0.8% | -7.7% |
| Net Debt/EBITDA | -1.3x | -1.7x | -1.8x | -1.3x | -2.4x | -1.1x |
Revenue and profitability
The company's Revenue decreased on 8.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.8 pp from 19.5% to 28.3% in 2015.
Gross Margin dropped on 10.2 pp from 17.7% to 7.5% in 2015. SG&A as a % of Revenue increased on 2.6 pp from 7.1% to 9.6% in 2015.
Net Income marign decreased on 9.1 pp from 8.1% to -1.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Suez Cement Co's CAPEX/Revenue was 0.75% in 2015. The company's CAPEX/Revenue increased slightly on 0.61 pp from 0.13% in 2012 to 0.75% in 2015. It's average level of CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at negative ROIC (-2.26%) and ROE (-0.83%). ROIC dropped on 10.0 pp from 7.8% to -2.3% in 2015. ROE decreased on 7.7 pp from 6.9% to -0.83% in 2015.
Leverage (Debt)
Debt level is -2.4x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA dropped on 1.1x from -1.3x to -2.4x in 2015. Debt surged on 86.4% in 2015 while cash dropped on 34.8% in 2015.
Appendix 1: Peers in Construction & Materials
Below we provide Suez Cement Co 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 ($AUK) | | 13.7% | 5.5% | 107.0% | 14.6% |
| Accsys Technologies ($AXS) | | 9.5% | 25.5% | 78.0% | 37.5% |
| Inch Kenneth Kajang Rubber ($IKK) | | -18.7% | -14.2% | 68.0% | -56.5% |
| LSR Group OJSC ($LSRG) | 4.0% | 17.6% | -1.4% | 54.1% | |
| Lucky Cement Ltd ($LKCS) | | 28.1% | 68.2% | 44.8% | 1.2% |
| |
|---|
| Median (25 companies) | 15.9% | 3.6% | 5.5% | 8.8% | 1.6% |
|---|
| Suez Cement Co ($SZCD) | | -4.6% | 9.8% | 21.8% | -8.3% |
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 ($SWP) | 39.2% | 43.0% | 48.1% | 39.2% | 49.7% |
| Billington Hldgs ($BILN) | 30.4% | 41.1% | 41.7% | 38.8% | |
| Alumasc Group ($ALU) | 26.6% | 23.6% | 26.3% | 31.6% | 32.7% |
| |
|---|
| Median (24 companies) | 25.6% | 25.4% | 25.2% | 27.0% | 29.3% |
|---|
| Suez Cement Co ($SZCD) | 22.5% | 18.5% | 18.5% | 17.7% | 7.5% |
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% | |
| Steppe Cement ($STCM) | 21.3% | 20.8% | 23.2% | 14.3% | |
| |
|---|
| Median (25 companies) | 7.9% | 8.5% | 7.3% | 9.5% | 9.7% |
|---|
| Suez Cement Co ($SZCD) | 20.9% | 19.4% | 19.3% | 17.9% | 5.0% |
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% | 54.9% |
| Swp Group ($SWP) | 0.8% | 0.9% | 2.5% | 8.5% | 7.4% |
| Michelmersh Brick Hldgs ($MBH) | 1.3% | 1.1% | 3.6% | 7.3% | |
| Lucky Cement Ltd ($LKCS) | 7.3% | 3.2% | 5.2% | 6.9% | 12.0% |
| |
|---|
| Median (25 companies) | 2.1% | 2.2% | 2.5% | 2.4% | 2.3% |
|---|
| Suez Cement Co ($SZCD) | 0.7% | 0.1% | 1.0% | 4.0% | 0.7% |
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% | 31.6% |
| 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 ($LSRG) | 9.3% | 10.2% | 8.8% | 20.1% | |
| |
|---|
| Median (25 companies) | 5.2% | 4.0% | 7.5% | 5.4% | 7.8% |
|---|
| Suez Cement Co ($SZCD) | 7.9% | 6.7% | 7.2% | 7.8% | -2.3% |
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) ($COD) | 1.8x | 2.1x | 2.0x | 2.1x | 1.4x |
| |
|---|
| Median (19 companies) | 1.3x | 1.7x | 0.8x | 0.5x | -0.1x |
|---|
| Suez Cement Co ($SZCD) | -1.3x | -1.7x | -1.8x | -1.3x | -2.4x |
