Phosagro OJSC reports 367% Net Income growth and 12.9 pp EBITDA Margin growth from 30.5% to 43.5%
23 Mar 2016 • About Phosagro OJSC (
$PHOR) • By InTwits
Phosagro OJSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Phosagro OJSC is a fast growth stock: 2015 revenue growth was 54.1%, 5 year revenue CAGR was 19.8% at 2015 ROIC 41.2%
- Phosagro OJSC has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.3%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 42,550 in 2015, 20,549 in 2014, 17,795 in 2013, 13,370 in 2012, 12,905 in 2011
- The company has highly profitable business model: ROIC is at 41.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.3x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Phosagro OJSC ($PHOR) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 100,518 | 105,303 | 104,566 | 123,124 | 189,732 | 54.1% |
| Gross Profit | 44,322 | 45,167 | 36,427 | 55,657 | 106,668 | 91.7% |
| SG&A | 11,806 | 13,781 | 16,113 | 21,365 | 28,859 | 35.1% |
| EBITDA | 35,370 | 34,695 | 23,934 | 37,609 | 82,464 | 119.3% |
| Net Income | 19,935 | 20,654 | 7,660 | -13,641 | 36,442 | -367.2% |
Balance Sheet
|
|---|
| Cash | 16,888 | 9,664 | 8,938 | 30,687 | 29,347 | -4.4% |
| Short Term Debt | 15,561 | 22,017 | 13,206 | 30,822 | 28,947 | -6.1% |
| Long Term Debt | 16,592 | 14,452 | 39,550 | 93,002 | 105,565 | 13.5% |
Cash flow
|
|---|
| Capex | 12,905 | 13,370 | 17,795 | 20,549 | 42,550 | 107.1% |
Ratios
|
|---|
| Revenue growth | 30.6% | 4.8% | -0.7% | 17.7% | 54.1% | |
| EBITDA growth | 72.8% | -1.9% | -31.0% | 57.1% | 119.3% | |
| Gross Margin | 44.1% | 42.9% | 34.8% | 45.2% | 56.2% | 11.0% |
| EBITDA Margin | 35.2% | 32.9% | 22.9% | 30.5% | 43.5% | 12.9% |
| Net Income Margin | 19.8% | 19.6% | 7.3% | -11.1% | 19.2% | 30.3% |
| SG&A, % of revenue | 11.7% | 13.1% | 15.4% | 17.4% | 15.2% | -2.1% |
| CAPEX, % of revenue | 12.8% | 12.7% | 17.0% | 16.7% | 22.4% | 5.7% |
| ROIC | 32.4% | 28.5% | 15.0% | 21.6% | 41.2% | 19.6% |
| ROE | 39.2% | 44.3% | 14.5% | -29.6% | 76.1% | 105.7% |
| Net Debt/EBITDA | 0.4x | 0.8x | 1.8x | 2.5x | 1.3x | -1.2x |
Revenue and profitability
Phosagro OJSC's Revenue surged on 54.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.93 pp from 6.4% to 7.3% in 2015.
Gross Margin surged on 11.0 pp from 45.2% to 56.2% in 2015. SG&A as a % of Revenue decreased on 2.1 pp from 17.4% to 15.2% in 2015.
Net Income marign jumped on 30.3 pp from -11.1% to 19.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 22.4% in 2015. CAPEX/Revenue increased on 9.7 pp from 12.7% in 2012 to 22.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 18.7%.Phosagro OJSC invested a big chunk of EBITDA (51.6%) to CAPEX to secure its growth.
Return on investment
The company operates at high and attractive ROIC (41.25%) and ROE (76.07%). ROIC jumped on 19.6 pp from 21.6% to 41.2% in 2015. ROE surged on 106 pp from -29.6% to 76.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.6x. Net Debt / EBITDA dropped on 1.2x from 2.5x to 1.3x in 2015. Debt increased on 8.6% in 2015 while cash decreased on 4.4% in 2015.
Appendix 1: Peers in Chemicals
Below we provide Phosagro OJSC benchmarking against other companies in Chemicals 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 |
|---|
| Frutarom Industries ($FRUT) | | 19.2% | 9.0% | 21.6% | 6.5% |
| Halosource Inc ($HALO) | | 10.3% | 21.0% | 11.6% | -22.3% |
| Acron JSC ($AKRN) | 40.0% | 8.7% | -4.5% | 9.9% | |
| Uralkali PJSC ($URKA) | 105.7% | 13.0% | -15.9% | 7.1% | |
| Plastics Capital ($PLA) | | -4.2% | -2.1% | 3.3% | 21.9% |
| |
|---|
| Median (9 companies) | 40.0% | 5.6% | -0.5% | 3.3% | -0.9% |
|---|
| Phosagro OJSC ($PHOR) | | 4.8% | -0.7% | 17.7% | 54.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Uralkali PJSC ($URKA) | 74.6% | | 71.6% | 74.3% | |
| Halosource Inc ($HALO) | 34.8% | 32.9% | 40.7% | 44.8% | 40.2% |
| Acron JSC ($AKRN) | 45.8% | 43.1% | 38.1% | 42.8% | |
| Frutarom Industries ($FRUT) | 36.4% | 36.6% | 38.1% | 39.1% | 38.7% |
| Plastics Capital ($PLA) | 40.6% | 36.2% | 36.6% | 36.0% | 35.3% |
| |
|---|
| Median (9 companies) | 38.5% | 35.1% | 36.6% | 36.0% | 35.1% |
|---|
| Phosagro OJSC ($PHOR) | 44.1% | 42.9% | 34.8% | 45.2% | 56.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Uralkali PJSC ($URKA) | 59.2% | | 44.5% | 48.6% | |
| Arab Potash Co ($APOD) | 51.0% | 47.2% | 36.3% | 27.7% | |
| Acron JSC ($AKRN) | 44.8% | 28.4% | 22.7% | 27.2% | |
| Croda International ($50GP) | | 27.2% | 27.6% | 26.7% | 27.7% |
| Frutarom Industries ($FRUT) | 15.3% | 16.0% | 17.0% | 18.2% | 18.5% |
| |
|---|
| Median (9 companies) | 16.4% | 15.4% | 17.0% | 18.2% | 15.3% |
|---|
| Phosagro OJSC ($PHOR) | 35.2% | 32.9% | 22.9% | 30.5% | 43.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Acron JSC ($AKRN) | 16.6% | 22.7% | 21.3% | 15.4% | |
| Uralkali PJSC ($URKA) | 10.4% | | 12.5% | 9.8% | |
| Basf Se ($BFA) | 4.6% | 5.6% | 6.6% | 7.1% | 8.2% |
| Lg Chem ($LGCD) | 9.7% | 8.2% | 5.9% | 6.3% | 8.1% |
| Croda International ($50GP) | | 4.8% | 4.1% | 6.0% | 8.6% |
| |
|---|
| Median (9 companies) | 7.2% | 5.2% | 5.9% | 6.0% | 5.6% |
|---|
| Phosagro OJSC ($PHOR) | 12.8% | 12.7% | 17.0% | 16.7% | 22.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Croda International ($50GP) | | 46.5% | 42.3% | 35.3% | 30.5% |
| Basf Se ($BFA) | 20.8% | 15.4% | 16.6% | 16.6% | 13.5% |
| Frutarom Industries ($FRUT) | 11.7% | 12.0% | 11.9% | 15.1% | 14.1% |
| Uralkali PJSC ($URKA) | 23.7% | | | 13.2% | |
| Acron JSC ($AKRN) | 27.7% | 14.4% | 9.2% | 10.6% | |
| |
|---|
| Median (9 companies) | 22.2% | 14.4% | 12.0% | 10.6% | 12.5% |
|---|
| Phosagro OJSC ($PHOR) | 32.4% | 28.5% | 15.0% | 21.6% | 41.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Acron JSC ($AKRN) | 1.2x | 1.6x | 2.4x | 2.8x | |
| Uralkali PJSC ($URKA) | 1.1x | | 2.8x | 1.8x | |
| Plastics Capital ($PLA) | 2.3x | 2.1x | 1.9x | 1.4x | 2.2x |
| Basf Se ($BFA) | 0.9x | 1.2x | 1.2x | 1.3x | 1.2x |
| Frutarom Industries ($FRUT) | 1.3x | 1.4x | 1.7x | 1.1x | 2.6x |
| |
|---|
| Median (8 companies) | 1.1x | 1.2x | 1.4x | 1.2x | 1.2x |
|---|
| Phosagro OJSC ($PHOR) | 0.4x | 0.8x | 1.8x | 2.5x | 1.3x |
