Center Fr Cargo Cont Trf Trcnt PJSC reports 42.2% CAPEX decline while 16.2% Revenue growth
30 Mar 2016 • About Center Fr Cargo Cont Trf Trcnt PJSC (
$TRCN) • By InTwits
Center Fr Cargo Cont Trf Trcnt PJSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 12.6% in 2015 vs. 17.0% in 2014 vs. 26.9% in 2011
- Center Fr Cargo Cont Trf Trcnt PJSC has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.7%. At the same time it's in pair with industry average of 17.4%.
- CAPEX is quite volatile: 2,434 in 2015, 4,212 in 2014, 6,632 in 2013, 5,691 in 2012, 4,244 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 30,876 | 36,365 | 39,164 | 36,565 | 42,505 | 16.2% |
| SG&A | | | | | 5,858 | |
| EBITDA | 8,312 | 10,163 | 8,954 | 6,198 | 5,368 | -13.4% |
| Net Income | 3,810 | 5,183 | 5,824 | 3,658 | 2,831 | -22.6% |
Balance Sheet
|
|---|
| Cash | 2,300 | 1,318 | 1,883 | 1,904 | 2,110 | 10.8% |
| Short Term Debt | 1,032 | 5,789 | 1,759 | 979 | 1,911 | 95.2% |
| Long Term Debt | 8,316 | 3,399 | 6,209 | 5,798 | 3,870 | -33.3% |
Cash flow
|
|---|
| Capex | 4,244 | 5,691 | 6,632 | 4,212 | 2,434 | -42.2% |
Ratios
|
|---|
| Revenue growth | 35.2% | 17.8% | 7.7% | -6.6% | 16.2% | |
| EBITDA growth | 92.0% | 22.3% | -11.9% | -30.8% | -13.4% | |
| EBITDA Margin | 26.9% | 27.9% | 22.9% | 17.0% | 12.6% | -4.3% |
| Net Income Margin | 12.3% | 14.3% | 14.9% | 10.0% | 6.7% | -3.3% |
| SG&A, % of revenue | | | | | 13.8% | 13.8% |
| CAPEX, % of revenue | 13.7% | 15.6% | 16.9% | 11.5% | 5.7% | -5.8% |
| ROIC | 18.2% | 20.2% | 17.6% | 8.8% | 6.6% | -2.2% |
| ROE | 18.0% | 20.9% | 20.0% | 11.0% | 7.9% | -3.0% |
| Net Debt/EBITDA | 0.8x | 0.8x | 0.7x | 0.8x | 0.7x | -0.1x |
Revenue and profitability
The company's Revenue surged on 16.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.1 pp from 37.9% to 34.8% in 2015.
Net Income marign decreased on 3.3 pp from 10.0% to 6.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
Center Fr Cargo Cont Trf Trcnt PJSC's CAPEX/Revenue was 5.7% in 2015. CAPEX/Revenue decreased on 9.9 pp from 15.6% in 2012 to 5.7% in 2015. Average CAPEX/Revenue for the last three years was 11.4%.
Return on investment
The company operates at low ROIC (6.63%) and ROE (7.93%). ROIC decreased on 2.2 pp from 8.8% to 6.6% in 2015. ROE decreased on 3.0 pp from 11.0% to 7.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is 1.1x. Net Debt / EBITDA dropped on 0.1x from 0.8x to 0.7x in 2015. Debt dropped on 14.7% in 2015 while cash surged on 10.8% in 2015.
Valuation
The company's trades at EV/EBITDA 0.7x and P/E 0.0x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 1.3x with the industry average at 4.7x.
Appendix 1: Peers in Industrial Transportation
Below we provide Center Fr Cargo Cont Trf Trcnt PJSC benchmarking against other companies in Industrial Transportation 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 |
|---|
| Frontline Ltd ($FRO) | | -27.8% | -9.4% | -55.6% | 104.5% |
| Zhejiang Expressway Co ($ZHEH) | | 2.2% | 13.3% | 20.5% | 32.2% |
| Wisdom Marine Lines Co Limited ($WML) | | 11.2% | -0.8% | 8.8% | 21.6% |
| Dp World Ltd ($0P5M) | | 4.8% | -1.5% | 12.7% | 16.7% |
| Dx ($DX.) | | 26.0% | 48.0% | 2.1% | -4.6% |
| |
|---|
| Median (11 companies) | 21.3% | 1.6% | -2.3% | 5.8% | -7.0% |
|---|
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | | 17.8% | 7.7% | -6.6% | 16.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Novorossiysk Commercial Sea Port ($NCSP) | 52.8% | 57.9% | 54.3% | 61.0% | |
| Global Ports Investments ($GLPR) | 52.6% | 40.3% | 58.8% | 58.8% | 68.0% |
| Dp World Ltd ($0P5M) | 32.7% | 35.8% | 39.8% | 41.9% | 48.4% |
| Zhejiang Expressway Co ($ZHEH) | 39.9% | 34.0% | 36.9% | 37.7% | 43.6% |
| Globaltrans Investment ($GLTR) | 30.1% | 31.4% | 25.8% | 23.2% | |
| |
|---|
| Median (10 companies) | 35.0% | 30.8% | 23.0% | 21.9% | 24.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Capital Lease Aviation ($CLA) | 105.0% | 101.2% | 88.5% | 89.2% | 80.5% |
| Frontline Ltd ($FRO) | 13.7% | 17.2% | -4.6% | 64.5% | 74.6% |
| Global Ports Investments ($GLPR) | 55.1% | 57.1% | 60.3% | 69.6% | 71.2% |
| Zhejiang Expressway Co ($ZHEH) | 52.8% | 49.6% | 51.1% | 53.5% | 58.0% |
| Wisdom Marine Lines Co Limited ($WML) | 60.1% | 56.9% | 52.0% | 52.8% | 55.2% |
| |
|---|
| Median (11 companies) | 45.5% | 24.2% | 19.0% | 29.7% | 45.7% |
|---|
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 26.9% | 27.9% | 22.9% | 17.0% | 12.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Frontline Ltd ($FRO) | 10.2% | 2.5% | 0.5% | 83.6% | 171.4% |
| Dp World Ltd ($0P5M) | 15.1% | 20.6% | 33.4% | 20.7% | 28.9% |
| Wisdom Marine Lines Co Limited ($WML) | 160.8% | 163.8% | 108.4% | 4.2% | 5.2% |
| Bba Aviation ($BBA) | | 2.3% | 3.2% | 3.7% | 3.8% |
| Global Ports Investments ($GLPR) | 26.3% | 15.9% | 18.9% | 4.2% | 2.9% |
| |
|---|
| Median (11 companies) | 9.5% | 8.0% | 7.7% | 4.2% | 2.6% |
|---|
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 13.7% | 15.6% | 16.9% | 11.5% | 5.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zhejiang Expressway Co ($ZHEH) | 13.3% | 11.2% | 13.3% | 13.2% | 15.3% |
| Global Ports Investments ($GLPR) | 18.5% | 17.0% | 7.1% | 12.1% | 14.6% |
| Dx ($DX.) | 8.2% | 9.3% | 9.6% | 14.5% | 12.8% |
| Frontline Ltd ($FRO) | -3.4% | -1.0% | -8.9% | 7.6% | 12.1% |
| Dp World Ltd ($0P5M) | 2.7% | 5.0% | 5.5% | 6.8% | 8.2% |
| |
|---|
| Median (11 companies) | 7.6% | 7.3% | 5.4% | 6.7% | 6.7% |
|---|
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 18.2% | 20.2% | 17.6% | 8.8% | 6.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hellenic Carriers Ltd ($HCL) | 2.5x | 533.2x | 291.0x | 39.1x | |
| Yangming Marine Transport Corp ($YMTD) | | 19.7x | | 9.8x | |
| Wisdom Marine Lines Co Limited ($WML) | 7.9x | 8.5x | 9.0x | 9.1x | 8.4x |
| Evergreen Marine Corp(Taiwan) ($EGMD) | | 7.9x | 33.6x | 6.7x | 18.3x |
| Interbulk Group ($INB) | 3.5x | 3.3x | 4.1x | 3.5x | 3.6x |
| |
|---|
| Median (14 companies) | 3.5x | 3.7x | 5.4x | 2.8x | 3.3x |
|---|
| Center Fr Cargo Cont Trf Trcnt PJSC ($TRCN) | 0.8x | 0.8x | 0.7x | 0.8x | 0.7x |
