PIK Group OJSC Net Income jumped on 225% in 2015 while Revenue dropped on 16.5%
31 Mar 2016 • About PIK Group OJSC (
$PIK) • By InTwits
PIK Group OJSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- PIK Group OJSC has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's a lot of higher than industry average of 12.4%.
- CAPEX is quite volatile: 2,086 in FY2015, 2,963 in FY2014, 2,204 in FY2013, 3,724 in FY2012, 7,461 in FY2011
- The company has highly profitable business model: ROIC is at 25.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
PIK Group OJSC ($PIK) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 45,991 | 66,129 | 62,543 | 61,260 | 51,132 | -16.5% |
| Gross Profit | 9,403 | 14,326 | 17,660 | 16,020 | 17,637 | 10.1% |
| SG&A | 4,581 | 3,729 | 4,018 | 4,067 | 5,076 | 24.8% |
| EBITDA | 12,106 | 10,898 | 13,099 | 7,216 | 12,692 | 75.9% |
| Net Income | 4,645 | 3,162 | 6,794 | 3,440 | 11,172 | 224.8% |
Balance Sheet
|
|---|
| Cash | 2,874 | 5,067 | 11,089 | 14,239 | 17,022 | 19.5% |
| Short Term Debt | 19,522 | 10,197 | 25,469 | 24,487 | 270 | -98.9% |
| Long Term Debt | 27,549 | 33,014 | 3,631 | 0 | 12,894 | |
Cash flow
|
|---|
| Capex | 549 | 865 | 656 | 428 | 467 | 9.1% |
Ratios
|
|---|
| Revenue growth | 20.7% | 43.8% | -5.4% | -2.1% | -16.5% | |
| EBITDA growth | -1,017.1% | -10.0% | 20.2% | -44.9% | 75.9% | |
| Gross Margin | 20.4% | 21.7% | 28.2% | 26.2% | 34.5% | 8.3% |
| EBITDA Margin | 26.3% | 16.5% | 20.9% | 11.8% | 24.8% | 13.0% |
| Net Income Margin | 10.1% | 4.8% | 10.9% | 5.6% | 21.8% | 16.2% |
| SG&A, % of revenue | 10.0% | 5.6% | 6.4% | 6.6% | 9.9% | 3.3% |
| CAPEX, % of revenue | 1.2% | 1.3% | 1.0% | 0.7% | 0.9% | 0.2% |
| ROIC | 25.6% | 21.2% | 25.6% | 13.5% | 25.3% | 11.8% |
| ROE | | | 59.2% | 16.8% | 42.4% | 25.5% |
| Net Debt/EBITDA | 3.7x | 3.5x | 1.4x | 1.4x | -0.3x | -1.7x |
Revenue and profitability
PIK Group OJSC's Revenue dropped on 16.5% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 13.0 pp from 11.8% to 24.8% in 2015.
Gross Margin increased on 8.3 pp from 26.2% to 34.5% in 2015. SG&A as a % of Revenue increased on 3.3 pp from 6.6% to 9.9% in 2015.
Net Income marign jumped on 16.2 pp from 5.6% to 21.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.91%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.89%.
Return on investment
The company operates at high and attractive ROIC (25.28%) and ROE (42.39%). ROIC jumped on 11.8 pp from 13.5% to 25.3% in 2015. ROE jumped on 25.5 pp from 16.8% to 42.4% in 2015.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 1.7x from 1.4x to -0.3x in 2015. Debt dropped on 46.2% in 2015 while cash surged on 19.5% in 2015.
Appendix 1: Peers in Real Estate Investment & Services
Below you can find PIK Group OJSC benchmarking vs. other companies in Real Estate Investment & Services 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaza Centers Nv ($PLAZ) | | 28.0% | -10.0% | 131.0% | -13.4% |
| Formation Group ($FRM) | | -60.8% | 147.9% | 35.8% | 199.3% |
| Etalon Group Ltd ($ETLN) | | 18.3% | 48.4% | 29.0% | -17.6% |
| Safeland ($SAF) | | 38.2% | -40.1% | 21.2% | -1.5% |
| Hml Hldgs ($HMLH) | | 12.9% | 20.8% | 15.3% | 16.7% |
| |
|---|
| Median (16 companies) | 2.5% | 3.2% | 20.8% | 3.4% | 16.7% |
|---|
| PIK Group OJSC ($PIK) | | 43.8% | -5.4% | -2.1% | -16.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Arricano Real Estate ($ARO) | | | 96.1% | 96.5% | |
| Taliesin Property Fund Ltd ($TPFZ) | | 75.2% | 76.6% | 74.9% | 76.3% |
| Songbird Estates ($SBD) | 69.2% | 71.5% | 68.3% | 70.7% | |
| Panther Securities ($PNS) | 65.3% | 69.2% | 77.2% | 68.0% | |
| Damac Real Estate Development Ltd ($DMC) | 37.5% | 40.7% | 64.4% | 59.6% | 59.4% |
| |
|---|
| Median (12 companies) | 43.1% | 40.8% | 46.7% | 39.3% | 30.2% |
|---|
| PIK Group OJSC ($PIK) | 20.4% | 21.7% | 28.2% | 26.2% | 34.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Summit Germany Ltd ($SMTG) | 77.8% | 78.3% | 78.7% | 89.3% | |
| Panther Securities ($PNS) | 39.9% | 44.8% | 56.9% | 50.3% | |
| Damac Real Estate Development Ltd ($DMC) | 31.2% | 32.9% | 54.5% | 46.4% | 53.5% |
| Quintain Estates & Development ($QED) | -101.5% | -81.5% | -70.4% | 43.6% | 76.3% |
| Hagl JSC ($HAG) | 37.0% | 23.1% | 40.5% | 39.6% | 28.2% |
| |
|---|
| Median (15 companies) | 32.5% | 32.8% | 21.2% | 14.9% | 23.1% |
|---|
| PIK Group OJSC ($PIK) | 26.3% | 16.5% | 20.9% | 11.8% | 24.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Quintain Estates & Development ($QED) | 136.2% | 210.6% | 162.3% | 217.2% | 173.3% |
| Hagl JSC ($HAG) | 152.8% | 134.2% | 171.2% | 145.6% | 127.1% |
| Taliesin Property Fund Ltd ($TPFZ) | | 14.1% | 21.3% | 45.2% | 43.7% |
| Raven Russia Ltd ($RUS) | | 19.8% | 27.5% | 41.0% | 9.1% |
| Panther Securities ($PNS) | 176.0% | 87.9% | 42.6% | 26.0% | |
| |
|---|
| Median (16 companies) | 1.9% | 2.9% | 1.2% | 1.8% | 3.1% |
|---|
| PIK Group OJSC ($PIK) | 1.2% | 1.3% | 1.0% | 0.7% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Damac Real Estate Development Ltd ($DMC) | | 163.1% | 127.1% | 31.3% | 41.5% |
| Etalon Group Ltd ($ETLN) | 20.1% | 12.1% | 14.4% | 14.3% | 10.2% |
| Hml Hldgs ($HMLH) | 5.6% | 8.2% | 9.9% | 12.5% | 12.5% |
| Farglory Land Development Co Ltd ($FLDS) | 16.0% | 9.7% | 13.0% | 7.7% | 9.5% |
| Summit Germany Ltd ($SMTG) | 5.8% | 6.9% | 5.6% | 7.1% | |
| |
|---|
| Median (16 companies) | 3.8% | 3.6% | 3.0% | 2.3% | 5.1% |
|---|
| PIK Group OJSC ($PIK) | 25.6% | 21.2% | 25.6% | 13.5% | 25.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Raven Russia Ltd ($RUS) | | 6.4x | 4.1x | 75.5x | |
| Plaza Centers Nv ($PLAZ) | | 17.9x | | 41.9x | 25.4x |
| Quintain Estates & Development ($QED) | | | | 15.3x | 4.5x |
| Hagl JSC ($HAG) | 7.5x | 13.4x | 10.5x | 14.2x | 14.8x |
| London & Associated Properties ($LAS) | 10.8x | 40.8x | 11.1x | 13.0x | |
| |
|---|
| Median (12 companies) | 7.9x | 8.2x | 7.3x | 11.0x | 2.8x |
|---|
| PIK Group OJSC ($PIK) | 3.7x | 3.5x | 1.4x | 1.4x | -0.3x |
