Sistema Jsfc Debt jumped on 41.2% in 2015 and Revenue jumped on 10.6%
07 Apr 2016 • About Sistema Jsfc (
$SSAA) • By InTwits
Sistema Jsfc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sistema Jsfc has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.0%. At the same time it's in pair with industry average of 12.9%.
- CAPEX is quite volatile: 48,807 in 2015, 97,081 in 2014, 175,675 in 2013, 46,845 in 2012, 18,464 in 2011
- The company has business model with low profitability: ROIC is at 7.4%
- It operates with high leverage: Net Debt/EBITDA is 3.5x while industry average is 0.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sistema Jsfc ($SSAA) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 969,622 | 1,063,632 | 589,555 | 640,584 | 708,641 | 10.6% |
| Gross Profit | 577,687 | 632,933 | 320,903 | 323,068 | 331,125 | 2.5% |
| SG&A | 115,733 | 119,773 | 124,150 | 132,523 | 149,636 | 12.9% |
| EBITDA | 208,798 | 213,943 | 196,612 | 152,854 | 159,586 | 4.4% |
| Net Income | 6,409 | 29,410 | 71,935 | -157,882 | 33,592 | -121.3% |
Balance Sheet
|
|---|
| Cash | 93,932 | 57,226 | 50,575 | 75,069 | 122,775 | 63.5% |
| Short Term Debt | 141,244 | 97,845 | 70,517 | 100,699 | 258,186 | 156.4% |
| Long Term Debt | 385,924 | 380,818 | 275,496 | 380,615 | 421,378 | 10.7% |
Cash flow
|
|---|
| Capex | 108,217 | 119,717 | 78,236 | 91,256 | 106,561 | 16.8% |
Ratios
|
|---|
| Revenue growth | 19.1% | 9.7% | -44.6% | 8.7% | 10.6% | |
| EBITDA growth | -2.8% | 2.5% | -8.1% | -22.3% | 4.4% | |
| Gross Margin | 59.6% | 59.5% | 54.4% | 50.4% | 46.7% | -3.7% |
| EBITDA Margin | 21.5% | 20.1% | 33.3% | 23.9% | 22.5% | -1.3% |
| Net Income Margin | 0.7% | 2.8% | 12.2% | -24.6% | 4.7% | 29.4% |
| SG&A, % of revenue | 11.9% | 11.3% | 21.1% | 20.7% | 21.1% | 0.4% |
| CAPEX, % of revenue | 11.2% | 11.3% | 13.3% | 14.2% | 15.0% | 0.8% |
| ROIC | 12.1% | 11.7% | 12.1% | 8.3% | 7.4% | -0.9% |
| ROE | 2.6% | 11.0% | 23.2% | -62.1% | 18.9% | 81.0% |
| Net Debt/EBITDA | 2.1x | 2.0x | 1.5x | 2.7x | 3.5x | 0.8x |
Revenue and profitability
Sistema Jsfc's Revenue jumped on 10.6% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.7 pp from 5.9% to 8.6% in 2015.
Gross Margin decreased on 3.7 pp from 50.4% to 46.7% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign surged on 29.4 pp from -24.6% to 4.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 15.0%. Sistema Jsfc showed CAPEX/Revenue growth of 3.8 pp from 11.3% in 2012 to 15.0% in 2015. For the last three years the average CAPEX/Revenue was 14.2%.The company invested a big chunk of EBITDA (66.8%) to CAPEX to secure its growth.
Return on investment
The company operates at good ROE (18.94%) while ROIC is low (7.37%). ROIC decreased slightly on 0.90 pp from 8.3% to 7.4% in 2015. ROE surged on 81.0 pp from -62.1% to 18.9% in 2015.
Leverage (Debt)
Debt level is 3.5x Net Debt / EBITDA and 4.3x Debt / EBITDA. Net Debt / EBITDA surged on 0.8x from 2.7x to 3.5x in 2015. Debt jumped on 41.2% in 2015 while cash surged on 63.5% in 2015.
Appendix 1: Peers in Mobile Telecommunications
Below we provide Sistema Jsfc benchmarking against other companies in Mobile Telecommunications 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 |
|---|
| Zamano ($ZMNO) | | 28.0% | -16.5% | 23.9% | 22.3% |
| Sk Telecom ($SKMD) | | 1.3% | 2.9% | 3.4% | -0.2% |
| Megafon OJSC ($MFON) | | 12.3% | 9.1% | 5.9% | -0.4% |
| Monitise ($MONI) | | 136.2% | 101.7% | 30.6% | -5.7% |
| Kcell JSC ($KCEL) | | 1.8% | 3.1% | -0.0% | -10.2% |
| |
|---|
| Median (6 companies) | | 7.0% | 3.0% | 4.6% | -3.1% |
|---|
| Sistema Jsfc ($SSAA) | | 9.7% | -44.6% | 8.7% | 10.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sk Telecom ($SKMD) | 94.0% | 92.0% | 92.2% | 90.2% | 88.6% |
| Global Telecom Hldg Sae ($GLTD) | 55.9% | 57.6% | 82.1% | 83.4% | 81.8% |
| Megafon OJSC ($MFON) | 75.7% | 75.4% | 74.6% | 73.1% | 73.1% |
| Monitise ($MONI) | 61.5% | 66.4% | 75.8% | 64.9% | 51.8% |
| Kcell JSC ($KCEL) | 60.9% | 58.1% | 57.6% | 55.1% | 46.6% |
| |
|---|
| Median (6 companies) | 61.2% | 62.2% | 75.2% | 69.0% | 62.4% |
|---|
| Sistema Jsfc ($SSAA) | 59.6% | 59.5% | 54.4% | 50.4% | 46.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kcell JSC ($KCEL) | 59.2% | 55.3% | 55.8% | 55.5% | 45.8% |
| Global Telecom Hldg Sae ($GLTD) | 49.2% | 50.8% | 12.1% | 42.8% | 43.9% |
| Megafon OJSC ($MFON) | 41.6% | 42.4% | 44.2% | 43.5% | 41.9% |
| Monitise ($MONI) | -88.9% | -36.7% | -5.1% | -21.1% | 40.0% |
| Sk Telecom ($SKMD) | 29.7% | 26.9% | 29.2% | 27.5% | 27.4% |
| |
|---|
| Median (6 companies) | 35.6% | 34.6% | 22.5% | 35.1% | 41.0% |
|---|
| Sistema Jsfc ($SSAA) | 21.5% | 20.1% | 33.3% | 23.9% | 22.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Telecom Hldg Sae ($GLTD) | 12.4% | 8.6% | 15.7% | 36.5% | 26.2% |
| Megafon OJSC ($MFON) | 30.2% | 17.1% | 14.5% | 18.5% | 20.1% |
| Sk Telecom ($SKMD) | 18.6% | 21.0% | 17.3% | 17.5% | 14.5% |
| Kcell JSC ($KCEL) | 13.7% | 12.8% | 9.2% | 9.6% | 9.5% |
| Monitise ($MONI) | 15.0% | 8.7% | 7.0% | 5.1% | 4.6% |
| |
|---|
| Median (6 companies) | 14.4% | 10.8% | 11.9% | 13.6% | 12.0% |
|---|
| Sistema Jsfc ($SSAA) | 11.2% | 11.3% | 13.3% | 14.2% | 15.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kcell JSC ($KCEL) | 69.2% | 63.7% | 66.0% | 62.9% | 40.2% |
| Zamano ($ZMNO) | -4.4% | 31.4% | 30.9% | 25.5% | 23.3% |
| Megafon OJSC ($MFON) | 17.4% | 21.0% | 27.7% | 23.7% | 19.6% |
| Global Telecom Hldg Sae ($GLTD) | 15.4% | 17.8% | -6.9% | 17.4% | 14.7% |
| Sk Telecom ($SKMD) | 11.9% | 8.9% | 9.8% | 8.3% | 7.3% |
| |
|---|
| Median (6 companies) | 13.6% | 19.4% | 18.7% | 20.5% | 17.2% |
|---|
| Sistema Jsfc ($SSAA) | 12.1% | 11.7% | 12.1% | 8.3% | 7.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Global Telecom Hldg Sae ($GLTD) | 1.7x | 1.5x | 5.6x | 2.0x | 1.6x |
| Megafon OJSC ($MFON) | 0.4x | 1.2x | 1.1x | 1.4x | 1.5x |
| Sk Telecom ($SKMD) | 0.9x | 1.4x | 1.1x | 1.3x | 1.5x |
| Kcell JSC ($KCEL) | -0.0x | 0.5x | 0.1x | 0.1x | 0.2x |
| Zamano ($ZMNO) | 12.4x | -0.1x | -0.8x | -1.7x | -2.1x |
| |
|---|
| Median (6 companies) | 0.9x | 1.2x | 1.1x | 1.3x | 0.9x |
|---|
| Sistema Jsfc ($SSAA) | 2.1x | 2.0x | 1.5x | 2.7x | 3.5x |
