Uralkali PJSC Net Income jumped on 129% in 2015 while Revenue dropped on 12.2%
11 Apr 2016 • About Uralkali PJSC (
$URKA) • By InTwits
Uralkali PJSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 62.3% in 2015 vs. 48.6% in 2014 vs. 59.2% in 2011
- The company has highly profitable business model: ROIC is at 23.1%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Uralkali PJSC ($URKA) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,496 | 3,950 | 3,323 | 3,559 | 3,123 | -12.2% |
| Gross Profit | 2,608 | | 2,378 | 2,643 | 2,555 | -3.4% |
| SG&A | 825 | | 1,128 | 1,114 | 740 | -33.6% |
| EBITDA | 2,068 | | 1,478 | 1,729 | 1,946 | 12.5% |
| Net Income | 1,184 | 1,597 | 667 | -627 | 181 | -128.9% |
Balance Sheet
|
|---|
| Cash | 1,009 | | 930 | 2,455 | 1,112 | -54.7% |
| Short Term Debt | 282 | | 1,464 | 632 | 2,329 | 268.6% |
| Long Term Debt | 3,017 | | 3,583 | 4,999 | 4,160 | -16.8% |
Cash flow
|
|---|
| Capex | 365 | | 416 | 349 | 339 | -2.9% |
Ratios
|
|---|
| Revenue growth | 105.7% | 13.0% | -15.9% | 7.1% | -12.2% | |
| EBITDA growth | 158.4% | | | 17.0% | 12.5% | |
| Gross Margin | 74.6% | | 71.6% | 74.3% | 81.8% | 7.5% |
| EBITDA Margin | 59.2% | 0.0% | 44.5% | 48.6% | 62.3% | 13.7% |
| Net Income Margin | 33.9% | 40.4% | 20.1% | -17.6% | 5.8% | 23.4% |
| SG&A, % of revenue | 23.6% | | 33.9% | 31.3% | 23.7% | -7.6% |
| CAPEX, % of revenue | 10.4% | | 12.5% | 9.8% | 10.9% | 1.0% |
| ROIC | 23.7% | | | 13.2% | 23.1% | 9.8% |
| ROE | 23.9% | | | -15.0% | | 15.0% |
| Net Debt/EBITDA | 1.1x | | 2.8x | 1.8x | 2.8x | 0.9x |
Revenue and profitability
Uralkali PJSC's Revenue dropped on 12.2% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 13.7 pp from 48.6% to 62.3% in 2015.
Gross Margin increased on 7.5 pp from 74.3% to 81.8% in 2015. SG&A as a % of Revenue decreased on 7.6 pp from 31.3% to 23.7% in 2015.
Net Income marign jumped on 23.4 pp from -17.6% to 5.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
Uralkali PJSC's CAPEX/Revenue was 10.9% in 2015. The company's CAPEX/Revenue surged10.9 pp from in 2012 to 10.9% in 2015. Average CAPEX/Revenue for the last three years was 11.1%.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 3.3x. Net Debt / EBITDA jumped on 0.9x from 1.8x to 2.8x in 2015. Debt surged on 15.3% in 2015 while cash dropped on 54.7% in 2015.
Appendix 1: Peers in Chemicals
Below you can find Uralkali PJSC benchmarking vs. other companies in Chemicals 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 |
|---|
| Phosagro OJSC ($PHOR) | | 4.8% | -0.7% | 17.7% | 54.1% |
| Plastics Capital ($PLA) | | -4.2% | -2.1% | 3.3% | 21.9% |
| Frutarom Industries ($FRUT) | | 19.2% | 9.0% | 21.6% | 6.5% |
| Croda International ($50GP) | | | 2.4% | -2.8% | 3.4% |
| Arab Potash Co ($APOD) | | -18.6% | -11.1% | 2.7% | -1.5% |
| |
|---|
| Median (8 companies) | 40.0% | 3.7% | -0.5% | 3.3% | 0.9% |
|---|
| Uralkali PJSC ($URKA) | | 13.0% | -15.9% | 7.1% | -12.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phosagro OJSC ($PHOR) | 44.1% | 42.9% | 34.8% | 45.2% | 56.2% |
| Arab Potash Co ($APOD) | 55.8% | 51.3% | 35.2% | 26.2% | 40.5% |
| Halosource Inc ($HALO) | 34.8% | 32.9% | 40.7% | 44.8% | 40.2% |
| 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 (8 companies) | 38.5% | 36.2% | 35.2% | 36.0% | 37.0% |
|---|
| Uralkali PJSC ($URKA) | 74.6% | | 71.6% | 74.3% | 81.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phosagro OJSC ($PHOR) | 35.2% | 32.9% | 22.9% | 30.5% | 43.5% |
| Arab Potash Co ($APOD) | 51.0% | 47.2% | 36.3% | 27.7% | 39.6% |
| Croda International ($50GP) | | 27.2% | 27.6% | 26.7% | 27.7% |
| Frutarom Industries ($FRUT) | 15.3% | 16.0% | 17.0% | 18.2% | 18.5% |
| Basf Se ($BFA) | 16.4% | 13.4% | 13.9% | 14.6% | 15.3% |
| |
|---|
| Median (8 companies) | 16.4% | 16.0% | 17.0% | 18.2% | 16.9% |
|---|
| Uralkali PJSC ($URKA) | 59.2% | | 44.5% | 48.6% | 62.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phosagro OJSC ($PHOR) | 12.8% | 12.7% | 17.0% | 16.7% | 22.4% |
| Croda International ($50GP) | | 4.8% | 4.1% | 6.0% | 8.6% |
| Basf Se ($BFA) | 4.6% | 5.6% | 6.6% | 7.1% | 8.2% |
| Lg Chem ($LGCD) | 9.7% | 8.2% | 5.9% | 6.3% | 8.1% |
| Halosource Inc ($HALO) | 16.4% | 7.5% | 8.5% | 1.0% | 3.0% |
| |
|---|
| Median (8 companies) | 7.2% | 5.6% | 5.9% | 6.0% | 5.6% |
|---|
| Uralkali PJSC ($URKA) | 10.4% | | 12.5% | 9.8% | 10.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phosagro OJSC ($PHOR) | 32.4% | 28.5% | 15.0% | 21.6% | 41.2% |
| Croda International ($50GP) | | 46.5% | 42.3% | 35.3% | 30.5% |
| Arab Potash Co ($APOD) | 32.2% | 21.2% | 13.5% | 9.8% | 16.7% |
| Frutarom Industries ($FRUT) | 11.7% | 12.0% | 11.9% | 15.1% | 14.1% |
| Basf Se ($BFA) | 20.8% | 15.4% | 16.6% | 16.6% | 13.5% |
| |
|---|
| Median (8 companies) | 22.7% | 14.4% | 12.0% | 10.6% | 13.8% |
|---|
| Uralkali PJSC ($URKA) | 23.7% | | | 13.2% | 23.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Frutarom Industries ($FRUT) | 1.3x | 1.4x | 1.7x | 1.1x | 2.6x |
| Plastics Capital ($PLA) | 2.3x | 2.1x | 1.9x | 1.4x | 2.2x |
| Phosagro OJSC ($PHOR) | 0.4x | 0.8x | 1.8x | 2.5x | 1.3x |
| Basf Se ($BFA) | 0.9x | 1.2x | 1.2x | 1.3x | 1.2x |
| Croda International ($50GP) | | 0.7x | 0.7x | 0.6x | 0.9x |
| |
|---|
| Median (7 companies) | 0.9x | 1.0x | 1.4x | 1.2x | 1.2x |
|---|
| Uralkali PJSC ($URKA) | 1.1x | | 2.8x | 1.8x | 2.8x |
