Acron JSC Net Income jumped on 236% in 2015 and EBITDA Margin increased on 9.0 pp from 27.2% to 36.2%
15 Apr 2016 • About Acron JSC (
$AKRN) • By InTwits
Acron JSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Acron JSC is a fast growth stock: 2015 revenue growth was 42.1%, 5 year revenue CAGR was 17.8% at 2015 ROIC 17.9%
- Acron JSC has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.0%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 2,516 in 2015, 4,103 in 2014, 9,997 in 2013, 14,978 in 2012, 20,502 in 2011
- The company has highly profitable business model: ROIC is at 17.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Acron JSC ($AKRN) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 65,431 | 71,112 | 67,904 | 74,631 | 106,055 | 42.1% |
| Gross Profit | 29,974 | 30,672 | 25,895 | 31,947 | 55,936 | 75.1% |
| SG&A | 4,574 | 5,476 | 5,271 | 6,446 | 8,361 | 29.7% |
| EBITDA | 29,302 | 20,202 | 15,434 | 20,274 | 38,343 | 89.1% |
| Net Income | 18,329 | 14,195 | 12,225 | 4,381 | 14,739 | 236.4% |
Balance Sheet
|
|---|
| Cash | 14,630 | 28,888 | 13,554 | 24,773 | 30,421 | 22.8% |
| Short Term Debt | 16,385 | 24,028 | 27,665 | 53,309 | 15,133 | -71.6% |
| Long Term Debt | 32,415 | 38,186 | 22,720 | 28,002 | 68,611 | 145.0% |
Cash flow
|
|---|
| Capex | 10,844 | 16,122 | 14,443 | 11,478 | 15,107 | 31.6% |
Ratios
|
|---|
| Revenue growth | 40.0% | 8.7% | -4.5% | 9.9% | 42.1% | |
| EBITDA growth | 183.7% | -31.1% | -23.6% | 31.4% | 89.1% | |
| Gross Margin | 45.8% | 43.1% | 38.1% | 42.8% | 52.7% | 9.9% |
| EBITDA Margin | 44.8% | 28.4% | 22.7% | 27.2% | 36.2% | 9.0% |
| Net Income Margin | 28.0% | 20.0% | 18.0% | 5.9% | 13.9% | 8.0% |
| SG&A, % of revenue | 7.0% | 7.7% | 7.8% | 8.6% | 7.9% | -0.8% |
| CAPEX, % of revenue | 16.6% | 22.7% | 21.3% | 15.4% | 14.2% | -1.1% |
| ROIC | 27.7% | 14.4% | 9.2% | 10.6% | 17.9% | 7.4% |
| ROE | 38.4% | 25.0% | 18.9% | 6.4% | 19.0% | 12.6% |
| Net Debt/EBITDA | 1.2x | 1.6x | 2.4x | 2.8x | 1.4x | -1.4x |
Revenue and profitability
The company's Revenue surged on 42.1% 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 increased on 9.9 pp from 42.8% to 52.7% in 2015. SG&A as a % of Revenue decreased slightly on 0.75 pp from 8.6% to 7.9% in 2015.
Net Income marign increased on 8.0 pp from 5.9% to 13.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 14.2%. CAPEX/Revenue decreased on 8.4 pp from 22.7% in 2012 to 14.2% in 2015. It's average CAPEX/Revenue for the last three years was 17.0%.
Return on investment
The company operates at good ROIC (17.95%) and ROE (18.96%). ROIC increased on 7.4 pp from 10.6% to 17.9% in 2015. ROE jumped on 12.6 pp from 6.4% to 19.0% in 2015.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 2.2x Debt / EBITDA. Net Debt / EBITDA dropped on 1.4x from 2.8x to 1.4x in 2015. Debt increased on 3.0% in 2015 while cash surged on 22.8% in 2015.
Valuation
The company's trades at EV/EBITDA 1.4x and P/E 0.0x while industy averages are 10.5x and 26.1x. Acron JSC's EV/(EBITDA-CAPEX) is 2.3x with the industry average at 4.7x.
Appendix 1: Peers in Chemicals
Below you can find Acron JSC 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 (9 companies) | | 3.7% | -0.5% | 3.3% | -1.5% |
|---|
| Acron JSC ($AKRN) | | 8.7% | -4.5% | 9.9% | 42.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Uralkali PJSC ($URKA) | 74.6% | | 71.6% | 74.3% | 81.8% |
| 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% |
| |
|---|
| Median (9 companies) | 38.5% | 35.1% | 35.2% | 36.0% | 38.7% |
|---|
| Acron JSC ($AKRN) | 45.8% | 43.1% | 38.1% | 42.8% | 52.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Uralkali PJSC ($URKA) | 59.2% | | 44.5% | 48.6% | 62.3% |
| 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% |
| |
|---|
| Median (9 companies) | 16.4% | 15.4% | 17.0% | 18.2% | 18.5% |
|---|
| Acron JSC ($AKRN) | 44.8% | 28.4% | 22.7% | 27.2% | 36.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Phosagro OJSC ($PHOR) | 12.8% | 12.7% | 17.0% | 16.7% | 22.4% |
| Uralkali PJSC ($URKA) | 10.4% | | 12.5% | 9.8% | 10.9% |
| 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 ($LGCD) | 9.7% | 8.2% | 5.9% | 6.3% | 8.1% |
| |
|---|
| Median (9 companies) | 7.2% | 5.2% | 5.9% | 6.0% | 8.1% |
|---|
| Acron JSC ($AKRN) | 16.6% | 22.7% | 21.3% | 15.4% | 14.2% |
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 ($50GP) | | 46.5% | 42.3% | 35.3% | 30.5% |
| Uralkali PJSC ($URKA) | 23.7% | | | 13.2% | 23.1% |
| 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% |
| |
|---|
| Median (9 companies) | 22.2% | 14.9% | 12.8% | 13.2% | 14.1% |
|---|
| Acron JSC ($AKRN) | 27.7% | 14.4% | 9.2% | 10.6% | 17.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Uralkali PJSC ($URKA) | 1.1x | | 2.8x | 1.8x | 2.8x |
| 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 |
| |
|---|
| Median (8 companies) | 0.9x | 0.8x | 1.4x | 1.2x | 1.2x |
|---|
| Acron JSC ($AKRN) | 1.2x | 1.6x | 2.4x | 2.8x | 1.4x |
