Cheliabinsk Elektrolit Zink Plant reports 59.4% Net Income growth and 45.5% Revenue growth
29 Apr 2016 • About Cheliabinsk Elektrolit Zink Plant (
$CHZN) • By InTwits
Cheliabinsk Elektrolit Zink Plant reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cheliabinsk Elektrolit Zink Plant is a fast growth stock: 2015 revenue growth was 45.5%, 5 year revenue CAGR was 15.3% at 2015 ROIC 24.4%
- EBITDA Margin is quite volatile: 24.1% in 2015, 25.3% in 2014, 5.7% in 2013, 12.7% in 2012, 17.1% in 2011
- Cheliabinsk Elektrolit Zink Plant has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.4%. At the same time it's in pair with industry average of 10.5%.
- CAPEX is quite volatile: 1,386 in FY2015, 1,625 in FY2014, 3,030 in FY2013, 2,491 in FY2012, 1,231 in FY2011
- The company has highly profitable business model: ROIC is at 24.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cheliabinsk Elektrolit Zink Plant ($CHZN) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 12,772 | 13,077 | 13,062 | 16,508 | 24,013 | 45.5% |
| Gross Profit | 2,869 | 2,311 | 1,972 | 4,715 | 5,945 | 26.1% |
| SG&A | | | | 1,814 | 1,284 | -29.2% |
| EBITDA | 2,185 | 1,665 | 749 | 4,180 | 5,777 | 38.2% |
| Net Income | 1,038 | 646 | -208 | 2,353 | 3,750 | 59.4% |
Balance Sheet
|
|---|
| Cash | 540 | 425 | 445 | 448 | 252 | -43.8% |
| Short Term Debt | 0 | 0 | 0 | 95 | 101 | 6.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | 5,000 | |
Cash flow
|
|---|
| Capex | 1,155 | 919 | 1,026 | 1,640 | 1,940 | 18.3% |
Ratios
|
|---|
| Revenue growth | 8.2% | 2.4% | -0.1% | 26.4% | 45.5% | |
| EBITDA growth | -21.7% | -23.8% | -55.0% | 458.2% | 38.2% | |
| Gross Margin | 22.5% | 17.7% | 15.1% | 28.6% | 24.8% | -3.8% |
| EBITDA Margin | 17.1% | 12.7% | 5.7% | 25.3% | 24.1% | -1.3% |
| Net Income Margin | 8.1% | 4.9% | -1.6% | 14.3% | 15.6% | 1.4% |
| SG&A, % of revenue | | | | 11.0% | 5.3% | -5.6% |
| CAPEX, % of revenue | 9.0% | 7.0% | 7.9% | 9.9% | 8.1% | -1.9% |
| ROIC | 13.6% | 6.2% | -2.7% | 25.6% | 24.4% | -1.2% |
| ROE | 11.0% | 6.3% | -2.0% | 19.1% | 24.3% | 5.1% |
| Net Debt/EBITDA | -0.2x | -0.3x | -0.6x | -0.1x | 0.8x | 0.9x |
Revenue and profitability
The company's Revenue surged on 45.5% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.3 pp from 25.3% to 24.1% in 2015.
Gross Margin decreased on 3.8 pp from 28.6% to 24.8% in 2015. SG&A as a % of Revenue decreased on 5.6 pp from 11.0% to 5.3% in 2015.
Net Income marign increased slightly on 1.4 pp from 14.3% to 15.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
Cheliabinsk Elektrolit Zink Plant's CAPEX/Revenue was 8.1% in 2015. Cheliabinsk Elektrolit Zink Plant's CAPEX/Revenue increased slightly on 1.1 pp from 7.0% in 2012 to 8.1% in 2015. Average CAPEX/Revenue for the last three years was 8.6%.
Return on investment
The company operates at high and attractive ROIC (24.41%) and ROE (24.30%). ROIC decreased slightly on 1.2 pp from 25.6% to 24.4% in 2015. ROE increased on 5.1 pp from 19.1% to 24.3% in 2015.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA jumped on 0.9x from -0.1x to 0.8x in 2015. Debt surged on 5,253% in 2015 while cash dropped on 43.8% in 2015.
Valuation
The company's trades at EV/EBITDA 0.8x and P/E 0.0x while industy averages are 10.5x and 26.1x. Cheliabinsk Elektrolit Zink Plant's EV/(EBITDA-CAPEX) is 1.3x with the industry average at 4.7x.
Appendix 1: Peers in Industrial Metals & Mining
Below you can find Cheliabinsk Elektrolit Zink Plant benchmarking vs. other companies in Industrial Metals & Mining 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 |
|---|
| Base Resources Ltd ($BSE) | | | | | 399.7% |
| Norsk Hydro Asa ($NHY) | | -10.2% | 1.1% | 20.1% | 12.6% |
| Afarak Group ($AFRK) | | -19.2% | 5.4% | 27.4% | 8.7% |
| Aluminium Bahrain Bsc ($ALBH) | | -15.8% | 0.8% | 9.7% | -6.7% |
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | | 196.8% | 8.2% | 1.7% | -9.0% |
| |
|---|
| Median (13 companies) | 14,037.3% | -9.0% | -1.0% | 0.7% | -14.2% |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | | 2.4% | -0.1% | 26.4% | 45.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 59.0% | 49.1% | 43.4% | 52.2% | 55.7% |
| Severstal PJSC ($SVST) | 31.0% | 23.5% | 29.9% | 34.4% | 40.4% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 28.6% | 23.8% | 19.4% | 28.3% | 31.4% |
| Magnitogorsk Iron & Steel Works ($MMK) | 16.7% | 15.5% | 14.9% | 21.9% | 30.6% |
| Base Resources Ltd ($BSE) | | | | 11.8% | 21.2% |
| |
|---|
| Median (11 companies) | 19.0% | 14.8% | 14.9% | 18.0% | 20.5% |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 22.5% | 17.7% | 15.1% | 28.6% | 24.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 49.5% | 38.6% | 29.2% | 46.8% | 47.0% |
| Base Resources Ltd ($BSE) | | | | -1.8% | 37.7% |
| Severstal PJSC ($SVST) | 22.5% | 14.9% | 19.3% | 26.4% | 32.4% |
| Magnitogorsk Iron & Steel Works ($MMK) | 13.5% | 13.1% | 14.0% | 19.5% | 28.3% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 19.2% | 15.6% | 13.8% | 21.8% | 24.3% |
| |
|---|
| Median (13 companies) | 15.3% | 13.3% | 13.8% | 12.6% | 17.3% |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 17.1% | 12.7% | 5.7% | 25.3% | 24.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First Quantum Minerals ($FQM) | 40.6% | 46.5% | 73.2% | 81.7% | 72.5% |
| Mmc Norilsk Nickel ($MNOD) | 15.6% | 22.3% | 17.1% | 10.8% | 19.0% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 17.5% | 12.0% | 6.9% | 5.4% | 7.7% |
| Ezz Steel ($AEZD) | 3.9% | 2.3% | 3.9% | 6.4% | 6.8% |
| Severstal PJSC ($SVST) | 10.2% | 9.5% | 10.3% | 8.4% | 6.4% |
| |
|---|
| Median (13 companies) | 6.0% | 6.7% | 7.6% | 6.3% | 6.3% |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 9.0% | 7.0% | 7.9% | 9.9% | 8.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 32.4% | 21.8% | 14.2% | 34.1% | 31.7% |
| Severstal PJSC ($SVST) | 21.3% | 10.3% | 9.6% | 17.7% | 30.3% |
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | | 41.7% | 56.6% | 55.8% | 26.6% |
| Magnitogorsk Iron & Steel Works ($MMK) | 2.4% | 1.8% | 1.4% | 9.1% | 18.1% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 11.8% | 7.2% | 4.1% | 12.0% | 15.7% |
| |
|---|
| Median (13 companies) | 11.0% | 5.4% | 4.9% | 7.4% | 8.1% |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 13.6% | 6.2% | -2.7% | 25.6% | 24.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ezz Steel ($AEZD) | 3.4x | 4.8x | 3.6x | 19.4x | 13.3x |
| First Quantum Minerals ($FQM) | -0.3x | 0.0x | 2.5x | 4.0x | 10.5x |
| Base Resources Ltd ($BSE) | | | | | 4.4x |
| OAO TMK ($TMKS) | 3.5x | 3.6x | 3.9x | 3.8x | 4.3x |
| Posco ($PIDD) | 2.9x | 3.3x | 3.9x | 3.7x | 3.6x |
| |
|---|
| Median (13 companies) | 3.0x | 2.0x | 2.1x | 1.2x | 1.0x |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | -0.2x | -0.3x | -0.6x | -0.1x | 0.8x |
