Vimetco Nv Net Debt / EBITDA jumped on 3.8x from 10.9x to 14.6x in 2015 and Debt jumped on 14.6%
02 May 2016 • About Vimetco Nv (
$VICO) • By InTwits
Vimetco Nv reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vimetco Nv is a company in decline: 2015 revenue growth was -5.3%, 5 years revenue CAGR was -4.5%
- The company has potentially unprofitable business model: ROIC is at 2.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 14.6x while industry average is 14.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vimetco Nv ($VICO) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,717 | 2,353 | 2,201 | 1,920 | 1,818 | -5.3% |
| Gross Profit | 358 | 234 | | 160 | 146 | -8.5% |
| SG&A | | | | 119 | 60 | -50.1% |
| EBITDA | 422 | 315 | | 214 | 183 | -14.5% |
| Net Income | -104 | -141 | -85 | -156 | -267 | 71.2% |
Balance Sheet
|
|---|
| Cash | 157 | 178 | | 50 | 44 | -13.2% |
| Short Term Debt | 912 | 1,157 | | 1,417 | 1,773 | 25.2% |
| Long Term Debt | 1,539 | 1,461 | | 963 | 953 | -1.0% |
Cash flow
|
|---|
| Capex | | | | 169 | 120 | -29.0% |
Ratios
|
|---|
| Revenue growth | 18.5% | -13.4% | -6.5% | -12.8% | -5.3% | |
| EBITDA growth | 33.3% | -25.3% | | | -14.5% | |
| Gross Margin | 13.2% | 10.0% | | 8.3% | 8.0% | -0.3% |
| EBITDA Margin | 15.5% | 13.4% | 0.0% | 11.2% | 10.1% | -1.1% |
| Net Income Margin | -3.8% | -6.0% | -3.9% | -8.1% | -14.7% | -6.6% |
| SG&A, % of revenue | | | | 6.2% | 3.3% | -2.9% |
| CAPEX, % of revenue | | | | 8.8% | 6.6% | -2.2% |
| ROIC | 7.4% | 4.5% | | | 2.4% | 2.4% |
| ROE | -17.8% | -28.4% | | | | 0.0% |
| Net Debt/EBITDA | 5.4x | 7.7x | | 10.9x | 14.6x | 3.8x |
Revenue and profitability
The company's Revenue decreased on 5.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 12.1 pp from 45.9% to 58.0% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue decreased on 2.9 pp from 6.2% to 3.3% in 2015.
Net Income marign decreased on 6.6 pp from -8.1% to -14.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 6.6%. CAPEX/Revenue increased6.6 pp from in 2012 to 6.6% in 2015.The company invested a big chunk of EBITDA (65.2%) to CAPEX which didn't stop revenue from falling.
Leverage (Debt)
Debt level is 14.6x Net Debt / EBITDA and 14.9x Debt / EBITDA. Net Debt / EBITDA jumped on 3.8x from 10.9x to 14.6x in 2015. Debt jumped on 14.6% in 2015 while cash dropped on 13.2% in 2015.
Appendix 1: Peers in Industrial Metals & Mining
Below we provide Vimetco Nv benchmarking against other companies in Industrial Metals & Mining 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 |
|---|
| Base Resources Ltd ($BSE) | | | | | 399.7% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | | 2.4% | -0.1% | 26.4% | 45.5% |
| 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 ($ALBH) | | -15.8% | 0.8% | 9.7% | -6.7% |
| |
|---|
| Median (14 companies) | 28,056.2% | -4.4% | 0.3% | 2.4% | -12.4% |
|---|
| Vimetco Nv ($VICO) | | -13.4% | -6.5% | -12.8% | -5.3% |
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% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 22.5% | 17.7% | 15.1% | 28.6% | 24.8% |
| |
|---|
| Median (12 companies) | 21.9% | 16.6% | 15.0% | 19.5% | 20.8% |
|---|
| Vimetco Nv ($VICO) | 13.2% | 10.0% | | 8.3% | 8.0% |
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 ($NLMK) | 19.2% | 15.6% | 13.8% | 21.8% | 24.3% |
| |
|---|
| Median (14 companies) | 16.1% | 12.9% | 12.9% | 13.0% | 17.5% |
|---|
| Vimetco Nv ($VICO) | 15.5% | 13.4% | | 11.2% | 10.1% |
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% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 9.0% | 7.0% | 7.9% | 9.9% | 8.1% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 17.5% | 12.0% | 6.9% | 5.4% | 7.7% |
| Ezz Steel ($AEZD) | 3.9% | 2.3% | 3.9% | 6.4% | 6.8% |
| |
|---|
| Median (14 companies) | 6.8% | 6.8% | 7.6% | 6.3% | 6.3% |
|---|
| Vimetco Nv ($VICO) | | | | 8.8% | 6.6% |
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 ($ZBO) | | 41.7% | 56.6% | 55.8% | 26.6% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 13.6% | 6.2% | -2.7% | 25.6% | 24.4% |
| Magnitogorsk Iron & Steel Works ($MMK) | 2.4% | 1.8% | 1.4% | 9.1% | 18.1% |
| |
|---|
| Median (14 companies) | 11.9% | 6.2% | 4.2% | 9.0% | 8.4% |
|---|
| Vimetco Nv ($VICO) | 7.4% | 4.5% | | | 2.4% |
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 ($PIDD) | 2.9x | 3.3x | 3.9x | 3.7x | 3.6x |
| |
|---|
| Median (14 companies) | 2.2x | 1.9x | 2.1x | 0.8x | 1.0x |
|---|
| Vimetco Nv ($VICO) | 5.4x | 7.7x | | 10.9x | 14.6x |
