Lucky Cement Ltd reports 26.2% CAPEX decline and almost no change in Revenue of 82,150
01 Sep 2016 • About Lucky Cement Ltd (
$LKCS) • By InTwits
Lucky Cement Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lucky Cement Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.2%. At the same time it's a lot of higher than industry average of 5.4%.
- CAPEX is quite volatile: 7,270 in FY2016, 9,857 in FY2015, 5,603 in FY2014, 2,893 in FY2013, 1,051 in FY2012
- The company has highly profitable business model: ROIC is at 20.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lucky Cement Ltd ($LKCS) key annual financial indicators
| mln. PKR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 33,323 | 56,050 | 81,148 | 82,118 | 82,150 | 0.0% |
| Gross Profit | 12,721 | 18,539 | 23,127 | 25,687 | 27,903 | 8.6% |
| SG&A | | | | | 2,093 | |
| EBITDA | 10,481 | 15,043 | 19,788 | 21,780 | 24,939 | 14.5% |
| Net Income | 6,782 | 9,808 | 11,892 | 13,758 | 14,873 | 8.1% |
Balance Sheet
|
|---|
| Cash | 436 | 1,439 | 3,744 | 18,156 | 28,448 | 56.7% |
| Short Term Debt | 265 | 2,920 | 1,601 | 3,630 | 3,486 | -4.0% |
| Long Term Debt | 393 | 7,792 | 9,983 | 8,854 | 8,742 | -1.3% |
Cash flow
|
|---|
| Capex | 1,051 | 2,893 | 5,603 | 9,857 | 7,270 | -26.2% |
Ratios
|
|---|
| Revenue growth | 28.1% | 68.2% | 44.8% | 1.2% | 0.0% | |
| EBITDA growth | 61.3% | 43.5% | 31.5% | 10.1% | 14.5% | |
| Gross Margin | 38.2% | 33.1% | 28.5% | 31.3% | 34.0% | 2.7% |
| EBITDA Margin | 31.5% | 26.8% | 24.4% | 26.5% | 30.4% | 3.8% |
| Net Income Margin | 20.4% | 17.5% | 14.7% | 16.8% | 18.1% | 1.4% |
| SG&A, % of revenue | | | | | 2.5% | 2.5% |
| CAPEX, % of revenue | 3.2% | 5.2% | 6.9% | 12.0% | 8.9% | -3.2% |
| ROIC | 23.8% | 22.9% | 20.3% | 20.0% | 20.8% | 0.7% |
| ROE | 22.2% | 26.4% | 26.0% | 24.6% | 22.0% | -2.6% |
| Net Debt/EBITDA | 0.0x | 0.6x | 0.4x | -0.3x | -0.7x | -0.4x |
Revenue and profitability
Lucky Cement Ltd's Revenue showed almost no change in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.1 pp from 14.6% to 13.5% in 2016.
Gross Margin increased on 2.7 pp from 31.3% to 34.0% in FY2016.
Net Income marign increased slightly on 1.4 pp from 16.8% to 18.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Lucky Cement Ltd's CAPEX/Revenue was 8.9% in FY2016. The company showed CAPEX/Revenue growth of 3.7 pp from 5.2% in FY2013 to 8.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 9.3%.
Return on investment
The company operates at high and attractive ROIC (20.76%) and ROE (22.03%). ROIC increased slightly on 0.74 pp from 20.0% to 20.8% in FY2016. ROE decreased on 2.6 pp from 24.6% to 22.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 0.4x from -0.3x to -0.7x in FY2016. Debt decreased on 2.1% in FY2016 while cash surged on 56.7% in FY2016.
Appendix 1: Peers in Construction & Materials
Below you can find Lucky Cement Ltd benchmarking vs. other companies in Construction & Materials 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kingspan Group ($KGP) | 5.3% | 9.1% | 6.4% | 46.7% | |
| Accsys Technologies ($AXS) | | 25.5% | 78.0% | 37.5% | 14.5% |
| Billington Hldgs ($BILN) | -34.0% | 8.4% | 14.5% | 25.8% | |
| Crh ($CRH) | | -0.3% | 4.9% | 25.0% | 14.7% |
| Clarke(T.) ($CTO) | 5.5% | 12.0% | -4.2% | 16.6% | |
| |
|---|
| Median (25 companies) | 1.8% | 5.5% | 8.8% | 1.7% | 10.5% |
|---|
| Lucky Cement Ltd ($LKCS) | | 68.2% | 44.8% | 1.2% | 0.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 46.5% | 24.5% | 21.7% | 51.7% | |
| Swp Group ($SWP) | 43.0% | 48.1% | 39.2% | 49.7% | |
| Heath(Samuel)& Sons ($HSM) | 49.5% | 47.3% | 48.6% | 47.6% | 48.1% |
| James Halstead ($JHD) | 41.2% | 41.6% | 41.0% | 41.7% | 42.4% |
| Michelmersh Brick Hldgs ($MBH) | 35.3% | 28.4% | 31.1% | 38.2% | |
| |
|---|
| Median (23 companies) | 23.6% | 24.2% | 26.3% | 29.1% | 34.4% |
|---|
| Lucky Cement Ltd ($LKCS) | 38.2% | 33.1% | 28.5% | 31.3% | 34.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Steppe Cement ($STCM) | 20.8% | 23.2% | 14.3% | 24.7% | |
| James Halstead ($JHD) | 20.2% | 19.8% | 20.1% | 20.9% | 21.6% |
| Michelmersh Brick Hldgs ($MBH) | 10.6% | 7.9% | 14.1% | 20.3% | |
| LSR Group OJSC ($LSRG) | 20.2% | 19.5% | 22.9% | 19.3% | |
| Asia Cement Corp ($ASCD) | 13.5% | 16.3% | 18.3% | 14.8% | |
| |
|---|
| Median (25 companies) | 8.5% | 7.3% | 9.5% | 9.5% | 11.5% |
|---|
| Lucky Cement Ltd ($LKCS) | 31.5% | 26.8% | 24.4% | 26.5% | 30.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 74.2% | 5.4% | 12.8% | 54.9% | |
| Billington Hldgs ($BILN) | 1.0% | 1.1% | 2.9% | 10.8% | |
| Low & Bonar ($BD46) | 3.5% | 2.8% | 4.6% | 9.1% | 4.7% |
| Superglass Hldgs ($SPGH) | 12.9% | 14.2% | 3.4% | 7.9% | |
| Swp Group ($SWP) | 0.9% | 2.5% | 8.5% | 7.4% | |
| |
|---|
| Median (25 companies) | 2.1% | 2.4% | 2.4% | 2.2% | 3.1% |
|---|
| Lucky Cement Ltd ($LKCS) | 3.2% | 5.2% | 6.9% | 12.0% | 8.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| James Halstead ($JHD) | 49.3% | 46.2% | 46.7% | 45.3% | 47.1% |
| Alumasc Group ($ALU) | 6.5% | 17.5% | 22.6% | 36.0% | 47.8% |
| Heath(Samuel)& Sons ($HSM) | 9.7% | 8.7% | 19.7% | 32.0% | 89.2% |
| Aukett Swanke Group ($AUK) | 2.7% | 11.4% | 27.3% | 31.6% | |
| Clarke(T.) ($CTO) | 6.9% | 9.9% | -0.4% | 19.6% | |
| |
|---|
| Median (25 companies) | 4.0% | 7.2% | 5.4% | 7.8% | 9.1% |
|---|
| Lucky Cement Ltd ($LKCS) | 23.8% | 22.9% | 20.3% | 20.0% | 20.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mountfield Group ($MOGP) | 26.3x | 4.8x | 52.0x | 18.8x | |
| Asia Cement Corp ($ASCD) | 7.8x | 6.9x | 6.8x | 8.6x | |
| Crh ($CRH) | 2.0x | 3.6x | 1.6x | 3.1x | 1.7x |
| Low & Bonar ($BD46) | 2.7x | 2.1x | 2.1x | 2.4x | 2.1x |
| Saint-Gobain(Compagnie De) ($COD) | 2.1x | 2.0x | 2.1x | 1.4x | |
| |
|---|
| Median (21 companies) | 1.7x | 0.8x | 0.5x | -0.0x | -0.9x |
|---|
| Lucky Cement Ltd ($LKCS) | 0.0x | 0.6x | 0.4x | -0.3x | -0.7x |
