Paints & Chemical Industries Net Income surged on 73.1% in 2016 while Revenue decreased on 6.9%
10 Sep 2016 • About Paints & Chemical Industries (
$PCLD) • By InTwits
Paints & Chemical Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Paints & Chemical Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has highly profitable business model: ROIC is at 13.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Paints & Chemical Industries ($PCLD) key annual financial indicators
| mln. EGP | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 839 | 951 | 1,002 | 910 | 847 | -6.9% |
| Gross Profit | 121 | 142 | 130 | 148 | 177 | 19.0% |
| SG&A | | | | 91 | 80 | -11.2% |
| EBITDA | 108 | 127 | 107 | 63 | 101 | 60.9% |
| Net Income | 91 | 93 | 66 | 44 | 77 | 73.1% |
Balance Sheet
|
|---|
| Cash | 57 | 90 | 115 | 137 | 110 | -19.5% |
| Short Term Debt | 85 | 92 | 127 | 136 | 7 | -94.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 8 | 8 | 4 | 3 | 15 | 399.6% |
Ratios
|
|---|
| Revenue growth | 17.0% | 13.4% | 5.3% | -9.2% | -6.9% | |
| EBITDA growth | -19.2% | 17.3% | -15.8% | -41.4% | 60.9% | |
| Gross Margin | 14.4% | 14.9% | 13.0% | 16.3% | 20.9% | 4.5% |
| EBITDA Margin | 12.9% | 13.4% | 10.7% | 6.9% | 11.9% | 5.0% |
| Net Income Margin | 10.9% | 9.8% | 6.6% | 4.9% | 9.0% | 4.2% |
| SG&A, % of revenue | | | | 10.0% | 9.5% | -0.5% |
| CAPEX, % of revenue | 0.9% | 0.9% | 0.4% | 0.3% | 1.8% | 1.4% |
| ROIC | 13.9% | 15.5% | 12.5% | 6.4% | 13.2% | 6.9% |
| ROE | 15.2% | 15.7% | 11.5% | 8.2% | 14.1% | 5.9% |
| Net Debt/EBITDA | 0.3x | 0.0x | 0.1x | -0.0x | -1.0x | -1.0x |
Revenue and profitability
Paints & Chemical Industries's Revenue decreased on 6.9% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 5.0 pp from 6.9% to 11.9% in FY2016.
Gross Margin increased on 4.5 pp from 16.3% to 20.9% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign increased on 4.2 pp from 4.9% to 9.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.8% in FY2016. CAPEX/Revenue increased slightly on 0.87 pp from 0.88% in FY2013 to 1.8% in FY2016. It's average CAPEX/Revenue for the last three years was 0.83%.
Return on investment
The company operates at good ROIC (13.22%) and ROE (14.07%). ROIC increased on 6.9 pp from 6.4% to 13.2% in FY2016. ROE increased on 5.9 pp from 8.2% to 14.1% in FY2016.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA dropped on 1.0x from -0.020x to -1.0x in FY2016. Debt dropped on 94.7% in FY2016 while cash dropped on 19.5% in FY2016.
Appendix 1: Peers in Construction & Materials
Below you can find Paints & Chemical Industries 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.) ($CTO) | 5.5% | 12.0% | -4.2% | 16.6% | |
| |
|---|
| Median (25 companies) | 1.0% | 5.5% | 8.9% | 1.7% | 6.3% |
|---|
| Paints & Chemical Industries ($PCLD) | | 13.4% | 5.3% | -9.2% | -6.9% |
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 ($MBH) | 35.3% | 28.4% | 31.1% | 38.2% | |
| |
|---|
| Median (23 companies) | 25.4% | 25.2% | 27.0% | 29.3% | 34.2% |
|---|
| Paints & Chemical Industries ($PCLD) | 14.4% | 14.9% | 13.0% | 16.3% | 20.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucky Cement Ltd ($LKCS) | 31.5% | 26.8% | 24.4% | 26.5% | 30.4% |
| Steppe Cement ($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 ($LSRG) | 20.2% | 19.5% | 22.9% | 19.3% | |
| |
|---|
| Median (25 companies) | 8.5% | 7.3% | 9.5% | 9.7% | 11.8% |
|---|
| Paints & Chemical Industries ($PCLD) | 12.9% | 13.4% | 10.7% | 6.9% | 11.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 74.2% | 5.4% | 12.8% | 54.9% | |
| Lucky Cement Ltd ($LKCS) | 3.2% | 5.2% | 6.9% | 12.0% | 8.9% |
| 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 ($SPGH) | 12.9% | 14.2% | 3.4% | 7.9% | |
| |
|---|
| Median (25 companies) | 2.2% | 2.5% | 2.6% | 2.3% | 3.1% |
|---|
| Paints & Chemical Industries ($PCLD) | 0.9% | 0.9% | 0.4% | 0.3% | 1.8% |
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% | |
| Lucky Cement Ltd ($LKCS) | 23.8% | 22.9% | 20.3% | 20.0% | 20.8% |
| |
|---|
| Median (25 companies) | 4.0% | 7.2% | 5.4% | 8.0% | 14.9% |
|---|
| Paints & Chemical Industries ($PCLD) | 13.9% | 15.5% | 12.5% | 6.4% | 13.2% |
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) ($COD) | 2.1x | 2.0x | 2.1x | 1.4x | |
| |
|---|
| Median (21 companies) | 1.7x | 0.8x | 0.5x | -0.1x | -0.8x |
|---|
| Paints & Chemical Industries ($PCLD) | 0.3x | 0.0x | 0.1x | -0.0x | -1.0x |
