Svenska Cellulosa Ab-Sca CAPEX surged on 23.7% in 2016 and Revenue increased slightly on 1.7%
26 Jan 2017 • About Svenska Cellulosa Ab-Sca (
$0MCK) • By InTwits
Svenska Cellulosa Ab-Sca reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Svenska Cellulosa Ab-Sca has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.6%. At the same time it's in pair with industry average of 5.6%.
- CAPEX is quite volatile: 3,248 in 2016, 1,653 in 2015, 1,402 in 2014, 2,202 in 2013, 6,298 in 2012
- The company has business model with low profitability: ROIC is at 9.1%
- It operates with high leverage: Net Debt/EBITDA is 1.8x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Svenska Cellulosa Ab-Sca ($0MCK) key annual financial indicators
| mln. SEK | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 85,408 | 92,873 | 104,054 | 115,316 | 117,314 | 1.7% |
| Gross Profit | 20,659 | 23,000 | 26,098 | 29,840 | 31,593 | 5.9% |
| SG&A | 13,454 | 13,862 | 15,115 | 17,025 | 17,683 | 3.9% |
| EBITDA | 10,779 | 13,932 | 15,846 | 16,801 | 17,942 | 6.8% |
| Net Income | 4,956 | 5,547 | 6,599 | 7,002 | 5,570 | -20.5% |
Balance Sheet
|
|---|
| Cash | 1,718 | 2,464 | 3,023 | 5,042 | 3,126 | -38.0% |
| Short Term Debt | 9,834 | 9,934 | 13,966 | 11,866 | 4,656 | -60.8% |
| Long Term Debt | 23,583 | 28,407 | 24,215 | 21,352 | 31,337 | 46.8% |
Cash flow
|
|---|
| Capex | 5,673 | 5,653 | 5,733 | 7,591 | 9,388 | 23.7% |
Ratios
|
|---|
| Revenue growth | 5.0% | 8.7% | 12.0% | 10.8% | 1.7% | |
| EBITDA growth | 32.4% | 29.3% | 13.7% | 6.0% | 6.8% | |
| Gross Margin | 24.2% | 24.8% | 25.1% | 25.9% | 26.9% | 1.1% |
| EBITDA Margin | 12.6% | 15.0% | 15.2% | 14.6% | 15.3% | 0.7% |
| Net Income Margin | 5.8% | 6.0% | 6.3% | 6.1% | 4.7% | -1.3% |
| SG&A, % of revenue | 15.8% | 14.9% | 14.5% | 14.8% | 15.1% | 0.3% |
| CAPEX, % of revenue | 6.6% | 6.1% | 5.5% | 6.6% | 8.0% | 1.4% |
| ROIC | 5.5% | 8.2% | 8.7% | 9.0% | 9.1% | 0.1% |
| ROE | 8.2% | 9.0% | 10.1% | 10.1% | 7.8% | -2.4% |
| Net Debt/EBITDA | 2.9x | 2.6x | 2.2x | 1.7x | 1.8x | 0.2x |
Revenue and profitability
Svenska Cellulosa Ab-Sca's Revenue increased slightly on 1.7% in 2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 2.1 pp from 11.5% to 13.6% in 2016.
Gross Margin increased slightly on 1.1 pp from 25.9% to 26.9% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased slightly on 1.3 pp from 6.1% to 4.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 8.0%. Svenska Cellulosa Ab-Sca showed small growth in CAPEX/Revenue of 1.9 pp from 6.1% in 2013 to 8.0% in 2016. Average CAPEX/Revenue for the last three years was 6.7%.Svenska Cellulosa Ab-Sca invested a large share of EBITDA (52.3%) to CAPEX.
Return on investment
The company operates at low ROIC (9.07%) and ROE (7.76%). ROIC showed almost no change in 2016. ROE decreased on 2.4 pp from 10.1% to 7.8% in 2016.
Leverage (Debt)
Debt level is 1.8x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from 1.7x to 1.8x in 2016. Debt increased on 8.4% in 2016 while cash dropped on 38.0% in 2016.
Appendix 1: Peers in Personal Goods
Below you can find Svenska Cellulosa Ab-Sca benchmarking vs. other companies in Personal Goods 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 |
|---|
| Creightons ($CRL) | | 6.1% | 11.7% | 4.2% | 4.1% |
| Swallowfield ($SWL) | | -16.0% | 3.0% | -1.2% | 10.1% |
| Far Eastern New Century Corp ($FETD) | | 0.9% | -1.4% | -7.5% | |
| Pittards ($PTD) | -3.1% | -3.3% | -3.0% | -12.1% | |
| Bagir Grp Ltd ($BAGR) | 1.6% | 14.8% | -2.5% | -22.5% | |
| |
|---|
| Median (5 companies) | -0.7% | 0.9% | -1.4% | -7.5% | 7.1% |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | | 8.7% | 12.0% | 10.8% | 1.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Creightons ($CRL) | 42.1% | 42.8% | 40.8% | 39.2% | 42.2% |
| Far Eastern New Century Corp ($FETD) | 18.7% | 19.5% | 20.3% | 23.2% | |
| Pittards ($PTD) | 17.4% | 20.5% | 20.3% | 21.7% | |
| Swallowfield ($SWL) | 10.6% | 8.2% | 10.3% | 11.8% | 14.8% |
| Bagir Grp Ltd ($BAGR) | 17.0% | 19.1% | 17.4% | 9.8% | |
| |
|---|
| Median (5 companies) | 17.4% | 19.5% | 20.3% | 21.7% | 28.5% |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 24.2% | 24.8% | 25.1% | 25.9% | 26.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Far Eastern New Century Corp ($FETD) | 12.3% | 12.5% | 12.1% | 15.0% | |
| Pittards ($PTD) | 4.6% | 6.6% | 6.9% | 6.2% | |
| Creightons ($CRL) | 4.0% | 4.6% | 4.7% | 5.0% | 4.7% |
| Swallowfield ($SWL) | 4.9% | 1.8% | 4.0% | 4.5% | 6.7% |
| Bagir Grp Ltd ($BAGR) | 3.9% | 6.1% | 3.4% | -3.9% | |
| |
|---|
| Median (5 companies) | 4.6% | 6.1% | 4.7% | 5.0% | 5.7% |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 12.6% | 15.0% | 15.2% | 14.6% | 15.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pittards ($PTD) | 1.7% | 1.0% | 1.7% | 14.3% | |
| Far Eastern New Century Corp ($FETD) | 7.4% | 10.5% | 12.0% | 11.1% | |
| Swallowfield ($SWL) | 2.1% | 1.5% | 1.8% | 3.1% | 2.2% |
| Creightons ($CRL) | 1.9% | 0.6% | 1.1% | 0.8% | 3.7% |
| Bagir Grp Ltd ($BAGR) | 0.2% | 0.3% | 0.2% | 0.1% | |
| |
|---|
| Median (5 companies) | 1.9% | 1.0% | 1.7% | 3.1% | 2.9% |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 6.6% | 6.1% | 5.5% | 6.6% | 8.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Creightons ($CRL) | 6.3% | 7.0% | 8.4% | 8.8% | 6.7% |
| Swallowfield ($SWL) | 10.9% | -3.1% | 5.1% | 8.4% | 18.7% |
| Pittards ($PTD) | 4.7% | 9.1% | 8.2% | 5.2% | |
| Far Eastern New Century Corp ($FETD) | 4.3% | 3.6% | 2.6% | 3.0% | |
| Bagir Grp Ltd ($BAGR) | 4.7% | 18.8% | 1.9% | -24.8% | |
| |
|---|
| Median (5 companies) | 4.7% | 7.0% | 5.1% | 5.2% | 12.7% |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 5.5% | 8.2% | 8.7% | 9.0% | 9.1% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Far Eastern New Century Corp ($FETD) | 2.7x | 4.8x | 5.6x | 5.1x | |
| Pittards ($PTD) | 3.3x | 3.0x | 3.2x | 3.4x | |
| Swallowfield ($SWL) | -0.0x | -0.8x | -0.3x | 0.3x | -0.1x |
| Creightons ($CRL) | 1.2x | 1.2x | 0.7x | 0.1x | -0.8x |
| |
|---|
| Median (4 companies) | 2.7x | 3.0x | 3.2x | 1.8x | -0.4x |
|---|
| Svenska Cellulosa Ab-Sca ($0MCK) | 2.9x | 2.6x | 2.2x | 1.7x | 1.8x |
