Aluminium Bahrain Bsc reports 123% CAPEX growth while 12.6% Revenue decline
09 Feb 2017 • About Aluminium Bahrain Bsc (
$ALBH) • By InTwits
Aluminium Bahrain Bsc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aluminium Bahrain Bsc is a company in decline: 2016 revenue growth was -12.6%, 5 years revenue CAGR was -5.4%
- Aluminium Bahrain Bsc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.1%. At the same time it's in pair with industry average of 11.0%.
- CAPEX is quite volatile: 108 in 2016, 48.6 in 2015, 50.6 in 2014, 57.5 in 2013, 32.7 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Aluminium Bahrain Bsc ($ALBH) key annual financial indicators
| mln. BHD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 743.7 | 749.3 | 821.7 | 766.7 | 669.8 | -12.6% |
| Gross Profit | 105.2 | 108.6 | 147.8 | 103.3 | 82.4 | -20.2% |
| SG&A | | | 49.4 | 44.6 | 33.8 | -24.2% |
| EBITDA | 137.4 | 138.0 | 177.8 | 132.4 | 123.5 | -6.7% |
| Net Income | 96.5 | 79.8 | 96.4 | 60.0 | 48.4 | -19.3% |
Balance Sheet
|
|---|
| Cash | 61.6 | 64.5 | 67.2 | 116.0 | 66.4 | -42.8% |
| Short Term Debt | 177.5 | 116.4 | 72.4 | 56.4 | 45.2 | -19.8% |
| Long Term Debt | 77.1 | 84.4 | 64.1 | 33.0 | 6.5 | -80.4% |
Cash flow
|
|---|
| Capex | 32.7 | 57.5 | 50.6 | 48.6 | 108.1 | 122.6% |
Ratios
|
|---|
| Revenue growth | -15.8% | 0.8% | 9.7% | -6.7% | -12.6% | |
| EBITDA growth | -45.7% | 0.5% | 28.8% | -25.5% | -6.7% | |
| Gross Margin | 14.1% | 14.5% | 18.0% | 13.5% | 12.3% | -1.2% |
| EBITDA Margin | 18.5% | 18.4% | 21.6% | 17.3% | 18.4% | 1.2% |
| Net Income Margin | 13.0% | 10.6% | 11.7% | 7.8% | 7.2% | -0.6% |
| SG&A, % of revenue | | | 6.0% | 5.8% | 5.0% | -0.8% |
| CAPEX, % of revenue | 4.4% | 7.7% | 6.2% | 6.3% | 16.1% | 9.8% |
| ROIC | 5.4% | 5.6% | 9.3% | 5.6% | 5.0% | -0.6% |
| ROE | 11.8% | 9.4% | 10.8% | 6.4% | 5.0% | -1.4% |
| Net Debt/EBITDA | 1.4x | 1.0x | 0.4x | -0.2x | -0.1x | 0.1x |
Revenue and profitability
The company's Revenue dropped on 12.6% in 2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.2 pp from 17.3% to 18.4% in 2016.
Gross Margin decreased slightly on 1.2 pp from 13.5% to 12.3% in 2016. SG&A as a % of Revenue decreased slightly on 0.77 pp from 5.8% to 5.0% in 2016.
Net Income marign decreased slightly on 0.60 pp from 7.8% to 7.2% in 2016.
Capital expenditures (CAPEX) and working capital investments
Aluminium Bahrain Bsc's CAPEX/Revenue was 16.1% in 2016. CAPEX/Revenue increased on 8.5 pp from 7.7% in 2013 to 16.1% in 2016. Average CAPEX/Revenue for the last three years was 9.5%.Aluminium Bahrain Bsc invested a big chunk of EBITDA (87.5%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low ROIC (5.00%) and ROE (5.00%). ROIC decreased slightly on 0.59 pp from 5.6% to 5.0% in 2016. ROE decreased slightly on 1.4 pp from 6.4% to 5.0% in 2016.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and 0.4x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from -0.2x to -0.1x in 2016. Debt dropped on 42.1% in 2016 while cash dropped on 42.8% in 2016.
Appendix 1: Peers in Industrial Metals & Mining
Below you can find Aluminium Bahrain Bsc 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Base Resources Ltd ($BSE) | | | | 399.7% | 16.2% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 2.4% | -0.1% | 26.4% | 45.5% | |
| Norsk Hydro Asa ($NHY) | | 1.1% | 20.1% | 12.6% | -6.5% |
| Afarak Group ($AFRK) | -19.2% | 5.4% | 27.4% | 8.7% | |
| Vimetco Nv ($VICO) | -13.4% | -6.5% | -12.8% | -5.3% | |
| |
|---|
| Median (15 companies) | -0.4% | -1.4% | 0.7% | -14.2% | -6.5% |
|---|
| Aluminium Bahrain Bsc ($ALBH) | | 0.8% | 9.7% | -6.7% | -12.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 49.1% | 43.4% | 52.2% | 55.7% | |
| Severstal PJSC ($SVST) | 23.5% | 29.9% | 34.4% | 40.4% | 39.6% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 23.8% | 19.4% | 28.3% | 31.4% | |
| Magnitogorsk Iron & Steel Works ($MMK) | 15.5% | 14.9% | 21.9% | 30.6% | |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 17.7% | 15.1% | 28.6% | 24.8% | |
| |
|---|
| Median (13 companies) | 16.6% | 15.1% | 19.5% | 20.5% | 16.8% |
|---|
| Aluminium Bahrain Bsc ($ALBH) | 14.1% | 14.5% | 18.0% | 13.5% | 12.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 38.6% | 29.2% | 46.8% | 47.0% | |
| Base Resources Ltd ($BSE) | | | -1.8% | 37.7% | 35.8% |
| Severstal PJSC ($SVST) | 14.9% | 19.3% | 26.4% | 32.4% | 31.2% |
| Magnitogorsk Iron & Steel Works ($MMK) | 13.1% | 14.0% | 19.5% | 28.3% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 15.6% | 13.8% | 21.8% | 24.3% | |
| |
|---|
| Median (15 companies) | 12.9% | 12.1% | 12.6% | 14.6% | 13.5% |
|---|
| Aluminium Bahrain Bsc ($ALBH) | 18.5% | 18.4% | 21.6% | 17.3% | 18.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| First Quantum Minerals ($FQM) | 46.5% | 73.2% | 81.7% | 72.5% | |
| Mmc Norilsk Nickel ($MNOD) | 22.3% | 17.1% | 10.8% | 19.0% | |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 7.0% | 7.9% | 9.9% | 8.1% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 12.0% | 6.9% | 5.4% | 7.7% | |
| Ezz Steel ($AEZD) | 2.3% | 3.9% | 6.4% | 6.8% | |
| |
|---|
| Median (15 companies) | 7.0% | 7.6% | 6.4% | 6.3% | 4.4% |
|---|
| Aluminium Bahrain Bsc ($ALBH) | 4.4% | 7.7% | 6.2% | 6.3% | 16.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 21.8% | 14.2% | 34.1% | 31.7% | |
| Severstal PJSC ($SVST) | 10.3% | 9.6% | 17.7% | 30.3% | 29.7% |
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | 41.7% | 56.6% | 55.8% | 26.6% | 0.9% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 6.2% | -2.7% | 25.6% | 24.4% | |
| Magnitogorsk Iron & Steel Works ($MMK) | 1.8% | 1.4% | 9.1% | 18.1% | |
| |
|---|
| Median (15 companies) | 6.2% | 4.1% | 7.4% | 8.1% | 4.0% |
|---|
| Aluminium Bahrain Bsc ($ALBH) | 5.4% | 5.6% | 9.3% | 5.6% | 5.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vimetco Nv ($VICO) | 7.7x | | 10.9x | 14.6x | |
| Ezz Steel ($AEZD) | 4.8x | 3.6x | 19.4x | 13.3x | |
| First Quantum Minerals ($FQM) | 0.0x | 2.5x | 4.0x | 10.5x | |
| Base Resources Ltd ($BSE) | | | | 4.4x | 3.7x |
| OAO TMK ($TMKS) | 3.6x | 3.9x | 3.8x | 4.3x | |
| |
|---|
| Median (14 companies) | 2.0x | 2.1x | 1.2x | 1.1x | 0.5x |
|---|
| Aluminium Bahrain Bsc ($ALBH) | 1.4x | 1.0x | 0.4x | -0.2x | -0.1x |
