Saint-Gobain(Compagnie De) reports 9.2% EBITDA growth while 1.3% Revenue decline
23 Feb 2017 • About Saint-Gobain(Compagnie De) (
$COD) • By InTwits
Saint-Gobain(Compagnie De) reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 9.3% in FY2016 vs. 8.4% in FY2015 vs. 9.2% in FY2012
- Saint-Gobain(Compagnie De) has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 14.2%.
- CAPEX is quite volatile: 16,643 in 2016, 11,423 in 2015, 5,206 in 2014, 4,233 in 2013, 7,433 in 2012
- The company has business model with low profitability: ROIC is at 7.9%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Saint-Gobain(Compagnie De) ($COD) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 43,198 | 41,761 | 38,349 | 39,623 | 39,093 | -1.3% |
| Gross Profit | 10,152 | 9,966 | 9,555 | 9,929 | 9,987 | 0.6% |
| SG&A | 7,289 | 7,232 | 7,077 | 7,336 | 7,200 | -1.9% |
| EBITDA | 3,954 | 3,742 | 3,501 | 3,336 | 3,642 | 9.2% |
| Net Income | 693 | 595 | 953 | 1,295 | 1,311 | 1.2% |
Balance Sheet
|
|---|
| Cash | 4,179 | 4,350 | 3,493 | 5,380 | 3,738 | -30.5% |
| Short Term Debt | 3,082 | 2,522 | 2,022 | 2,867 | 2,423 | -15.5% |
| Long Term Debt | 9,566 | 9,308 | 8,655 | 7,325 | 6,959 | -5.0% |
Cash flow
|
|---|
| Capex | 1,883 | 1,419 | 1,351 | 1,475 | 1,521 | 3.1% |
Ratios
|
|---|
| Revenue growth | 2.6% | -3.3% | -8.2% | 3.3% | -1.3% | |
| EBITDA growth | -12.9% | -5.4% | -6.4% | -4.7% | 9.2% | |
| Gross Margin | 23.5% | 23.9% | 24.9% | 25.1% | 25.5% | 0.5% |
| EBITDA Margin | 9.2% | 9.0% | 9.1% | 8.4% | 9.3% | 0.9% |
| Net Income Margin | 1.6% | 1.4% | 2.5% | 3.3% | 3.4% | 0.1% |
| SG&A, % of revenue | 16.9% | 17.3% | 18.5% | 18.5% | 18.4% | -0.1% |
| CAPEX, % of revenue | 4.4% | 3.4% | 3.5% | 3.7% | 3.9% | 0.2% |
| ROIC | 6.6% | 6.2% | 5.2% | 4.3% | 7.9% | 3.6% |
| ROE | 3.9% | 3.4% | 5.4% | 7.0% | 7.0% | -0.1% |
| Net Debt/EBITDA | 2.1x | 2.0x | 2.1x | 1.4x | 1.5x | 0.1x |
Revenue and profitability
Saint-Gobain(Compagnie De)'s Revenue decreased slightly on 1.3% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.90 pp from 8.4% to 9.3% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.9% in FY2016. Saint-Gobain(Compagnie De) showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 3.7%.
Return on investment
The company operates at low ROIC (7.95%) and ROE (6.95%). ROIC increased on 3.6 pp from 4.3% to 7.9% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is 2.6x. Net Debt / EBITDA surged on 0.1x from 1.4x to 1.5x in FY2016. Debt decreased on 7.9% in FY2016 while cash dropped on 30.5% in FY2016.
Appendix 1: Peers in Construction & Materials
Below you can find Saint-Gobain(Compagnie De) 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 ($KGP) | | 9.1% | 6.4% | 46.7% | 12.0% |
| Accsys Technologies ($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.) ($CTO) | 5.5% | 12.0% | -4.2% | 16.6% | |
| |
|---|
| Median (25 companies) | -2.3% | 5.6% | 8.9% | 1.6% | 9.0% |
|---|
| Saint-Gobain(Compagnie De) ($COD) | | -3.3% | -8.2% | 3.3% | -1.3% |
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 ($MBH) | 35.3% | 28.4% | 31.1% | 38.2% | |
| |
|---|
| Median (23 companies) | 25.4% | 25.2% | 27.0% | 29.3% | 33.0% |
|---|
| Saint-Gobain(Compagnie De) ($COD) | 23.5% | 23.9% | 24.9% | 25.1% | 25.5% |
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 ($LSRG) | 20.2% | 19.5% | 22.9% | 19.3% | |
| |
|---|
| Median (25 companies) | 8.5% | 7.3% | 9.7% | 9.7% | 11.9% |
|---|
| Saint-Gobain(Compagnie De) ($COD) | 9.2% | 9.0% | 9.1% | 8.4% | 9.3% |
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 ($SPGH) | 12.9% | 14.2% | 3.4% | 7.9% | |
| |
|---|
| Median (25 companies) | 2.1% | 2.4% | 2.4% | 2.2% | 3.0% |
|---|
| Saint-Gobain(Compagnie De) ($COD) | 4.4% | 3.4% | 3.5% | 3.7% | 3.9% |
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% | 9.6% |
| Lucky Cement Ltd ($LKCS) | 23.8% | 22.9% | 20.3% | 20.0% | 20.8% |
| |
|---|
| Median (25 companies) | 4.0% | 7.5% | 7.4% | 8.0% | 13.2% |
|---|
| Saint-Gobain(Compagnie De) ($COD) | 6.6% | 6.2% | 5.2% | 4.3% | 7.9% |
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 |
| Steppe Cement ($STCM) | 1.6x | 1.2x | 2.9x | 1.2x | |
| |
|---|
| Median (21 companies) | 1.4x | 0.6x | 0.4x | -0.1x | -0.9x |
|---|
| Saint-Gobain(Compagnie De) ($COD) | 2.1x | 2.0x | 2.1x | 1.4x | 1.5x |
