Basf Se reports 28.7% CAPEX decline and 18.3% Revenue decline
24 Feb 2017 • About Basf Se (
$BFA) • By InTwits
Basf Se reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Basf Se is a company in decline: 2016 revenue growth was -18.3%, 5 years revenue CAGR was -4.8%
- EBITDA Margin is expanding: 18.6% in 2016 vs. 15.3% in 2015 vs. 13.4% in 2012
- Basf Se has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.9%. At the same time it's in pair with industry average of 8.1%.
- CAPEX is quite volatile: 16,643 in 2016, 11,423 in 2015, 5,206 in 2014, 4,233 in 2013, 7,433 in 2012
- The company has highly profitable business model: ROIC is at 13.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Basf Se ($BFA) key annual financial indicators
| mln. € | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 72,129 | 73,973 | 74,326 | 70,449 | 57,550 | -18.3% |
| Gross Profit | 17,863 | 18,397 | 18,487 | 19,077 | 18,285 | -4.2% |
| SG&A | 8,806 | 8,792 | 8,852 | 9,491 | 9,101 | -4.1% |
| EBITDA | 9,653 | 10,291 | 10,862 | 10,770 | 10,717 | -0.5% |
| Net Income | 4,819 | 4,792 | 5,155 | 3,987 | 4,056 | 1.7% |
Balance Sheet
|
|---|
| Cash | 1,647 | 1,827 | 1,718 | 2,241 | 1,375 | -38.6% |
| Short Term Debt | 4,094 | 3,256 | 3,545 | 4,074 | 3,767 | -7.5% |
| Long Term Debt | 8,704 | 11,151 | 11,839 | 11,123 | 12,545 | 12.8% |
Cash flow
|
|---|
| Capex | 4,015 | 4,873 | 5,296 | 5,812 | 4,145 | -28.7% |
Ratios
|
|---|
| Revenue growth | -1.9% | 2.6% | 0.5% | -5.2% | -18.3% | |
| EBITDA growth | -19.7% | 6.6% | 5.5% | -0.8% | -0.5% | |
| Gross Margin | 24.8% | 24.9% | 24.9% | 27.1% | 31.8% | 4.7% |
| EBITDA Margin | 13.4% | 13.9% | 14.6% | 15.3% | 18.6% | 3.3% |
| Net Income Margin | 6.7% | 6.5% | 6.9% | 5.7% | 7.0% | 1.4% |
| SG&A, % of revenue | 12.2% | 11.9% | 11.9% | 13.5% | 15.8% | 2.3% |
| CAPEX, % of revenue | 5.6% | 6.6% | 7.1% | 8.2% | 7.2% | -1.0% |
| ROIC | 15.4% | 16.6% | 16.6% | 13.5% | 13.0% | -0.5% |
| ROE | 19.8% | 18.6% | 18.9% | 13.6% | 12.9% | -0.7% |
| Net Debt/EBITDA | 1.2x | 1.2x | 1.3x | 1.2x | 1.4x | 0.2x |
Revenue and profitability
Basf Se's Revenue dropped on 18.3% in 2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.3 pp from 15.3% to 18.6% in 2016.
Gross Margin increased on 4.7 pp from 27.1% to 31.8% in 2016. SG&A as a % of Revenue increased on 2.3 pp from 13.5% to 15.8% in 2016.
Net Income marign increased slightly on 1.4 pp from 5.7% to 7.0% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Basf Se had CAPEX/Revenue of 7.2%. CAPEX/Revenue increased slightly on 0.61 pp from 6.6% in 2013 to 7.2% in 2016. For the last three years the average CAPEX/Revenue was 7.5%.
Return on investment
The company operates at good ROIC (13.02%) and ROE (12.93%). ROIC showed almost no change in 2016. ROE decreased slightly on 0.69 pp from 13.6% to 12.9% in 2016.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from 1.2x to 1.4x in 2016. Debt increased on 7.3% in 2016 while cash dropped on 38.6% in 2016.
Appendix 1: Peers in Chemicals
Below you can find Basf Se benchmarking vs. other companies in Chemicals 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 |
|---|
| Phosagro OJSC ($PHOR) | 4.8% | -0.7% | 17.7% | 54.1% | |
| Acron JSC ($AKRN) | 8.7% | -4.5% | 9.9% | 42.1% | |
| Plastics Capital ($PLA) | | -2.1% | 3.3% | 21.9% | 28.4% |
| Frutarom Industries ($FRUT) | 19.2% | 9.0% | 21.6% | 6.5% | |
| Croda International ($50GP) | | 2.4% | -2.8% | 3.4% | 15.0% |
| |
|---|
| Median (9 companies) | 9.5% | -0.7% | 7.1% | 3.4% | 15.0% |
|---|
| Basf Se ($BFA) | | 2.6% | 0.5% | -5.2% | -18.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Uralkali PJSC ($URKA) | | 71.6% | 74.3% | 81.8% | |
| Phosagro OJSC ($PHOR) | 42.9% | 34.8% | 45.2% | 56.2% | |
| Acron JSC ($AKRN) | 43.1% | 38.1% | 42.8% | 52.7% | |
| Arab Potash Co ($APOD) | 51.3% | 35.2% | 26.2% | 40.5% | |
| Halosource Inc ($HALO) | 32.9% | 40.7% | 44.8% | 40.2% | |
| |
|---|
| Median (9 companies) | 36.4% | 36.6% | 39.1% | 40.2% | 33.2% |
|---|
| Basf Se ($BFA) | 24.8% | 24.9% | 24.9% | 27.1% | 31.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Uralkali PJSC ($URKA) | | 44.5% | 48.6% | 62.3% | |
| Phosagro OJSC ($PHOR) | 32.9% | 22.9% | 30.5% | 43.5% | |
| Arab Potash Co ($APOD) | 47.2% | 36.3% | 27.7% | 39.6% | |
| Acron JSC ($AKRN) | 28.4% | 22.7% | 27.2% | 36.2% | |
| Croda International ($50GP) | 27.2% | 27.6% | 26.7% | 27.7% | 26.7% |
| |
|---|
| Median (9 companies) | 21.6% | 22.7% | 26.7% | 27.7% | 16.1% |
|---|
| Basf Se ($BFA) | 13.4% | 13.9% | 14.6% | 15.3% | 18.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Phosagro OJSC ($PHOR) | 12.7% | 17.0% | 16.7% | 22.4% | |
| Acron JSC ($AKRN) | 22.7% | 21.3% | 15.4% | 14.2% | |
| Uralkali PJSC ($URKA) | | 12.5% | 9.8% | 10.9% | |
| Croda International ($50GP) | 4.8% | 4.1% | 6.0% | 8.6% | 8.3% |
| Lg Chem ($LGCD) | 8.2% | 5.9% | 6.3% | 8.1% | 6.8% |
| |
|---|
| Median (9 companies) | 6.1% | 5.9% | 6.0% | 8.1% | 6.8% |
|---|
| Basf Se ($BFA) | 5.6% | 6.6% | 7.1% | 8.2% | 7.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Phosagro OJSC ($PHOR) | 28.5% | 15.0% | 21.6% | 41.2% | |
| Croda International ($50GP) | 46.5% | 42.3% | 35.3% | 30.5% | 27.7% |
| Uralkali PJSC ($URKA) | | | 13.2% | 23.1% | |
| Acron JSC ($AKRN) | 14.4% | 9.2% | 10.6% | 17.9% | |
| Arab Potash Co ($APOD) | 21.2% | 13.5% | 9.8% | 16.7% | |
| |
|---|
| Median (9 companies) | 14.4% | 12.0% | 10.6% | 16.7% | 12.0% |
|---|
| Basf Se ($BFA) | 15.4% | 16.6% | 16.6% | 13.5% | 13.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Uralkali PJSC ($URKA) | | 2.8x | 1.8x | 2.8x | |
| Frutarom Industries ($FRUT) | 1.4x | 1.7x | 1.1x | 2.6x | |
| Plastics Capital ($PLA) | 2.1x | 1.9x | 1.4x | 2.2x | 2.3x |
| Acron JSC ($AKRN) | 1.6x | 2.4x | 2.8x | 1.4x | |
| Phosagro OJSC ($PHOR) | 0.8x | 1.8x | 2.5x | 1.3x | |
| |
|---|
| Median (8 companies) | 0.8x | 1.7x | 1.3x | 1.3x | 1.1x |
|---|
| Basf Se ($BFA) | 1.2x | 1.2x | 1.3x | 1.2x | 1.4x |
