Inter RAO JSC Net Income surged on 169% in 2016 and Revenue increased on 4.4%
01 Mar 2017 • About Inter RAO JSC (
$IRAO) • By InTwits
Inter RAO JSC reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 11.5% in 2016 vs. 5.9% in 2015 vs. -2.7% in 2012
- EBITDA Margin is quite volatile: 11.5% in 2016, 5.9% in 2015, 5.6% in 2014, 0.8% in 2013, -2.7% in 2012
- Inter RAO JSC has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.5%. At the same time it's a lot of higher than industry average of 6.2%.
- CAPEX is quite volatile: 81,700 in 2016, 51,100 in 2015, 53,600 in 2014, 34,500 in 2013, 26,300 in 2012
- The company has highly profitable business model: ROIC is at 17.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Inter RAO JSC ($IRAO) key annual financial indicators
| mln. RUB | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 556,189 | 662,321 | 741,101 | 831,987 | 868,182 | 4.4% |
| EBITDA | -15,027 | 5,260 | 41,170 | 49,352 | 100,164 | 103.0% |
| Net Income | -22,737 | -23,067 | 7,837 | 22,601 | 60,761 | 168.8% |
Balance Sheet
|
|---|
| Cash | 48,049 | 39,882 | 75,599 | 66,280 | 95,988 | 44.8% |
| Short Term Debt | 14,911 | 12,446 | 42,208 | 33,332 | 8,686 | -73.9% |
| Long Term Debt | 44,377 | 40,198 | 64,185 | 42,617 | 8,886 | -79.1% |
Cash flow
|
|---|
| Capex | 48,884 | 40,982 | 35,980 | 28,966 | 34,746 | 20.0% |
Ratios
|
|---|
| Revenue growth | 3.7% | 19.1% | 11.9% | 12.3% | 4.4% | |
| EBITDA growth | -276.1% | -135.0% | 682.7% | 19.9% | 103.0% | |
| EBITDA Margin | -2.7% | 0.8% | 5.6% | 5.9% | 11.5% | 5.6% |
| Net Income Margin | -4.1% | -3.5% | 1.1% | 2.7% | 7.0% | 4.3% |
| CAPEX, % of revenue | 8.8% | 6.2% | 4.9% | 3.5% | 4.0% | 0.5% |
| ROIC | -6.9% | -4.3% | 4.4% | 5.5% | 17.3% | 11.9% |
| ROE | -6.5% | -6.8% | 2.3% | 6.4% | 15.6% | 9.2% |
| Net Debt/EBITDA | | 2.4x | 0.7x | 0.2x | -0.8x | -1.0x |
Revenue and profitability
The company's Revenue increased on 4.4% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.0 pp from 8.6% to 9.6% in 2016.
Net Income marign increased on 4.3 pp from 2.7% to 7.0% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Inter RAO JSC had CAPEX/Revenue of 4.0%. The company's CAPEX/Revenue decreased on 2.2 pp from 6.2% in 2013 to 4.0% in 2016. For the last three years the average CAPEX/Revenue was 4.1%.
Return on investment
The company operates at good ROIC (17.33%) and ROE (15.57%). ROIC surged on 11.9 pp from 5.5% to 17.3% in 2016. ROE increased on 9.2 pp from 6.4% to 15.6% in 2016.
Leverage (Debt)
Debt level is -0.8x Net Debt / EBITDA and 0.2x Debt / EBITDA. Net Debt / EBITDA dropped on 1.0x from 0.2x to -0.8x in 2016. Debt dropped on 76.9% in 2016 while cash jumped on 44.8% in 2016.
Appendix 1: Peers in Gas, Water & Multiutilities
Below you can find Inter RAO JSC benchmarking vs. other companies in Gas, Water & Multiutilities 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Utilities Group ($UU.) | | 4.5% | 3.2% | 1.9% | 0.6% |
| National Grid ($NG.) | | 3.8% | 3.1% | 2.6% | -0.6% |
| Dee Valley Group ($DVW) | | 3.2% | 4.3% | 3.4% | -5.9% |
| |
|---|
| Median (3 companies) | | 3.8% | 3.2% | 2.6% | -0.6% |
|---|
| Inter RAO JSC ($IRAO) | | 19.1% | 11.9% | 12.3% | 4.4% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dee Valley Group ($DVW) | 97.0% | 96.9% | 97.0% | 96.9% | 96.5% |
| |
|---|
| Median (1 company) | 97.0% | 96.9% | 97.0% | 96.9% | 96.5% |
|---|
Top companies by EBITDA margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Utilities Group ($UU.) | 56.8% | 56.9% | 57.3% | 58.5% | 53.8% |
| Dee Valley Group ($DVW) | 56.4% | 53.5% | 50.5% | 49.2% | 49.1% |
| National Grid ($NG.) | 34.9% | 35.6% | 34.8% | 34.7% | 37.7% |
| |
|---|
| Median (3 companies) | 56.4% | 53.5% | 50.5% | 49.2% | 49.1% |
|---|
| Inter RAO JSC ($IRAO) | -2.7% | 0.8% | 5.6% | 5.9% | 11.5% |
Top companies by CAPEX/Revenue, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Utilities Group ($UU.) | 32.1% | 38.2% | 39.2% | 38.7% | 36.7% |
| Dee Valley Group ($DVW) | 32.0% | 66.9% | 28.1% | 27.3% | 24.3% |
| National Grid ($NG.) | 22.8% | 22.4% | 19.9% | 20.2% | 22.5% |
| |
|---|
| Median (3 companies) | 32.0% | 38.2% | 28.1% | 27.3% | 24.3% |
|---|
| Inter RAO JSC ($IRAO) | 8.8% | 6.2% | 4.9% | 3.5% | 4.0% |
Top companies by ROIC, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| National Grid ($NG.) | 9.8% | 9.6% | 8.9% | 9.0% | 9.2% |
| Dee Valley Group ($DVW) | 8.2% | 7.9% | 7.5% | 7.4% | 6.4% |
| United Utilities Group ($UU.) | 6.9% | 6.6% | 6.8% | 6.7% | 5.4% |
| |
|---|
| Median (3 companies) | 8.2% | 7.9% | 7.5% | 7.4% | 6.4% |
|---|
| Inter RAO JSC ($IRAO) | -6.9% | -4.3% | 4.4% | 5.5% | 17.3% |
Top companies by Net Debt / EBITDA
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| United Utilities Group ($UU.) | 6.2x | 6.4x | 6.1x | 6.4x | 7.3x |
| National Grid ($NG.) | 4.7x | 5.4x | 5.0x | 4.9x | 5.0x |
| Dee Valley Group ($DVW) | 3.2x | 4.0x | 4.2x | 4.2x | 4.4x |
| |
|---|
| Median (3 companies) | 4.7x | 5.4x | 5.0x | 4.9x | 5.0x |
|---|
| Inter RAO JSC ($IRAO) | | 2.4x | 0.7x | 0.2x | -0.8x |
