Suez Cement Co EBITDA surged on 37.0% in 2016 and EBITDA Margin increased slightly on 1.3 pp from 5.0% to 6.2%
05 Mar 2017 • About Suez Cement Co (
$SZCD) • By InTwits
Suez Cement Co reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Suez Cement Co doesn't have a profitable business model yet: 2016 ROIC is -2.3%
- EBITDA Margin is quite volatile: 6.2% in 2016, 5.0% in 2015, 17.9% in 2014, 19.3% in 2013, 19.4% in 2012
- Suez Cement Co has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: 63.3 in 2016, 42.1 in 2015, 248 in 2014, 50.2 in 2013, 6.2 in 2012
- The company has unprofitable business model: ROIC is at -2.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Suez Cement Co ($SZCD) key annual financial indicators
| mln. EGP | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,597 | 5,049 | 6,152 | 5,642 | 6,146 | 8.9% |
| Gross Profit | 852 | 934 | 1,086 | 423 | 662 | 56.5% |
| SG&A | | | 436 | 544 | 562 | 3.4% |
| EBITDA | 894 | 972 | 1,098 | 280 | 383 | 37.0% |
| Net Income | 524 | 538 | 500 | -57 | -528 | 820.9% |
Balance Sheet
|
|---|
| Cash | 1,622 | 1,817 | 1,626 | 1,060 | 1,351 | 27.4% |
| Short Term Debt | 38 | 55 | 67 | 252 | 413 | 63.9% |
| Long Term Debt | 57 | 58 | 147 | 147 | 314 | 114.2% |
Cash flow
|
|---|
| Capex | 6 | 50 | 248 | 42 | 63 | 50.5% |
Ratios
|
|---|
| Revenue growth | -4.6% | 9.8% | 21.8% | -8.3% | 8.9% | |
| EBITDA growth | -11.4% | 8.8% | 13.0% | -74.5% | 37.0% | |
| Gross Margin | 18.5% | 18.5% | 17.7% | 7.5% | 10.8% | 3.3% |
| EBITDA Margin | 19.4% | 19.3% | 17.9% | 5.0% | 6.2% | 1.3% |
| Net Income Margin | 11.4% | 10.7% | 8.1% | -1.0% | -8.6% | -7.6% |
| SG&A, % of revenue | | | 7.1% | 9.6% | 9.1% | -0.5% |
| CAPEX, % of revenue | 0.1% | 1.0% | 4.0% | 0.7% | 1.0% | 0.3% |
| ROIC | 6.7% | 7.2% | 7.8% | -2.3% | -2.3% | 0.0% |
| ROE | 7.4% | 7.5% | 6.9% | -0.8% | -8.3% | -7.5% |
| Net Debt/EBITDA | -1.7x | -1.8x | -1.3x | -2.4x | -1.6x | 0.7x |
Revenue and profitability
Suez Cement Co's Revenue increased on 8.9% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 6.2 pp from 28.3% to 34.5% in 2016.
Gross Margin increased on 3.3 pp from 7.5% to 10.8% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased on 7.6 pp from -1.0% to -8.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.0% in 2016. CAPEX/Revenue showed almost no change from 2013 to 2016. It's average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at negative ROIC (-2.25%) and ROE (-8.31%). ROIC showed almost no change in 2016. ROE decreased on 7.5 pp from -0.83% to -8.3% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.6x and Debt / EBITDA is 1.9x. Net Debt / EBITDA jumped on 0.7x from -2.4x to -1.6x in 2016. Debt surged on 82.4% in 2016 while cash jumped on 27.4% in 2016.
Appendix 1: Peers in Construction & Materials
Below we provide Suez Cement Co benchmarking against other companies in Construction & Materials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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.) ($CTO) | 5.5% | 12.0% | -4.2% | 16.6% | |
| |
|---|
| Median (25 companies) | 0.5% | 5.5% | 8.8% | 1.7% | 6.6% |
|---|
| Suez Cement Co ($SZCD) | | 9.8% | 21.8% | -8.3% | 8.9% |
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 ($MBH) | 35.3% | 28.4% | 31.1% | 38.2% | |
| |
|---|
| Median (23 companies) | 25.4% | 25.2% | 27.0% | 29.3% | 32.6% |
|---|
| Suez Cement Co ($SZCD) | 18.5% | 18.5% | 17.7% | 7.5% | 10.8% |
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 ($LSRG) | 20.2% | 19.5% | 22.9% | 19.3% | |
| |
|---|
| Median (25 companies) | 8.5% | 7.3% | 9.5% | 9.7% | 11.5% |
|---|
| Suez Cement Co ($SZCD) | 19.4% | 19.3% | 17.9% | 5.0% | 6.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Inch Kenneth Kajang Rubber ($IKK) | 74.2% | 5.4% | 12.8% | 54.9% | 754.9% |
| Lucky Cement Ltd ($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 ($SPGH) | 12.9% | 14.2% | 3.4% | 7.9% | |
| |
|---|
| Median (25 companies) | 2.2% | 2.5% | 2.4% | 2.3% | 3.1% |
|---|
| Suez Cement Co ($SZCD) | 0.1% | 1.0% | 4.0% | 0.7% | 1.0% |
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 ($LKCS) | 23.8% | 22.9% | 20.3% | 20.0% | 20.8% |
| |
|---|
| Median (25 companies) | 4.0% | 7.5% | 5.4% | 8.0% | 9.6% |
|---|
| Suez Cement Co ($SZCD) | 6.7% | 7.2% | 7.8% | -2.3% | -2.3% |
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 |
| Saint-Gobain(Compagnie De) ($COD) | 2.1x | 2.0x | 2.1x | 1.4x | 1.5x |
| |
|---|
| Median (21 companies) | 1.7x | 0.8x | 0.5x | -0.0x | -0.8x |
|---|
| Suez Cement Co ($SZCD) | -1.7x | -1.8x | -1.3x | -2.4x | -1.6x |
