Uralkali PJSC Net Income jumped on 687% in 2016 while Revenue dropped on 27.1%
13 Mar 2017 • About Uralkali PJSC (
$URKA) • By InTwits
Uralkali PJSC reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Uralkali PJSC is a company in decline: 2016 revenue growth was -27.1%, 5 years revenue CAGR was -8.2%
- The company has highly profitable business model: ROIC is at 14.1%
- It operates with high leverage: Net Debt/EBITDA is 4.7x while industry average is 1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Uralkali PJSC ($URKA) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,950 | 3,323 | 3,559 | 3,123 | 2,278 | -27.1% |
| Gross Profit | | 2,378 | 2,643 | 2,555 | 1,728 | -32.3% |
| SG&A | | 1,128 | 1,114 | 740 | 683 | -7.6% |
| EBITDA | | 1,478 | 1,729 | 1,946 | 1,183 | -39.2% |
| Net Income | 1,597 | 667 | -627 | 181 | 1,427 | 687.5% |
Balance Sheet
|
|---|
| Cash | | 930 | 2,455 | 1,112 | 1,486 | 33.6% |
| Short Term Debt | | 1,464 | 632 | 2,329 | 1,830 | -21.4% |
| Long Term Debt | | 3,583 | 4,999 | 4,160 | 5,173 | 24.3% |
Cash flow
|
|---|
| Capex | | 416 | 349 | 339 | 317 | -6.4% |
Ratios
|
|---|
| Revenue growth | 13.0% | -15.9% | 7.1% | -12.2% | -27.1% | |
| EBITDA growth | | | 17.0% | 12.5% | -39.2% | |
| Gross Margin | | 71.6% | 74.3% | 81.8% | 75.9% | -5.9% |
| EBITDA Margin | 0.0% | 44.5% | 48.6% | 62.3% | 51.9% | -10.4% |
| Net Income Margin | 40.4% | 20.1% | -17.6% | 5.8% | 62.6% | 56.8% |
| SG&A, % of revenue | | 33.9% | 31.3% | 23.7% | 30.0% | 6.3% |
| CAPEX, % of revenue | | 12.5% | 9.8% | 10.9% | 13.9% | 3.1% |
| ROIC | | | 13.2% | 23.1% | 14.1% | -9.0% |
| ROE | | | -15.0% | | | 0.0% |
| Net Debt/EBITDA | | 2.8x | 1.8x | 2.8x | 4.7x | 1.9x |
Revenue and profitability
Uralkali PJSC's Revenue dropped on 27.1% in 2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 10.4 pp from 62.3% to 51.9% in 2016.
Gross Margin decreased on 5.9 pp from 81.8% to 75.9% in 2016. SG&A as a % of Revenue increased on 6.3 pp from 23.7% to 30.0% in 2016.
Net Income marign surged on 56.8 pp from 5.8% to 62.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 13.9%. CAPEX/Revenue increased slightly on 1.4 pp from 12.5% in 2013 to 13.9% in 2016. For the last three years the average CAPEX/Revenue was 11.5%.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.7x and Debt / EBITDA is 5.9x. Net Debt / EBITDA surged on 1.9x from 2.8x to 4.7x in 2016. Debt increased on 7.9% in 2016 while cash surged on 33.6% in 2016.
Appendix 1: Peers in Chemicals
Below you can find Uralkali PJSC 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 ($50GP) | | 2.4% | -2.8% | 3.4% | 15.0% |
| |
|---|
| Median (9 companies) | 8.7% | -0.5% | 3.3% | 3.4% | 8.6% |
|---|
| Uralkali PJSC ($URKA) | | -15.9% | 7.1% | -12.2% | -27.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | |
| Frutarom Industries ($FRUT) | 36.6% | 38.1% | 39.1% | 38.7% | |
| |
|---|
| Median (9 companies) | 36.2% | 35.2% | 36.0% | 38.7% | 32.5% |
|---|
| Uralkali PJSC ($URKA) | | 71.6% | 74.3% | 81.8% | 75.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 ($50GP) | 27.2% | 27.6% | 26.7% | 27.7% | 26.7% |
| Frutarom Industries ($FRUT) | 16.0% | 17.0% | 18.2% | 18.5% | |
| |
|---|
| Median (9 companies) | 16.0% | 17.0% | 18.2% | 18.5% | 17.4% |
|---|
| Uralkali PJSC ($URKA) | | 44.5% | 48.6% | 62.3% | 51.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Phosagro OJSC ($PHOR) | 12.7% | 17.0% | 16.7% | 22.4% | |
| Acron JSC ($AKRN) | 22.7% | 21.3% | 15.4% | 14.2% | |
| Croda International ($50GP) | 4.8% | 4.1% | 6.0% | 8.6% | 8.3% |
| Basf Se ($BFA) | 5.6% | 6.6% | 7.1% | 8.2% | 7.2% |
| Lg Chem ($LGCD) | 8.2% | 5.9% | 6.3% | 8.1% | 6.8% |
| |
|---|
| Median (9 companies) | 5.6% | 5.9% | 6.0% | 8.1% | 7.0% |
|---|
| Uralkali PJSC ($URKA) | | 12.5% | 9.8% | 10.9% | 13.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Phosagro OJSC ($PHOR) | 28.5% | 15.0% | 21.6% | 41.2% | |
| Croda International ($50GP) | 46.5% | 42.3% | 35.3% | 30.5% | 27.7% |
| Acron JSC ($AKRN) | 14.4% | 9.2% | 10.6% | 17.9% | |
| Arab Potash Co ($APOD) | 21.2% | 13.5% | 9.8% | 16.7% | |
| Frutarom Industries ($FRUT) | 12.0% | 11.9% | 15.1% | 14.1% | |
| |
|---|
| Median (9 companies) | 14.4% | 12.0% | 10.6% | 14.1% | 12.5% |
|---|
| Uralkali PJSC ($URKA) | | | 13.2% | 23.1% | 14.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Frutarom Industries ($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 ($PHOR) | 0.8x | 1.8x | 2.5x | 1.3x | |
| Basf Se ($BFA) | 1.2x | 1.2x | 1.3x | 1.2x | 1.4x |
| |
|---|
| Median (8 companies) | 1.0x | 1.4x | 1.2x | 1.2x | 1.2x |
|---|
| Uralkali PJSC ($URKA) | | 2.8x | 1.8x | 2.8x | 4.7x |
