Cheliabinsk Elektrolit Zink Plant Net Income increased on 5.7% in 2016 while Revenue decreased on 2.5%
24 Mar 2017 • About Cheliabinsk Elektrolit Zink Plant (
$CHZN) • By InTwits
Cheliabinsk Elektrolit Zink Plant reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 24.7% in 2016, 24.1% in 2015, 25.3% in 2014, 5.7% in 2013, 12.7% in 2012
- Cheliabinsk Elektrolit Zink Plant has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.4%. At the same time it's in pair with industry average of 9.8%.
- CAPEX is quite volatile: 969 in 2016, 1,940 in 2015, 1,640 in 2014, 1,026 in 2013, 919 in 2012
- The company has highly profitable business model: ROIC is at 22.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cheliabinsk Elektrolit Zink Plant ($CHZN) key annual financial indicators
| mln. RUB | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13,077 | 13,062 | 16,508 | 24,013 | 23,424 | -2.5% |
| Gross Profit | 2,311 | 1,972 | 4,715 | 5,945 | 7,258 | 22.1% |
| SG&A | | | 1,814 | 1,284 | 2,059 | 60.3% |
| EBITDA | 1,665 | 749 | 4,180 | 5,777 | 5,783 | 0.1% |
| Net Income | 646 | -208 | 2,353 | 3,750 | 3,965 | 5.7% |
Balance Sheet
|
|---|
| Cash | 425 | 445 | 448 | 252 | 343 | 36.3% |
| Short Term Debt | 0 | 0 | 95 | 101 | 4,250 | 4,105.4% |
| Long Term Debt | 0 | 0 | 0 | 5,000 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 919 | 1,026 | 1,640 | 1,940 | 969 | -50.1% |
Ratios
|
|---|
| Revenue growth | 2.4% | -0.1% | 26.4% | 45.5% | -2.5% | |
| EBITDA growth | -23.8% | -55.0% | 458.2% | 38.2% | 0.1% | |
| Gross Margin | 17.7% | 15.1% | 28.6% | 24.8% | 31.0% | 6.2% |
| EBITDA Margin | 12.7% | 5.7% | 25.3% | 24.1% | 24.7% | 0.6% |
| Net Income Margin | 4.9% | -1.6% | 14.3% | 15.6% | 16.9% | 1.3% |
| SG&A, % of revenue | | | 11.0% | 5.3% | 8.8% | 3.4% |
| CAPEX, % of revenue | 7.0% | 7.9% | 9.9% | 8.1% | 4.1% | -3.9% |
| ROIC | 6.2% | -2.7% | 25.6% | 24.4% | 22.1% | -2.3% |
| ROE | 6.3% | -2.0% | 19.1% | 24.3% | 21.3% | -3.0% |
| Net Debt/EBITDA | -0.3x | -0.6x | -0.1x | 0.8x | 0.7x | -0.2x |
Revenue and profitability
Cheliabinsk Elektrolit Zink Plant's Revenue decreased on 2.5% in 2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.63 pp from 24.1% to 24.7% in 2016.
Gross Margin increased on 6.2 pp from 24.8% to 31.0% in 2016. SG&A as a % of Revenue increased on 3.4 pp from 5.3% to 8.8% in 2016.
Net Income marign increased slightly on 1.3 pp from 15.6% to 16.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
Cheliabinsk Elektrolit Zink Plant's CAPEX/Revenue was 4.1% in 2016. The company's CAPEX/Revenue decreased on 3.7 pp from 7.9% in 2013 to 4.1% in 2016. Average CAPEX/Revenue for the last three years was 7.4%.
Return on investment
The company operates at high and attractive ROIC (22.10%) and ROE (21.27%). ROIC decreased on 2.3 pp from 24.4% to 22.1% in 2016. ROE decreased on 3.0 pp from 24.3% to 21.3% in 2016.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 0.8x to 0.7x in 2016. Debt dropped on 16.7% in 2016 while cash surged on 36.3% in 2016.
Valuation
Cheliabinsk Elektrolit Zink Plant's trades at EV/EBITDA 0.7x and P/E 0.0x while industy averages are 15.6x and 19.1x. The company's EV/(EBITDA-CAPEX) is 0.8x with the industry average at 19.0x.
Appendix 1: Peers in Industrial Metals & Mining
Below you can find Cheliabinsk Elektrolit Zink Plant benchmarking vs. other companies in Industrial Metals & Mining 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 |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | | 8.2% | 1.7% | -9.0% | 23.1% |
| Base Resources Ltd ($BSE) | | | | 399.7% | 16.2% |
| First Quantum Minerals ($FQM) | | 20.4% | -0.3% | -29.1% | 6.5% |
| Mmc Norilsk Nickel ($MNOD) | | -4.7% | 3.2% | -28.0% | -3.3% |
| Magnitogorsk Iron & Steel Works ($MMK) | | -12.2% | -2.9% | -26.6% | -3.6% |
| |
|---|
| Median (12 companies) | -13.4% | -1.0% | 0.7% | -14.2% | -5.6% |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | | -0.1% | 26.4% | 45.5% | -2.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 49.1% | 43.4% | 52.2% | 55.7% | 49.6% |
| Severstal PJSC ($SVST) | 23.5% | 29.9% | 34.4% | 40.4% | 39.6% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 23.8% | 19.4% | 28.3% | 31.4% | 33.6% |
| Magnitogorsk Iron & Steel Works ($MMK) | 15.5% | 14.9% | 21.9% | 30.6% | 32.2% |
| Base Resources Ltd ($BSE) | | | 11.8% | 21.2% | 21.0% |
| |
|---|
| Median (13 companies) | 14.8% | 14.9% | 18.0% | 13.5% | 21.0% |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 17.7% | 15.1% | 28.6% | 24.8% | 31.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 38.6% | 29.2% | 46.8% | 47.0% | 46.5% |
| First Quantum Minerals ($FQM) | 80.0% | 38.1% | 39.9% | 17.8% | 36.1% |
| Base Resources Ltd ($BSE) | | | -1.8% | 37.7% | 35.8% |
| Magnitogorsk Iron & Steel Works ($MMK) | 13.1% | 14.0% | 19.5% | 28.3% | 34.5% |
| Severstal PJSC ($SVST) | 14.9% | 19.3% | 26.4% | 32.4% | 31.2% |
| |
|---|
| Median (12 companies) | 13.3% | 13.8% | 12.6% | 14.6% | 21.9% |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 12.7% | 5.7% | 25.3% | 24.1% | 24.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| First Quantum Minerals ($FQM) | 46.5% | 73.2% | 81.7% | 72.5% | 56.0% |
| Mmc Norilsk Nickel ($MNOD) | 22.3% | 17.1% | 10.8% | 19.0% | 20.0% |
| Aluminium Bahrain Bsc ($ALBH) | 4.4% | 7.7% | 6.2% | 6.3% | 16.1% |
| Norsk Hydro Asa ($NHY) | 5.1% | 4.4% | 4.2% | 6.0% | 8.4% |
| Severstal PJSC ($SVST) | 9.5% | 10.3% | 8.4% | 6.4% | 8.4% |
| |
|---|
| Median (12 companies) | 6.7% | 7.6% | 6.3% | 6.3% | 7.8% |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 7.0% | 7.9% | 9.9% | 8.1% | 4.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Severstal PJSC ($SVST) | 10.3% | 9.6% | 17.7% | 30.3% | 29.7% |
| Mmc Norilsk Nickel ($MNOD) | 21.8% | 14.2% | 34.1% | 31.7% | 28.8% |
| Magnitogorsk Iron & Steel Works ($MMK) | 1.8% | 1.4% | 9.1% | 18.1% | 26.7% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 7.2% | 4.1% | 12.0% | 15.7% | 17.5% |
| OAO TMK ($TMKS) | 11.2% | 9.8% | 9.0% | 8.1% | 7.5% |
| |
|---|
| Median (12 companies) | 5.4% | 4.9% | 7.4% | 5.6% | 5.8% |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 6.2% | -2.7% | 25.6% | 24.4% | 22.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| OAO TMK ($TMKS) | 3.6x | 3.9x | 3.8x | 4.3x | 5.2x |
| First Quantum Minerals ($FQM) | 0.0x | 2.5x | 4.0x | 10.5x | 4.5x |
| Base Resources Ltd ($BSE) | | | | 4.4x | 3.7x |
| Posco ($PIDD) | 3.3x | 3.9x | 3.7x | 3.6x | 3.4x |
| Mmc Norilsk Nickel ($MNOD) | 0.9x | 1.4x | 0.6x | 1.0x | 1.2x |
| |
|---|
| Median (12 companies) | 2.0x | 2.1x | 1.2x | 1.1x | 0.7x |
|---|
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | -0.3x | -0.6x | -0.1x | 0.8x | 0.7x |
