Phosagro OJSC Net Income jumped on 64.3% in 2016 while Revenue decreased slightly on 1.0%
27 Mar 2017 • About Phosagro OJSC (
$PHOR) • By InTwits
Phosagro OJSC reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Phosagro OJSC has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.1%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 40,246 in 2016, 42,550 in 2015, 20,549 in 2014, 17,795 in 2013, 13,370 in 2012
- The company has highly profitable business model: ROIC is at 31.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.5x while industry average is 1.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Phosagro OJSC ($PHOR) key annual financial indicators
| mln. RUB | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 105,303 | 104,566 | 123,124 | 189,732 | 187,742 | -1.0% |
| Gross Profit | 45,167 | 36,427 | 55,657 | 106,668 | 101,351 | -5.0% |
| SG&A | 13,781 | 16,113 | 21,365 | 28,859 | 33,630 | 16.5% |
| EBITDA | 34,695 | 23,934 | 37,609 | 82,464 | 72,365 | -12.2% |
| Net Income | 20,654 | 7,660 | -13,641 | 36,442 | 59,884 | 64.3% |
Balance Sheet
|
|---|
| Cash | 9,664 | 8,938 | 30,687 | 29,347 | 7,261 | -75.3% |
| Short Term Debt | 22,017 | 13,206 | 30,822 | 28,947 | 14,137 | -51.2% |
| Long Term Debt | 14,452 | 39,550 | 93,002 | 105,565 | 98,239 | -6.9% |
Cash flow
|
|---|
| Capex | 13,370 | 17,795 | 20,549 | 42,550 | 40,246 | -5.4% |
Ratios
|
|---|
| Revenue growth | 4.8% | -0.7% | 17.7% | 54.1% | -1.0% | |
| EBITDA growth | -1.9% | -31.0% | 57.1% | 119.3% | -12.2% | |
| Gross Margin | 42.9% | 34.8% | 45.2% | 56.2% | 54.0% | -2.2% |
| EBITDA Margin | 32.9% | 22.9% | 30.5% | 43.5% | 38.5% | -4.9% |
| Net Income Margin | 19.6% | 7.3% | -11.1% | 19.2% | 31.9% | 12.7% |
| SG&A, % of revenue | 13.1% | 15.4% | 17.4% | 15.2% | 17.9% | 2.7% |
| CAPEX, % of revenue | 12.7% | 17.0% | 16.7% | 22.4% | 21.4% | -1.0% |
| ROIC | 28.5% | 15.0% | 21.6% | 41.2% | 31.1% | -10.2% |
| ROE | 44.3% | 14.5% | -29.6% | 76.1% | 80.8% | 4.7% |
| Net Debt/EBITDA | 0.8x | 1.8x | 2.5x | 1.3x | 1.5x | 0.2x |
Revenue and profitability
Phosagro OJSC's Revenue decreased slightly on 1.0% in 2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 4.9 pp from 43.5% to 38.5% in 2016.
Gross Margin decreased on 2.2 pp from 56.2% to 54.0% in 2016. SG&A as a % of Revenue increased on 2.7 pp from 15.2% to 17.9% in 2016.
Net Income marign jumped on 12.7 pp from 19.2% to 31.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 21.4% in 2016. Phosagro OJSC's CAPEX/Revenue increased on 4.4 pp from 17.0% in 2013 to 21.4% in 2016. It's average level of CAPEX/Revenue for the last three years was 20.2%.The company invested a big chunk of EBITDA (55.6%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at high and attractive ROIC (31.06%) and ROE (80.78%). ROIC dropped on 10.2 pp from 41.2% to 31.1% in 2016. ROE increased on 4.7 pp from 76.1% to 80.8% in 2016.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 1.3x to 1.5x in 2016. Debt dropped on 16.5% in 2016 while cash dropped on 75.3% in 2016.
Appendix 1: Peers in Chemicals
Below we provide Phosagro OJSC benchmarking against other companies in Chemicals 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 |
|---|
| 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) | | 9.0% | 21.6% | 6.5% | 31.4% |
| Croda International ($50GP) | | 2.4% | -2.8% | 3.4% | 15.0% |
| Arab Potash Co ($APOD) | -18.6% | -11.1% | 2.7% | -1.5% | |
| |
|---|
| Median (9 companies) | 8.7% | -0.5% | 3.3% | -1.5% | 8.6% |
|---|
| Phosagro OJSC ($PHOR) | | -0.7% | 17.7% | 54.1% | -1.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Uralkali PJSC ($URKA) | | 71.6% | 74.3% | 81.8% | 75.9% |
| 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% | 38.1% |
| |
|---|
| Median (9 companies) | 35.1% | 36.6% | 36.0% | 38.7% | 34.5% |
|---|
| Phosagro OJSC ($PHOR) | 42.9% | 34.8% | 45.2% | 56.2% | 54.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Uralkali PJSC ($URKA) | | 44.5% | 48.6% | 62.3% | 51.9% |
| 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% | 16.7% |
| |
|---|
| Median (9 companies) | 15.4% | 17.0% | 18.2% | 18.5% | 17.6% |
|---|
| Phosagro OJSC ($PHOR) | 32.9% | 22.9% | 30.5% | 43.5% | 38.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Acron JSC ($AKRN) | 22.7% | 21.3% | 15.4% | 14.2% | |
| Uralkali PJSC ($URKA) | | 12.5% | 9.8% | 10.9% | 13.9% |
| 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 ($LGCD) | 8.2% | 5.9% | 6.3% | 8.1% | 6.8% |
| |
|---|
| Median (9 companies) | 5.2% | 5.9% | 6.0% | 8.1% | 7.0% |
|---|
| Phosagro OJSC ($PHOR) | 12.7% | 17.0% | 16.7% | 22.4% | 21.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Croda International ($50GP) | 46.5% | 42.3% | 35.3% | 30.5% | 27.7% |
| Uralkali PJSC ($URKA) | | | 13.2% | 23.1% | 14.1% |
| 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 ($FRUT) | 12.0% | 11.9% | 15.1% | 14.1% | 12.8% |
| |
|---|
| Median (9 companies) | 14.4% | 12.0% | 10.6% | 14.1% | 12.9% |
|---|
| Phosagro OJSC ($PHOR) | 28.5% | 15.0% | 21.6% | 41.2% | 31.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Uralkali PJSC ($URKA) | | 2.8x | 1.8x | 2.8x | 4.7x |
| Frutarom Industries ($FRUT) | 1.4x | 1.7x | 1.1x | 2.6x | 2.2x |
| Plastics Capital ($PLA) | 2.1x | 1.9x | 1.4x | 2.2x | 2.3x |
| Acron JSC ($AKRN) | 1.6x | 2.4x | 2.8x | 1.4x | |
| Basf Se ($BFA) | 1.2x | 1.2x | 1.3x | 1.2x | 1.4x |
| |
|---|
| Median (8 companies) | 1.2x | 1.4x | 1.2x | 1.3x | 1.8x |
|---|
| Phosagro OJSC ($PHOR) | 0.8x | 1.8x | 2.5x | 1.3x | 1.5x |
