Thyssenkrupp Ag reports 48.8% EBITDA decline in 2018 and 2.1 pp EBITDA Margin decline from 5.5% to 3.3%
21 Nov 2018 • About Thyssenkrupp Ag (
$0O1C) • By InTwits
Thyssenkrupp Ag reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Thyssenkrupp Ag is a company in decline: FY2018 revenue growth was -16.1%, 5 years revenue CAGR was -2.0%
- Thyssenkrupp Ag has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 4.1%
- CAPEX is quite volatile: ₹1,929m in FY2018, ₹638m in FY2017, ₹1,437m in FY2016, ₹2,086m in FY2015, ₹2,963m in FY2014
- The company has potentially unprofitable business model: ROIC is 5.2%
- It operates with high leverage: Net Debt/EBITDA is 2.5x while industry average is 1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Thyssenkrupp Ag's Revenue dropped on 16.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 2.2% to 5.6% in 2018.
Gross Margin decreased on 2.6 pp from 16.8% to 14.2% in FY2018. During the last 5 years Gross Margin topped in FY2016 at 16.9% and was declining since that time. SG&A as a % of Revenue decreased slightly on 1.1 pp from 13.4% to 12.4% in FY2018. During the last 5 years SG&A as a % of Revenue topped in FY2016 at 13.4% and was declining since that time.
Net Income margin increased slightly on 1.6 pp from -1.6% to 0.023% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 Thyssenkrupp Ag had CAPEX/Revenue of 2.3%. CAPEX/Revenue showed almost no change from FY2015 to FY2018. It's average level of CAPEX/Revenue for the last three years was 2.9%. Battling declining revenue Thyssenkrupp Ag invested a large share of EBITDA (69.1%) to CAPEX but that didn't help at least in this year.
Return on investment
The company operates at low ROIC (5.2%) and ROE (0.3%). ROIC decreased on 7.0 pp from 12.2% to 5.2% in FY2018. ROE surged on 26.3 pp from -26.0% to 0.28% in FY2018.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and 5.1x Debt / EBITDA. Net Debt / EBITDA jumped on 1.3x from 1.3x to 2.5x in FY2018. Debt dropped on 27.5% while cash dropped on 43.6%.
Thyssenkrupp Ag has no short term refinancing risk: cash is higher than short term debt (429.2%).
Financial and operational results
FY ended 30 Sep 2018
Thyssenkrupp Ag ($0O1C) key annual financial indicators| mln. € | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 41,212 | 42,778 | 39,263 | 41,447 | 34,777 | -16.1% |
| Gross Profit | 6,205 | 6,874 | 6,626 | 6,960 | 4,930 | -29.2% |
| SG&A | 5,053 | 5,280 | 5,280 | 5,560 | 4,295 | -22.8% |
| EBITDA | 2,319 | 2,351 | 2,463 | 2,265 | 1,159 | -48.8% |
| Net Income | 212 | 309 | 296 | -649 | 8 | |
Balance Sheet
|
|---|
| Cash | 4,030 | 4,535 | 4,105 | 5,292 | 2,987 | -43.6% |
| Short Term Debt | 1,957 | 2,342 | 2,204 | 2,680 | 696 | -74.0% |
| Long Term Debt | 6,651 | 6,385 | 6,378 | 5,509 | 5,244 | -4.8% |
Cash flow
|
|---|
| Capex | 1,189 | 1,150 | 1,216 | 1,368 | 801 | -41.4% |
Ratios
|
|---|
| Revenue growth | 6.9% | 3.8% | -8.2% | 5.6% | -16.1% | |
| EBITDA growth | 70.5% | 1.4% | 4.8% | -8.0% | -48.8% | |
|
|---|
| Gross Margin | 15.1% | 16.1% | 16.9% | 16.8% | 14.2% | -2.6% |
| EBITDA Margin | 5.6% | 5.5% | 6.3% | 5.5% | 3.3% | -2.1% |
| SG&A, % of revenue | 12.3% | 12.3% | 13.4% | 13.4% | 12.4% | -1.1% |
| Net Income Margin | 0.5% | 0.7% | 0.8% | -1.6% | 0.0% | 1.6% |
| CAPEX, % of revenue | 2.9% | 2.7% | 3.1% | 3.3% | 2.3% | -1.0% |
|
|---|
| ROIC | 10.8% | 9.5% | 12.7% | 12.2% | 5.2% | -7.0% |
| ROE | 8.1% | 10.0% | 11.2% | -26.0% | 0.3% | 26.3% |
| Net Debt/EBITDA | 2.0x | 1.8x | 1.8x | 1.3x | 2.5x | 1.3x |
Peers in General Industrials
Below we provide Thyssenkrupp Ag benchmarking against other companies in General Industrials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Coral Products ($CRU) | | 1.2% | 7.4% | 14.5% | 9.2% |
| Macfarlane Group ($MACF) | 6.9% | 10.0% | 6.3% | 9.0% | |
| Robinson ($RBN) | | 3.8% | -5.8% | 8.6% | |
| Jardine Strategic Hldgs ($88EI) | -1.3% | -8.8% | 0.5% | 6.8% | |
| Press Corp ($PESD) | 20.3% | 17.8% | 17.2% | 6.2% | |
| |
|---|
| Median (9 companies) | 4.4% | 1.0% | 1.9% | 6.2% | 5.8% |
|---|
| Thyssenkrupp Ag ($0O1C) | | 3.8% | -8.2% | 5.6% | -16.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Press Corp ($PESD) | 56.0% | 54.5% | 59.6% | 59.1% | |
| Coral Products ($CRU) | 23.7% | 29.6% | 33.1% | 34.1% | 34.6% |
| Honeywell International Inc ($HON) | 28.2% | 30.7% | 30.9% | 32.0% | |
| Macfarlane Group ($MACF) | 30.9% | 31.5% | 31.0% | 30.8% | |
| Smurfit Kappa Group ($SKG) | 29.5% | 30.0% | 30.3% | 29.8% | |
| |
|---|
| Median (9 companies) | 25.4% | 29.6% | 30.3% | 29.8% | 34.6% |
|---|
| Thyssenkrupp Ag ($0O1C) | 15.1% | 16.1% | 16.9% | 16.8% | 14.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Press Corp ($PESD) | 29.2% | 25.3% | 27.7% | 35.2% | |
| Jardine Strategic Hldgs ($88EI) | 13.5% | 15.1% | 21.4% | 27.4% | |
| Honeywell International Inc ($HON) | 16.8% | 20.0% | 19.6% | 20.4% | |
| Smurfit Kappa Group ($SKG) | 12.7% | 14.3% | 14.9% | 14.0% | |
| Barloworld ($BWO) | 10.0% | 10.3% | 10.7% | 11.0% | 14.6% |
| |
|---|
| Median (9 companies) | 13.3% | 10.4% | 14.3% | 11.0% | 10.2% |
|---|
| Thyssenkrupp Ag ($0O1C) | 5.6% | 5.5% | 6.3% | 5.5% | 3.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Press Corp ($PESD) | 12.1% | 9.0% | 8.8% | 11.3% | |
| Robinson ($RBN) | 3.5% | 3.7% | 6.5% | 8.8% | |
| General Electric Co. ($GEC) | 6.1% | 6.3% | 6.0% | 6.1% | |
| Smurfit Kappa Group ($SKG) | 5.3% | 5.3% | 5.2% | 5.2% | |
| Coral Products ($CRU) | 2.2% | 2.5% | 8.9% | 4.3% | 3.9% |
| |
|---|
| Median (9 companies) | 3.5% | 2.9% | 5.2% | 4.3% | 2.4% |
|---|
| Thyssenkrupp Ag ($0O1C) | 2.9% | 2.7% | 3.1% | 3.3% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Honeywell International Inc ($HON) | 21.3% | 23.2% | 19.6% | 19.0% | |
| Macfarlane Group ($MACF) | 19.0% | 17.8% | 16.9% | 15.4% | |
| Smurfit Kappa Group ($SKG) | 11.8% | 13.9% | 14.1% | 13.4% | |
| Barloworld ($BWO) | 14.1% | 12.9% | 12.7% | 13.2% | 13.2% |
| Jardine Strategic Hldgs ($88EI) | 6.2% | 6.3% | 9.2% | 11.7% | |
| |
|---|
| Median (9 companies) | 11.8% | 12.9% | 12.7% | 12.4% | 6.1% |
|---|
| Thyssenkrupp Ag ($0O1C) | 10.8% | 9.5% | 12.7% | 12.2% | 5.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Coral Products ($CRU) | 3.4x | 2.7x | 2.5x | 3.0x | 5.3x |
| Smurfit Kappa Group ($SKG) | 2.7x | 2.6x | 2.4x | 2.4x | |
| Robinson ($RBN) | 1.0x | 0.9x | 1.2x | 2.2x | |
| Honeywell International Inc ($HON) | 0.3x | 0.9x | 1.0x | 1.3x | |
| Macfarlane Group ($MACF) | 1.3x | 1.3x | 1.4x | 1.1x | |
| |
|---|
| Median (8 companies) | 1.3x | 1.3x | 1.2x | 1.2x | 2.8x |
|---|
| Thyssenkrupp Ag ($0O1C) | 2.0x | 1.8x | 1.8x | 1.3x | 2.5x |
