AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
This research has been commissioned and paid for by the company and is deemed to constitute an acceptable minor non-monetary benefit as defined in MiFID II

Cementir Holding

CR
Bloomberg   CEM IM
Cement & Aggregates  /  Italy  Web Site   |   Investors Relation
Also operates in : Holding Companies
White knight with green armour
Target
Upside 45.0%
Price (€) 6.03
Market Cap (€M) 959
Debt
No capital increase since at least 1999

Since 1999, Cementir has not increased its capital/number of shares. Indeed, it uses its operating/free cash flow or raises debt for its industrial investments and M&A activities. However, if need arises (such as a big acquisition as we deem the risk of a cash shortfall as virtually non-existent), the company may be able to raise equity quickly because, in February 2015, the shareholders of Cementir passed a resolution that allowed Cementir to increase its share capital by up to €300m (including any share premium) by 2020 for any big M&A opportunity knocking at its door.

In the foreseeable future, the risk of a dilutive capital increase for per share metrics is low. Furthermore, no convertible bonds have been issued by the company, which excludes the risk of any dilution.

Maturity and nature of the debt

The debt is almost entirely composed by bank borrowings. The company does not disclose a precise maturity table, but the average maturity is clearly below five years.

Covenants

The financial covenants to be complied with are the net debt/EBITDA ratio and the EBITDA/net financial expenses ratio, the trigger points of which are undisclosed by the company. However, management confirmed in the annual report that the covenants were met by Cementir on 31 December 2018.

Funding - Liquidity
  12/19A 12/20E 12/21E 12/22E
EBITDA €M 264 231 260 280
Funds from operations (FFO) €M 203 154 180 197
Ordinary shareholders' equity €M 1,045 1,131 1,202 1,277
Gross debt €M 572 560 545 530
   o/w Less than 1 year - Gross debt €M 56.0 60.0 60.0 60.0
   o/w 1 to 5 year - Gross debt €M 446 430 415 400
   o/w Beyond 5 years - Gross debt €M 69.3 70.0 70.0 70.0
 + Gross Cash €M 332 388 428 473
 = Net debt / (cash) €M 240 172 117 56.8
Bank borrowings €M 572 451 451 451
Other financing €M 0.00 109 94.0 79.0
Gearing (at book value) % 23.7 18.2 12.0 6.79
Adj. Net debt/EBITDA(R) x 0.91 0.74 0.45 0.20
Adjusted Gross Debt/EBITDA(R) x 2.47 2.72 2.36 2.14
Adj. gross debt/(Adj. gross debt+Equity) % 38.4 35.7 33.8 31.9
Ebit cover x 6.14 5.84 8.10 10.9
FFO/Gross Debt % 31.1 24.5 29.3 32.9
FFO/Net debt % 84.6 89.7 154 347
FCF/Adj. gross debt (%) % 20.8 15.1 12.6 13.7
(Gross cash+ "cash" FCF+undrawn)/ST debt x 8.35 8.05 8.44 9.25
"Cash" FCF/ST debt x 2.71 1.58 1.30 1.37
Credit Risk
Covenants
Changes to Story : 07/08/2020, Changes to Forecasts : 07/08/2020.