AlphaValue Corporate Services
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Cementir Holding

CR
Bloomberg   CEM IM
Cement & Aggregates  /  Italy  Web Site   |   Investors Relation
Also operates in : Holding Companies
Positioned in a niche market
Target
Upside 27.8%
Price (€) 10.4
Market Cap (€M) 1,655
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
  12/22A 12/23E 12/24E 12/25E
EBITDA €M 335 411 381 389
Funds from operations (FFO) €M 263 301 268 259
Ordinary shareholders' equity €M 1,368 1,445 1,527 1,617
Gross debt €M 311 306 300 270
   o/w Less than 1 year - Gross debt €M 106 106 100 80.0
   o/w 1 to 5 year - Gross debt €M 141 140 140 130
   of which Y+2 €M 73.9
   o/w Beyond 5 years - Gross debt €M 64.2 60.0 60.0 60.0
 + Gross Cash €M 407 521 567 606
 = Net debt / (cash) €M -95.5 -215 -267 -336
Bank borrowings €M 223 200 200 200
Other financing €M 88.1 106 100 70.0
Gearing (at book value) % -2.01 -10.7 -15.8 -18.6
Equity/Total asset (%) % 82.1 87.7 91.0 95.1
Adj. Net debt/EBITDA(R) x 0.17 -0.18 -0.33 -0.50
Adjusted Gross Debt/EBITDA(R) x 1.12 0.95 1.00 0.90
Adj. gross debt/(Adj. gross debt+Equity) % 21.5 21.3 20.0 17.8
Ebit cover x -6.71 8.94 8.97 7.78
FFO/Gross Debt % 70.3 77.3 70.2 74.1
FFO/Net debt % -276 -140 -100 -77.3
FCF/Adj. gross debt (%) % 57.4 46.7 30.8 42.2
(Gross cash+ "cash" FCF+undrawn)/ST debt x 5.89 6.63 6.85 9.41
"Cash" FCF/ST debt x 1.67 1.73 1.19 1.86
Credit Risk
DateAgencyRate
25/05/2021 S&P BBB-
Covenants
Changes to Story : 13/02/2024, Changes to Forecasts : 13/02/2024.