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This research has been commissioned and paid for by the company and does therefore not constitute an inducement caught by the prohibition under MiFID II

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 41.0%
Price (€) 9.48
Market Cap (€M) 1,508
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
  12/23A 12/24E 12/25E 12/26E
EBITDA €M 411 382 394 413
Funds from operations (FFO) €M 314 292 290 307
Ordinary shareholders' equity €M 1,503 1,592 1,714 1,842
Gross debt €M 240 210 250 270
   o/w Less than 1 year - Gross debt €M 79.0 60.0 80.0 90.0
   o/w 1 to 5 year - Gross debt €M 106 90.0 110 120
   of which Y+2 €M 32.5
   o/w Beyond 5 years - Gross debt €M 54.6 60.0 60.0 60.0
 + Gross Cash €M 458 487 614 720
 = Net debt / (cash) €M -218 -277 -364 -450
Bank borrowings €M 147 150 150 150
Other financing €M 93.3 60.0 100 120
Gearing (at book value) % -10.4 -15.5 -18.7 -22.1
Equity/Total asset (%) % 90.0 93.1 98.0 103
Adj. Net debt/EBITDA(R) x -0.53 -0.72 -0.93 -1.09
Adjusted Gross Debt/EBITDA(R) x 0.71 0.71 0.79 0.81
Adj. gross debt/(Adj. gross debt+Equity) % 21.3 14.5 15.4 15.3
Ebit cover x 8.94 -43.6 -80.4 -62.7
FFO/Gross Debt % 77.3 108 93.0 92.2
FFO/Net debt % -144 -106 -79.6 -68.2
FCF/Adj. gross debt (%) % 46.7 48.9 54.7 50.6
(Gross cash+ "cash" FCF+undrawn)/ST debt x 8.41 10.3 9.81 9.87
"Cash" FCF/ST debt x 2.45 2.21 2.14 1.88
Credit Risk
DateAgencyRate
25/05/2021 S&P BBB-
Covenants
Changes to Story : 29/04/2024, Changes to Forecasts : 29/04/2024.