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Cementir Holding

CR
Bloomberg   CEM IM
Cement & Aggregates  /  Italy  Web Site   |   Investors Relation
Also operates in : Holding Companies
Competitive pricing but lower cost supports profitability
Target
Upside 62.6%
Price (€) 6.32
Market Cap (€M) 1,006
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
  12/21A 12/22E 12/23E 12/24E
EBITDA €M 311 317 319 338
Funds from operations (FFO) €M 226 225 280 304
Ordinary shareholders' equity €M 1,088 1,174 1,313 1,476
Gross debt €M 327 290 250 200
   o/w Less than 1 year - Gross debt €M 106 100 90.0 80.0
   o/w 1 to 5 year - Gross debt €M 176 150 120 80.0
   of which Y+2 €M 82.1
   o/w Beyond 5 years - Gross debt €M 45.1 40.0 40.0 40.0
 + Gross Cash €M 287 357 396 496
 = Net debt / (cash) €M 40.4 -67.1 -146 -296
Bank borrowings €M 239 200 200 200
Other financing €M 88.7 90.0 50.0 0.00
Gearing (at book value) % 7.47 -1.14 -8.13 -15.0
Equity/Total asset (%) % 72.9 80.0 85.7 95.3
Adj. Net debt/EBITDA(R) x 0.58 0.23 -0.02 -0.46
Adjusted Gross Debt/EBITDA(R) x 1.26 1.11 0.98 0.78
Adj. gross debt/(Adj. gross debt+Equity) % 32.3 23.0 19.2 15.1
Ebit cover x 12.9 19.9 26.0 28.2
FFO/Gross Debt % 42.5 64.2 89.8 116
FFO/Net debt % 560 -335 -191 -103
FCF/Adj. gross debt (%) % 29.0 54.9 47.2 82.1
(Gross cash+ "cash" FCF+undrawn)/ST debt x 3.82 5.50 6.04 8.89
"Cash" FCF/ST debt x 1.30 1.93 1.64 2.70
Credit Risk
DateAgencyRate
25/05/2021 S&P BBB-
Covenants
Changes to Story : 04/11/2022, Changes to Forecasts : 04/11/2022.