SPEEDY (0SP BU) COMPANY OVERVIEW
16-Feb-15
Speedy (0SP BU)
Share Data
Price (BGN)
33.99
Price (EUR)
17.38
52 weeks Price Change
50.40%
52 weeks Price Range
11.25 - 17.38
Market Cap (BGN)
181,370,640
Market Cap (EUR)
92,733,336
Shares outstanding
5,336,000
DPS
1.00
Dividend yield
2.94%
EPS
0.90
Sales per share
7.35
Book value per share
3.73
FCF per share
0.29
P/E
19.39
P/S
2.36
P/B
4.66
EV/Sales
2.53
EV/EBITDA
13.72
ROA
17.60%
ROE
35.68%
Current Ratio
1.32
Total Debt Ratio
0.25
Interest Coverage
14.07
Assets Turnover
1.44
Source: Company data, Sofia International Securities Equity Research
Shareholder Structure
Valeri Mektupchiyan
66.42%
Free float
33.58%
Source: Company data, Sofia International Securities Equity Research
Speedy is the leading provider of courier services in Bulgaria. Founded in
1998, currently it accounts for 24% of the postal services market, and for 30%
of the non-universal postal services. For the last three years the biggest 5
operators accounted for 67% of the market on which operate 56 firms. In
2013 the market amounted to BGN 258m with BGN 209m due to courier
services. Speedy consistently grows at a faster pace than its competition and
continues to expand its market share.
Speedy serves more than 700 thousand people and carries out 12 million
shipments per year. Its auto park consists of more than 750 vehicles. It
operates through 6 regional centers and 242 offices, out of which 152 are
leased through its program Speedy Parcel Shop. The company employs 901
people.
In 2014 Speedy acquired a Romanian shipping agent which it fully integrated
with its activities, and offered clients the same shipping rates for shipments to
Romania as within Bulgaria. This helped the growth in international shipments
and pallets to outpace the domestic one; international business accounts for
9.1% or sales as of 2014.
More than 80% of revenues are contracted with long-term agreements as the
company works mainly with corporate clients. This segment enjoys less
competition and is dominated by Speedy. The company is not dependent on
large customers as its biggest client accounts for about 2.5% of its revenues.
The company restructured its main activity in order to optimize its cost
structure and transferred part of logistics to third parties, allowing it to rent its
available vehicles. This led to decreased spending for fuels in 2014 and to
higher external services costs. Currently about 80% of the couriers' force are
subcontractors. Speedy operates fully through leasing of its vehicles and has
low level of bank debt.
In the end of the year Speedy concluded its capital increase in which it raised
BGN 20.45m which were used to purchase one Romanian and one Bulgarian
shipping companies. They were bought from the French GeoPost in
exchange for 25% of Speedy's capital as a strategic investor. GeoPost has
the option to acquire the majority stake in 2020. Speedy also gained access
to its land network in Europe.
Speedy is public since Q4'2012 and has distributed dividends ever since.
Dividend yields were 16.95% in 2012 and 5.54% in 2013 (using average
prices for that year).
Selected Financials
EUR '000
Revenues
Share Price of Speedy (0SP BU)
Revenues YoY
EBIT
36
BGN
34
2011
2012
2013
FY
FY
FY
2014
FY
24,320.6
27,802.5
33,608.7
39,226.8
n/a
7.32%
10.68%
8.55%
2,816.2
4,161.4
5,195.7
4,761.1
EBIT Margin
5.92%
7.65%
7.90%
6.21%
Net Income
2,799.8
3,825.5
4,418.1
4,782.1
32
Net Margin
5.89%
7.04%
6.72%
6.23%
30
PP&E
2,628.6
4,153.2
7,454.6
9,784.1
28
Trade Receivables
5,757.1
6,133.5
5,980.1
9,201.2
26
Inventories
223.9
284.3
309.3
246.4
24
Total assets
10,529.0
13,494.0
18,580.3
35,776.6
22
Equity
3,735.5
4,761.1
6,920.8
19,887.2
Non-Current Debt
1,065.5
1,758.3
3,709.9
6,627.4
Current Debt
1,134.0
1,226.6
1,474.6
2,459.8
Trade Payables
4,594.0
5,665.1
6,387.6
5,531.7
Source: Bloomberg, Sofia International Securities Equity Research
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
20
Source: Company data, Sofia International Securities Equity Research
Sofia International Securities
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Sales by shipments in Q4'14
Income statement
2011
2012
2013
FY
FY
FY
FY
Revenues
24,320.6
27,802.5
33,608.7
39,226.8
Expenses
-39,307.0
-43,730.0
-52,429.0
-62,573.0
4,223.3
5,443.7
6,802.2
7,233.8
-1,407.1
-1,282.3
-1,606.5
-2,472.6
2,816.2
4,161.4
5,195.7
4,761.1
297.1
96.6
-257.2
552.2
-162.1
-199.4
-428.0
-338.5
3,113.3
4,258.0
4,938.6
5,313.3
-313.4
-432.6
-520.5
-531.2
2,799.8
3,825.5
4,418.1
4,782.1
EUR '000
International
shipments
9%
Others
6%
EBITDA
Depreciation
EBIT
Net financial result
t/o interest expense
EBT
Domestic
shipments
85%
Taxes
Net Income (before minorities)
Minorities
Net Income
Source: Company data, Sofia International Securities Equity Research
Sales vs. EBIT Margin
%
14.97
15.46
12.14
2012
2013
Revenues
18
16
14
12
10
8
6
4
2
0
0.0
0.0
0.0
3,825.5
4,418.1
4,782.1
9,784.1
2,628.6
4,153.2
7,454.6
Intangibles
173.3
193.3
310.9
193.3
Other Non-Current Assets
559.9
571.1
567.0
13,587.1
3,361.7
4,917.6
8,332.5
23,564.4
223.9
284.3
309.3
246.4
5,757.1
6,133.5
5,980.1
9,201.2
Cash & Cash Equivalents
962.3
2,003.8
3,687.9
2,566.2
Other Current Assets
223.9
154.9
270.5
198.4
7,167.3
8,576.4
10,247.8
12,212.2
10,529.0
13,494.0
18,580.3
35,776.6
Equity
3,735.5
4,761.1
6,920.8
19,887.2
Non-Current Debt
1,065.5
1,758.3
3,709.9
6,627.4
0.0
0.0
0.0
0.0
Non-Current Liabilities
1,065.5
1,758.3
3,709.9
6,627.4
Trade Payables
4,594.0
5,665.1
6,387.6
5,531.7
Current Debt
1,134.0
1,226.6
1,474.6
2,459.8
0.0
82.8
87.4
1,270.6
5,728.0
6,974.5
7,949.6
9,262.1
10,529.0
13,494.0
18,580.3
35,776.6
Cashflow from Operations
3,155.2
4,296.4
5,667.7
5,623.7
Cashflow from Investments
-300.6
-235.2
-796.1
-14,025.2
-1,218.9
Non-Current Assets
Inventories
Trade Receivables
Current Assets
Total Assets
2014
EBIT Margin (RS)
Source: Company data, Sofia International Securities Equity Research
Other Non-Current Liabilities
ROE (DuPont Decomposition)
3.2
2.8
2.4
2.0
1.6
1.2
0.8
0.4
0.0
0.0
2,799.8
Balance sheet
PP&E
EUR m
45
40
35
11.58
30
25
20
15
10
5
0
2011
2014
x
%
100
Other Current Liabilities
80
60
Current Liabilities
Total Equity and Liabilites
40
Cash Flow Statement
20
0
2011
2012
2013
2014
t/o Capex
ROE (RS)
Net Profit Margin (RS)
Cashflow from Financing
Assets Turnover
Financial Leverage
Net Cash
Source: Company data, Sofia International Securities Equity Research
-300.6
-235.2
-796.1
-2,722.1
-3,019.7
-3,184.3
7,285.4
132.4
1,041.5
1,687.3
-1,116.2
Source: Company data, Sofia International Securities Equity Research
Sofia International Securities
Nikolay Dimov
Martin Georgiev
Equity Research
Equity Analyst
Executive Director
+359 2 937 98 74
+359 2 937 98 66
dimov@sis.bg
martin.georgiev@sis.bg
Tel: +359 2 988 63 40
Fax: +359 2 937 98 77
E-mail: info@sis.bg; ndimov@bloomberg.net
Sofia International Securities
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Disclaimers and Required Disclosures
The research and the recommendations in this report have been prepared and reviewed by:
Nikolay Dimov
Equity Analyst
dimov@sis.bg
Martin Georgiev
Executive Director
martin.georgiev@sis.bg
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