Compagnie du Cambodge SA – Value Analysis (EURONEXT PARIS:CBDG) : December 29, 2017

Capitalcube gives Compagnie du Cambodge SA a score of 53.

Our analysis is based on comparing Compagnie du Cambodge SA with the following peers – Financiere de l’Odet SA, Societe Internationale de Plantations d’Heveas, Societe Industrielle & Financiere de l’Artois SA, La Forestiere Equatoriale SA and Societe commerciale de brasserie (ODET-FR, SIPH-FR, ARTO-FR, FORE-FR and COBH-BE).

Investment Outlook

Compagnie du Cambodge SA has a fundamental score of 53 and has a relative valuation of UNDERVALUED.

Fundamental Score

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Company Overview

  • Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
  • It trades at a lower Price/Book multiple (0.86) than its peer median (1.50).
  • The market expects faster earnings growth from CBDG-FR than from its peers and also a turnaround in its current ROE.
  • CBDG-FR‘s relatively low net margins and poor asset turns suggest a problematic operating strategy.
  • Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
  • Over the last five years, CBDG-FR‘s return on assets has declined from about median to less than the median among its peers suggesting that the company’s historical competitiveness in operations is slipping away.
  • The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
  • Compared with the peers chosen, CBDG-FR has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
  • The company’s relatively low level of capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
  • CBDG-FR has the financial and operating capacity to borrow quickly.

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Leverage & Liquidity

CBDG-FR has the financial and operating capacity to borrow quickly.

  • With debt at a relatively low 0.09% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 4.45%), and a well-cushioned interest coverage level of 14.19x, CBDG-FR can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
  • All 5 peers for the company have an outstanding debt balance.

CBDG-FR has maintained its Quick & Able profile from the prior year-end.

  • CBDG-FR‘s interest coverage has declined 3.50 points from last year’s high but remains above its four-year average interest coverage of 8.74.
  • While its interest coverage decreased to 14.19x from 17.69x (in 2015), its peer median increased during this period to 9.82x from 5.31x.
  • Interest coverage fell 8.01 points relative to peers.
  • CBDG-FR‘s debt-EV is its lowest over the last four years and compares to a high of 25.71% in 2012.
  • The decrease in its debt-EV to 0.09% from 11.86% (in 2015) was also accompanied by a decrease in its peer median during this period to 4.45% from 8.08%.
  • Relative to peers, debt-EV fell 8.13 percentage points (and is now lower than its peer median).

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Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Financiere de l’Odet SA 28.93 1.13 5.5 13.48
Societe Internationale de Plantations d’Heveas 17.99 1.91 14.14 59.84
Societe Industrielle & Financiere de l’Artois SA 4.19 5.16 -2.31 27.97
La Forestiere Equatoriale SA 4.7 N/A -0.86 11.07
Societe commerciale de brasserie 1.68 1.74 36.23 338.8
Compagnie du Cambodge SA 0.1 1.53 14.19 53.19
Peer Median 4.45 1.74 9.82 40.58
Best In Class 0.1 5.16 36.23 338.8

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Company Profile

Compagnie du Cambodge SA operates as a holding company, which offers transportation and logistics services. It operates through following segments: Transportation and Logistics and Communications. The Transportation and Logistics segment includes the railway concession that links Ivory Coast with Burkina Faso. The Communications segment offers traditional and digital advertising. The company was founded on December 12, 1922 and is headquartered in Puteaux, France.

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