For today, we decided to bring you an updated overview of the indebtedness and capital structure of CROBEX components.
For today, we decided to present you with a comparison of CROBEX components. To be specific, we observed how indebted CROBEX companies are by comparing net debt to EBITDA (2019 results) and % of debt financing. We also added how much additional debt these companies could take in order to reach 3xEBITDA.
Note that Adris Grupa and ZABA were excluded from the overview as Adris operates as a holding, while ZABA is a bank. Besides that, Đuro Đaković was also excluded as they operate with a negative EBITDA.
Net Debt/ EBITDA
Among observed companies Končar, HT and Ericsson Nikola Tesla operate at a negative net debt, meaning their cash position (short term financial assets + cash and cash equivalents) exceed their financial debt.
Of the other constituents, Dalekovod has by far the highest indebtedness of 11.06xEBITDA. Next comes Atlantska Plovidba with a net debt/ EBITDA of 3.66. Valamar Riviera follows with a net debt/EBITDA of 2.84, while all other constituents are operating with an indebtedness lower than 3xEBITDA.
We also observed how much additional debt companies could take to reach 3xEBITDA which is in the region considered as a breaking point and red flag in terms of indebtedness.
This analysis provides information on the companies’ potentials for takeovers, but also the potential for an internal growth through additional borrowing. It’s important to point out that companies with net debt above 3xEBITDA are not necessarily too indebted as not all them are equal and their industries differ (and the other way around – certain industries are not prone to hold any leverage).
Potential Additional Debt (HRK m) to Reach 3x EBITDA
Turning our attention to the capital structure, of the observed companies, 9 of them are mostly equity funded. Of those, HT leads the list with 97.2% equity, followed with Končar 88.5%. On the flip side, Optima Telekom and Dalekovod are almost entirely debt funded with 96.3% and 83.2%, respectively.
Capital Structure of CROBEX Components
