For today, we decided to bring you a brief overview of the indebtedness and capital structure of Slovenian blue chips.
Following up on yesterday’s overview of indebtedness among CROBEX components, for today we decided to present you with a comparison of Slovenian blue chips. To be specific, we observed how indebted Slovenian companies are by comparing net debt to EBITDA (trailing 12 months) and % of debt financing. We also added how much additional debt these companies could take in order to reach 3xEBITDA.
Note that financial institutions (NLB, Triglav and Sava Re) were excluded from the mentioned overview.
Net Debt/ EBITDA (Trailing 12m)
Among observed companies Krka and Cinkarna Celje 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, Telekom Slovenije has the highest indebtedness of 1.92xEBITDA. Next comes Petrol with a net debt/ EBITDA of 1.66. Luka Koper follows with a net debt/EBITDA of 0.21. Looking at the chart above, one can safely conclude that the all Slovenian blue chips are well within the reasonable levels of indebtedness.
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 (EUR m) to Reach 3x EBITDA
Turning our attention to the capital structure, all of the observed companies are mostly equity funded. Of those, Cinkarna Celje leads the list with 99.9% equity, followed with Krka with 98.6%. On the flip side, of the observed ones, Telekom Slovenija is operating with most debt of all companies (40.3%).
Capital Structure of Slovenian Blue Chips