Kryukiv Rail Car

Kryukiv Rail Car (KVBZ) is Ukraine’s monopoly producer of passenger railcars and top manufacturer of freight cars, with nameplate annual capacity of 12,000 freight cars and 300 passenger cars, which was heavily underutilized in recent years. Kryukiv is among the main suppliers of railcars to Ukrainian Railway and local municipal subway operators.

Shareholders Structure


Market Price ($) 0.672
Market Cap ($m) 77
Enterprise Value ($m) 45
Shares Outstanding 114,679,552


FV ($) ****
Upside (%) ****
Recommendation ****
Indicator 2016 2017 2018 2019E 2020E
Sales ($m) 84 145 *** *** ***
EBITDA ($m) (1) 14 *** *** ***
Net Income ($m) (4) 12 *** *** ***
Net Debt ($m) (9) (31) *** *** ***
Indicator 2016 2017 2018 2019E 2020E
P/E neg. 6.17 *** *** ***
P/Sales 0.92 0.53 *** *** ***
EV/EBITDA neg. 3.2 *** *** ***
P/Book 1.08 0.99 *** *** ***

Latest news about Kryukiv Rail Car

May 18, 2020
| Railcars

Kryukiv Rail Car — CEO comments on recent developments

The CEO and a major shareholder of Kryukiv Rail Car (KVBZ), the largest local producer of freight cars and sole manufacturer of passenger railcars, commented on the company’s current developments and outlook in a recent interview. Volodymyr Prykhodko said KVBZ produced 227 freight cars per month on average in 1Q20, down from average monthly production of 440 cars in 2019. He expects 2Q20 production to drop five-fold y-o-y and 1H20 production to be only a third of the 2019 level. If production only halves y-o-y in 2020, it would still be not critically damaging for the company. He also said that metal prices were mostly flat, keeping their historical six-month time lag with market steel prices. Metals account for about 70% of total production costs and electricity for 7%.
May 08, 2020
| Railcars

Kryukiv Rail Car – Reports 2019 and 1Q20 results

Kryukiv Rail Car (KVBZ), the largest local producer of freight cars and sole manufacturer of passenger railcars, reported audited 2019 and unaudited 1Q20 results. In 2019, the company sold 5,013 cargo railcars, +44% y-o-y, including 2,384 open cars (+36% y-o-y) and 2,629 hoppers (+53%; incl. 1,978 grain and 651 mineral commodity hoppers). It also produced 18 passenger railcars (vs. 8 in 2018 and vs. 50 in 2017). The company thus booked sales of $322m (+59% y-o-y), EBITDA of $43m (+117%), and net income of $32m (+79%). The share of export revenues grew to a third of sales from just 8% in 2018 and almost zero in 2017. KVBZ exported to seven countries, while in Ukraine, in addition to its regular railcar production, it participated in a localization project for GE locomotives ordered by Ukrainian Railways. The rail monopoly was also a source of problems, refusing to extend a contract to buy passenger cars and electric suburban passenger trains from KVBZ. Lastly, the company’s net cash position improved in 2019 to $32m (vs. $20m net cash on 2018).
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