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The numbers tell that Changfeng Energy Inc's growth is outstanding

05.05.2016 • About Changfeng Energy Inc ($CFY) • By InTwits

Changfeng Energy Inc is an attractive growth stock in Energy industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.

Growth story


Changfeng Energy Inc showed fast growth in the last financial year. The company's revenue surged on 16.9% in FY2015. In addition to revenue Changfeng Energy Inc also keeps delivering EBITDA growth. It was 22.6% in FY2015

If we look for the longer period Changfeng Energy Inc showed fast revenue growth of 23.1% from 2012 to 2015 annually. EBITDA surged on 27.5% from 2012 to 2015 annually.

Changfeng Energy Inc ($CFY) financials for the last 5 years

mln. CAD 2011 2012 2013 2014 2015
Revenue2833425362
Revenue growth, %18.1%26.4%26.3%16.9%
Gross margin, %41.6%47.3%47.6%45.2%47.0%
SG&A, %31.3%30.0%26.8%27.2%
EBITDA6891316
EBITDA growth, %35.9%20.4%40.5%22.6%
EBITDA margin, %20.4%23.5%22.4%24.9%26.1%
Net Income13246
Net Income margin, % 4.92%7.54%5.90%7.12%9.60%
 
CAPEX558610
CAPEX/Revenue, %17.6%16.0%20.0%10.8%16.3%
Debt2120292934
Cash56151214
Net Debt/EBITDA2.9x1.7x1.5x1.3x1.2x
 
ROIC, %12.7%16.5%16.2%17.8%18.5%
ROE, %11.8%17.7%14.2%17.2%20.2%

Profitability and return on investment


EBITDA growth was partly attributed to margin expansion. The company showed small growth in EBITDA margin of 1.20 pp from 24.9% to 26.1% in 2015. If we look for the longer period the company showed fast EBITDA margin growth of 2.60 pp from 23.5% in 2012 to 26.1% in 2015.

Changfeng Energy Inc shows attractive ROIC at 18.5% for the last 12 months which assumes stable development model. During the last three years it surged - it was 16.5% in FY2012. For the last three years the average ROIC was 17.5%.

The company's Net Income margin surged on 2.50 pp from 7.10% to 9.60% in 2015. In the longer period Changfeng Energy Inc's Net Income margin surged on 2.10 pp from 7.50% in 2012 to 9.60% in 2015.

Changfeng Energy Inc operates at ROE of 20.2%. For the last three years the average ROE was 17.2%.

Capital expenditures (CAPEX)


To this fast growth Changfeng Energy Inc had to invest in CAPEX.The company's CAPEX/Revenue was 16.3% in FY2015. The company showed small growth in CAPEX/Revenue of 0.374 pp from 16.0% in 2012 to 16.3% in 2015. Average CAPEX/Revenue for the last three years was 15.7%.

Leverage (Debt)


Having such a fast growth profile Changfeng Energy Inc keeps medium debt level at 1.2x Net Debt/EBITDA. In the longer period Changfeng Energy Inc's leverage dropped on 0.50x from 1.70x in 2012 to 1.20x in 2015.

Peers in Energy


Below you can find Changfeng Energy Inc benchmarking vs. other companies in Energy industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Striker Exploration Corp ($SKX)-23.2%-7.6%226.9%314.7%
NXT Energy Solutions Inc ($SFD)7,543.4%-75.5%61.0%303.1%
ONEnergy Inc ($OEG)6,002.6%231.5%
Petroshale Inc ($PSH)159.9%147.8%
Toro Oil & Gas Ltd ($TOO)25.2%-4.6%-35.6%113.4%
 
Median (159 companies)75.1%9.4%17.3%18.7%-27.5%
Changfeng Energy Inc ($CFY)18.1%26.4%26.3%16.9%


Top companies by Gross margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Americas Petrogas Inc ($BOE)77.1%43.3%-34.3%121.1%
TransAlta Renewables Inc ($RNW)94.4%94.5%94.5%
Orca Exploration Group Inc ($ORC.B)69.1%92.3%69.0%66.3%93.1%
Serinus Energy Inc ($SEN)80.4%80.5%76.5%86.8%88.5%
Advantage Oil & Gas Ltd ($AAV)70.5%62.0%84.5%92.5%88.5%
 
Median (141 companies)33.3%29.3%31.5%29.6%33.5%
Changfeng Energy Inc ($CFY)41.6%47.3%47.6%45.2%47.0%


Top companies by EBITDA margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Granite Oil Corp ($GXO)9.2%59.4%64.5%70.8%201.9%
Perpetual Energy Inc ($PMT)26.1%35.5%70.7%58.0%110.3%
Petro Rio SA ($PRJ)-4,925.5%-4,809.7%-6,899.7%28.2%90.7%
Peyto Exploration & Development Corp ($PEY)83.6%86.1%83.2%86.3%84.6%
Innergex Renewable Energy Inc ($INE)109.4%111.8%110.0%82.9%83.4%
 
Median (160 companies)25.7%24.8%31.5%29.7%5.7%
Changfeng Energy Inc ($CFY)20.4%23.5%22.4%24.9%26.1%


Top companies by CAPEX/Revenue, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Primeline Energy Holdings Inc ($PEH)1,091.8%
Oryx Petroleum Corp Ltd ($OXC)1,997.8%712.8%
WesternZagros Resources Ltd ($WZR)385.6%
Athabasca Oil Corp ($ATH)176.2%2,426.4%596.6%504.7%315.2%
Toro Oil & Gas Ltd ($TOO)192.4%139.0%39.2%808.7%307.4%
 
Median (161 companies)44.3%50.5%39.2%48.9%29.1%
Changfeng Energy Inc ($CFY)17.6%16.0%20.0%10.8%16.3%


Top companies by ROIC, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Granite Oil Corp ($GXO)-10.9%4.4%10.8%16.1%37.7%
NXT Energy Solutions Inc ($SFD)-103.5%-39.7%25.5%
High Arctic Energy Services Inc ($HWO)27.0%31.4%26.3%24.9%24.2%
Petro Rio SA ($PRJ)-15.5%-9.6%-12.7%-3.5%19.4%
Orca Exploration Group Inc ($ORC.B)13.3%30.0%13.0%14.3%19.0%
 
Median (162 companies)4.4%3.0%4.6%5.0%-9.8%
Changfeng Energy Inc ($CFY)12.7%16.5%16.2%17.8%18.5%


Top companies by Net Debt / EBITDA

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Veresen Inc ($VSN)22.3x16.2x14.7x30.3x7.4x
Lightstream Resources Ltd ($LTS)2.0x27.8x
Petroshale Inc ($PSH)0.1x21.7x9.9x
Connacher Oil and Gas Ltd ($CLC)9.7x16.7x8.8x17.1x
Pengrowth Energy Corp ($PGF)1.5x2.9x2.1x16.8x
 
Median (138 companies)1.2x1.6x1.5x1.4x2.5x
Changfeng Energy Inc ($CFY)2.9x1.7x1.5x1.3x1.2x