Silvercorp Metals Inc CAPEX dropped on 38.7% in 2015 while Revenue jumped on 18.5%
21.05.2015 • About Silvercorp Metals Inc (
$SVM) • By InTwits
Silvercorp Metals Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Silvercorp Metals Inc doesn't have a profitable business model yet: FY2015 ROIC is -27.5%
- The company operates at negative EBITDA Margin: -62.2%
- EBITDA Margin is quite volatile: -62.2% in FY2015, -37.5% in FY2014, 44.8% in FY2013, 65.1% in FY2012, 65.9% in FY2011
- Silvercorp Metals Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 41.3%. At the same time it's a lot of higher than industry average of 29.5%.
- CAPEX is quite volatile: 46.1 in FY2015, 75.2 in FY2014, 91.2 in FY2013, 70.7 in FY2012, 35.8 in FY2011
- The company has unprofitable business model: ROIC is at -27.5%
- It operates with high leverage: Net Debt/EBITDA is 67.5x while industry average is 3.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Silvercorp Metals Inc ($SVM) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 167.3 | 238.0 | 181.6 | 108.4 | 128.5 | 18.5% |
| Gross Profit | 125.4 | 176.8 | 108.5 | 48.4 | 54.7 | 13.0% |
| SG&A | 17.4 | 27.1 | 25.7 | 24.4 | 20.6 | -15.6% |
| EBITDA | 110.2 | 155.0 | 81.3 | -40.6 | -79.9 | 96.6% |
| Net Income | 67.7 | 73.8 | 27.2 | -41.0 | -103.1 | 151.4% |
Balance Sheet
|
|---|
| Cash | 147.2 | 110.0 | 72.3 | 60.6 | 60.2 | -0.7% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 35.8 | 70.7 | 91.2 | 75.2 | 46.1 | -38.7% |
Ratios
|
|---|
| Revenue growth | 56.1% | 42.2% | -23.7% | -40.3% | 18.5% | |
| EBITDA growth | 67.7% | 40.7% | -47.5% | -150.0% | 96.6% | |
| Gross Margin | 75.0% | 74.3% | 59.8% | 44.7% | 42.6% | -2.1% |
| EBITDA Margin | 65.9% | 65.1% | 44.8% | -37.5% | -62.2% | -24.7% |
| Net Income Margin | 40.4% | 31.0% | 15.0% | -37.8% | -80.3% | -42.4% |
| SG&A, % of revenue | 10.4% | 11.4% | 14.2% | 22.5% | 16.0% | -6.5% |
| CAPEX, % of revenue | 21.4% | 29.7% | 50.2% | 69.3% | 35.9% | -33.5% |
| ROIC | 28.4% | 28.1% | 12.6% | -11.4% | -27.5% | -16.1% |
| ROE | 22.0% | 17.7% | 6.4% | -10.6% | -35.0% | -24.4% |
| Net Debt/EBITDA | -1.3x | -0.7x | -0.9x | | | 0.0x |
Revenue and profitability
Silvercorp Metals Inc's Revenue surged on 18.5% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 24.7 pp from -37.5% to -62.2% in FY2015.
Gross Margin decreased on 2.1 pp from 44.7% to 42.6% in FY2015. SG&A as a % of Revenue decreased on 6.5 pp from 22.5% to 16.0% in FY2015.
Net Income marign dropped on 42.4 pp from -37.8% to -80.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 35.9%. CAPEX/Revenue increased on 6.2 pp from 29.7% in FY2012 to 35.9% in FY2015. Average CAPEX/Revenue for the last three years was 51.8%.
Return on investment
The company operates at negative ROIC (-27.45%) and ROE (-35.00%). ROIC dropped on 16.1 pp from -11.4% to -27.5% in FY2015. ROE dropped on 24.4 pp from -10.6% to -35.0% in FY2015.
Leverage (Debt)
The company has no debt. Cash decreased slightly on 0.72% in FY2015.
Management team
Silvercorp Metals Inc's CEO Rui Feng is a founder and has spent 13 years at the company. The company's CFO Derek Liu has spent 3 years at the company.
Appendix 1: Peers in Basic Materials
Below we provide Silvercorp Metals Inc benchmarking against other companies in Basic Materials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northern Sun Mining Corp ($NSC) | -93.3% | 315.4% | -99.4% | 8,924.9% | |
| Turquoise Hill Resources Ltd ($TRQ) | | | -34.0% | 3,268.9% | -5.8% |
| Asian Mineral Resources Ltd ($ASN) | | | | 859.1% | |
| Ur-Energy Inc ($URE) | | | | 285.4% | |
| Nevsun Resources Ltd ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (129 companies) | 27.9% | 8.0% | -4.8% | -1.1% | 4.3% |
|---|
| Silvercorp Metals Inc ($SVM) | | 42.2% | -23.7% | -40.3% | 18.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | |
| Franco-Nevada Corp ($FNV) | 84.6% | 86.1% | 85.0% | 83.5% | |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | |
| |
|---|
| Median (132 companies) | 30.1% | 31.4% | 21.3% | 16.2% | 26.8% |
|---|
| Silvercorp Metals Inc ($SVM) | 75.0% | 74.3% | 59.8% | 44.7% | 42.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | |
| Franco-Nevada Corp ($FNV) | 38.6% | 62.1% | 44.6% | 72.3% | |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | |
| Sandstorm Gold Ltd ($SSL) | 63.8% | 74.3% | 49.9% | 62.1% | |
| Nevsun Resources Ltd ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (136 companies) | 22.0% | 18.2% | 10.8% | 9.8% | 14.8% |
|---|
| Silvercorp Metals Inc ($SVM) | 65.9% | 65.1% | 44.8% | -37.5% | -62.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | 123.7% | 38.5% | 49.9% | 7,166.9% | |
| Marlin Gold Mining Ltd ($MLN) | | | | 508.8% | |
| Imperial Metals Corp ($III) | 28.2% | 69.2% | 185.7% | 280.2% | |
| Golden Minerals Co ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (138 companies) | 24.1% | 26.2% | 25.1% | 16.0% | 18.3% |
|---|
| Silvercorp Metals Inc ($SVM) | 21.4% | 29.7% | 50.2% | 69.3% | 35.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | |
| CanAf Group Inc ($CAF) | 74.9% | 37.0% | 65.2% | 37.6% | |
| Nevsun Resources Ltd ($NSU) | 89.8% | 52.2% | 8.8% | 35.0% | |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | |
| |
|---|
| Median (142 companies) | 5.4% | 4.8% | -0.1% | 0.2% | -0.6% |
|---|
| Silvercorp Metals Inc ($SVM) | 28.4% | 28.1% | 12.6% | -11.4% | -27.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | |
| Ur-Energy Inc ($URE) | | | | 55.1x | |
| Katanga Mining Ltd ($KAT) | 0.4x | 19.4x | 3.3x | 18.8x | |
| HudBay Minerals Inc ($HBM) | -2.8x | -4.8x | 2.0x | 14.0x | |
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.0x | 0.3x | 0.8x | 0.9x | -0.3x |
|---|
