Migao Corp reports 20.4% revenue growth in FY2015 and 16.6 pp EBITDA Margin growth from -9.8% to 6.8%
29.06.2015 • About Migao Corp (
$MGO) • By InTwits
Migao Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.8% in FY2015, -9.8% in FY2014, -6.9% in FY2013, 9.0% in FY2012, 16.3% in FY2011
- Migao Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's in pair with industry average of 5.1%.
- CAPEX is quite volatile: 13.3 in FY2015, 13.8 in FY2014, 6.6 in FY2013, 48.1 in FY2012, 19.2 in FY2011
- The company has potentially unprofitable business model: ROIC is at 3.9%
- It operates with high leverage: Net Debt/EBITDA is 8.5x while industry average is 3.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Migao Corp ($MGO) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 316.9 | 402.7 | 284.3 | 369.3 | 444.5 | 20.4% |
| Gross Profit | 70.9 | 59.7 | 3.6 | -9.6 | 47.0 | -591.0% |
| SG&A | | | 8.8 | 10.8 | 40.0 | 271.8% |
| EBITDA | 51.6 | 36.3 | -19.5 | -36.1 | 30.4 | -184.4% |
| Net Income | 34.0 | 16.5 | -38.8 | -58.2 | 12.7 | -121.7% |
Balance Sheet
|
|---|
| Cash | 26.0 | 42.9 | 10.2 | 13.8 | 14.7 | 7.0% |
| Short Term Debt | 56.5 | 109.7 | 177.3 | 309.0 | 272.7 | -11.7% |
| Long Term Debt | 0.0 | 4.6 | 4.1 | 3.5 | 2.0 | -43.2% |
Cash flow
|
|---|
| Capex | 19.2 | 48.1 | 6.6 | 13.8 | 13.3 | -3.8% |
Ratios
|
|---|
| Revenue growth | 17.8% | 27.1% | -29.4% | 29.9% | 20.4% | |
| EBITDA growth | 3.5% | -29.7% | -153.7% | 84.9% | -184.4% | |
| Gross Margin | 22.4% | 14.8% | 1.3% | -2.6% | 10.6% | 13.2% |
| EBITDA Margin | 16.3% | 9.0% | -6.9% | -9.8% | 6.8% | 16.6% |
| Net Income Margin | 10.7% | 4.1% | -13.7% | -15.8% | 2.8% | 18.6% |
| SG&A, % of revenue | | | 3.1% | 2.9% | 9.0% | 6.1% |
| CAPEX, % of revenue | 6.1% | 12.0% | 2.3% | 3.7% | 3.0% | -0.8% |
| ROIC | 13.4% | 7.1% | -5.9% | -8.1% | 3.9% | 11.9% |
| ROE | 11.9% | 5.1% | -11.9% | -19.7% | 4.1% | 23.8% |
| Net Debt/EBITDA | 0.6x | 2.0x | | | 8.5x | 8.5x |
Revenue and profitability
The company's Revenue surged on 20.4% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 16.6 pp from -9.8% to 6.8% in FY2015.
Gross Margin jumped on 13.2 pp from -2.6% to 10.6% in FY2015. SG&A as a % of Revenue increased on 6.1 pp from 2.9% to 9.0% in FY2015.
Net Income marign jumped on 18.6 pp from -15.8% to 2.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Migao Corp had CAPEX/Revenue of 3.0%. CAPEX/Revenue decreased on 9.0 pp from 12.0% in FY2012 to 3.0% in FY2015. For the last three years the average CAPEX/Revenue was 3.0%.
Return on investment
The company operates at low ROIC (3.87%) and ROE (4.06%). ROIC jumped on 11.9 pp from -8.1% to 3.9% in FY2015. ROE jumped on 23.8 pp from -19.7% to 4.1% in FY2015.
Leverage (Debt)
Debt level is 8.5x Net Debt / EBITDA and 9.0x Debt / EBITDA. Net Debt / EBITDA surged8.5x from to 8.5x in FY2015. Debt dropped on 12.1% in FY2015 while cash increased on 7.0% in FY2015.
Appendix 1: Peers in Basic Materials
Below you can find Migao Corp benchmarking vs. other companies in Basic Materials 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, %
| 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (129 companies) | 27.8% | 8.0% | -4.8% | -1.1% | 18.5% |
|---|
| Migao Corp ($MGO) | | 27.1% | -29.4% | 29.9% | 20.4% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | |
| |
|---|
| Median (132 companies) | 31.2% | 31.8% | 21.9% | 17.2% | 24.8% |
|---|
| Migao Corp ($MGO) | 22.4% | 14.8% | 1.3% | -2.6% | 10.6% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (136 companies) | 23.3% | 18.5% | 11.5% | 9.8% | 3.2% |
|---|
| Migao Corp ($MGO) | 16.3% | 9.0% | -6.9% | -9.8% | 6.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | 123.7% | 38.5% | 49.9% | 7,166.9% | 3.2% |
| Marlin Gold Mining Ltd ($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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (138 companies) | 24.1% | 26.3% | 25.4% | 16.1% | 13.5% |
|---|
| Migao Corp ($MGO) | 6.1% | 12.0% | 2.3% | 3.7% | 3.0% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | |
| |
|---|
| Median (142 companies) | 5.4% | 4.8% | 0.0% | 0.2% | -7.1% |
|---|
| Migao Corp ($MGO) | 13.4% | 7.1% | -5.9% | -8.1% | 3.9% |
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) | -0.1x | 0.3x | 0.7x | 0.9x | -0.3x |
|---|
