Dalmac Energy Inc Debt dropped on 18.7% in 2015 while EBITDA increased on 3.8%
25.08.2015 • About Dalmac Energy Inc (
$DAL) • By InTwits
Dalmac Energy Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dalmac Energy Inc doesn't have a profitable business model yet: FY2015 ROIC is 0.2%
- Dalmac Energy Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.0%. At the same time it's in pair with industry average of 9.3%.
- CAPEX is quite volatile: 1.6 in FY2015, 4.2 in FY2014, 7.1 in FY2013, 2.6 in FY2012, 1.1 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dalmac Energy Inc ($DAL) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 26.234 | 35.663 | 41.304 | 37.132 | 32.062 | -13.7% |
| Gross Profit | 6.615 | 8.933 | 10.395 | 5.398 | 8.889 | 64.7% |
| SG&A | | | | | 5.312 | |
| EBITDA | 5.216 | 6.265 | 4.984 | 3.445 | 3.577 | 3.8% |
| Net Income | 1.910 | 2.629 | 1.433 | -0.520 | -1.161 | 123.3% |
Balance Sheet
|
|---|
| Cash | 0.052 | 1.364 | 0.454 | 0.526 | 1.610 | 205.9% |
| Short Term Debt | 5.944 | 7.682 | 1.133 | 0.891 | 1.151 | 29.3% |
| Long Term Debt | 4.038 | 2.541 | 12.596 | 13.992 | 10.942 | -21.8% |
Cash flow
|
|---|
| Capex | 1.093 | 2.607 | 7.140 | 4.165 | 1.595 | -61.7% |
Ratios
|
|---|
| Revenue growth | 58.3% | 35.9% | 15.8% | -10.1% | -13.7% | |
| EBITDA growth | 667.8% | 20.1% | -20.4% | -30.9% | 3.8% | |
| Gross Margin | 25.2% | 25.0% | 25.2% | 14.5% | 27.7% | 13.2% |
| EBITDA Margin | 19.9% | 17.6% | 12.1% | 9.3% | 11.2% | 1.9% |
| Net Income Margin | 7.3% | 7.4% | 3.5% | -1.4% | -3.6% | -2.2% |
| SG&A, % of revenue | | | | | 16.6% | 16.6% |
| CAPEX, % of revenue | 4.2% | 7.3% | 17.3% | 11.2% | 5.0% | -6.2% |
| ROIC | 18.3% | 19.9% | 9.7% | 0.9% | 0.2% | -0.7% |
| ROE | 25.0% | 25.8% | 11.2% | -3.9% | -9.2% | -5.3% |
| Net Debt/EBITDA | 1.9x | 1.4x | 2.7x | 4.2x | 2.9x | -1.2x |
Revenue and profitability
Dalmac Energy Inc's Revenue dropped on 13.7% in FY2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.9 pp from 9.3% to 11.2% in FY2015.
Gross Margin surged on 13.2 pp from 14.5% to 27.7% in FY2015.
Net Income marign decreased on 2.2 pp from -1.4% to -3.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 5.0% in FY2015. The company's CAPEX/Revenue decreased on 2.3 pp from 7.3% in FY2012 to 5.0% in FY2015. Average CAPEX/Revenue for the last three years was 11.2%.
Return on investment
The company operates at low but positive ROIC (0.21%) and negative ROE (-9.19%). ROIC decreased slightly on 0.67 pp from 0.89% to 0.21% in FY2015. ROE decreased on 5.3 pp from -3.9% to -9.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.9x and Debt / EBITDA is 3.4x. Net Debt / EBITDA dropped on 1.2x from 4.2x to 2.9x in FY2015. Debt dropped on 18.7% in FY2015 while cash surged on 206% in FY2015.
Appendix 1: Peers in Financial
Below you can find Dalmac Energy Inc benchmarking vs. other companies in Financial 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 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Gluskin Sheff + Associates Inc ($GS) | 4.1% | -39.1% | 60.6% | 97.9% | |
| |
|---|
| Median (72 companies) | 10.8% | 7.7% | 7.1% | 8.9% | -15.3% |
|---|
| Dalmac Energy Inc ($DAL) | | 35.9% | 15.8% | -10.1% | -13.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (10 companies) | 27.1% | 20.1% | 26.2% | 24.2% | 6.1% |
|---|
| Dalmac Energy Inc ($DAL) | 25.2% | 25.0% | 25.2% | 14.5% | 27.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | |
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | |
| |
|---|
| Median (48 companies) | 35.8% | 32.5% | 32.1% | 34.8% | 37.7% |
|---|
| Dalmac Energy Inc ($DAL) | 19.9% | 17.6% | 12.1% | 9.3% | 11.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | |
| |
|---|
| Median (74 companies) | 1.3% | 1.4% | 0.8% | 1.0% | 7.2% |
|---|
| Dalmac Energy Inc ($DAL) | 4.2% | 7.3% | 17.3% | 11.2% | 5.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (76 companies) | 4.9% | 4.8% | 4.5% | 4.8% | 2.1% |
|---|
| Dalmac Energy Inc ($DAL) | 18.3% | 19.9% | 9.7% | 0.9% | 0.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (40 companies) | 5.3x | 5.5x | 5.0x | 4.5x | 11.4x |
|---|
| Dalmac Energy Inc ($DAL) | 1.9x | 1.4x | 2.7x | 4.2x | 2.9x |
