IBC Advanced Alloys Corp reports 5.1% revenue growth in FY2015 and 0.60 pp EBITDA Margin growth from -13.5% to -12.9%
23.10.2015 • About IBC Advanced Alloys Corp (
$IB) • By InTwits
IBC Advanced Alloys Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- IBC Advanced Alloys Corp doesn't have a profitable business model yet: FY2015 ROIC is -23.0%
- The company operates at negative EBITDA Margin: -12.9%
- IBC Advanced Alloys Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -11.9%0
- IBC Advanced Alloys Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's a lot of higher than industry average of 35.3%.
- CAPEX is quite volatile: 0.18 in FY2015, 0.14 in FY2014, 0.096 in FY2013, 1.3 in FY2012, 2.7 in FY2011
- The company has unprofitable business model: ROIC is at -23.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
IBC Advanced Alloys Corp ($IB) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 22.506 | 25.493 | 20.896 | 16.928 | 17.784 | 5.1% |
| Gross Profit | 4.261 | 3.491 | 1.459 | 1.377 | 0.884 | -35.8% |
| SG&A | | | | | 0.403 | |
| EBITDA | -1.673 | -2.376 | -3.671 | -2.289 | -2.298 | 0.4% |
| Net Income | -4.040 | -5.853 | -7.721 | -2.844 | -2.803 | -1.4% |
Balance Sheet
|
|---|
| Cash | 7.514 | 1.820 | 1.059 | 1.500 | 0.948 | -36.8% |
| Short Term Debt | 8.223 | 4.916 | 3.288 | 3.505 | 2.933 | -16.3% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 1.129 | |
Cash flow
|
|---|
| Capex | 2.695 | 1.343 | 0.096 | 0.137 | 0.180 | 31.4% |
Ratios
|
|---|
| Revenue growth | 50.7% | 13.3% | -18.0% | -19.0% | 5.1% | |
| EBITDA growth | 9.5% | 42.0% | 54.5% | -37.6% | 0.4% | |
| Gross Margin | 18.9% | 13.7% | 7.0% | 8.1% | 5.0% | -3.2% |
| EBITDA Margin | -7.4% | -9.3% | -17.6% | -13.5% | -12.9% | 0.6% |
| Net Income Margin | -18.0% | -23.0% | -36.9% | -16.8% | -15.8% | 1.0% |
| SG&A, % of revenue | | | | | 2.3% | 2.3% |
| CAPEX, % of revenue | 12.0% | 5.3% | 0.5% | 0.8% | 1.0% | 0.2% |
| ROIC | -12.6% | -15.9% | -29.0% | -23.5% | -23.0% | 0.5% |
| ROE | -26.2% | -36.2% | -62.5% | -29.3% | -30.7% | -1.4% |
Revenue and profitability
IBC Advanced Alloys Corp's Revenue increased on 5.1% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.60 pp from -13.5% to -12.9% in FY2015.
Gross Margin decreased on 3.2 pp from 8.1% to 5.0% in FY2015.
Net Income marign increased slightly on 1.0 pp from -16.8% to -15.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
IBC Advanced Alloys Corp's CAPEX/Revenue was 1.0% in FY2015. CAPEX/Revenue decreased on 4.3 pp from 5.3% in FY2012 to 1.0% in FY2015. It's average CAPEX/Revenue for the last three years was 0.76%.
Return on investment
The company operates at negative ROIC (-23.00%) and ROE (-30.71%). ROIC showed almost no change in FY2015. ROE decreased slightly on 1.4 pp from -29.3% to -30.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.2x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2015. Debt jumped on 15.9% in FY2015 while cash dropped on 36.8% in FY2015.
Appendix 1: Peers in Basic Materials
Below you can find IBC Advanced Alloys 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (129 companies) | 27.8% | 8.0% | -4.8% | -1.1% | 10.4% |
|---|
| IBC Advanced Alloys Corp ($IB) | | 13.3% | -18.0% | -19.0% | 5.1% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (132 companies) | 31.2% | 31.8% | 21.9% | 17.2% | 22.6% |
|---|
| IBC Advanced Alloys Corp ($IB) | 18.9% | 13.7% | 7.0% | 8.1% | 5.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | 65.0% |
| Franco-Nevada Corp ($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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (136 companies) | 23.3% | 18.5% | 11.5% | 9.8% | 3.2% |
|---|
| IBC Advanced Alloys Corp ($IB) | -7.4% | -9.3% | -17.6% | -13.5% | -12.9% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (138 companies) | 24.1% | 26.3% | 25.4% | 16.1% | 12.1% |
|---|
| IBC Advanced Alloys Corp ($IB) | 12.0% | 5.3% | 0.5% | 0.8% | 1.0% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | |
| |
|---|
| Median (142 companies) | 7.0% | 4.9% | 0.0% | 0.2% | -5.7% |
|---|
| IBC Advanced Alloys Corp ($IB) | -12.6% | -15.9% | -29.0% | -23.5% | -23.0% |
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 | -0.6x |
|---|
