Supremex Inc reports 44.2% Net Income growth and 3.4 pp EBITDA Margin growth from 19.9% to 23.3%
18.02.2016 • About Supremex Inc (
$SXP) • By InTwits
Supremex Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Supremex Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's in pair with industry average of 28.2%.
- CAPEX is quite volatile: 1.3 in 2015, 2.0 in 2014, 1.2 in 2013, 2.3 in 2012, 4.0 in 2011
- The company has highly profitable business model: ROIC is at 23.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Supremex Inc ($SXP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 143.9 | 131.9 | 129.0 | 131.9 | 142.3 | 7.9% |
| Gross Profit | 139.5 | | | | | |
| SG&A | | 16.9 | 15.5 | 16.9 | 15.3 | -9.6% |
| EBITDA | 29.5 | 24.6 | 28.0 | 26.2 | 33.1 | 26.2% |
| Net Income | 8.3 | -19.6 | 11.5 | 11.0 | 15.9 | 44.2% |
Balance Sheet
|
|---|
| Cash | 2.6 | 5.1 | 1.5 | 0.4 | 3.5 | 870.6% |
| Short Term Debt | 5.0 | 5.0 | 4.8 | 5.2 | 0.0 | -100.0% |
| Long Term Debt | 49.2 | 44.4 | 32.8 | 17.2 | 28.7 | 66.9% |
Cash flow
|
|---|
| Capex | 4.0 | 2.3 | 1.2 | 2.0 | 1.3 | -33.6% |
Ratios
|
|---|
| Revenue growth | -6.0% | -8.4% | -2.2% | 2.3% | 7.9% | |
| EBITDA growth | -11.8% | -16.7% | 13.7% | -6.3% | 26.2% | |
| Gross Margin | 96.9% | | | | | 0.0% |
| EBITDA Margin | 20.5% | 18.7% | 21.7% | 19.9% | 23.3% | 3.4% |
| Net Income Margin | 5.8% | -14.9% | 8.9% | 8.4% | 11.2% | 2.8% |
| SG&A, % of revenue | | 12.8% | 12.0% | 12.8% | 10.8% | -2.1% |
| CAPEX, % of revenue | 2.8% | 1.8% | 0.9% | 1.5% | 0.9% | -0.6% |
| ROIC | 13.9% | 14.1% | 18.5% | 16.5% | 23.4% | 6.9% |
| ROE | 12.3% | -38.3% | 22.3% | 17.1% | 23.4% | 6.3% |
| Net Debt/EBITDA | 1.7x | 1.8x | 1.3x | 0.8x | 0.8x | -0.1x |
Revenue and profitability
The company's Revenue increased on 7.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 56.2 pp from 19.2% to 75.4% in 2015.
SG&A as a % of Revenue decreased on 2.1 pp from 12.8% to 10.8% in 2015.
Net Income marign increased on 2.8 pp from 8.4% to 11.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Supremex Inc had CAPEX/Revenue of 0.92%. CAPEX/Revenue decreased slightly on 0.86 pp from 1.8% in 2012 to 0.92% in 2015. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at high and attractive ROIC (23.44%) and ROE (23.36%). ROIC increased on 6.9 pp from 16.5% to 23.4% in 2015. ROE increased on 6.3 pp from 17.1% to 23.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is 0.9x. Net Debt / EBITDA decreased on 0.1x from 0.8x to 0.8x in 2015. Debt surged on 28.0% in 2015 while cash surged on 871% in 2015.
Appendix 1: Peers in Basic Materials
Below we provide Supremex 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (130 companies) | 30.9% | 8.5% | -5.1% | -1.1% | 0.6% |
|---|
| Supremex Inc ($SXP) | | -8.4% | -2.2% | 2.3% | 7.9% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (134 companies) | 30.1% | 31.8% | 21.3% | 17.2% | 15.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($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 (137 companies) | 23.3% | 18.4% | 11.3% | 9.7% | 6.9% |
|---|
| Supremex Inc ($SXP) | 20.5% | 18.7% | 21.7% | 19.9% | 23.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($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 (139 companies) | 24.1% | 26.3% | 25.5% | 16.3% | 12.1% |
|---|
| Supremex Inc ($SXP) | 2.8% | 1.8% | 0.9% | 1.5% | 0.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($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% | 24.1% |
| |
|---|
| Median (143 companies) | 5.4% | 4.9% | -0.1% | -0.1% | -3.5% |
|---|
| Supremex Inc ($SXP) | 13.9% | 14.1% | 18.5% | 16.5% | 23.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | 4.7x |
| 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 | 1.6x |
|---|
| Supremex Inc ($SXP) | 1.7x | 1.8x | 1.3x | 0.8x | 0.8x |
