North American Palladium Ltd EBITDA dropped on 109% in 2015 and Revenue dropped on 12.0%
22.02.2016 • About North American Palladium Ltd (
$PDL) • By InTwits
North American Palladium Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- North American Palladium Ltd doesn't have a profitable business model yet: 2015 ROIC is -6.9%
- EBITDA Margin is quite volatile: -1.9% in 2015, 18.9% in 2014, 0.3% in 2013, 5.5% in 2012, 11.4% in 2011
- North American Palladium Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 58.5%. At the same time it's a lot of higher than industry average of 28.2%.
- CAPEX is quite volatile: 32.2 in 2015, 23.8 in 2014, 109 in 2013, 145 in 2012, 148 in 2011
- The company has unprofitable business model: ROIC is at -6.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
North American Palladium Ltd ($PDL) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 143.7 | 160.7 | 153.2 | 220.1 | 193.6 | -12.0% |
| Gross Profit | 44.8 | 46.2 | 31.8 | 70.4 | 29.7 | -57.8% |
| SG&A | 12.2 | 12.0 | 10.7 | 9.6 | 11.5 | 19.8% |
| EBITDA | 16.4 | 8.9 | 0.5 | 41.7 | -3.7 | -108.9% |
| Net Income | -65.2 | -66.0 | -46.2 | -66.7 | -216.4 | 224.4% |
Balance Sheet
|
|---|
| Cash | 50.9 | 20.2 | 9.8 | 4.1 | 11.2 | 173.2% |
| Short Term Debt | 2.4 | 18.8 | 194.5 | 48.7 | 37.3 | -23.4% |
| Long Term Debt | 67.8 | 111.6 | 44.6 | 233.0 | 9.8 | -95.8% |
Cash flow
|
|---|
| Capex | 148.3 | 145.2 | 109.5 | 23.8 | 32.2 | 35.3% |
Ratios
|
|---|
| Revenue growth | 34.1% | 11.9% | -4.6% | 43.6% | -12.0% | |
| EBITDA growth | -196.0% | -45.9% | -94.7% | 8,829.3% | -108.9% | |
| Gross Margin | 31.2% | 28.8% | 20.7% | 32.0% | 15.3% | -16.6% |
| EBITDA Margin | 11.4% | 5.5% | 0.3% | 18.9% | -1.9% | -20.9% |
| Net Income Margin | -45.4% | -41.1% | -30.1% | -30.3% | -111.8% | -81.5% |
| SG&A, % of revenue | 8.5% | 7.5% | 7.0% | 4.4% | 5.9% | 1.6% |
| CAPEX, % of revenue | 103.2% | 90.3% | 71.5% | 10.8% | 16.6% | 5.8% |
| ROIC | 2.0% | -3.0% | -6.0% | 0.8% | -6.9% | -7.8% |
| ROE | -23.3% | -25.6% | -19.7% | -29.9% | -64.3% | -34.5% |
| Net Debt/EBITDA | 1.2x | 12.4x | 491.0x | 6.7x | | -6.7x |
Revenue and profitability
The company's Revenue dropped on 12.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.9 pp from 4.7% to 10.6% in FY2015.
Gross Margin dropped on 16.6 pp from 32.0% to 15.3% in 2015. SG&A as a % of Revenue increased slightly on 1.6 pp from 4.4% to 5.9% in 2015.
Net Income marign dropped on 81.5 pp from -30.3% to -112% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 16.6% in 2015. CAPEX/Revenue dropped on 73.7 pp from 90.3% in 2012 to 16.6% in 2015. It's average CAPEX/Revenue for the last three years was 33.0%.
Return on investment
The company operates at negative ROIC (-6.93%) and ROE (-64.34%). ROIC decreased on 7.8 pp from 0.83% to -6.9% in 2015. ROE dropped on 34.5 pp from -29.9% to -64.3% in 2015.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 6.7x from 6.7x to in 2015. Debt dropped on 83.3% in 2015 while cash jumped on 173% in 2015.
Management team
The company's CEO James E Gallagher is a founder and has spent 3 years at the company.
Appendix 1: Peers in Basic Materials
Below we provide North American Palladium Ltd 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (130 companies) | 27.6% | 8.0% | -5.1% | -1.1% | 2.5% |
|---|
| North American Palladium Ltd ($PDL) | | 11.9% | -4.6% | 43.6% | -12.0% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 30.1% | 32.0% | 21.8% | 16.8% | 15.7% |
|---|
| North American Palladium Ltd ($PDL) | 31.2% | 28.8% | 20.7% | 32.0% | 15.3% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (137 companies) | 23.3% | 18.6% | 11.7% | 9.7% | 7.0% |
|---|
| North American Palladium Ltd ($PDL) | 11.4% | 5.5% | 0.3% | 18.9% | -1.9% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 23.9% | 26.3% | 25.2% | 16.3% | 11.7% |
|---|
| North American Palladium Ltd ($PDL) | 103.2% | 90.3% | 71.5% | 10.8% | 16.6% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 7.0% | 4.9% | 0.1% | -0.1% | -3.4% |
|---|
| North American Palladium Ltd ($PDL) | 2.0% | -3.0% | -6.0% | 0.8% | -6.9% |
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 ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.1x | 0.3x | 0.7x | 0.9x | 1.6x |
|---|
| North American Palladium Ltd ($PDL) | 1.2x | 12.4x | 491.0x | 6.7x | |
