5N Plus Inc reports 307% EBITDA decline and 24.8 pp EBITDA Margin decline from 5.6% to -19.1%
23.02.2016 • About 5N Plus Inc (
$VNP) • By InTwits
5N Plus Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- 5N Plus Inc doesn't have a profitable business model yet: 2015 ROIC is -40.3%
- The company operates at negative EBITDA Margin: -19.1%
- 5N Plus Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -7.4%0
- 5N Plus Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.8%. At the same time it's a lot of higher than industry average of 91.1%.
- CAPEX is quite volatile: 380 in 2015, 120 in 2014, 124 in 2013, 641 in 2012, 392 in 2011
- The company has unprofitable business model: ROIC is at -40.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
5N Plus Inc ($VNP) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 177.8 | 551.7 | 459.0 | 508.2 | 311.0 | -38.8% |
| Gross Profit | 48.1 | 31.4 | 53.9 | 62.5 | -36.0 | -157.5% |
| SG&A | | 45.7 | 36.1 | 36.9 | 25.8 | -30.1% |
| EBITDA | 36.2 | -218.0 | 63.4 | 28.7 | -59.5 | -307.2% |
| Net Income | 21.5 | -227.7 | 42.7 | 10.8 | -97.2 | -999.0% |
Balance Sheet
|
|---|
| Cash | 28.8 | 9.5 | 22.4 | 12.8 | 8.8 | -31.0% |
| Short Term Debt | 195.6 | 37.5 | 14.9 | 1.6 | 0.4 | -73.5% |
| Long Term Debt | 55.9 | 110.9 | 68.3 | 97.3 | 41.8 | -57.0% |
Cash flow
|
|---|
| Capex | 19.9 | 16.5 | 11.1 | 13.6 | 14.8 | 8.9% |
Ratios
|
|---|
| Revenue growth | 166.8% | 210.3% | -16.8% | 10.7% | -38.8% | |
| EBITDA growth | 67.2% | -701.7% | -129.1% | -54.7% | -307.2% | |
| Gross Margin | 27.0% | 5.7% | 11.7% | 12.3% | -11.6% | -23.9% |
| EBITDA Margin | 20.4% | -39.5% | 13.8% | 5.6% | -19.1% | -24.8% |
| Net Income Margin | 12.1% | -41.3% | 9.3% | 2.1% | -31.3% | -33.4% |
| SG&A, % of revenue | | 8.3% | 7.9% | 7.3% | 8.3% | 1.0% |
| CAPEX, % of revenue | 11.2% | 3.0% | 2.4% | 2.7% | 4.8% | 2.1% |
| ROIC | 8.3% | -51.9% | 18.4% | 6.0% | -40.3% | -46.3% |
| ROE | 9.1% | -90.2% | 25.5% | 5.6% | -66.3% | -71.9% |
| Net Debt/EBITDA | 6.1x | | 1.0x | 3.0x | | -3.0x |
Revenue and profitability
5N Plus Inc's Revenue dropped on 38.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 24.8 pp from 5.6% to -19.1% in 2015.
Gross Margin dropped on 23.9 pp from 12.3% to -11.6% in 2015. SG&A as a % of Revenue increased slightly on 1.0 pp from 7.3% to 8.3% in 2015.
Net Income marign dropped on 33.4 pp from 2.1% to -31.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 4.8%. 5N Plus Inc's CAPEX/Revenue increased slightly on 1.8 pp from 3.0% in 2012 to 4.8% in 2015. For the last three years the average CAPEX/Revenue was 3.3%.
Return on investment
The company operates at negative ROIC (-40.29%) and ROE (-66.33%). ROIC dropped on 46.3 pp from 6.0% to -40.3% in 2015. ROE dropped on 71.9 pp from 5.6% to -66.3% in 2015.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 3.0x from 3.0x to in 2015. Debt dropped on 57.3% in 2015 while cash dropped on 31.0% in 2015.
Appendix 1: Peers in Basic Materials
Below you can find 5N Plus Inc 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (130 companies) | 31.3% | 8.0% | -5.0% | -1.1% | -4.0% |
|---|
| 5N Plus Inc ($VNP) | | 210.3% | -16.8% | 10.7% | -38.8% |
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% | 60.9% |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 31.2% | 32.0% | 21.8% | 17.6% | 15.4% |
|---|
| 5N Plus Inc ($VNP) | 27.0% | 5.7% | 11.7% | 12.3% | -11.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | 65.0% |
| Franco-Nevada Corp ($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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (137 companies) | 23.3% | 18.6% | 11.3% | 9.9% | 7.2% |
|---|
| 5N Plus Inc ($VNP) | 20.4% | -39.5% | 13.8% | 5.6% | -19.1% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 24.1% | 26.3% | 25.5% | 16.3% | 12.1% |
|---|
| 5N Plus Inc ($VNP) | 11.2% | 3.0% | 2.4% | 2.7% | 4.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | 39.6% |
| CanAf Group Inc ($CAF) | 74.9% | 37.0% | 65.2% | 37.6% | 13.8% |
| 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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 5.4% | 4.9% | -0.1% | -0.1% | -3.4% |
|---|
| 5N Plus Inc ($VNP) | 8.3% | -51.9% | 18.4% | 6.0% | -40.3% |
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 ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.1x | 0.3x | 0.7x | 0.9x | 1.5x |
|---|
| 5N Plus Inc ($VNP) | 6.1x | | 1.0x | 3.0x | |
