Ballard Power Systems Inc revenue started to decline in 2015: dropped 17.8% vs. 12.2% growth a year earliner
24.02.2016 • About Ballard Power Systems Inc (
$BLD) • By InTwits
Ballard Power Systems Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ballard Power Systems Inc is a company in decline: 2015 revenue growth was -17.8%, 5 years revenue CAGR was -2.8%
- The company operates at negative EBITDA Margin: -36.3%
- Ballard Power Systems Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -39.7% for the sames years0
- Ballard Power Systems Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 27.1%.
- CAPEX is quite volatile: 2.3 in 2015, 0.83 in 2014, 0.49 in 2013, 1.2 in 2012, 4.1 in 2011
- The company has unprofitable business model: ROIC is at -23.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ballard Power Systems Inc ($BLD) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 55.773 | 43.690 | 61.251 | 68.721 | 56.463 | -17.8% |
| Gross Profit | 7.279 | 7.369 | 16.759 | 10.246 | 9.974 | -2.7% |
| SG&A | | 19.207 | 18.152 | 17.715 | 18.022 | 1.7% |
| EBITDA | -31.681 | -25.183 | -13.640 | -22.444 | -20.509 | -8.6% |
| Net Income | -33.420 | -42.320 | -19.988 | -28.188 | -5.815 | -79.4% |
Balance Sheet
|
|---|
| Cash | 20.316 | 9.770 | 30.301 | 23.671 | 40.049 | 69.2% |
| Short Term Debt | 5.565 | 10.401 | 1.399 | 1.008 | 1.011 | 0.3% |
| Long Term Debt | 15.341 | 13.011 | 10.772 | 9.226 | 6.723 | -27.1% |
Cash flow
|
|---|
| Capex | 4.107 | 1.168 | 0.485 | 0.829 | 2.282 | 175.3% |
Ratios
|
|---|
| Revenue growth | -14.2% | -21.7% | 40.2% | 12.2% | -17.8% | |
| EBITDA growth | -6.5% | -20.5% | -45.8% | 64.5% | -8.6% | |
| Gross Margin | 13.1% | 16.9% | 27.4% | 14.9% | 17.7% | 2.8% |
| EBITDA Margin | -56.8% | -57.6% | -22.3% | -32.7% | -36.3% | -3.7% |
| Net Income Margin | -59.9% | -96.9% | -32.6% | -41.0% | -10.3% | 30.7% |
| SG&A, % of revenue | | 44.0% | 29.6% | 25.8% | 31.9% | 6.1% |
| CAPEX, % of revenue | 7.4% | 2.7% | 0.8% | 1.2% | 4.0% | 2.8% |
| ROIC | -29.3% | -32.0% | -23.6% | -32.6% | -23.8% | 8.9% |
| ROE | -29.7% | -53.7% | -29.8% | -36.7% | -5.9% | 30.8% |
Revenue and profitability
The company's Revenue dropped on 17.8% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.7 pp from -32.7% to -36.3% in 2015.
Gross Margin increased on 2.8 pp from 14.9% to 17.7% in 2015. SG&A as a % of Revenue increased on 6.1 pp from 25.8% to 31.9% in 2015.
Net Income marign jumped on 30.7 pp from -41.0% to -10.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.0% in 2015. Ballard Power Systems Inc's CAPEX/Revenue increased slightly on 1.4 pp from 2.7% in 2012 to 4.0% in 2015. Average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at negative ROIC (-23.79%) and ROE (-5.92%). ROIC increased on 8.9 pp from -32.6% to -23.8% in 2015. ROE jumped on 30.8 pp from -36.7% to -5.9% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 24.4% in 2015 while cash jumped on 69.2% in 2015.
Management team
R Randall Macewen "Randy" is a Ballard Power Systems Inc's CEO. R Randall Macewen "Randy" is a founder and has spent 4 years at the company.
Appendix 1: Peers in Energy
Below you can find Ballard Power Systems Inc benchmarking vs. other companies in Energy 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 |
|---|
| Petro Rio SA ($PRJ) | -36.3% | -32.1% | -34.9% | 10,977.1% | |
| ONEnergy Inc ($OEG) | | | | 6,002.6% | |
| Sterling Resources Ltd ($SLG) | | -94.8% | 4,514.9% | 2,244.4% | |
| Ikkuma Resources Corp ($IKM) | 22.5% | 17.0% | -4.5% | 1,231.1% | |
| Spartan Energy Corp ($SPE) | -8.2% | 16.6% | 29.9% | 923.7% | |
| |
|---|
| Median (160 companies) | 38.0% | 10.4% | 16.2% | 18.5% | -26.7% |
|---|
| Ballard Power Systems Inc ($BLD) | | -21.7% | 40.2% | 12.2% | -17.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | |
| Freehold Royalties Ltd ($FRU) | 91.7% | 90.4% | 89.0% | 90.2% | |
| MEG Energy Corp ($MEG) | 85.5% | 86.8% | 87.4% | 87.6% | 84.1% |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 37.2% |
|---|
| Ballard Power Systems Inc ($BLD) | 13.1% | 16.9% | 27.4% | 14.9% | 17.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($VII) | | 56.9% | 54.0% | 106.0% | |
| Tourmaline Oil Corp ($TOU) | 67.4% | 67.9% | 80.0% | 97.6% | |
| Bonavista Energy Corp ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | |
| Bellatrix Exploration Ltd ($BXE) | 42.7% | 58.6% | 83.6% | 89.6% | |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 31.1% | 29.6% | 5.2% |
|---|
| Ballard Power Systems Inc ($BLD) | -56.8% | -57.6% | -22.3% | -32.7% | -36.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | |
| Petroshale Inc ($PSH) | 30.6% | | 346.6% | 865.9% | |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | |
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.2% | 48.8% | 21.4% |
|---|
| Ballard Power Systems Inc ($BLD) | 7.4% | 2.7% | 0.8% | 1.2% | 4.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($PSI) | 33.5% | 30.0% | 29.7% | 41.0% | |
| Sea Dragon Energy Inc ($SDX) | -10.1% | 8.1% | 21.8% | 32.9% | |
| Raging River Exploration Inc ($RRX) | | | | 29.1% | |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.5% | 3.5% | 4.6% | 5.1% | -6.5% |
|---|
| Ballard Power Systems Inc ($BLD) | -29.3% | -32.0% | -23.6% | -32.6% | -23.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | |
| Lightstream Resources Ltd ($LTS) | | 2.0x | | 27.8x | |
| Petroshale Inc ($PSH) | 0.1x | | | 21.7x | |
| Connacher Oil and Gas Ltd ($CLC) | 9.7x | 16.7x | 8.8x | 17.1x | |
| Pengrowth Energy Corp ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (137 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 4.9x |
|---|
