Boralex Inc CAPEX surged on 96.5% in 2015 and Revenue surged on 37.1%
24.02.2016 • About Boralex Inc (
$BLX) • By InTwits
Boralex Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Boralex Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 59.0%. At the same time it's a lot of higher than industry average of 48.2%.
- CAPEX is quite volatile: 330 in 2015, 168 in 2014, 107 in 2013, 10.3 in 2012, 34.4 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.3%
- It operates with high leverage: Net Debt/EBITDA is 9.0x while industry average is 6.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Boralex Inc ($BLX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 194.7 | 184.3 | 172.0 | 195.2 | 267.7 | 37.1% |
| Gross Profit | 61.4 | 59.9 | 63.8 | 70.5 | 189.3 | 168.5% |
| SG&A | | | | | 17.6 | |
| EBITDA | 100.9 | 97.3 | 100.5 | 109.1 | 161.8 | 48.3% |
| Net Income | 2.9 | -5.1 | -3.8 | -11.8 | -10.8 | -7.9% |
Balance Sheet
|
|---|
| Cash | 144.7 | 107.1 | 124.9 | 75.4 | 99.6 | 32.2% |
| Short Term Debt | 26.7 | 98.6 | 84.0 | 172.0 | 145.2 | -15.6% |
| Long Term Debt | 717.3 | 649.9 | 808.5 | 1,222.1 | 1,408.9 | 15.3% |
Cash flow
|
|---|
| Capex | 34.4 | 10.3 | 107.5 | 167.7 | 329.6 | 96.5% |
Ratios
|
|---|
| Revenue growth | 80.3% | -5.3% | -6.7% | 13.5% | 37.1% | |
| EBITDA growth | 137.1% | -3.5% | 3.3% | 8.5% | 48.3% | |
| Gross Margin | 31.6% | 32.5% | 37.1% | 36.1% | 70.7% | 34.6% |
| EBITDA Margin | 51.8% | 52.8% | 58.4% | 55.9% | 60.4% | 4.6% |
| Net Income Margin | 1.5% | -2.8% | -2.2% | -6.0% | -4.0% | 2.0% |
| SG&A, % of revenue | | | | | 6.6% | 6.6% |
| CAPEX, % of revenue | 17.7% | 5.6% | 62.5% | 85.9% | 123.1% | 37.2% |
| ROIC | 3.8% | 3.5% | 3.8% | 3.2% | 3.3% | 0.1% |
| ROE | 0.9% | -1.6% | -1.1% | -3.6% | -2.6% | 1.0% |
| Net Debt/EBITDA | 5.9x | 6.6x | 7.6x | 12.1x | 9.0x | -3.1x |
Revenue and profitability
The company's Revenue surged on 37.1% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.6 pp from 55.9% to 60.4% in 2015.
Gross Margin jumped on 34.6 pp from 36.1% to 70.7% in 2015.
Net Income marign increased slightly on 2.0 pp from -6.0% to -4.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Boralex Inc's CAPEX/Revenue was 123% in 2015. CAPEX/Revenue jumped on 118 pp from 5.6% in 2012 to 123% in 2015. It's average CAPEX/Revenue for the last three years was 90.5%.To secure this fast growth the company made large investments to CAPEX (204% of EBITDA).
Return on investment
The company operates at low but positive ROIC (3.29%) and negative ROE (-2.56%). ROIC showed almost no change in 2015. ROE increased slightly on 1.0 pp from -3.6% to -2.6% in 2015.
Leverage (Debt)
Debt level is 9.0x Net Debt / EBITDA and 9.6x Debt / EBITDA. Net Debt / EBITDA dropped on 3.1x from 12.1x to 9.0x in 2015. Debt jumped on 11.5% in 2015 while cash jumped on 32.2% in 2015.
Appendix 1: Peers in Utilities
Below we provide Boralex Inc benchmarking against other companies in Utilities 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 |
|---|
| Algonquin Power & Utilities Corp ($AQN) | 50.1% | 28.8% | 93.6% | 39.4% | |
| Northland Power Inc ($NPI) | | 1.5% | 54.1% | 36.4% | -4.2% |
| Fortis Inc/Canada ($FTS) | | -2.2% | 10.8% | 33.5% | 25.1% |
| Emera Inc ($EMA) | | -0.3% | 8.3% | 31.8% | -5.1% |
| Just Energy Group Inc ($JE) | | -10.1% | 13.4% | 17.4% | 10.2% |
| |
|---|
| Median (14 companies) | 12.8% | 0.9% | 11.1% | 11.9% | -4.6% |
|---|
| Boralex Inc ($BLX) | | -5.3% | -6.7% | 13.5% | 37.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atco Ltd/Canada ($ACO.X) | 82.3% | 85.6% | 85.1% | 82.3% | |
| Canadian Utilities Ltd ($CU) | 76.5% | 81.0% | 80.8% | 77.7% | |
| Northland Power Inc ($NPI) | 47.7% | 52.5% | 63.7% | 61.8% | 69.0% |
| Fortis Inc/Canada ($FTS) | 31.9% | 34.6% | 34.4% | 59.3% | 61.7% |
| Capital Power Corp ($CPX) | 48.9% | 58.9% | 59.8% | 58.4% | 61.4% |
| |
|---|
| Median (13 companies) | 42.7% | 34.6% | 35.1% | 55.0% | 56.1% |
|---|
| Boralex Inc ($BLX) | 31.6% | 32.5% | 37.1% | 36.1% | 70.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northland Power Inc ($NPI) | 48.1% | 54.2% | 52.4% | 51.2% | 57.5% |
| US Geothermal Inc ($GTH) | -84.0% | -129.5% | 52.9% | 49.6% | |
| Canadian Utilities Ltd ($CU) | 42.9% | 45.9% | 45.7% | 47.4% | |
| Atco Ltd/Canada ($ACO.X) | 36.7% | 39.8% | 41.0% | 41.4% | |
| TransAlta Corp ($TA) | 44.2% | 27.3% | 34.0% | 39.5% | 33.2% |
| |
|---|
| Median (14 companies) | 29.6% | 27.8% | 33.2% | 32.4% | 32.0% |
|---|
| Boralex Inc ($BLX) | 51.8% | 52.8% | 58.4% | 55.9% | 60.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northland Power Inc ($NPI) | 101.7% | 84.0% | 60.2% | 238.7% | 265.9% |
| Canadian Utilities Ltd ($CU) | 43.7% | 70.7% | 66.4% | 58.5% | |
| Atco Ltd/Canada ($ACO.X) | 36.2% | 58.8% | 54.2% | 48.3% | |
| Algonquin Power & Utilities Corp ($AQN) | 22.4% | 21.7% | 23.5% | 45.9% | |
| Fortis Inc/Canada ($FTS) | 29.8% | 31.4% | 29.0% | 31.9% | 31.5% |
| |
|---|
| Median (14 companies) | 25.4% | 31.6% | 24.0% | 19.6% | 24.5% |
|---|
| Boralex Inc ($BLX) | 17.7% | 5.6% | 62.5% | 85.9% | 123.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Keyera Corp ($KEY) | 13.1% | 13.8% | 12.7% | 14.3% | 12.6% |
| Just Energy Group Inc ($JE) | 146.5% | 18.6% | 6.0% | 10.6% | 17.9% |
| Atco Ltd/Canada ($ACO.X) | 11.6% | 10.8% | 10.5% | 9.6% | |
| Canadian Utilities Ltd ($CU) | 10.9% | 10.0% | 9.4% | 9.2% | |
| Emera Inc ($EMA) | 6.1% | 5.8% | 5.9% | 8.4% | 5.6% |
| |
|---|
| Median (14 companies) | 6.7% | 5.8% | 6.1% | 5.8% | 5.6% |
|---|
| Boralex Inc ($BLX) | 3.8% | 3.5% | 3.8% | 3.2% | 3.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atlantic Power Corp ($ATP) | 44.8x | 12.6x | 13.0x | 22.4x | |
| Northland Power Inc ($NPI) | 5.9x | 6.4x | 5.8x | 6.9x | 11.1x |
| Fortis Inc/Canada ($FTS) | 5.3x | 5.0x | 5.6x | 6.7x | 5.3x |
| Just Energy Group Inc ($JE) | 2.5x | 4.3x | 7.4x | 6.4x | 3.9x |
| US Geothermal Inc ($GTH) | | | 5.2x | 5.6x | |
| |
|---|
| Median (14 companies) | 3.4x | 4.9x | 5.3x | 4.3x | 4.4x |
|---|
| Boralex Inc ($BLX) | 5.9x | 6.6x | 7.6x | 12.1x | 9.0x |
