Thompson Creek Metals Co Inc revenue dropped on 38.8% in 2015 while EBITDA Margin increased on 9.4 pp from 16.9% to 26.2%
24.02.2016 • About Thompson Creek Metals Co Inc (
$TCM) • By InTwits
Thompson Creek Metals Co Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Thompson Creek Metals Co Inc is a company in decline: 2015 revenue growth was -38.8%, 5 years revenue CAGR was -3.6%
- Thompson Creek Metals Co Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -6.6%0
- Thompson Creek Metals Co Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 83.2%. At the same time it's a lot of higher than industry average of 27.4%.
- CAPEX is quite volatile: 61.3 in 2015, 82.1 in 2014, 429 in 2013, 772 in 2012, 687 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.9%
- It operates with high leverage: Net Debt/EBITDA is 5.5x while industry average is 3.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Thompson Creek Metals Co Inc ($TCM) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 669.1 | 401.4 | 434.4 | 806.7 | 494.1 | -38.8% |
| Gross Profit | 201.6 | -37.1 | 54.3 | 183.0 | 89.9 | -50.9% |
| SG&A | 36.2 | 35.6 | 30.9 | 37.6 | 30.5 | -18.9% |
| EBITDA | 216.4 | -543.7 | -123.4 | 136.0 | 129.6 | -4.7% |
| Net Income | 292.1 | -546.3 | -215.0 | -124.2 | -134.9 | 8.6% |
Balance Sheet
|
|---|
| Cash | 294.5 | 526.8 | 233.9 | 265.6 | 176.8 | -33.4% |
| Short Term Debt | 6.7 | 30.7 | 37.2 | 26.7 | 25.6 | -4.1% |
| Long Term Debt | 368.2 | 979.8 | 975.6 | 918.0 | 859.0 | -6.4% |
Cash flow
|
|---|
| Capex | 686.6 | 771.5 | 428.9 | 82.1 | 61.3 | -25.3% |
Ratios
|
|---|
| Revenue growth | 12.5% | -40.0% | 8.2% | 85.7% | -38.8% | |
| EBITDA growth | -3.5% | -351.2% | -77.3% | -210.2% | -4.7% | |
| Gross Margin | 30.1% | -9.2% | 12.5% | 22.7% | 18.2% | -4.5% |
| EBITDA Margin | 32.3% | -135.5% | -28.4% | 16.9% | 26.2% | 9.4% |
| Net Income Margin | 43.7% | -136.1% | -49.5% | -15.4% | -27.3% | -11.9% |
| SG&A, % of revenue | 5.4% | 8.9% | 7.1% | 4.7% | 6.2% | 1.5% |
| CAPEX, % of revenue | 102.6% | 192.2% | 98.7% | 10.2% | 12.4% | 2.2% |
| ROIC | 7.1% | -24.6% | -7.5% | 1.8% | 1.9% | 0.1% |
| ROE | 18.5% | -34.9% | -17.1% | -12.5% | -18.4% | -6.0% |
| Net Debt/EBITDA | 0.4x | | | 5.0x | 5.5x | 0.5x |
Revenue and profitability
Thompson Creek Metals Co Inc's Revenue dropped on 38.8% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 9.4 pp from 16.9% to 26.2% in 2015.
Gross Margin decreased on 4.5 pp from 22.7% to 18.2% in 2015. SG&A as a % of Revenue increased slightly on 1.5 pp from 4.7% to 6.2% in 2015.
Net Income marign dropped on 11.9 pp from -15.4% to -27.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Thompson Creek Metals Co Inc had CAPEX/Revenue of 12.4%. The company's CAPEX/Revenue dropped on 180 pp from 192% in 2012 to 12.4% in 2015. Average CAPEX/Revenue for the last three years was 40.4%.
Return on investment
The company operates at low but positive ROIC (1.94%) and negative ROE (-18.44%). ROIC showed almost no change in 2015. ROE decreased on 6.0 pp from -12.5% to -18.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.5x and Debt / EBITDA is 6.8x. Net Debt / EBITDA surged on 0.5x from 5.0x to 5.5x in 2015. Debt decreased on 6.4% in 2015 while cash dropped on 33.4% in 2015.
Appendix 1: Peers in Basic Materials
Below you can find Thompson Creek Metals Co 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 ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (130 companies) | 37.0% | 8.5% | -5.1% | -1.1% | -4.0% |
|---|
| Thompson Creek Metals Co Inc ($TCM) | | -40.0% | 8.2% | 85.7% | -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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 31.2% | 32.0% | 21.8% | 16.8% | 15.4% |
|---|
| Thompson Creek Metals Co Inc ($TCM) | 30.1% | -9.2% | 12.5% | 22.7% | 18.2% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (137 companies) | 22.0% | 18.6% | 11.7% | 9.7% | 7.2% |
|---|
| Thompson Creek Metals Co Inc ($TCM) | 32.3% | -135.5% | -28.4% | 16.9% | 26.2% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 23.9% | 26.3% | 25.2% | 16.3% | 12.8% |
|---|
| Thompson Creek Metals Co Inc ($TCM) | 102.6% | 192.2% | 98.7% | 10.2% | 12.4% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 5.4% | 4.9% | 0.1% | -0.1% | -3.4% |
|---|
| Thompson Creek Metals Co Inc ($TCM) | 7.1% | -24.6% | -7.5% | 1.8% | 1.9% |
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 ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.1x | 0.3x | 0.8x | 0.9x | 1.4x |
|---|
| Thompson Creek Metals Co Inc ($TCM) | 0.4x | | | 5.0x | 5.5x |
