Polaris Materials Corp CAPEX dropped on 37.3% in 2015 and Revenue decreased on 4.8%
01.03.2016 • About Polaris Materials Corp (
$PLS) • By InTwits
Polaris Materials Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Polaris Materials Corp doesn't have a profitable business model yet: 2015 ROIC is -1.9%
- Polaris Materials Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -9.1%0
- Polaris Materials Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's in pair with industry average of 7.0%.
- CAPEX is quite volatile: 3.4 in 2015, 5.4 in 2014, 1.7 in 2013, 1.0 in 2012, 0.11 in 2011
- The company has unprofitable business model: ROIC is at -1.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Polaris Materials Corp ($PLS) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 23.438 | 32.196 | 44.893 | 45.241 | 43.085 | -4.8% |
| Gross Profit | -6.744 | -5.288 | 0.024 | 1.193 | 4.856 | 307.0% |
| SG&A | | | 5.364 | 6.571 | 5.251 | -20.1% |
| EBITDA | -11.956 | -5.107 | -2.726 | | 2.679 | |
| Net Income | -17.787 | -12.238 | -8.208 | -6.685 | 0.491 | -107.3% |
Balance Sheet
|
|---|
| Cash | 1.629 | 5.537 | 9.385 | 14.231 | 10.501 | -26.2% |
| Short Term Debt | 1.543 | 0.695 | 0.651 | 0.418 | 0.386 | -7.7% |
| Long Term Debt | 5.072 | 7.232 | 0.530 | 0.865 | 0.811 | -6.2% |
Cash flow
|
|---|
| Capex | 0.106 | 1.044 | 1.683 | 5.354 | 3.357 | -37.3% |
Ratios
|
|---|
| Revenue growth | 30.1% | 37.4% | 39.4% | 0.8% | -4.8% | |
| EBITDA growth | 244.1% | -57.3% | -46.6% | | | |
| Gross Margin | -28.8% | -16.4% | 0.1% | 2.6% | 11.3% | 8.6% |
| EBITDA Margin | -51.0% | -15.9% | -6.1% | 0.0% | 6.2% | 6.2% |
| Net Income Margin | -75.9% | -38.0% | -18.3% | -14.8% | 1.1% | 15.9% |
| SG&A, % of revenue | | | 11.9% | 14.5% | 12.2% | -2.3% |
| CAPEX, % of revenue | 0.5% | 3.2% | 3.7% | 11.8% | 7.8% | -4.0% |
| ROIC | -20.1% | -14.5% | -10.2% | -9.4% | -1.9% | 7.4% |
| ROE | -22.1% | -17.7% | -11.7% | -8.8% | 0.6% | 9.4% |
| Net Debt/EBITDA | | | | | -3.5x | -3.5x |
Revenue and profitability
Polaris Materials Corp's Revenue decreased on 4.8% in 2015.
Gross Margin increased on 8.6 pp from 2.6% to 11.3% in 2015. SG&A as a % of Revenue decreased on 2.3 pp from 14.5% to 12.2% in 2015.
Net Income marign surged on 15.9 pp from -14.8% to 1.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.8% in 2015. CAPEX/Revenue increased on 4.5 pp from 3.2% in 2012 to 7.8% in 2015. It's average CAPEX/Revenue for the last three years was 7.8%.Polaris Materials Corp has spent a lot to CAPEX (125% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-1.94%) and low but positive ROE (0.64%). ROIC increased on 7.4 pp from -9.4% to -1.9% in 2015. ROE increased on 9.4 pp from -8.8% to 0.64% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.5x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped3.5x from to -3.5x in 2015. Debt decreased on 6.7% in 2015 while cash dropped on 26.2% in 2015.
Appendix 1: Peers in Industrial
Below you can find Polaris Materials Corp benchmarking vs. other companies in Industrial 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 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | | 19.7% | 0.9% | 50.5% | 35.3% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 11.3% | 10.4% | 4.9% | 9.4% | 8.5% |
|---|
| Polaris Materials Corp ($PLS) | | 37.4% | 39.4% | 0.8% | -4.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 25.0% |
|---|
| Polaris Materials Corp ($PLS) | -28.8% | -16.4% | 0.1% | 2.6% | 11.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (86 companies) | 8.3% | 9.4% | 8.3% | 7.4% | 9.9% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 3.0% | 3.0% | 3.5% | 3.1% | 3.5% |
|---|
| Polaris Materials Corp ($PLS) | 0.5% | 3.2% | 3.7% | 11.8% | 7.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 9.1% | 10.0% | 8.5% | 9.1% | 9.5% |
|---|
| Polaris Materials Corp ($PLS) | -20.1% | -14.5% | -10.2% | -9.4% | -1.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | 1.6x |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (73 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.6x |
|---|
