Labrador Iron Ore Royalty Corp reports 72.8 pp EBITDA Margin growth from to 72.8% in 2015
03.03.2016 • About Labrador Iron Ore Royalty Corp (
$LIF) • By InTwits
Labrador Iron Ore Royalty Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Labrador Iron Ore Royalty Corp is a company in decline: 2015 revenue growth was -13.4%, 5 years revenue CAGR was -9.2%
- The company has business model with average profitability: ROIC is at 10.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Labrador Iron Ore Royalty Corp ($LIF) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 162.1 | 123.8 | 139.1 | 117.1 | 101.4 | -13.4% |
| Gross Profit | 129.9 | 99.3 | 111.6 | 94.0 | 81.5 | -13.2% |
| SG&A | 2.1 | 2.4 | 2.8 | 2.4 | 2.7 | 14.5% |
| EBITDA | | | | | 73.9 | |
| Net Income | 179.3 | 99.3 | 148.8 | 104.1 | 54.7 | -47.5% |
Balance Sheet
|
|---|
| Cash | 41.5 | 26.9 | 52.6 | 35.0 | 24.5 | -30.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 248.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Ratios
|
|---|
| Revenue growth | -1.3% | -23.6% | 12.3% | -15.8% | -13.4% | |
| Gross Margin | 80.2% | 80.2% | 80.2% | 80.2% | 80.3% | 0.1% |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | 0.0% | 72.8% | 72.8% |
| Net Income Margin | 110.6% | 80.2% | 107.0% | 88.9% | 53.9% | -35.1% |
| SG&A, % of revenue | 1.3% | 1.9% | 2.0% | 2.0% | 2.7% | 0.7% |
| ROIC | 20.2% | 14.3% | 15.2% | 12.3% | 10.6% | -1.7% |
| ROE | 73.6% | 24.3% | 26.4% | 17.9% | 9.5% | -8.4% |
| Net Debt/EBITDA | | | | | -0.3x | -0.3x |
Revenue and profitability
Labrador Iron Ore Royalty Corp's Revenue dropped on 13.4% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue increased slightly on 0.65 pp from 2.0% to 2.7% in 2015.
Net Income marign dropped on 35.1 pp from 88.9% to 53.9% in 2015.
Return on investment
The company operates at low ROIC (10.58%) and ROE (9.53%). ROIC decreased slightly on 1.7 pp from 12.3% to 10.6% in 2015. ROE decreased on 8.4 pp from 17.9% to 9.5% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 30.0% in 2015.
Appendix 1: Peers in Basic Materials
Below you can find Labrador Iron Ore Royalty Corp 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% | 42.7% |
| Nevsun Resources Ltd ($NSU) | | 3.3% | -72.5% | 256.5% | -35.7% |
| |
|---|
| Median (130 companies) | 43.9% | 8.5% | -5.1% | -0.8% | -4.9% |
|---|
| Labrador Iron Ore Royalty Corp ($LIF) | | -23.6% | 12.3% | -15.8% | -13.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | 82.3% |
| Franco-Nevada Corp ($FNV) | 84.6% | 86.1% | 85.0% | 83.5% | |
| 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% |
| Silver Wheaton Corp ($SLW) | 88.2% | 86.2% | 80.3% | 49.8% | |
| |
|---|
| Median (133 companies) | 30.1% | 31.5% | 20.7% | 16.8% | 15.4% |
|---|
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | 80.3% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | 38.6% |
| |
|---|
| Median (138 companies) | 22.6% | 18.5% | 11.5% | 9.8% | 6.9% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($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 ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | 0.5% |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 24.1% | 26.3% | 25.5% | 16.3% | 14.4% |
|---|
| Labrador Iron Ore Royalty Corp ($LIF) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($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% | 10.4% |
| 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% | -3.5% |
|---|
| Labrador Iron Ore Royalty Corp ($LIF) | 20.2% | 14.3% | 15.2% | 12.3% | 10.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | 4.7x |
| Ur-Energy Inc ($URE) | | | | 55.1x | 6.7x |
| Katanga Mining Ltd ($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 (95 companies) | -0.1x | 0.3x | 0.8x | 0.9x | 1.4x |
|---|
