Geodrill Ltd reports 194% EBITDA growth and 34.6% Revenue growth
07.03.2016 • About Geodrill Ltd (
$GEO) • By InTwits
Geodrill Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 21.6% in 2015, 9.9% in 2014, 19.3% in 2013, 21.4% in 2012, 35.9% in 2011
- Geodrill Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 13.7%. At the same time it's in pair with industry average of 6.9%.
- CAPEX is quite volatile: 2.7 in 2015, 1.8 in 2014, 1.5 in 2013, 22.8 in 2012, 13.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Geodrill Ltd ($GEO) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 70.149 | 65.586 | 37.212 | 35.595 | 47.922 | 34.6% |
| Gross Profit | 38.056 | 25.852 | 11.854 | 6.823 | 15.446 | 126.4% |
| SG&A | 19.537 | 19.806 | 14.289 | 12.808 | 13.456 | 5.1% |
| EBITDA | 25.155 | 14.023 | 7.190 | 3.531 | 10.369 | 193.6% |
| Net Income | 12.413 | 3.205 | -4.908 | -6.701 | -1.908 | -71.5% |
Balance Sheet
|
|---|
| Cash | 8.165 | 7.562 | 3.209 | 5.197 | 5.849 | 12.5% |
| Short Term Debt | 3.091 | 6.391 | 5.445 | 6.464 | 2.481 | -61.6% |
| Long Term Debt | 0.000 | 5.838 | 1.070 | 0.900 | 3.669 | 307.6% |
Cash flow
|
|---|
| Capex | 12.984 | 22.822 | 1.543 | 1.814 | 2.750 | 51.6% |
Ratios
|
|---|
| Revenue growth | 55.7% | -6.5% | -43.3% | -4.3% | 34.6% | |
| EBITDA growth | 75.9% | -44.3% | -48.7% | -50.9% | 193.6% | |
| Gross Margin | 54.3% | 39.4% | 31.9% | 19.2% | 32.2% | 13.1% |
| EBITDA Margin | 35.9% | 21.4% | 19.3% | 9.9% | 21.6% | 11.7% |
| Net Income Margin | 17.7% | 4.9% | -13.2% | -18.8% | -4.0% | 14.8% |
| SG&A, % of revenue | 27.9% | 30.2% | 38.4% | 36.0% | 28.1% | -7.9% |
| CAPEX, % of revenue | 18.5% | 34.8% | 4.1% | 5.1% | 5.7% | 0.6% |
| ROIC | 33.9% | 8.6% | -3.5% | -9.3% | 3.6% | 12.8% |
| ROE | 25.4% | 5.5% | -8.5% | -12.8% | -4.0% | 8.8% |
| Net Debt/EBITDA | -0.2x | 0.3x | 0.5x | 0.6x | 0.0x | -0.6x |
Revenue and profitability
The company's Revenue jumped on 34.6% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 11.7 pp from 9.9% to 21.6% in 2015.
Gross Margin surged on 13.1 pp from 19.2% to 32.2% in 2015. SG&A as a % of Revenue decreased on 7.9 pp from 36.0% to 28.1% in 2015.
Net Income marign surged on 14.8 pp from -18.8% to -4.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 5.7%. Geodrill Ltd showed big decline in CAPEX/Revenue of 29.1 pp from 34.8% in 2012 to 5.7% in 2015. For the last three years the average CAPEX/Revenue was 5.0%.
Return on investment
The company operates at low but positive ROIC (3.57%) and negative ROE (-3.95%). ROIC surged on 12.8 pp from -9.3% to 3.6% in 2015. ROE increased on 8.8 pp from -12.8% to -4.0% in 2015.
Leverage (Debt)
Debt level is 0.0x Net Debt / EBITDA and 0.6x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 0.6x to 0.029x in 2015. Debt dropped on 16.5% in 2015 while cash jumped on 12.5% in 2015.
Appendix 1: Peers in Basic Materials
Below we provide Geodrill Ltd benchmarking against other companies in Basic Materials 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 |
|---|
| 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 ($NSU) | | 3.3% | -72.5% | 256.5% | -35.7% |
| |
|---|
| Median (130 companies) | 39.5% | 8.5% | -5.0% | -0.8% | -5.6% |
|---|
| Geodrill Ltd ($GEO) | | -6.5% | -43.3% | -4.3% | 34.6% |
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% | |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | 80.3% |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | 60.9% |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 30.1% | 31.5% | 20.7% | 16.8% | 15.4% |
|---|
| Geodrill Ltd ($GEO) | 54.3% | 39.4% | 31.9% | 19.2% | 32.2% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | 38.6% |
| |
|---|
| Median (137 companies) | 22.0% | 18.4% | 11.3% | 9.7% | 6.8% |
|---|
| Geodrill Ltd ($GEO) | 35.9% | 21.4% | 19.3% | 9.9% | 21.6% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 24.1% | 26.3% | 25.5% | 16.3% | 13.7% |
|---|
| Geodrill Ltd ($GEO) | 18.5% | 34.8% | 4.1% | 5.1% | 5.7% |
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 ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 5.4% | 4.9% | 0.1% | 0.6% | -3.6% |
|---|
| Geodrill Ltd ($GEO) | 33.9% | 8.6% | -3.5% | -9.3% | 3.6% |
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 ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.0x | 0.3x | 0.9x | 0.9x | 1.4x |
|---|
| Geodrill Ltd ($GEO) | -0.2x | 0.3x | 0.5x | 0.6x | 0.0x |
