EcoSynthetix Inc reports 83.4% CAPEX growth while 22.6% Revenue decline
09.03.2016 • About EcoSynthetix Inc (
$ECO) • By InTwits
EcoSynthetix Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EcoSynthetix Inc doesn't have a profitable business model yet: 2015 ROIC is -18.7%
- The company operates at negative EBITDA Margin: -91.0%
- EcoSynthetix Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -58.1% for the sames years0
- EcoSynthetix Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.7%. At the same time it's a lot of higher than industry average of 27.1%.
- CAPEX is quite volatile: 0.78 in 2015, 0.43 in 2014, 1.9 in 2013, 5.7 in 2012, 10.0 in 2011
- The company has unprofitable business model: ROIC is at -18.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
EcoSynthetix Inc ($ECO) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 20.770 | 19.552 | 22.230 | 18.842 | 14.583 | -22.6% |
| Gross Profit | 4.973 | 3.858 | 3.609 | 3.171 | 2.082 | -34.3% |
| SG&A | | | 12.917 | 12.447 | 8.489 | -31.8% |
| EBITDA | -5.478 | -10.584 | -13.391 | -13.078 | -13.270 | 1.5% |
| Net Income | -252.708 | -11.431 | -14.765 | -14.515 | -14.421 | -0.6% |
Balance Sheet
|
|---|
| Cash | 105.714 | 93.260 | 80.507 | 67.246 | 60.718 | -9.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 10.012 | 5.748 | 1.889 | 0.426 | 0.781 | 83.4% |
Ratios
|
|---|
| Revenue growth | 30.8% | -5.9% | 13.7% | -15.2% | -22.6% | |
| EBITDA growth | 244.6% | 93.2% | 26.5% | -2.3% | 1.5% | |
| Gross Margin | 23.9% | 19.7% | 16.2% | 16.8% | 14.3% | -2.5% |
| EBITDA Margin | -26.4% | -54.1% | -60.2% | -69.4% | -91.0% | -21.6% |
| Net Income Margin | -1,216.7% | -58.5% | -66.4% | -77.0% | -98.9% | -21.9% |
| SG&A, % of revenue | | | 58.1% | 66.1% | 58.2% | -7.8% |
| CAPEX, % of revenue | 48.2% | 29.4% | 8.5% | 2.3% | 5.4% | 3.1% |
| ROIC | -47.7% | -9.9% | -14.2% | -16.0% | -18.7% | -2.7% |
| ROE | | -9.6% | -13.8% | -15.6% | -18.3% | -2.7% |
Revenue and profitability
EcoSynthetix Inc's Revenue dropped on 22.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.2 pp from -13.6% to -5.3% in FY2015.
Gross Margin decreased on 2.5 pp from 16.8% to 14.3% in 2015. SG&A as a % of Revenue decreased on 7.8 pp from 66.1% to 58.2% in 2015.
Net Income marign dropped on 21.9 pp from -77.0% to -98.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 EcoSynthetix Inc had CAPEX/Revenue of 5.4%. The company's CAPEX/Revenue dropped on 24.0 pp from 29.4% in 2012 to 5.4% in 2015. Average CAPEX/Revenue for the last three years was 5.4%.
Return on investment
The company operates at negative ROIC (-18.66%) and ROE (-18.29%). ROIC decreased on 2.7 pp from -16.0% to -18.7% in 2015. ROE decreased on 2.7 pp from -15.6% to -18.3% in 2015.
Leverage (Debt)
The company has no debt. Cash decreased on 9.7% in 2015.
Management team
The company's CEO is Jeffrey Macdonald "Jeff". Jeffrey Macdonald "Jeff" is a founder and has 3 years tenure at the company. Robert Haire is a The company's CFO. Robert Haire has spent 10 years at the company.
Appendix 1: Peers in Basic Materials
Below you can find EcoSynthetix 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% | 42.7% |
| Nevsun Resources Ltd ($NSU) | | 3.3% | -72.5% | 256.5% | -35.7% |
| |
|---|
| Median (130 companies) | 57.8% | 8.5% | -5.1% | -0.8% | -4.4% |
|---|
| EcoSynthetix Inc ($ECO) | | -5.9% | 13.7% | -15.2% | -22.6% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 31.2% | 32.0% | 21.8% | 17.6% | 15.5% |
|---|
| EcoSynthetix Inc ($ECO) | 23.9% | 19.7% | 16.2% | 16.8% | 14.3% |
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 ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | 38.6% |
| |
|---|
| Median (137 companies) | 23.3% | 18.6% | 11.7% | 9.9% | 6.7% |
|---|
| EcoSynthetix Inc ($ECO) | -26.4% | -54.1% | -60.2% | -69.4% | -91.0% |
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 ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 23.9% | 26.3% | 25.5% | 16.3% | 13.7% |
|---|
| EcoSynthetix Inc ($ECO) | 48.2% | 29.4% | 8.5% | 2.3% | 5.4% |
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 ($NSU) | 89.8% | 52.2% | 8.8% | 35.0% | 10.4% |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 7.0% | 4.9% | 0.1% | 0.6% | -3.8% |
|---|
| EcoSynthetix Inc ($ECO) | -47.7% | -9.9% | -14.2% | -16.0% | -18.7% |
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 | 1.3x |
|---|
