SEMAFO Inc Net Income jumped on 457% in 2015 and Revenue increased on 3.7%
09.03.2016 • About SEMAFO Inc (
$SMF) • By InTwits
SEMAFO Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SEMAFO Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 37.7%. At the same time it's a lot of higher than industry average of 27.2%.
- CAPEX is quite volatile: 79.4 in 2015, 68.6 in 2014, 109 in 2013, 153 in 2012, 146 in 2011
- The company has business model with average profitability: ROIC is at 10.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SEMAFO Inc ($SMF) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 395.9 | 287.2 | 226.6 | 289.3 | 300.1 | 3.7% |
| SG&A | 22.2 | 22.3 | 19.6 | 17.4 | 13.6 | -22.2% |
| EBITDA | 195.4 | 112.5 | 77.1 | 118.6 | 153.8 | 29.7% |
| Net Income | 111.8 | -14.8 | -85.2 | 4.5 | 24.9 | 456.9% |
Balance Sheet
|
|---|
| Cash | 178.7 | 139.5 | 82.2 | 127.9 | 167.2 | 30.7% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 29.1 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 59.4 | |
Cash flow
|
|---|
| Capex | 145.6 | 152.8 | 109.1 | 68.6 | 79.4 | 15.8% |
Ratios
|
|---|
| Revenue growth | 22.5% | -27.5% | -21.1% | 27.7% | 3.7% | |
| EBITDA growth | 17.2% | -42.4% | -31.5% | 53.9% | 29.7% | |
| EBITDA Margin | 49.3% | 39.2% | 34.0% | 41.0% | 51.2% | 10.3% |
| Net Income Margin | 28.2% | -5.2% | -37.6% | 1.5% | 8.3% | 6.8% |
| SG&A, % of revenue | 5.6% | 7.8% | 8.6% | 6.0% | 4.5% | -1.5% |
| CAPEX, % of revenue | 36.8% | 53.2% | 48.2% | 23.7% | 26.5% | 2.8% |
| ROIC | 25.8% | 10.7% | 3.4% | 8.8% | 10.4% | 1.6% |
| ROE | 20.1% | -2.5% | -15.9% | 0.9% | 4.6% | 3.7% |
| Net Debt/EBITDA | -0.9x | -1.2x | -1.1x | -1.1x | -0.5x | 0.6x |
Revenue and profitability
SEMAFO Inc's Revenue increased on 3.7% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 10.3 pp from 41.0% to 51.2% in 2015.
SG&A as a % of Revenue decreased slightly on 1.5 pp from 6.0% to 4.5% in 2015.
Net Income marign increased on 6.8 pp from 1.5% to 8.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 26.5%. CAPEX/Revenue dropped on 26.7 pp from 53.2% in 2012 to 26.5% in 2015. Average CAPEX/Revenue for the last three years was 32.8%.The company invested a large share of EBITDA (51.7%) to CAPEX.
Return on investment
The company operates at low ROIC (10.36%) and ROE (4.62%). ROIC increased slightly on 1.6 pp from 8.8% to 10.4% in 2015. ROE increased on 3.7 pp from 0.90% to 4.6% in 2015.
Leverage (Debt)
Debt level is -0.5x Net Debt / EBITDA and 0.6x Debt / EBITDA. Net Debt / EBITDA surged on 0.6x from -1.1x to -0.5x in 2015. Debt surged while cash jumped on 30.7% in 2015.
Management team
The company's CEO Benoit Desormeaux is a founder and has spent 6 years at the company. SEMAFO Inc's CFO Martin Milette has spent 12 years at the company.
Appendix 1: Peers in Basic Materials
Below we provide SEMAFO Inc 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 ($NSU) | | 3.3% | -72.5% | 256.5% | -35.7% |
| |
|---|
| Median (130 companies) | 57.8% | 8.5% | -5.0% | -1.1% | -5.1% |
|---|
| SEMAFO Inc ($SMF) | | -27.5% | -21.1% | 27.7% | 3.7% |
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 ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (134 companies) | 30.7% | 31.8% | 21.3% | 17.2% | 15.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($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% | 6.6% |
|---|
| SEMAFO Inc ($SMF) | 49.3% | 39.2% | 34.0% | 41.0% | 51.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($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 ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | 0.5% |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 23.9% | 26.3% | 25.2% | 16.0% | 13.1% |
|---|
| SEMAFO Inc ($SMF) | 36.8% | 53.2% | 48.2% | 23.7% | 26.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($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% | -4.6% |
|---|
| SEMAFO Inc ($SMF) | 25.8% | 10.7% | 3.4% | 8.8% | 10.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($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 | 1.3x |
|---|
| SEMAFO Inc ($SMF) | -0.9x | -1.2x | -1.1x | -1.1x | -0.5x |
