Canadian Energy Services & Technology Corp Net Income dropped on 236% in 2015 and EBITDA Margin decreased on 7.8 pp from 16.2% to 8.4%
10.03.2016 • About Canadian Energy Services & Technology Corp (
$CEU) • By InTwits
Canadian Energy Services & Technology Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Canadian Energy Services & Technology Corp doesn't have a profitable business model yet: 2015 ROIC is 0.9%
- Canadian Energy Services & Technology Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's in pair with industry average of 6.9%.
- CAPEX is quite volatile: 46.0 in 2015, 60.2 in 2014, 41.1 in 2013, 17.8 in 2012, 16.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Canadian Energy Services & Technology Corp ($CEU) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 459.3 | 471.3 | 662.8 | 972.7 | 749.6 | -22.9% |
| Gross Profit | 123.4 | 110.2 | 174.8 | 265.5 | 159.7 | -39.9% |
| SG&A | 58.7 | 62.6 | 103.9 | 148.6 | 151.6 | 2.1% |
| EBITDA | 74.2 | 58.8 | 97.9 | 157.5 | 63.0 | -60.0% |
| Net Income | 41.7 | 27.9 | 37.3 | 67.7 | -92.3 | -236.3% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 3.1 | 3.6 | 5.1 | 7.8 | 7.5 | -4.4% |
| Long Term Debt | 96.8 | 71.6 | 310.0 | 367.8 | 306.1 | -16.8% |
Cash flow
|
|---|
| Capex | 16.1 | 17.8 | 41.1 | 60.2 | 46.0 | -23.6% |
Ratios
|
|---|
| Revenue growth | 84.4% | 2.6% | 40.6% | 46.8% | -22.9% | |
| EBITDA growth | 90.7% | -20.7% | 66.4% | 61.0% | -60.0% | |
| Gross Margin | 26.9% | 23.4% | 26.4% | 27.3% | 21.3% | -6.0% |
| EBITDA Margin | 16.2% | 12.5% | 14.8% | 16.2% | 8.4% | -7.8% |
| Net Income Margin | 9.1% | 5.9% | 5.6% | 7.0% | -12.3% | -19.3% |
| SG&A, % of revenue | 12.8% | 13.3% | 15.7% | 15.3% | 20.2% | 5.0% |
| CAPEX, % of revenue | 3.5% | 3.8% | 6.2% | 6.2% | 6.1% | -0.1% |
| ROIC | 24.2% | 15.6% | 14.3% | 14.3% | 0.9% | -13.4% |
| ROE | 21.8% | 13.3% | 12.9% | 15.0% | -17.2% | -32.3% |
| Net Debt/EBITDA | 1.3x | 1.3x | 3.2x | 2.4x | 5.0x | 2.6x |
Revenue and profitability
Canadian Energy Services & Technology Corp's Revenue dropped on 22.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.8 pp from 11.2% to 13.0% in 2015.
Gross Margin decreased on 6.0 pp from 27.3% to 21.3% in 2015. SG&A as a % of Revenue increased on 5.0 pp from 15.3% to 20.2% in 2015.
Net Income marign dropped on 19.3 pp from 7.0% to -12.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 6.1%. The company showed CAPEX/Revenue growth of 2.4 pp from 3.8% in 2012 to 6.1% in 2015. For the last three years the average CAPEX/Revenue was 6.2%.Canadian Energy Services & Technology Corp invested a big chunk of EBITDA (73.0%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at low but positive ROIC (0.90%) and negative ROE (-17.22%). ROIC dropped on 13.4 pp from 14.3% to 0.90% in 2015. ROE dropped on 32.3 pp from 15.0% to -17.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.0x and Debt / EBITDA is 5.0x. Net Debt / EBITDA surged on 2.6x from 2.4x to 5.0x in 2015. Debt dropped on 16.5% in 2015 while cash didn't change in 2015.
Management team
The company's CEO is Thomas James Simons "Tom". Thomas James Simons "Tom" is a founder and has 12 years tenure at the company.
Appendix 1: Peers in Energy
Below you can find Canadian Energy Services & Technology Corp benchmarking vs. other companies in Energy 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 |
|---|
| Petro Rio SA ($PRJ) | -36.3% | -32.1% | -34.9% | 10,977.1% | |
| ONEnergy Inc ($OEG) | | | | 6,002.6% | |
| Sterling Resources Ltd ($SLG) | | -94.8% | 4,514.9% | 2,244.4% | |
| Ikkuma Resources Corp ($IKM) | 22.5% | 17.0% | -4.5% | 1,231.1% | |
| Spartan Energy Corp ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (160 companies) | 43.4% | 10.4% | 16.2% | 17.6% | -27.3% |
|---|
| Canadian Energy Services & Technology Corp ($CEU) | | 2.6% | 40.6% | 46.8% | -22.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| Freehold Royalties Ltd ($FRU) | 91.7% | 90.4% | 89.0% | 90.2% | 86.3% |
| MEG Energy Corp ($MEG) | 85.5% | 86.8% | 87.4% | 87.6% | 84.1% |
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 34.2% | 29.3% | 31.6% | 30.3% | 33.6% |
|---|
| Canadian Energy Services & Technology Corp ($CEU) | 26.9% | 23.4% | 26.4% | 27.3% | 21.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Seven Generations Energy Ltd ($VII) | | 56.9% | 54.0% | 106.0% | 70.0% |
| Tourmaline Oil Corp ($TOU) | 67.4% | 67.9% | 80.0% | 97.6% | 70.1% |
| Bonavista Energy Corp ($BNP) | 63.8% | 64.6% | 62.6% | 91.6% | 54.5% |
| Bellatrix Exploration Ltd ($BXE) | 42.7% | 58.6% | 83.6% | 89.6% | |
| Advantage Oil & Gas Ltd ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (159 companies) | 25.5% | 25.7% | 31.1% | 29.6% | 11.5% |
|---|
| Canadian Energy Services & Technology Corp ($CEU) | 16.2% | 12.5% | 14.8% | 16.2% | 8.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | |
| Petroshale Inc ($PSH) | 30.6% | | 346.6% | 865.9% | |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | 315.2% |
| BNK Petroleum Inc ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (162 companies) | 43.3% | 50.0% | 39.2% | 48.8% | 29.1% |
|---|
| Canadian Energy Services & Technology Corp ($CEU) | 3.5% | 3.8% | 6.2% | 6.2% | 6.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pason Systems Inc ($PSI) | 33.5% | 30.0% | 29.7% | 41.0% | 6.0% |
| Sea Dragon Energy Inc ($SDX) | -10.1% | 8.1% | 21.8% | 32.9% | |
| Raging River Exploration Inc ($RRX) | | | | 29.1% | 6.2% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (165 companies) | 4.4% | 3.2% | 4.5% | 5.0% | -7.1% |
|---|
| Canadian Energy Services & Technology Corp ($CEU) | 24.2% | 15.6% | 14.3% | 14.3% | 0.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($VSN) | 22.3x | 16.2x | 14.7x | 30.3x | 7.4x |
| Lightstream Resources Ltd ($LTS) | | 2.0x | | 27.8x | |
| Petroshale Inc ($PSH) | 0.1x | | | 21.7x | |
| Connacher Oil and Gas Ltd ($CLC) | 9.7x | 16.7x | 8.8x | 17.1x | |
| Pengrowth Energy Corp ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (136 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 2.6x |
|---|
| Canadian Energy Services & Technology Corp ($CEU) | 1.3x | 1.3x | 3.2x | 2.4x | 5.0x |
