Etrion Corp reports 80.3% CAPEX decline while 1.7% Revenue growth
15.03.2016 • About Etrion Corp (
$ETX) • By InTwits
Etrion Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Etrion Corp doesn't have a profitable business model yet: 2015 ROIC is 0.7%
- Etrion Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 94.9%. At the same time it's in pair with industry average of 83.1%.
- CAPEX is quite volatile: 29.3 in 2015, 149 in 2014, 7.7 in 2013, 0.68 in 2012, 52.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 0.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Etrion Corp ($ETX) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 51.910 | 55.662 | 53.911 | 49.628 | 50.448 | 1.7% |
| Gross Profit | 29.762 | 29.736 | 25.431 | 25.862 | 16.951 | -34.5% |
| SG&A | 13.767 | 8.452 | 8.631 | 10.588 | 10.824 | 2.2% |
| EBITDA | 29.389 | 43.971 | 41.259 | 33.560 | 35.237 | 5.0% |
| Net Income | -26.289 | -8.458 | -10.296 | -16.386 | -15.317 | -6.5% |
Balance Sheet
|
|---|
| Cash | 39.656 | 37.750 | 94.914 | 95.349 | 52.499 | -44.9% |
| Short Term Debt | 16.030 | 30.024 | 21.152 | 70.282 | 47.688 | -32.1% |
| Long Term Debt | 390.825 | 369.747 | 417.432 | 454.969 | 485.372 | 6.7% |
Cash flow
|
|---|
| Capex | 52.665 | 0.676 | 7.706 | 148.514 | 29.317 | -80.3% |
Ratios
|
|---|
| Revenue growth | 348.9% | 7.2% | -3.1% | -7.9% | 1.7% | |
| EBITDA growth | -490.4% | 49.6% | -6.2% | -18.7% | 5.0% | |
| Gross Margin | 57.3% | 53.4% | 47.2% | 52.1% | 33.6% | -18.5% |
| EBITDA Margin | 56.6% | 79.0% | 76.5% | 67.6% | 69.8% | 2.2% |
| Net Income Margin | -50.6% | -15.2% | -19.1% | -33.0% | -30.4% | 2.7% |
| SG&A, % of revenue | 26.5% | 15.2% | 16.0% | 21.3% | 21.5% | 0.1% |
| CAPEX, % of revenue | 101.5% | 1.2% | 14.3% | 299.3% | 58.1% | -241.1% |
| ROIC | 2.3% | 5.8% | 4.9% | 3.3% | 0.7% | -2.5% |
| ROE | -140.8% | | | | -82.6% | -82.6% |
| Net Debt/EBITDA | 12.5x | 8.2x | 8.3x | 12.8x | 13.6x | 0.8x |
Revenue and profitability
The company's Revenue increased slightly on 1.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 59.8% to 69.2% in 2015.
Gross Margin dropped on 18.5 pp from 52.1% to 33.6% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 2.7 pp from -33.0% to -30.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Etrion Corp had CAPEX/Revenue of 58.1%. Etrion Corp's CAPEX/Revenue jumped on 56.9 pp from 1.2% in 2012 to 58.1% in 2015. For the last three years the average CAPEX/Revenue was 124%.The company maintained rich investment policy and has spent a big chunk of EBITDA (83.2%) to CAPEX.
Return on investment
The company operates at low but positive ROIC (0.74%) and negative ROE (-82.63%). ROIC decreased on 2.5 pp from 3.3% to 0.74% in 2015.
Leverage (Debt)
Debt level is 13.6x Net Debt / EBITDA and 15.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.8x from 12.8x to 13.6x in 2015. Debt increased slightly on 1.5% in 2015 while cash dropped on 44.9% in 2015.
Management team
Etrion Corp's CEO is Marco A Northland. Marco A Northland is a founder and has 9 years tenure at the company.
Appendix 1: Peers in Energy
Below you can find Etrion 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 ($SPE) | | 16.6% | 29.9% | 923.7% | -3.7% |
| |
|---|
| Median (161 companies) | 43.4% | 9.6% | 17.3% | 18.7% | -27.0% |
|---|
| Etrion Corp ($ETX) | | 7.2% | -3.1% | -7.9% | 1.7% |
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 ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | |
| |
|---|
| Median (140 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 33.6% |
|---|
| Etrion Corp ($ETX) | 57.3% | 53.4% | 47.2% | 52.1% | 33.6% |
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 ($AAV) | -4.0% | 5.2% | 66.1% | 87.8% | 81.8% |
| |
|---|
| Median (160 companies) | 25.3% | 24.8% | 30.7% | 29.3% | 10.8% |
|---|
| Etrion Corp ($ETX) | 56.6% | 79.0% | 76.5% | 67.6% | 69.8% |
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 ($BKX) | 139.2% | 195.8% | 789.1% | 316.6% | 52.8% |
| |
|---|
| Median (163 companies) | 40.9% | 50.5% | 39.2% | 48.6% | 29.3% |
|---|
| Etrion Corp ($ETX) | 101.5% | 1.2% | 14.3% | 299.3% | 58.1% |
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% | 24.2% |
| Rooster Energy Ltd ($COQ) | | | | 22.9% | |
| |
|---|
| Median (166 companies) | 4.5% | 3.1% | 4.6% | 5.3% | -7.0% |
|---|
| Etrion Corp ($ETX) | 2.3% | 5.8% | 4.9% | 3.3% | 0.7% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (137 companies) | 1.2x | 1.5x | 1.5x | 1.4x | 2.6x |
|---|
| Etrion Corp ($ETX) | 12.5x | 8.2x | 8.3x | 12.8x | 13.6x |
