Maxim Power Corp EBITDA dropped on 377% in 2015 and EBITDA Margin dropped on 223 pp from 10.5% to -213%
28.03.2016 • About Maxim Power Corp (
$MXG) • By InTwits
Maxim Power Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Maxim Power Corp is a company in decline: 2015 revenue growth was -86.3%, 5 years revenue CAGR was -33.6%
- EBITDA Margin is declining: -212.7% in 2015 vs. 10.5% in 2014 vs. 25.8% in 2011
- Maxim Power Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.0%. At the same time it's a lot of higher than industry average of 59.1%.
- CAPEX is quite volatile: 0 in 2015, 29.5 in 2014, 11.8 in 2013, 22.3 in 2012, 13.5 in 2011
- The company has unprofitable business model: ROIC is at -16.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Maxim Power Corp ($MXG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 161.3 | 156.5 | 173.7 | 142.9 | 19.6 | -86.3% |
| Gross Profit | 22.6 | 19.8 | 24.2 | -4.0 | -12.7 | 216.0% |
| SG&A | | | | | 4.4 | |
| EBITDA | 41.6 | 33.6 | 35.7 | 15.0 | -41.6 | -377.5% |
| Net Income | 15.3 | 3.6 | 9.6 | -9.1 | -77.4 | 749.5% |
Balance Sheet
|
|---|
| Cash | 13.4 | 11.3 | 21.4 | 17.1 | 5.9 | -65.7% |
| Short Term Debt | 12.2 | 6.7 | 5.8 | 6.1 | 7.6 | 24.9% |
| Long Term Debt | 61.6 | 58.7 | 53.3 | 50.3 | 61.1 | 21.6% |
Cash flow
|
|---|
| Capex | 13.5 | 22.3 | 11.8 | 29.5 | 0.0 | -100.0% |
Ratios
|
|---|
| Revenue growth | 6.6% | -2.9% | 11.0% | -17.7% | -86.3% | |
| EBITDA growth | 32.9% | -19.1% | 6.3% | -58.0% | -377.5% | |
| Gross Margin | 14.0% | 12.7% | 13.9% | -2.8% | -64.8% | -62.0% |
| EBITDA Margin | 25.8% | 21.5% | 20.6% | 10.5% | -212.7% | -223.2% |
| Net Income Margin | 9.5% | 2.3% | 5.5% | -6.4% | -395.9% | -389.5% |
| SG&A, % of revenue | | | | | 22.5% | 22.5% |
| CAPEX, % of revenue | 8.4% | 14.2% | 6.8% | 20.6% | 0.0% | -20.6% |
| ROIC | 6.7% | 4.9% | 5.3% | -2.4% | -16.1% | -13.7% |
| ROE | 6.5% | 1.5% | 3.7% | -3.4% | -32.1% | -28.7% |
| Net Debt/EBITDA | 1.5x | 1.6x | 1.1x | 2.6x | | -2.6x |
Revenue and profitability
The company's Revenue dropped on 86.3% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 223 pp from 10.5% to -213% in 2015.
Gross Margin dropped on 62.0 pp from -2.8% to -64.8% in 2015.
Net Income marign dropped on 390 pp from -6.4% to -396% in 2015.
Return on investment
The company operates at negative ROIC (-16.06%) and ROE (-32.05%). ROIC dropped on 13.7 pp from -2.4% to -16.1% in 2015. ROE dropped on 28.7 pp from -3.4% to -32.1% in 2015.
Leverage (Debt)
Debt level is -6.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 2.6x from 2.6x to in 2015. Debt jumped on 22.0% in 2015 while cash dropped on 65.7% in 2015.
Appendix 1: Peers in Utilities
Below you can find Maxim Power Corp benchmarking vs. other companies in Utilities 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 |
|---|
| Boralex Inc ($BLX) | | -5.3% | -6.7% | 13.5% | 37.1% |
| Fortis Inc/Canada ($FTS) | | -2.2% | 10.8% | 33.5% | 25.1% |
| Just Energy Group Inc ($JE) | | -10.1% | 13.4% | 17.4% | 10.2% |
| Algonquin Power & Utilities Corp ($AQN) | | 28.8% | 93.6% | 39.4% | 9.2% |
| Capital Power Corp ($CPX) | | -26.8% | 7.5% | -11.8% | 1.1% |
| |
|---|
| Median (14 companies) | | 0.9% | 11.0% | 13.3% | -4.6% |
|---|
| Maxim Power Corp ($MXG) | | -2.9% | 11.0% | -17.7% | -86.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atco Ltd/Canada ($ACO.X) | 82.3% | 85.6% | 85.1% | 82.3% | 85.0% |
| Canadian Utilities Ltd ($CU) | 76.5% | 81.0% | 80.8% | 77.7% | 81.0% |
| GWR Global Water Resources Corp ($GWR) | | | | | 77.8% |
| Boralex Inc ($BLX) | 31.6% | 32.5% | 37.1% | 36.1% | 70.7% |
| Northland Power Inc ($NPI) | 47.7% | 52.5% | 63.7% | 61.8% | 69.0% |
| |
|---|
| Median (14 companies) | 42.7% | 34.6% | 37.1% | 55.0% | 59.0% |
|---|
| Maxim Power Corp ($MXG) | 14.0% | 12.7% | 13.9% | -2.8% | -64.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boralex Inc ($BLX) | 51.8% | 52.8% | 58.4% | 55.9% | 60.4% |
| Northland Power Inc ($NPI) | 48.1% | 54.2% | 52.4% | 51.2% | 57.5% |
| US Geothermal Inc ($GTH) | -84.0% | -129.5% | 52.9% | 49.6% | 52.6% |
| GWR Global Water Resources Corp ($GWR) | | | | | 46.1% |
| Canadian Utilities Ltd ($CU) | 42.9% | 45.9% | 45.7% | 47.4% | 45.8% |
| |
|---|
| Median (15 companies) | 31.5% | 29.7% | 34.0% | 34.0% | 33.6% |
|---|
| Maxim Power Corp ($MXG) | 25.8% | 21.5% | 20.6% | 10.5% | -212.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northland Power Inc ($NPI) | 101.7% | 84.0% | 60.2% | 238.7% | 265.9% |
| Boralex Inc ($BLX) | 17.7% | 5.6% | 62.5% | 85.9% | 123.1% |
| Canadian Utilities Ltd ($CU) | 43.7% | 70.7% | 66.4% | 58.5% | 47.2% |
| Caribbean Utilities Co Ltd ($CUP.U) | 18.2% | 13.8% | 13.0% | 17.0% | 41.3% |
| Atco Ltd/Canada ($ACO.X) | 36.2% | 58.8% | 54.2% | 48.3% | 39.6% |
| |
|---|
| Median (15 companies) | 25.4% | 31.6% | 26.8% | 20.1% | 21.2% |
|---|
| Maxim Power Corp ($MXG) | 8.4% | 14.2% | 6.8% | 20.6% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Just Energy Group Inc ($JE) | 146.5% | 18.6% | 6.0% | 10.6% | 17.9% |
| Keyera Corp ($KEY) | 13.1% | 13.8% | 12.7% | 14.3% | 12.6% |
| GWR Global Water Resources Corp ($GWR) | | -0.9% | -1.0% | -1.5% | 6.9% |
| Fortis Inc/Canada ($FTS) | 6.7% | 6.4% | 6.1% | 5.4% | 6.0% |
| Canadian Utilities Ltd ($CU) | 10.9% | 10.0% | 9.4% | 9.2% | 5.9% |
| |
|---|
| Median (15 companies) | 6.6% | 5.8% | 6.0% | 5.4% | 5.6% |
|---|
| Maxim Power Corp ($MXG) | 6.7% | 4.9% | 5.3% | -2.4% | -16.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atlantic Power Corp ($ATP) | 44.8x | 12.6x | 13.0x | 22.4x | 251.1x |
| Northland Power Inc ($NPI) | 5.9x | 6.4x | 5.8x | 6.9x | 11.1x |
| Boralex Inc ($BLX) | 5.9x | 6.6x | 7.6x | 12.1x | 9.0x |
| GWR Global Water Resources Corp ($GWR) | | | | | 6.3x |
| TransAlta Corp ($TA) | 3.4x | 6.9x | 5.5x | 3.9x | 5.9x |
| |
|---|
| Median (15 companies) | 4.5x | 5.0x | 5.6x | 4.8x | 5.0x |
|---|
