Tellza Communications Inc revenue jumped on 26.0% in 2015 and EBITDA Margin showed almost no change
28.03.2016 • About Tellza Communications Inc (
$TEL) • By InTwits
Tellza Communications Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with low profitability: ROIC is at 7.8%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tellza Communications Inc ($TEL) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 120.8 | 102.9 | 155.5 | 242.8 | 305.9 | 26.0% |
| Gross Profit | 8.2 | | 8.6 | 9.2 | 9.2 | 0.2% |
| EBITDA | 2.4 | | 4.0 | 3.0 | 2.8 | -4.4% |
| Net Income | 3.4 | 2.4 | 2.4 | 1.0 | 0.3 | -70.7% |
Balance Sheet
|
|---|
| Cash | 0.0 | | 3.0 | 6.5 | 1.4 | -78.0% |
| Short Term Debt | 0.9 | | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.2 | | 0.9 | 0.8 | 0.8 | -0.5% |
Ratios
|
|---|
| Revenue growth | -15.5% | -14.8% | 51.1% | 56.1% | 26.0% | |
| EBITDA growth | 437.3% | | | -25.0% | -4.4% | |
| Gross Margin | 6.8% | | 5.5% | 3.8% | 3.0% | -0.8% |
| EBITDA Margin | 2.0% | 0.0% | 2.5% | 1.2% | 0.9% | -0.3% |
| Net Income Margin | 2.8% | 2.3% | 1.5% | 0.4% | 0.1% | -0.3% |
| CAPEX, % of revenue | 0.1% | | 0.6% | 0.3% | 0.3% | -0.1% |
| ROIC | 7.3% | | | 7.6% | 7.8% | 0.3% |
| ROE | 37.9% | | | 5.5% | 1.6% | -3.9% |
| Net Debt/EBITDA | 0.4x | | -0.8x | -2.2x | -0.5x | 1.7x |
Revenue and profitability
The company's Revenue jumped on 26.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 34.3 pp from -78.0% to -43.7% in 2015.
Gross Margin decreased slightly on 0.78 pp from 3.8% to 3.0% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Tellza Communications Inc's CAPEX/Revenue was 0.26% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.39%.
Return on investment
The company operates at low ROIC (7.84%) and ROE (1.61%). ROIC showed almost no change in 2015. ROE decreased on 3.9 pp from 5.5% to 1.6% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 78.0% in 2015.
Appendix 1: Peers in Diversified
Below you can find Tellza Communications Inc benchmarking vs. other companies in Diversified 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TWC Enterprises Ltd ($TWC) | | -0.5% | -0.7% | -0.3% | 6.7% |
| Sherritt International Corp ($S) | | -76.0% | -5.6% | 1.6% | -26.3% |
| WesternOne Inc ($WEQ) | | 99.0% | 34.3% | 27.9% | -37.7% |
| |
|---|
| Median (3 companies) | | -0.5% | -0.7% | 1.6% | -26.3% |
|---|
| Tellza Communications Inc ($TEL) | | -14.8% | 51.1% | 56.1% | 26.0% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TWC Enterprises Ltd ($TWC) | 79.0% | 79.5% | 79.3% | 78.0% | 89.2% |
| WesternOne Inc ($WEQ) | 38.7% | 29.2% | 25.5% | 20.9% | 23.3% |
| Sherritt International Corp ($S) | 25.1% | 45.3% | 30.5% | 30.2% | 5.3% |
| |
|---|
| Median (3 companies) | 38.7% | 45.3% | 30.5% | 30.2% | 23.3% |
|---|
| Tellza Communications Inc ($TEL) | 6.8% | | 5.5% | 3.8% | 3.0% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TWC Enterprises Ltd ($TWC) | 27.8% | 29.6% | 29.3% | 26.5% | 27.9% |
| Sherritt International Corp ($S) | 32.3% | 50.7% | 33.0% | 36.9% | 27.0% |
| WesternOne Inc ($WEQ) | 19.8% | 19.5% | 17.0% | 11.7% | 11.6% |
| |
|---|
| Median (3 companies) | 27.8% | 29.6% | 29.3% | 26.5% | 27.0% |
|---|
| Tellza Communications Inc ($TEL) | 2.0% | | 2.5% | 1.2% | 0.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sherritt International Corp ($S) | 6.4% | 12.3% | 15.1% | 17.7% | 23.5% |
| TWC Enterprises Ltd ($TWC) | 7.0% | 11.0% | 7.3% | 5.6% | 5.3% |
| WesternOne Inc ($WEQ) | 17.4% | 16.4% | 10.8% | 10.4% | 4.4% |
| |
|---|
| Median (3 companies) | 7.0% | 12.3% | 10.8% | 10.4% | 5.3% |
|---|
| Tellza Communications Inc ($TEL) | 0.1% | | 0.6% | 0.3% | 0.3% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| TWC Enterprises Ltd ($TWC) | 6.4% | 7.0% | 6.7% | 5.2% | 5.9% |
| WesternOne Inc ($WEQ) | 5.7% | 12.1% | 12.1% | 7.8% | 1.3% |
| Sherritt International Corp ($S) | 7.5% | 2.6% | 1.0% | 1.2% | -0.6% |
| |
|---|
| Median (3 companies) | 6.4% | 7.0% | 6.7% | 5.2% | 1.3% |
|---|
| Tellza Communications Inc ($TEL) | 7.3% | | | 7.6% | 7.8% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sherritt International Corp ($S) | 2.5x | 7.9x | 14.7x | 10.1x | 22.4x |
| TWC Enterprises Ltd ($TWC) | 5.7x | 5.5x | 5.5x | 6.3x | 5.5x |
| WesternOne Inc ($WEQ) | 7.5x | 3.8x | 3.9x | 4.1x | 3.2x |
| |
|---|
| Median (3 companies) | 5.7x | 5.5x | 5.5x | 6.3x | 5.5x |
|---|
| Tellza Communications Inc ($TEL) | 0.4x | | -0.8x | -2.2x | -0.5x |
