Macro Enterprises Inc revenue dropped on 42.6% in 2015 while EBITDA Margin increased on 8.8 pp from 9.9% to 18.7%
29.03.2016 • About Macro Enterprises Inc (
$MCR) • By InTwits
Macro Enterprises Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 18.7% in 2015, 9.9% in 2014, 22.5% in 2013, 20.6% in 2012, 10.3% in 2011
- Macro Enterprises Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.6%. At the same time it's in pair with industry average of 6.9%.
- CAPEX is quite volatile: 9.1 in 2015, 10.7 in 2014, 17.4 in 2013, 7.3 in 2012, 8.4 in 2011
- The company has highly profitable business model: ROIC is at 12.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Macro Enterprises Inc ($MCR) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 129.2 | 148.3 | 211.8 | 200.1 | 114.8 | -42.6% |
| Gross Profit | 14.9 | | | | | |
| SG&A | | | | | 9.0 | |
| EBITDA | 13.3 | 30.6 | 47.7 | 19.7 | 21.5 | 8.8% |
| Net Income | 6.0 | 19.3 | 31.3 | 7.7 | 9.2 | 18.5% |
Balance Sheet
|
|---|
| Cash | 2.7 | 4.8 | 18.1 | 12.7 | 33.6 | 164.2% |
| Short Term Debt | 3.4 | 6.7 | 8.0 | 8.3 | 4.3 | -48.3% |
| Long Term Debt | 5.3 | 8.0 | 12.3 | 8.3 | 1.8 | -78.5% |
Cash flow
|
|---|
| Capex | 8.4 | 7.3 | 17.4 | 10.7 | 9.1 | -15.1% |
Ratios
|
|---|
| Revenue growth | 122.0% | 14.8% | 42.8% | -5.6% | -42.6% | |
| EBITDA growth | 167.0% | 130.2% | 55.9% | -58.6% | 8.8% | |
| Gross Margin | 11.5% | | | | | 0.0% |
| EBITDA Margin | 10.3% | 20.6% | 22.5% | 9.9% | 18.7% | 8.8% |
| Net Income Margin | 4.7% | 13.0% | 14.8% | 3.9% | 8.0% | 4.1% |
| SG&A, % of revenue | | | | | 7.8% | 7.8% |
| CAPEX, % of revenue | 6.5% | 5.0% | 8.2% | 5.3% | 7.9% | 2.6% |
| ROIC | 33.6% | 52.7% | 47.6% | 10.8% | 12.4% | 1.6% |
| ROE | 32.3% | 62.8% | 53.6% | 9.4% | 10.3% | 0.9% |
| Net Debt/EBITDA | 0.5x | 0.3x | 0.0x | 0.2x | -1.3x | -1.5x |
Revenue and profitability
Macro Enterprises Inc's Revenue dropped on 42.6% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.8 pp from 9.9% to 18.7% in 2015.
Net Income marign increased on 4.1 pp from 3.9% to 8.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Macro Enterprises Inc's CAPEX/Revenue was 7.9% in 2015. CAPEX/Revenue increased on 2.9 pp from 5.0% in 2012 to 7.9% in 2015. Average CAPEX/Revenue for the last three years was 7.2%.
Return on investment
The company operates at good ROIC (12.41%) while ROE is low (10.27%). ROIC increased slightly on 1.6 pp from 10.8% to 12.4% in 2015. ROE increased slightly on 0.87 pp from 9.4% to 10.3% in 2015.
Leverage (Debt)
Debt level is -1.3x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA dropped on 1.5x from 0.2x to -1.3x in 2015. Debt dropped on 63.5% in 2015 while cash jumped on 164% in 2015.
Appendix 1: Peers in Energy
Below you can find Macro Enterprises Inc 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 |
|---|
| ONEnergy Inc ($OEG) | | | | 6,002.6% | 231.5% |
| Seven Generations Energy Ltd ($VII) | | | 115.7% | 340.2% | 39.0% |
| Crown Point Energy Inc ($CWV) | | 177.6% | 110.5% | -34.4% | 38.3% |
| Oando Energy Resources Inc ($OER) | | | -5.9% | 200.1% | 34.7% |
| High Arctic Energy Services Inc ($HWO) | | 14.9% | 4.4% | 12.5% | 22.2% |
| |
|---|
| Median (131 companies) | 59.0% | 9.4% | 17.1% | 18.9% | -27.7% |
|---|
| Macro Enterprises Inc ($MCR) | | 14.8% | 42.8% | -5.6% | -42.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Americas Petrogas Inc ($BOE) | | 77.1% | 43.3% | -34.3% | 121.1% |
| TransAlta Renewables Inc ($RNW) | | | 94.4% | 94.5% | 94.5% |
| Serinus Energy Inc ($SEN) | 80.4% | 80.5% | 76.5% | 86.8% | 88.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| Polaris Infrastructure Inc ($PIF) | 58.4% | 39.9% | 33.6% | 32.0% | 86.7% |
| |
|---|
| Median (119 companies) | 34.3% | 29.3% | 31.6% | 29.6% | 33.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | 9.2% | 59.4% | 64.5% | 70.8% | 201.9% |
| Perpetual Energy Inc ($PMT) | 26.1% | 35.5% | 70.7% | 58.0% | 110.3% |
| Petro Rio SA ($PRJ) | -4,925.5% | -4,809.7% | -6,899.7% | 28.2% | 90.7% |
| Peyto Exploration & Development Corp ($PEY) | 83.6% | 86.1% | 83.2% | 86.3% | 84.6% |
| Innergex Renewable Energy Inc ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (134 companies) | 25.8% | 25.0% | 31.5% | 29.7% | 7.2% |
|---|
| Macro Enterprises Inc ($MCR) | 10.3% | 20.6% | 22.5% | 9.9% | 18.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Primeline Energy Holdings Inc ($PEH) | | | | | 1,091.8% |
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | 712.8% |
| WesternZagros Resources Ltd ($WZR) | | | | | 385.6% |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | 315.2% |
| TORC Oil & Gas Ltd ($TOG) | 6,833.4% | 453.8% | 466.9% | 104.5% | 229.4% |
| |
|---|
| Median (134 companies) | 43.3% | 51.1% | 39.2% | 48.9% | 31.6% |
|---|
| Macro Enterprises Inc ($MCR) | 6.5% | 5.0% | 8.2% | 5.3% | 7.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | -10.9% | 4.4% | 10.8% | 16.1% | 37.7% |
| High Arctic Energy Services Inc ($HWO) | 27.0% | 31.4% | 26.3% | 24.9% | 24.2% |
| Petro Rio SA ($PRJ) | -15.5% | -9.6% | -12.7% | -3.5% | 19.4% |
| Perpetual Energy Inc ($PMT) | -10.6% | -10.1% | 9.1% | 10.4% | 16.1% |
| Inter Pipeline Ltd ($IPL) | 9.5% | 9.5% | 8.0% | 7.5% | 9.6% |
| |
|---|
| Median (134 companies) | 4.4% | 3.0% | 4.5% | 5.1% | -8.4% |
|---|
| Macro Enterprises Inc ($MCR) | 33.6% | 52.7% | 47.6% | 10.8% | 12.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 (138 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 2.8x |
|---|
| Macro Enterprises Inc ($MCR) | 0.5x | 0.3x | 0.0x | 0.2x | -1.3x |
