Americas Silver Corp reports 46.8% revenue growth in 2015 and 20.2 pp EBITDA Margin decline from -0.10% to -20.3%
30.03.2016 • About Americas Silver Corp (
$SPM) • By InTwits
Americas Silver Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Americas Silver Corp doesn't have a profitable business model yet: 2015 ROIC is -23.1%
- The company operates at negative EBITDA Margin: -20.3%
- EBITDA Margin is quite volatile: -20.3% in 2015, -0.1% in 2014, 11.3% in 2013, 30.9% in 2012, 48.1% in 2011
- Americas Silver Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 32.6%. At the same time it's in pair with industry average of 29.5%.
- CAPEX is quite volatile: 35.5 in 2015, 22.7 in 2014, 0.80 in 2013, 1.4 in 2012, 1.7 in 2011
- The company has unprofitable business model: ROIC is at -23.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Americas Silver Corp ($SPM) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 61.766 | 45.837 | 30.215 | 28.512 | 41.854 | 46.8% |
| Gross Profit | 37.248 | 19.060 | 6.666 | -5.130 | 0.686 | -113.4% |
| SG&A | | | | | 4.748 | |
| EBITDA | 29.724 | 14.186 | 3.414 | -0.029 | -8.492 | 29,199.5% |
| Net Income | 12.722 | 7.095 | -8.921 | -71.278 | -15.180 | -78.7% |
Balance Sheet
|
|---|
| Cash | 25.347 | 23.716 | 15.449 | 13.107 | 0.954 | -92.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 1.855 | 0.723 | -61.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 4.814 | 4.441 | -7.8% |
Cash flow
|
|---|
| Capex | 15.721 | 16.790 | 10.643 | 13.129 | 8.162 | -37.8% |
Ratios
|
|---|
| Revenue growth | 85.7% | -25.8% | -34.1% | -5.6% | 46.8% | |
| EBITDA growth | 157.4% | -52.3% | -75.9% | -100.8% | 29,199.5% | |
| Gross Margin | 60.3% | 41.6% | 22.1% | -18.0% | 1.6% | 19.6% |
| EBITDA Margin | 48.1% | 30.9% | 11.3% | -0.1% | -20.3% | -20.2% |
| Net Income Margin | 20.6% | 15.5% | -29.5% | -250.0% | -36.3% | 213.7% |
| SG&A, % of revenue | | | | | 11.3% | 11.3% |
| CAPEX, % of revenue | 25.5% | 36.6% | 35.2% | 46.0% | 19.5% | -26.5% |
| ROIC | 22.5% | 8.0% | -2.4% | -9.7% | -23.1% | -13.4% |
| ROE | 10.2% | 5.0% | -6.4% | -68.6% | -25.8% | 42.8% |
| Net Debt/EBITDA | -0.9x | -1.7x | -4.5x | | | 0.0x |
Revenue and profitability
Americas Silver Corp's Revenue surged on 46.8% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 20.2 pp from -0.10% to -20.3% in 2015.
Gross Margin jumped on 19.6 pp from -18.0% to 1.6% in 2015.
Net Income marign jumped on 214 pp from -250% to -36.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Americas Silver Corp had CAPEX/Revenue of 19.5%. The company's CAPEX/Revenue dropped on 17.1 pp from 36.6% in 2012 to 19.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 33.6%.
Return on investment
The company operates at negative ROIC (-23.15%) and ROE (-25.82%). ROIC dropped on 13.4 pp from -9.7% to -23.1% in 2015. ROE jumped on 42.8 pp from -68.6% to -25.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 22.6% in 2015 while cash dropped on 92.7% in 2015.
Appendix 1: Peers in Basic Materials
Below we provide Americas Silver Corp benchmarking against other companies in Basic Materials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | | 97.4% | -90.6% | -97.6% | 84,715.6% |
| Golden Minerals Co ($AUM) | | 1,320.8% | -59.1% | -97.8% | 3,334.5% |
| Jemi Fibre Corp ($JFI) | | | | -27.3% | 375.3% |
| Osisko Gold Royalties Ltd ($OR) | | | | | 164.4% |
| VMS Ventures Inc ($VMS) | | | | | 139.7% |
| |
|---|
| Median (127 companies) | -20.4% | 8.5% | -5.0% | -0.8% | -1.8% |
|---|
| Americas Silver Corp ($SPM) | | -25.8% | -34.1% | -5.6% | 46.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | 82.3% |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | 80.3% |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | 60.9% |
| Trevali Mining Corp ($TV) | | | | 49.0% | 59.3% |
| |
|---|
| Median (121 companies) | 30.1% | 31.5% | 20.7% | 17.6% | 15.5% |
|---|
| Americas Silver Corp ($SPM) | 60.3% | 41.6% | 22.1% | -18.0% | 1.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Labrador Iron Ore Royalty Corp ($LIF) | | | | | 72.8% |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | 65.8% |
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | 65.0% |
| Franco-Nevada Corp ($FNV) | 38.6% | 62.1% | 44.6% | 72.3% | 60.8% |
| Lucara Diamond Corp ($LUC) | | 7.6% | 57.3% | 57.5% | 60.0% |
| |
|---|
| Median (127 companies) | 22.0% | 18.4% | 11.7% | 9.9% | 6.7% |
|---|
| Americas Silver Corp ($SPM) | 48.1% | 30.9% | 11.3% | -0.1% | -20.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sandstorm Gold Ltd ($SSL) | 113.4% | 152.1% | 118.8% | 49.4% | 412.7% |
| Silver Wheaton Corp ($SLW) | 19.4% | 75.5% | 286.8% | 22.5% | 279.2% |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | 230.0% |
| Avino Silver & Gold Mines Ltd ($ASM) | | 211.7% | 5.6% | 89.8% | 163.3% |
| Amerigo Resources Ltd ($ARG) | 12.9% | 13.0% | 9.3% | 9.8% | 99.6% |
| |
|---|
| Median (127 companies) | 23.9% | 26.3% | 25.2% | 16.0% | 15.7% |
|---|
| Americas Silver Corp ($SPM) | 25.5% | 36.6% | 35.2% | 46.0% | 19.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | 39.6% |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| Supremex Inc ($SXP) | 13.9% | 14.1% | 18.5% | 16.5% | 23.4% |
| Claude Resources Inc ($CRJ) | 7.1% | 4.5% | -5.6% | 3.6% | 19.3% |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | 18.2% |
| |
|---|
| Median (129 companies) | 5.4% | 4.9% | 0.1% | 0.6% | -4.3% |
|---|
| Americas Silver Corp ($SPM) | 22.5% | 8.0% | -2.4% | -9.7% | -23.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | 67.5x |
| Barkerville Gold Mines Ltd ($BGM) | | | | | 38.8x |
| Copper Mountain Mining Corp ($CUM) | 17.2x | 3.9x | 5.0x | 5.4x | 30.6x |
| Resolute Forest Products Inc ($RFP) | 0.6x | 1.3x | 1.1x | 3.8x | 29.6x |
| Fortress Paper Ltd ($FTP) | 92.5x | | | | 18.8x |
| |
|---|
| Median (83 companies) | -0.0x | 0.3x | 0.9x | 0.9x | 1.4x |
|---|
