Ikkuma Resources Corp reports 4,874% EBITDA decline while 100% Revenue growth
14.04.2016 • About Ikkuma Resources Corp (
$IKM) • By InTwits
Ikkuma Resources Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ikkuma Resources Corp doesn't have a profitable business model yet: 2015 ROIC is -22.0%
- The company operates at negative EBITDA Margin: -31.3%
- Ikkuma Resources Corp motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -21.6% for the sames years0
- Ikkuma Resources Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 88.5%. At the same time it's a lot of higher than industry average of 64.7%.
- CAPEX is quite volatile: 35.5 in 2015, 22.7 in 2014, 0.80 in 2013, 1.4 in 2012, 1.7 in 2011
- The company has unprofitable business model: ROIC is at -22.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ikkuma Resources Corp ($IKM) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1.419 | 1.660 | 1.586 | 21.111 | 42.290 | 100.3% |
| SG&A | | | | | 4.328 | |
| EBITDA | -0.867 | -0.613 | -0.246 | 0.277 | -13.225 | -4,874.4% |
| Net Income | -11.128 | -2.287 | 0.032 | -8.936 | -28.770 | 222.0% |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.000 | 0.000 | 0.798 | 0.000 | -100.0% |
| Short Term Debt | 1.265 | 2.884 | 0.743 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 27.859 | |
Cash flow
|
|---|
| Capex | 1.680 | 1.361 | 0.804 | 22.675 | 35.541 | 56.7% |
Ratios
|
|---|
| Revenue growth | 22.5% | 17.0% | -4.5% | 1,231.1% | 100.3% | |
| EBITDA growth | -32.2% | -29.3% | -59.9% | -212.6% | -4,874.4% | |
| EBITDA Margin | -61.1% | -36.9% | -15.5% | 1.3% | -31.3% | -32.6% |
| Net Income Margin | -784.3% | -137.7% | 2.0% | -42.3% | -68.0% | -25.7% |
| SG&A, % of revenue | | | | | 10.2% | 10.2% |
| CAPEX, % of revenue | 118.4% | 82.0% | 50.7% | 107.4% | 84.0% | -23.4% |
| ROIC | -10.9% | -13.2% | -8.3% | -9.4% | -22.0% | -12.7% |
| ROE | -88.6% | -35.5% | 0.6% | -11.5% | -20.1% | -8.5% |
| Net Debt/EBITDA | | | | -2.9x | | 2.9x |
Revenue and profitability
Ikkuma Resources Corp's Revenue jumped on 100% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 32.6 pp from 1.3% to -31.3% in 2015.
Net Income marign dropped on 25.7 pp from -42.3% to -68.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 84.0%. The company's CAPEX/Revenue increased on 2.1 pp from 82.0% in 2012 to 84.0% in 2015. For the last three years the average CAPEX/Revenue was 80.7%.
Return on investment
The company operates at negative ROIC (-22.04%) and ROE (-20.06%). ROIC dropped on 12.7 pp from -9.4% to -22.0% in 2015. ROE decreased on 8.5 pp from -11.5% to -20.1% in 2015.
Leverage (Debt)
Debt level is -3.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 2.9x from -2.9x to in 2015. Debt surged while cash dropped on 100% in 2015.
Appendix 1: Peers in Energy
Below we provide Ikkuma Resources Corp benchmarking against other companies in Energy 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 |
|---|
| ONEnergy Inc ($OEG) | | | | 6,002.6% | 231.5% |
| Toro Oil & Gas Ltd ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| 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 ($OER) | | | -5.9% | 200.1% | 34.7% |
| |
|---|
| Median (144 companies) | 59.0% | 9.4% | 17.4% | 18.7% | -28.6% |
|---|
| Ikkuma Resources Corp ($IKM) | | 17.0% | -4.5% | 1,231.1% | 100.3% |
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% |
| Orca Exploration Group Inc ($ORC.B) | 69.1% | 92.3% | 69.0% | 66.3% | 93.1% |
| Serinus Energy Inc ($SEN) | 80.4% | 80.5% | 76.5% | 86.8% | 88.5% |
| Advantage Oil & Gas Ltd ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (131 companies) | 34.0% | 29.3% | 31.5% | 29.6% | 33.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($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 (146 companies) | 25.7% | 24.8% | 31.5% | 29.7% | 6.0% |
|---|
| Ikkuma Resources Corp ($IKM) | -61.1% | -36.9% | -15.5% | 1.3% | -31.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Primeline Energy Holdings Inc ($PEH) | | | | | 1,091.8% |
| Oryx Petroleum Corp Ltd ($OXC) | | | | 1,997.8% | 712.8% |
| WesternZagros Resources Ltd ($WZR) | | | | | 385.6% |
| Athabasca Oil Corp ($ATH) | 176.2% | 2,426.4% | 596.6% | 504.7% | 315.2% |
| Toro Oil & Gas Ltd ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (147 companies) | 42.6% | 48.7% | 39.2% | 48.6% | 31.0% |
|---|
| Ikkuma Resources Corp ($IKM) | 118.4% | 82.0% | 50.7% | 107.4% | 84.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($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% |
| Orca Exploration Group Inc ($ORC.B) | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% |
| Perpetual Energy Inc ($PMT) | -10.6% | -10.1% | 9.1% | 10.4% | 16.1% |
| |
|---|
| Median (147 companies) | 4.5% | 3.1% | 4.7% | 5.3% | -8.7% |
|---|
| Ikkuma Resources Corp ($IKM) | -10.9% | -13.2% | -8.3% | -9.4% | -22.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 | 2.5x |
|---|
| Ikkuma Resources Corp ($IKM) | | | | -2.9x | |
