Inter Rock Minerals Inc EBITDA jumped on 48.9% in 2015 and EBITDA Margin increased slightly on 1.9 pp from 5.5% to 7.3%
15.04.2016 • About Inter Rock Minerals Inc (
$IRO) • By InTwits
Inter Rock Minerals Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Inter Rock Minerals Inc doesn't have a profitable business model yet: 2015 ROIC is -5.5%
- Inter Rock Minerals Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's in pair with industry average of 58.1%.
- CAPEX is quite volatile: 0.25 in 2015, 0.090 in 2014, 0.026 in 2013, 0.025 in 2012, 0.0062 in 2011
- The company has unprofitable business model: ROIC is at -5.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Inter Rock Minerals Inc ($IRO) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10.831 | 11.063 | 10.675 | 10.554 | 11.750 | 11.3% |
| Gross Profit | 10.110 | | 2.206 | 2.238 | 2.027 | -9.4% |
| SG&A | | | 2.259 | 2.530 | 2.171 | -14.2% |
| EBITDA | 0.438 | 0.426 | 0.818 | 0.579 | 0.862 | 48.9% |
| Net Income | -0.634 | -0.964 | -0.309 | -0.406 | -0.263 | -35.2% |
Balance Sheet
|
|---|
| Cash | 0.143 | 0.236 | 0.330 | 0.037 | 0.329 | 789.2% |
| Short Term Debt | 0.598 | 1.899 | 0.661 | 1.927 | 1.567 | -18.7% |
| Long Term Debt | 1.634 | 0.267 | 0.992 | 0.340 | 0.211 | -37.9% |
Cash flow
|
|---|
| Capex | 0.350 | 0.293 | 0.222 | 0.456 | 0.368 | -19.3% |
Ratios
|
|---|
| Revenue growth | -1.3% | 2.1% | -3.5% | -1.1% | 11.3% | |
| EBITDA growth | -61.8% | -2.7% | 92.0% | -29.2% | 48.9% | |
| Gross Margin | 93.3% | | 20.7% | 21.2% | 17.3% | -4.0% |
| EBITDA Margin | 4.0% | 3.9% | 7.7% | 5.5% | 7.3% | 1.9% |
| Net Income Margin | -5.9% | -8.7% | -2.9% | -3.8% | -2.2% | 1.6% |
| SG&A, % of revenue | | | 21.2% | 24.0% | 18.5% | -5.5% |
| CAPEX, % of revenue | 3.2% | 2.6% | 2.1% | 4.3% | 3.1% | -1.2% |
| ROIC | -8.7% | -10.2% | -1.8% | -10.5% | -5.5% | 5.0% |
| ROE | -25.3% | -56.4% | -28.8% | -49.1% | -43.6% | 5.5% |
| Net Debt/EBITDA | 4.8x | 4.5x | 1.6x | 3.9x | 1.7x | -2.2x |
Revenue and profitability
The company's Revenue surged on 11.3% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.9 pp from 5.5% to 7.3% in 2015.
Gross Margin decreased on 4.0 pp from 21.2% to 17.3% in 2015. SG&A as a % of Revenue decreased on 5.5 pp from 24.0% to 18.5% in 2015.
Net Income marign increased slightly on 1.6 pp from -3.8% to -2.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 3.1%. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at negative ROIC (-5.48%) and ROE (-43.58%). ROIC increased on 5.0 pp from -10.5% to -5.5% in 2015. ROE increased on 5.5 pp from -49.1% to -43.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.7x and Debt / EBITDA is 2.1x. Net Debt / EBITDA dropped on 2.2x from 3.9x to 1.7x in 2015. Debt dropped on 21.6% in 2015 while cash surged on 789% in 2015.
Appendix 1: Peers in Basic Materials
Below you can find Inter Rock Minerals Inc benchmarking vs. other companies in Basic Materials 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 |
|---|
| 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 ($VMS) | | | | | 139.7% |
| |
|---|
| Median (133 companies) | -66.4% | 8.6% | -5.2% | -1.1% | -4.0% |
|---|
| Inter Rock Minerals Inc ($IRO) | | 2.1% | -3.5% | -1.1% | 11.3% |
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 ($TV) | | | | 49.0% | 59.3% |
| |
|---|
| Median (127 companies) | 29.4% | 31.5% | 21.3% | 16.2% | 15.5% |
|---|
| Inter Rock Minerals Inc ($IRO) | 93.3% | | 20.7% | 21.2% | 17.3% |
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 ($LUC) | | 7.6% | 57.3% | 57.5% | 60.0% |
| |
|---|
| Median (134 companies) | 22.6% | 18.5% | 11.5% | 9.8% | 5.8% |
|---|
| Inter Rock Minerals Inc ($IRO) | 4.0% | 3.9% | 7.7% | 5.5% | 7.3% |
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 ($ARG) | 12.9% | 13.0% | 9.3% | 9.8% | 99.6% |
| |
|---|
| Median (134 companies) | 24.2% | 26.3% | 25.4% | 16.4% | 15.7% |
|---|
| Inter Rock Minerals Inc ($IRO) | 3.2% | 2.6% | 2.1% | 4.3% | 3.1% |
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 ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | 18.2% |
| |
|---|
| Median (136 companies) | 7.0% | 4.9% | 0.0% | 0.2% | -5.1% |
|---|
| Inter Rock Minerals Inc ($IRO) | -8.7% | -10.2% | -1.8% | -10.5% | -5.5% |
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 ($FTP) | 92.5x | | | | 18.8x |
| |
|---|
| Median (84 companies) | -0.1x | 0.3x | 0.7x | 0.9x | 1.3x |
|---|
| Inter Rock Minerals Inc ($IRO) | 4.8x | 4.5x | 1.6x | 3.9x | 1.7x |
