Noble Iron Inc Net Debt / EBITDA jumped on 16.8x from 227.3x to 244.1x in 2015 and Debt surged on 28.7%
19.04.2016 • About Noble Iron Inc (
$NIR) • By InTwits
Noble Iron Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Noble Iron Inc doesn't have a profitable business model yet: 2015 ROIC is -25.5%
- EBITDA Margin is quite volatile: 0.5% in 2015, 0.6% in 2014, 9.7% in 2013, 4.5% in 2012, -0.1% in 2011
- Noble Iron Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 42.4%. At the same time it's a lot of higher than industry average of 8.0%.
- CAPEX is quite volatile: 0.34 in 2015, 4.4 in 2014, 12.2 in 2013, 11.8 in 2012, 4.0 in 2011
- The company has unprofitable business model: ROIC is at -25.5%
- It operates with high leverage: Net Debt/EBITDA is 244.1x while industry average is 6.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Noble Iron Inc ($NIR) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7.670 | 16.165 | 19.665 | 19.121 | 26.906 | 40.7% |
| Gross Profit | 6.158 | 11.240 | 11.624 | 10.192 | 14.841 | 45.6% |
| SG&A | | | 8.303 | 8.653 | 12.657 | 46.3% |
| EBITDA | -0.009 | 0.727 | 1.899 | 0.111 | 0.140 | 26.4% |
| Net Income | 1.676 | -1.815 | -4.299 | -7.231 | -10.232 | 41.5% |
Balance Sheet
|
|---|
| Cash | 1.978 | 1.821 | 2.501 | 1.778 | 0.502 | -71.8% |
| Short Term Debt | 1.395 | 0.777 | 0.435 | 0.575 | 0.541 | -6.0% |
| Long Term Debt | 12.575 | 19.568 | 26.592 | 26.462 | 34.254 | 29.4% |
Cash flow
|
|---|
| Capex | 4.031 | 11.815 | 12.200 | 4.424 | 0.343 | -92.2% |
Ratios
|
|---|
| Revenue growth | 72.5% | 110.8% | 21.7% | -2.8% | 40.7% | |
| EBITDA growth | -101.5% | -8,023.9% | 161.2% | -94.1% | 26.4% | |
| Gross Margin | 80.3% | 69.5% | 59.1% | 53.3% | 55.2% | 1.9% |
| EBITDA Margin | -0.1% | 4.5% | 9.7% | 0.6% | 0.5% | -0.1% |
| Net Income Margin | 21.9% | -11.2% | -21.9% | -37.8% | -38.0% | -0.2% |
| SG&A, % of revenue | | | 42.2% | 45.3% | 47.0% | 1.8% |
| CAPEX, % of revenue | 52.6% | 73.1% | 62.0% | 23.1% | 1.3% | -21.9% |
| ROIC | -9.5% | -12.4% | -11.8% | -19.5% | -25.5% | -6.0% |
| ROE | | -24.1% | -47.1% | -85.8% | | 85.8% |
| Net Debt/EBITDA | | 25.5x | 12.9x | 227.3x | 244.1x | 16.8x |
Revenue and profitability
The company's Revenue surged on 40.7% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin increased slightly on 1.9 pp from 53.3% to 55.2% in 2015. SG&A as a % of Revenue increased slightly on 1.8 pp from 45.3% to 47.0% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.3%. The company showed big decline in CAPEX/Revenue of 71.8 pp from 73.1% in 2012 to 1.3% in 2015. Average CAPEX/Revenue for the last three years was 28.8%.Noble Iron Inc has spent a lot to CAPEX (244% of EBITDA) to fuel its growth.
Leverage (Debt)
Company's Net Debt / EBITDA is 244.1x and Debt / EBITDA is 247.7x. Net Debt / EBITDA jumped on 16.8x from 227.3x to 244.1x in 2015. Debt jumped on 28.7% in 2015 while cash dropped on 71.8% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Noble Iron Inc benchmarking vs. other companies in Consumer, Non-cyclical 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 |
|---|
| Theratechnologies Inc ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| Medicure Inc ($MPH) | | 32.2% | -45.7% | 94.1% | 337.2% |
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | 275.7% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| |
|---|
| Median (79 companies) | 49.5% | 8.7% | 5.3% | 13.2% | 14.5% |
|---|
| Noble Iron Inc ($NIR) | | 110.8% | 21.7% | -2.8% | 40.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Medicure Inc ($MPH) | 58.3% | 77.7% | 74.4% | 82.8% | 89.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Information Services Corp ($ISV) | 77.4% | 77.5% | 80.4% | 80.9% | 87.6% |
| Theratechnologies Inc ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| |
|---|
| Median (66 companies) | 35.6% | 37.4% | 35.9% | 35.6% | 36.1% |
|---|
| Noble Iron Inc ($NIR) | 80.3% | 69.5% | 59.1% | 53.3% | 55.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| CRH Medical Corp ($CRH) | 22.1% | 21.0% | 24.5% | 29.1% | 44.1% |
| Ceapro Inc ($CZO) | 18.2% | -2.6% | 9.1% | 23.4% | 41.9% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Concordia Healthcare Corp ($CXR) | | | 43.7% | 37.0% | 39.8% |
| |
|---|
| Median (78 companies) | 7.5% | 7.9% | 8.7% | 10.8% | 10.6% |
|---|
| Noble Iron Inc ($NIR) | -0.1% | 4.5% | 9.7% | 0.6% | 0.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Westbond Enterprises Corp ($WBE) | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | 39.4% |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (78 companies) | 2.2% | 2.6% | 2.4% | 2.6% | 2.3% |
|---|
| Noble Iron Inc ($NIR) | 52.6% | 73.1% | 62.0% | 23.1% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Medicure Inc ($MPH) | | | -127.1% | | 129.4% |
| Response Biomedical Corp ($RBM) | -75.0% | -158.5% | | | 52.0% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | 50.4% |
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Immunotec Inc ($IMM) | -11.5% | 1.8% | 8.8% | -10.5% | 40.8% |
| |
|---|
| Median (79 companies) | 8.0% | 7.1% | 6.9% | 7.3% | 6.8% |
|---|
| Noble Iron Inc ($NIR) | -9.5% | -12.4% | -11.8% | -19.5% | -25.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Concordia Healthcare Corp ($CXR) | | | -1.3x | 5.6x | 20.2x |
| CIBT Education Group Inc ($MBA) | | -7.0x | -0.3x | | 18.4x |
| SunOpta Inc ($SOY) | 2.9x | 2.9x | 3.5x | 1.3x | 16.9x |
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | 15.6x |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| |
|---|
| Median (67 companies) | 1.9x | 2.5x | 2.2x | 2.6x | 1.8x |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | 244.1x |
