Nesscap Energy Inc revenue dropped on 19.2% in 2015 and EBITDA Margin decreased on 5.3 pp from -6.2% to -11.6%
21.04.2016 • About Nesscap Energy Inc (
$NCE) • By InTwits
Nesscap Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nesscap Energy Inc doesn't have a profitable business model yet: 2015 ROIC is -18.6%
- The company operates at negative EBITDA Margin: -11.6%
- Nesscap Energy Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -16.7%0
- Nesscap Energy Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.8%. At the same time it's a lot of higher than industry average of 35.3%.
- CAPEX is quite volatile: 0.18 in 2015, 0.60 in 2014, 1.0 in 2013, 0.26 in 2012, 1.0 in 2011
- The company has unprofitable business model: ROIC is at -18.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nesscap Energy Inc ($NCE) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 16.390 | 11.002 | 16.160 | 21.290 | 17.193 | -19.2% |
| Gross Profit | 5.685 | 1.508 | 3.389 | 4.743 | 2.141 | -54.9% |
| SG&A | | | 4.948 | 5.908 | 4.616 | -21.9% |
| EBITDA | -2.945 | -5.696 | -1.718 | -1.330 | -1.989 | 49.5% |
| Net Income | -4.967 | -7.235 | -3.228 | -4.068 | -4.246 | 4.4% |
Balance Sheet
|
|---|
| Cash | 1.516 | 7.748 | 3.309 | 2.510 | 3.166 | 26.1% |
| Short Term Debt | 0.542 | 5.501 | 4.537 | 8.202 | 3.779 | -53.9% |
| Long Term Debt | 4.894 | 0.000 | 0.000 | 0.000 | 0.801 | |
Cash flow
|
|---|
| Capex | 1.034 | 0.257 | 1.041 | 0.604 | 0.182 | -69.9% |
Ratios
|
|---|
| Revenue growth | 24.4% | -32.9% | 46.9% | 31.7% | -19.2% | |
| EBITDA growth | 108.8% | 93.4% | -69.8% | -22.6% | 49.5% | |
| Gross Margin | 34.7% | 13.7% | 21.0% | 22.3% | 12.5% | -9.8% |
| EBITDA Margin | -18.0% | -51.8% | -10.6% | -6.2% | -11.6% | -5.3% |
| Net Income Margin | -30.3% | -65.8% | -20.0% | -19.1% | -24.7% | -5.6% |
| SG&A, % of revenue | | | 30.6% | 27.8% | 26.9% | -0.9% |
| CAPEX, % of revenue | 6.3% | 2.3% | 6.4% | 2.8% | 1.1% | -1.8% |
| ROIC | | -43.8% | -10.8% | -10.4% | -18.6% | -8.2% |
| ROE | | | -17.1% | -27.0% | -51.1% | -24.1% |
Revenue and profitability
The company's Revenue dropped on 19.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.3 pp from -6.2% to -11.6% in 2015.
Gross Margin decreased on 9.8 pp from 22.3% to 12.5% in 2015. SG&A as a % of Revenue decreased slightly on 0.90 pp from 27.8% to 26.9% in 2015.
Net Income marign decreased on 5.6 pp from -19.1% to -24.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.1%. Nesscap Energy Inc showed small CAPEX/Revenue decline of 1.3 pp from 2.3% in 2012 to 1.1% in 2015. For the last three years the average CAPEX/Revenue was 3.4%.
Return on investment
The company operates at negative ROIC (-18.65%) and ROE (-51.09%). ROIC decreased on 8.2 pp from -10.4% to -18.6% in 2015. ROE dropped on 24.1 pp from -27.0% to -51.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -3.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 44.2% in 2015 while cash surged on 26.1% in 2015.
Appendix 1: Peers in Industrial
Below you can find Nesscap Energy Inc benchmarking vs. other companies in Industrial 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 |
|---|
| Diversified Royalty Corp ($DIV) | | | | | 503.3% |
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| WSP Global Inc ($WSP) | | 92.9% | 60.3% | 44.0% | 108.9% |
| CEMATRIX Corp ($CVX) | | 9.2% | -5.6% | 7.9% | 76.5% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (85 companies) | -7.0% | 11.5% | 4.9% | 9.1% | 10.9% |
|---|
| Nesscap Energy Inc ($NCE) | | -32.9% | 46.9% | 31.7% | -19.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% |
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | 69.3% |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| |
|---|
| Median (79 companies) | 23.2% | 23.4% | 23.4% | 23.1% | 24.0% |
|---|
| Nesscap Energy Inc ($NCE) | 34.7% | 13.7% | 21.0% | 22.3% | 12.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Photon Control Inc ($PHO) | 8.1% | 17.6% | 24.8% | 29.3% | 38.3% |
| Evertz Technologies Ltd ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| |
|---|
| Median (80 companies) | 8.3% | 9.4% | 8.3% | 7.7% | 9.5% |
|---|
| Nesscap Energy Inc ($NCE) | -18.0% | -51.8% | -10.6% | -6.2% | -11.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | 41.3% |
| Algoma Central Corp ($ALC) | 6.6% | 15.9% | 7.3% | 5.0% | 27.4% |
| Canadian Pacific Railway Ltd ($CP) | 21.3% | 20.2% | 20.2% | 21.9% | 22.7% |
| Canadian National Railway Co ($CNR) | 18.0% | 17.4% | 18.7% | 18.9% | 21.5% |
| |
|---|
| Median (84 companies) | 2.4% | 3.1% | 3.5% | 3.2% | 3.5% |
|---|
| Nesscap Energy Inc ($NCE) | 6.3% | 2.3% | 6.4% | 2.8% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biorem Inc ($BRM) | -141.4% | -15.1% | 32.3% | -29.7% | 54.4% |
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | 40.6% |
| Pacific Safety Products Inc ($PSP) | -19.0% | -1.5% | -11.5% | 3.7% | 38.2% |
| CEMATRIX Corp ($CVX) | 15.7% | 6.4% | -2.4% | -6.7% | 30.4% |
| |
|---|
| Median (85 companies) | 9.0% | 10.0% | 8.5% | 9.1% | 9.7% |
|---|
| Nesscap Energy Inc ($NCE) | | -43.8% | -10.8% | -10.4% | -18.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Conifex Timber Inc ($CFF) | | | 2.7x | 6.1x | 35.9x |
| Ag Growth International Inc ($AFN) | 2.4x | 2.9x | -0.1x | 2.1x | 14.1x |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | 12.9x |
| Progressive Waste Solutions Ltd ($BIN) | 2.5x | 4.5x | 3.3x | 2.9x | 10.6x |
| Finning International Inc ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (71 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.3x |
|---|
