STT Enviro Corp Net Income dropped on 74.8% in 2015 and EBITDA Margin decreased on 6.8 pp from 8.4% to 1.6%
25.04.2016 • About STT Enviro Corp (
$STT) • By InTwits
STT Enviro Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 1.6% in 2015, 8.4% in 2014, 8.3% in 2013, 7.1% in 2012, 7.3% in 2011
- STT Enviro Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 0.42 in 2015, 0.15 in 2014, 0.64 in 2013, 0.13 in 2012, 0.15 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
STT Enviro Corp ($STT) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 26.458 | 29.188 | 28.422 | 22.348 | 33.760 | 51.1% |
| Gross Profit | 5.830 | 7.151 | 7.495 | 6.884 | 6.345 | -7.8% |
| SG&A | | | 4.951 | 4.918 | 5.698 | 15.9% |
| EBITDA | 1.936 | 2.058 | 2.356 | 1.869 | 0.523 | -72.0% |
| Net Income | 3.377 | 0.953 | 1.022 | 1.183 | 0.298 | -74.8% |
Balance Sheet
|
|---|
| Cash | 2.062 | 2.103 | 4.375 | 2.282 | 5.962 | 161.3% |
| Short Term Debt | 1.027 | 0.265 | 2.330 | 1.207 | 0.020 | -98.3% |
| Long Term Debt | 3.888 | 5.155 | 1.860 | 1.554 | 0.018 | -98.8% |
Cash flow
|
|---|
| Capex | 0.147 | 0.126 | 0.645 | 0.151 | 0.421 | 177.6% |
Ratios
|
|---|
| Revenue growth | 101.0% | 10.3% | -2.6% | -21.4% | 51.1% | |
| EBITDA growth | -226.2% | 6.3% | 14.5% | -20.7% | -72.0% | |
| Gross Margin | 22.0% | 24.5% | 26.4% | 30.8% | 18.8% | -12.0% |
| EBITDA Margin | 7.3% | 7.1% | 8.3% | 8.4% | 1.6% | -6.8% |
| Net Income Margin | 12.8% | 3.3% | 3.6% | 5.3% | 0.9% | -4.4% |
| SG&A, % of revenue | | | 17.4% | 22.0% | 16.9% | -5.1% |
| CAPEX, % of revenue | 0.6% | 0.4% | 2.3% | 0.7% | 1.2% | 0.6% |
| ROIC | 88.7% | 55.1% | 44.3% | 30.4% | 4.5% | -25.9% |
| ROE | | | | | 9.0% | 9.0% |
| Net Debt/EBITDA | 1.5x | 1.6x | -0.1x | 0.3x | -11.3x | -11.6x |
Revenue and profitability
The company's Revenue jumped on 51.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.5 pp from -6.9% to -21.4% in 2015.
Gross Margin dropped on 12.0 pp from 30.8% to 18.8% in 2015. SG&A as a % of Revenue decreased on 5.1 pp from 22.0% to 16.9% in 2015.
Net Income marign decreased on 4.4 pp from 5.3% to 0.88% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.2%. The company's CAPEX/Revenue increased slightly on 0.81 pp from 0.43% in 2012 to 1.2% in 2015. For the last three years the average CAPEX/Revenue was 1.4%.To deliver this fast growth STT Enviro Corp invested a large share of EBITDA (80.3%) to CAPEX.
Return on investment
The company operates at low ROIC (4.54%) and ROE (8.98%). ROIC dropped on 25.9 pp from 30.4% to 4.5% in 2015.
Leverage (Debt)
Debt level is -11.3x Net Debt / EBITDA and 0.1x Debt / EBITDA. Net Debt / EBITDA dropped on 11.6x from 0.3x to -11.3x in 2015. Debt dropped on 98.6% in 2015 while cash jumped on 161% in 2015.
Appendix 1: Peers in Industrial
Below we provide STT Enviro Corp benchmarking against other companies in Industrial 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 |
|---|
| 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (86 companies) | -7.3% | 11.5% | 5.3% | 9.4% | 10.6% |
|---|
| STT Enviro Corp ($STT) | | 10.3% | -2.6% | -21.4% | 51.1% |
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 ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| |
|---|
| Median (80 companies) | 23.4% | 23.0% | 23.3% | 22.6% | 23.9% |
|---|
| STT Enviro Corp ($STT) | 22.0% | 24.5% | 26.4% | 30.8% | 18.8% |
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 ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| |
|---|
| Median (81 companies) | 8.3% | 9.4% | 8.3% | 7.2% | 9.5% |
|---|
| STT Enviro Corp ($STT) | 7.3% | 7.1% | 8.3% | 8.4% | 1.6% |
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 ($CNR) | 18.0% | 17.4% | 18.7% | 18.9% | 21.5% |
| |
|---|
| Median (85 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 3.5% |
|---|
| STT Enviro Corp ($STT) | 0.6% | 0.4% | 2.3% | 0.7% | 1.2% |
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 ($CVX) | 15.7% | 6.4% | -2.4% | -6.7% | 30.4% |
| |
|---|
| Median (86 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 9.5% |
|---|
| STT Enviro Corp ($STT) | 88.7% | 55.1% | 44.3% | 30.4% | 4.5% |
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 ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (71 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.3x |
|---|
| STT Enviro Corp ($STT) | 1.5x | 1.6x | -0.1x | 0.3x | -11.3x |
