HTC Purenergy Inc reports 14.7% revenue growth in 2015
27.04.2016 • About HTC Purenergy Inc (
$HTC) • By InTwits
HTC Purenergy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: in 2015 vs. in 2014 vs. -91.5% in 2011
- HTC Purenergy Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -1.5%0
- The company has potentially unprofitable business model: ROIC is at 6.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
HTC Purenergy Inc ($HTC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2.164 | 29.679 | 27.641 | 34.430 | 39.493 | 14.7% |
| Gross Profit | 0.793 | 8.689 | 8.924 | 8.197 | 11.216 | 36.8% |
| SG&A | | 8.694 | 7.751 | 8.459 | | -100.0% |
| EBITDA | -1.980 | | | | | |
| Net Income | -8.871 | -1.380 | 4.060 | -0.376 | -2.226 | 492.2% |
Balance Sheet
|
|---|
| Cash | 1.933 | 2.518 | 6.498 | 1.231 | 6.953 | 465.0% |
| Short Term Debt | 0.000 | 0.109 | 0.107 | 0.435 | 1.034 | 137.6% |
| Long Term Debt | 0.000 | 0.745 | 0.627 | 1.192 | 1.304 | 9.4% |
Cash flow
|
|---|
| Capex | 0.199 | 0.818 | 0.123 | 0.556 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -35.6% | 1,271.6% | -6.9% | 24.6% | 14.7% | |
| EBITDA growth | 32.5% | | | | | |
| Gross Margin | 36.6% | 29.3% | 32.3% | 23.8% | 28.4% | 4.6% |
| EBITDA Margin | -91.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Net Income Margin | -410.0% | -4.7% | 14.7% | -1.1% | -5.6% | -4.5% |
| SG&A, % of revenue | | 29.3% | 28.0% | 24.6% | | -24.6% |
| CAPEX, % of revenue | 9.2% | 2.8% | 0.4% | 1.6% | | -1.6% |
| ROIC | -13.3% | -1.8% | 3.1% | -1.3% | 6.3% | 7.6% |
| ROE | -48.7% | -10.0% | 24.4% | -2.0% | -12.8% | -10.8% |
Revenue and profitability
HTC Purenergy Inc's Revenue surged on 14.7% in 2015.
Gross Margin increased on 4.6 pp from 23.8% to 28.4% in 2015.
Net Income marign decreased on 4.5 pp from -1.1% to -5.6% in 2015.
Return on investment
The company operates at low but positive ROIC (6.29%) and negative ROE (-12.83%). ROIC increased on 7.6 pp from -1.3% to 6.3% in 2015. ROE dropped on 10.8 pp from -2.0% to -12.8% in 2015.
Leverage (Debt)
Debt jumped on 43.7% in 2015 while cash jumped on 465% in 2015.
Appendix 1: Peers in Energy
Below we provide HTC Purenergy Inc 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 |
|---|
| Striker Exploration Corp ($SKX) | | -23.2% | -7.6% | 226.9% | 314.7% |
| NXT Energy Solutions Inc ($SFD) | | 7,543.4% | -75.5% | 61.0% | 303.1% |
| ONEnergy Inc ($OEG) | | | | 6,002.6% | 231.5% |
| Petroshale Inc ($PSH) | | | | 159.9% | 147.8% |
| Toro Oil & Gas Ltd ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| |
|---|
| Median (156 companies) | 69.3% | 9.4% | 17.4% | 18.7% | -27.4% |
|---|
| HTC Purenergy Inc ($HTC) | | 1,271.6% | -6.9% | 24.6% | 14.7% |
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 ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (139 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 33.5% |
|---|
| HTC Purenergy Inc ($HTC) | 36.6% | 29.3% | 32.3% | 23.8% | 28.4% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (158 companies) | 25.7% | 24.6% | 31.5% | 29.7% | 5.7% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Primeline Energy Holdings Inc ($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 (159 companies) | 44.3% | 50.5% | 39.2% | 48.9% | 29.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | -10.9% | 4.4% | 10.8% | 16.1% | 37.7% |
| NXT Energy Solutions Inc ($SFD) | | | -103.5% | -39.7% | 25.5% |
| 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 ($ORC.B) | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% |
| |
|---|
| Median (159 companies) | 4.5% | 3.1% | 4.7% | 5.3% | -9.3% |
|---|
| HTC Purenergy Inc ($HTC) | -13.3% | -1.8% | 3.1% | -1.3% | 6.3% |
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 ($PSH) | 0.1x | | | 21.7x | 9.9x |
| Connacher Oil and Gas Ltd ($CLC) | 9.7x | 16.7x | 8.8x | 17.1x | |
| Pengrowth Energy Corp ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (139 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 2.6x |
|---|
