NXT Energy Solutions Inc reports 7,221% CAPEX growth and 303% Revenue growth
27.04.2016 • About NXT Energy Solutions Inc (
$SFD) • By InTwits
NXT Energy Solutions Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- NXT Energy Solutions Inc is a fast growth stock: 2015 revenue growth was 303%, 5 year revenue CAGR was 107% at 2015 ROIC 25.5%
- NXT Energy Solutions Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.7%. At the same time it's a lot of higher than industry average of 35.3%.
- CAPEX is quite volatile: 3.4 in 2015, 0.046 in 2014, 0.020 in 2013, 0.049 in 2012, 0.039 in 2011
- The company has highly profitable business model: ROIC is at 25.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
NXT Energy Solutions Inc ($SFD) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 0.143 | 10.938 | 2.684 | 4.323 | 17.422 | 303.1% |
| Gross Profit | -0.062 | 7.179 | 0.966 | 3.772 | 12.326 | 226.8% |
| SG&A | | | | | 5.050 | |
| EBITDA | -3.428 | 2.530 | -3.553 | -1.445 | 6.196 | -528.8% |
| Net Income | -3.546 | 2.063 | -5.342 | -1.727 | 10.540 | -710.4% |
Balance Sheet
|
|---|
| Cash | 1.534 | 5.053 | 3.320 | 0.059 | 7.086 | 11,948.1% |
| Short Term Debt | 0.009 | 0.000 | 0.000 | 0.000 | 0.034 | |
| Long Term Debt | | 0.000 | 0.000 | 0.000 | 0.161 | |
Cash flow
|
|---|
| Capex | 0.039 | 0.049 | 0.020 | 0.046 | 3.381 | 7,220.9% |
Ratios
|
|---|
| Revenue growth | -68.6% | 7,543.4% | -75.5% | 61.0% | 303.1% | |
| EBITDA growth | -22.2% | -173.8% | -240.4% | -59.3% | -528.8% | |
| Gross Margin | -43.2% | 65.6% | 36.0% | 87.3% | 70.8% | -16.5% |
| EBITDA Margin | -2,395.4% | 23.1% | -132.4% | -33.4% | 35.6% | 69.0% |
| Net Income Margin | -2,478.1% | 18.9% | -199.0% | -39.9% | 60.5% | 100.4% |
| SG&A, % of revenue | | | | | 29.0% | 29.0% |
| CAPEX, % of revenue | 26.9% | 0.4% | 0.8% | 1.1% | 19.4% | 18.3% |
| ROIC | | | -103.5% | -39.7% | 25.5% | 65.2% |
| ROE | | | -322.8% | -48.3% | 50.9% | 99.2% |
| Net Debt/EBITDA | | -2.0x | | | -1.1x | -1.1x |
Revenue and profitability
The company's Revenue jumped on 303% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 4.8 pp from -14.1% to -9.3% in 2015.
Gross Margin dropped on 16.5 pp from 87.3% to 70.8% in 2015.
Net Income marign jumped on 100 pp from -39.9% to 60.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 19.4%. CAPEX/Revenue surged on 19.0 pp from 0.44% in 2012 to 19.4% in 2015. Average CAPEX/Revenue for the last three years was 7.1%.The company invested a big chunk of EBITDA (54.6%) to CAPEX to secure its growth.
Return on investment
The company operates at high and attractive ROIC (25.46%) and ROE (50.91%). ROIC surged on 65.2 pp from -39.7% to 25.5% in 2015. ROE surged on 99.2 pp from -48.3% to 50.9% in 2015.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped1.1x from to -1.1x in 2015. Debt surged while cash surged on 11,948% in 2015.
Appendix 1: Peers in Energy
Below you can find NXT Energy Solutions Inc benchmarking vs. other companies in Energy 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 |
|---|
| Striker Exploration Corp ($SKX) | | -23.2% | -7.6% | 226.9% | 314.7% |
| ONEnergy Inc ($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% |
| Ikkuma Resources Corp ($IKM) | | 17.0% | -4.5% | 1,231.1% | 100.3% |
| |
|---|
| Median (156 companies) | 69.3% | 9.4% | 17.4% | 18.7% | -27.4% |
|---|
| NXT Energy Solutions Inc ($SFD) | | 7,543.4% | -75.5% | 61.0% | 303.1% |
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 ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (139 companies) | 34.2% | 29.3% | 31.5% | 29.6% | 32.2% |
|---|
| NXT Energy Solutions Inc ($SFD) | -43.2% | 65.6% | 36.0% | 87.3% | 70.8% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (157 companies) | 25.7% | 24.8% | 31.5% | 29.7% | 5.5% |
|---|
| NXT Energy Solutions Inc ($SFD) | -2,395.4% | 23.1% | -132.4% | -33.4% | 35.6% |
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 ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (158 companies) | 44.3% | 50.5% | 39.2% | 48.9% | 29.3% |
|---|
| NXT Energy Solutions Inc ($SFD) | 26.9% | 0.4% | 0.8% | 1.1% | 19.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($GXO) | -10.9% | 4.4% | 10.8% | 16.1% | 37.7% |
| High Arctic Energy Services Inc ($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% |
| Perpetual Energy Inc ($PMT) | -10.6% | -10.1% | 9.1% | 10.4% | 16.1% |
| |
|---|
| Median (159 companies) | 4.4% | 3.0% | 4.7% | 5.3% | -9.3% |
|---|
| NXT Energy Solutions Inc ($SFD) | | | -103.5% | -39.7% | 25.5% |
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 |
|---|
