Changfeng Energy Inc CAPEX jumped on 77.4% in 2015 and Revenue jumped on 16.9%
28.04.2016 • About Changfeng Energy Inc (
$CFY) • By InTwits
Changfeng Energy Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Changfeng Energy Inc is a fast growth stock: 2015 revenue growth was 16.9%, 5 year revenue CAGR was 22.9% at 2015 ROIC 18.5%
- Changfeng Energy Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.1%. At the same time it's a lot of higher than industry average of 70.3%.
- CAPEX is quite volatile: 41.8 in 2015, 127 in 2014, 46.6 in 2013, 31.2 in 2012, 47.7 in 2011
- The company has highly profitable business model: ROIC is at 18.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Changfeng Energy Inc ($CFY) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 28.176 | 33.273 | 42.049 | 53.128 | 62.127 | 16.9% |
| Gross Profit | 11.708 | 15.755 | 19.998 | 23.996 | 29.206 | 21.7% |
| SG&A | | 10.425 | 12.605 | 14.251 | 16.874 | 18.4% |
| EBITDA | 5.759 | 7.826 | 9.425 | 13.238 | 16.228 | 22.6% |
| Net Income | 1.385 | 2.508 | 2.483 | 3.784 | 5.967 | 57.7% |
Balance Sheet
|
|---|
| Cash | 5.062 | 6.377 | 15.151 | 12.120 | 14.183 | 17.0% |
| Short Term Debt | 6.464 | 5.590 | 5.637 | 6.973 | 12.518 | 79.5% |
| Long Term Debt | 15.022 | 14.106 | 23.844 | 22.074 | 21.211 | -3.9% |
Cash flow
|
|---|
| Capex | 4.949 | 5.310 | 8.429 | 5.721 | 10.148 | 77.4% |
Ratios
|
|---|
| Revenue growth | 27.3% | 18.1% | 26.4% | 26.3% | 16.9% | |
| EBITDA growth | 52.8% | 35.9% | 20.4% | 40.5% | 22.6% | |
| Gross Margin | 41.6% | 47.3% | 47.6% | 45.2% | 47.0% | 1.8% |
| EBITDA Margin | 20.4% | 23.5% | 22.4% | 24.9% | 26.1% | 1.2% |
| Net Income Margin | 4.9% | 7.5% | 5.9% | 7.1% | 9.6% | 2.5% |
| SG&A, % of revenue | | 31.3% | 30.0% | 26.8% | 27.2% | 0.3% |
| CAPEX, % of revenue | 17.6% | 16.0% | 20.0% | 10.8% | 16.3% | 5.6% |
| ROIC | 12.7% | 16.5% | 16.2% | 17.8% | 18.5% | 0.7% |
| ROE | 11.8% | 17.7% | 14.2% | 17.2% | 20.2% | 2.9% |
| Net Debt/EBITDA | 2.9x | 1.7x | 1.5x | 1.3x | 1.2x | -0.1x |
Revenue and profitability
The company's Revenue jumped on 16.9% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from 23.1% to 27.0% in FY2015.
Gross Margin increased slightly on 1.8 pp from 45.2% to 47.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 2.5 pp from 7.1% to 9.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Changfeng Energy Inc had CAPEX/Revenue of 16.3%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. For the last three years the average CAPEX/Revenue was 15.7%.To secure this fast growth the company invested a large share of EBITDA (62.5%) to CAPEX.
Return on investment
The company operates at high and attractive ROE (20.16%) while ROIC is a bit lower (18.47%). ROIC increased slightly on 0.66 pp from 17.8% to 18.5% in 2015. ROE increased on 2.9 pp from 17.2% to 20.2% in 2015.
Leverage (Debt)
Debt level is 1.2x Net Debt / EBITDA and 2.1x Debt / EBITDA. Net Debt / EBITDA decreased on 0.1x from 1.3x to 1.2x in 2015. Debt surged on 16.1% in 2015 while cash jumped on 17.0% in 2015.
Appendix 1: Peers in Energy
Below you can find Changfeng Energy 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 ($SKX) | | -23.2% | -7.6% | 226.9% | 314.7% |
| NXT Energy Solutions Inc ($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 ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| |
|---|
| Median (159 companies) | 75.1% | 9.4% | 17.3% | 18.7% | -27.5% |
|---|
| Changfeng Energy Inc ($CFY) | | 18.1% | 26.4% | 26.3% | 16.9% |
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 ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (141 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 33.5% |
|---|
| Changfeng Energy Inc ($CFY) | 41.6% | 47.3% | 47.6% | 45.2% | 47.0% |
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 ($INE) | 109.4% | 111.8% | 110.0% | 82.9% | 83.4% |
| |
|---|
| Median (160 companies) | 25.7% | 24.8% | 31.5% | 29.7% | 5.7% |
|---|
| Changfeng Energy Inc ($CFY) | 20.4% | 23.5% | 22.4% | 24.9% | 26.1% |
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 ($TOO) | 192.4% | 139.0% | 39.2% | 808.7% | 307.4% |
| |
|---|
| Median (161 companies) | 44.3% | 50.5% | 39.2% | 48.9% | 29.1% |
|---|
| Changfeng Energy Inc ($CFY) | 17.6% | 16.0% | 20.0% | 10.8% | 16.3% |
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 ($ORC.B) | 13.3% | 30.0% | 13.0% | 14.3% | 19.0% |
| |
|---|
| Median (162 companies) | 4.4% | 3.0% | 4.6% | 5.0% | -9.8% |
|---|
| Changfeng Energy Inc ($CFY) | 12.7% | 16.5% | 16.2% | 17.8% | 18.5% |
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 ($PGF) | 1.5x | 2.9x | 2.1x | 16.8x | |
| |
|---|
| Median (138 companies) | 1.2x | 1.6x | 1.5x | 1.4x | 2.5x |
|---|
| Changfeng Energy Inc ($CFY) | 2.9x | 1.7x | 1.5x | 1.3x | 1.2x |
