Divestco Inc reports 329% Net Income decline and 49.3% Revenue decline
28.04.2016 • About Divestco Inc (
$DVT) • By InTwits
Divestco Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Divestco Inc is a company in decline: 2015 revenue growth was -49.3%, 5 years revenue CAGR was -14.5%
- EBITDA Margin is expanding: 43.7% in 2015 vs. 36.2% in 2014 vs. 14.8% in 2011
- Divestco Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.9%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 0.052 in 2015, 0.048 in 2014, 0.41 in 2013, 1.3 in 2012, 5.9 in 2011
- The company has unprofitable business model: ROIC is at -11.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Divestco Inc ($DVT) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 40.464 | 39.628 | 33.979 | 36.120 | 18.314 | -49.3% |
| Gross Profit | 30.560 | | | | | |
| SG&A | | | | | 6.530 | |
| EBITDA | 5.979 | 12.439 | 10.906 | 13.066 | 8.005 | -38.7% |
| Net Income | -4.610 | 1.273 | 1.327 | 2.507 | -5.729 | -328.5% |
Balance Sheet
|
|---|
| Cash | 1.547 | 1.320 | 0.417 | 4.344 | 0.817 | -81.2% |
| Short Term Debt | 5.163 | 6.436 | 5.307 | 11.602 | 1.042 | -91.0% |
| Long Term Debt | 4.591 | 4.115 | 5.591 | 0.557 | 8.633 | 1,449.9% |
Cash flow
|
|---|
| Capex | 5.907 | 1.320 | 0.408 | 0.048 | 0.052 | 8.3% |
Ratios
|
|---|
| Revenue growth | 0.7% | -2.1% | -14.3% | 6.3% | -49.3% | |
| EBITDA growth | -181.1% | 108.0% | -12.3% | 19.8% | -38.7% | |
| Gross Margin | 75.5% | | | | | 0.0% |
| EBITDA Margin | 14.8% | 31.4% | 32.1% | 36.2% | 43.7% | 7.5% |
| Net Income Margin | -11.4% | 3.2% | 3.9% | 6.9% | -31.3% | -38.2% |
| SG&A, % of revenue | | | | | 35.7% | 35.7% |
| CAPEX, % of revenue | 14.6% | 3.3% | 1.2% | 0.1% | 0.3% | 0.2% |
| ROIC | -16.0% | 6.9% | 14.4% | 12.8% | -11.9% | -24.7% |
| ROE | -28.1% | 8.2% | 7.8% | 13.1% | -32.6% | -45.7% |
| Net Debt/EBITDA | 1.4x | 0.7x | 1.0x | 0.6x | 1.1x | 0.5x |
Revenue and profitability
Divestco Inc's Revenue dropped on 49.3% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 7.5 pp from 36.2% to 43.7% in 2015.
Net Income marign dropped on 38.2 pp from 6.9% to -31.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Divestco Inc's CAPEX/Revenue was 0.28% in 2015. The company's CAPEX/Revenue decreased on 3.0 pp from 3.3% in 2012 to 0.28% in 2015. Average CAPEX/Revenue for the last three years was 0.54%.
Return on investment
The company operates at negative ROIC (-11.90%) and ROE (-32.58%). ROIC dropped on 24.7 pp from 12.8% to -11.9% in 2015. ROE dropped on 45.7 pp from 13.1% to -32.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.2x. Net Debt / EBITDA surged on 0.5x from 0.6x to 1.1x in 2015. Debt dropped on 20.4% in 2015 while cash dropped on 81.2% in 2015.
Appendix 1: Peers in Energy
Below you can find Divestco 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 ($TOO) | | 25.2% | -4.6% | -35.6% | 113.4% |
| |
|---|
| Median (159 companies) | 75.1% | 9.6% | 17.4% | 19.0% | -27.3% |
|---|
| Divestco Inc ($DVT) | | -2.1% | -14.3% | 6.3% | -49.3% |
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 ($AAV) | 70.5% | 62.0% | 84.5% | 92.5% | 88.5% |
| |
|---|
| Median (142 companies) | 33.3% | 29.3% | 31.5% | 29.6% | 33.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($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% | 24.2% | 31.1% | 29.6% | 5.7% |
|---|
| Divestco Inc ($DVT) | 14.8% | 31.4% | 32.1% | 36.2% | 43.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Primeline Energy Holdings Inc ($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 (161 companies) | 44.3% | 50.5% | 39.2% | 48.9% | 29.1% |
|---|
| Divestco Inc ($DVT) | 14.6% | 3.3% | 1.2% | 0.1% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Granite Oil Corp ($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) | 4.5% | 3.0% | 4.6% | 5.0% | -8.7% |
|---|
| Divestco Inc ($DVT) | -16.0% | 6.9% | 14.4% | 12.8% | -11.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Veresen Inc ($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 |
|---|
| Divestco Inc ($DVT) | 1.4x | 0.7x | 1.0x | 0.6x | 1.1x |
