Ceres Global Ag Corp reports 353% EBITDA decline and 4.7 pp EBITDA Margin decline from 2.0% to -2.7%
11.05.2016 • About Ceres Global Ag Corp (
$CRP) • By InTwits
Ceres Global Ag Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ceres Global Ag Corp doesn't have a profitable business model yet: FY2016 ROIC is -4.6%
- The company operates at negative EBITDA Margin: -2.7%
- Ceres Global Ag Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -1.2%0
- Ceres Global Ag Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's in pair with industry average of 6.3%.
- CAPEX is quite volatile: 35.7 in FY2016, 24.4 in FY2015, 2.5 in FY2014, 1.5 in FY2013, 16.4 in FY2012
- The company has unprofitable business model: ROIC is at -4.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ceres Global Ag Corp ($CRP) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 184.4 | 223.1 | 232.4 | 192.8 | 356.2 | 84.8% |
| Gross Profit | 16.0 | 2.0 | 4.4 | 11.7 | -3.1 | -126.7% |
| SG&A | | | | 10.7 | 10.4 | -2.5% |
| EBITDA | 7.7 | -5.7 | -9.9 | 3.8 | -9.7 | -353.0% |
| Net Income | -3.8 | -11.5 | -19.3 | -1.4 | -13.9 | |
Balance Sheet
|
|---|
| Cash | 29.7 | 20.4 | 12.0 | 5.1 | 6.0 | 17.1% |
| Short Term Debt | 84.3 | 116.3 | 71.7 | 18.7 | 79.4 | 324.0% |
| Long Term Debt | 43.0 | 0.0 | 0.0 | 30.4 | 27.5 | -9.5% |
Cash flow
|
|---|
| Capex | 16.4 | 1.5 | 2.5 | 24.4 | 35.7 | 46.0% |
Ratios
|
|---|
| Revenue growth | 25.2% | 21.0% | 4.2% | -17.0% | 84.8% | |
| EBITDA growth | -28.8% | -174.1% | 73.5% | -139.0% | -353.0% | |
| Gross Margin | 8.7% | 0.9% | 1.9% | 6.1% | -0.9% | -6.9% |
| EBITDA Margin | 4.2% | -2.5% | -4.2% | 2.0% | -2.7% | -4.7% |
| Net Income Margin | -2.1% | -5.1% | -8.3% | -0.7% | -3.9% | -3.2% |
| SG&A, % of revenue | | | | 5.5% | 2.9% | -2.6% |
| CAPEX, % of revenue | 8.9% | 0.7% | 1.1% | 12.7% | 10.0% | -2.7% |
| ROIC | 1.8% | -3.1% | -5.5% | 0.4% | -4.6% | -5.1% |
| ROE | -2.4% | -7.6% | -13.8% | -0.8% | -6.5% | -5.7% |
| Net Debt/EBITDA | 12.7x | | | 11.4x | | -11.4x |
Ceres Global Ag Corp ($CRP) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 59 | 95 | 82 | 119 | 15.3% | 456.0% | 18.0% | 119.1% |
| EBITDA | 0 | -0 | -12 | 2 | | -107.0% | -407.2% | |
| Net Income | -2 | 0 | -13 | 1 | | -94.9% | -686.2% | |
Balance Sheet
|
|---|
| Cash | 4 | 63 | 4 | 6 | -85.9% | 357.6% | -95.3% | 17.1% |
| Short Term Debt | 36 | 148 | 71 | 79 | -15.5% | 89.7% | -33.2% | 324.0% |
| Long Term Debt | 30 | 0 | 29 | 28 | | | 3.9% | -9.5% |
Ratios
|
|---|
| Gross Margin | 3.2% | 1.5% | -12.6% | 3.3% | 0.9% | -29.6% | -20.4% | 3.6% |
| EBITDA Margin | 0.2% | -0.2% | -14.7% | 2.0% | 3.5% | -18.8% | -20.3% | 4.9% |
| Net Income Margin | -2.9% | 0.1% | -16.3% | 1.0% | 1.2% | -11.1% | -19.6% | 7.4% |
Revenue and profitability
Ceres Global Ag Corp's Revenue jumped on 84.8%. Revenue growth showed acceleration in FY16Q4 - it increased 119.1% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 41.5 pp from -132% to -90.2% in FY2016.
Gross Margin decreased on 6.9 pp from 6.1% to -0.88% in FY2016. SG&A as a % of Revenue decreased on 2.6 pp from 5.5% to 2.9% in FY2016.
Net Income marign decreased on 3.2 pp from -0.72% to -3.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Ceres Global Ag Corp's CAPEX/Revenue was 10.0% in FY2016. The company's CAPEX/Revenue increased on 9.4 pp from 0.65% in FY2013 to 10.0% in FY2016. It's average CAPEX/Revenue for the last three years was 7.9%.
Return on investment
The company operates at negative ROIC (-4.64%) and ROE (-6.50%). ROIC decreased on 5.1 pp from 0.43% to -4.6% in FY2016. ROE decreased on 5.7 pp from -0.79% to -6.5% in FY2016.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 11.4x from 11.4x to in FY2016. Debt jumped on 118% while cash jumped on 17.1%.
Appendix 1: Peers in Financial
Below you can find Ceres Global Ag Corp benchmarking vs. other companies in Financial 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| Starrex International Ltd ($STX) | | | | 204.1% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| IOU Financial Inc ($IOU) | 562.1% | 331.7% | 52.2% | 94.3% | |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | |
| |
|---|
| Median (59 companies) | 10.3% | 7.9% | 9.2% | 4.4% | 4.6% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (11 companies) | 25.6% | 30.7% | 28.3% | 41.0% | 41.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (43 companies) | 34.3% | 31.9% | 28.8% | 27.0% | 43.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (61 companies) | 0.6% | 0.6% | 0.7% | 1.0% | 0.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Brookfield Real Estate Services Inc ($BRE) | 26.0% | 31.0% | 47.0% | 61.0% | |
| Redishred Capital Corp ($KUT) | -24.5% | 6.5% | 15.8% | 19.7% | |
| Grenville Strategic Royalty Corp ($GRC) | -10.8% | -10.1% | -11.6% | 18.1% | |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Chesswood Group Ltd ($CHW) | 15.0% | 14.8% | 11.8% | 9.8% | |
| |
|---|
| Median (61 companies) | 4.4% | 4.3% | 3.9% | 2.6% | 3.2% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| IOU Financial Inc ($IOU) | | 7.3x | | 31.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | |
| |
|---|
| Median (32 companies) | 5.3x | 5.0x | 4.5x | 6.0x | 2.4x |
|---|
