Dynex Power Inc reports 53.7% CAPEX decline while 10.3% Revenue growth
20.05.2016 • About Dynex Power Inc (
$DNX) • By InTwits
Dynex Power Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dynex Power Inc doesn't have a profitable business model yet: 2015 ROIC is 1.1%
- EBITDA Margin is quite volatile: 13.1% in 2015, -2.1% in 2014, 1.2% in 2013, 11.8% in 2012, 17.4% in 2011
- Dynex Power Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.8%. At the same time it's a lot of higher than industry average of 6.1%.
- CAPEX is quite volatile: 4.0 in 2015, 8.6 in 2014, 2.9 in 2013, 5.4 in 2012, 10.3 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.1%
- It operates with high leverage: Net Debt/EBITDA is 3.8x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dynex Power Inc ($DNX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 36.082 | 39.615 | 39.234 | 42.166 | 46.512 | 10.3% |
| Gross Profit | 8.616 | 6.732 | 1.945 | -0.441 | 4.683 | -1,161.4% |
| SG&A | | | 3.719 | 4.987 | 4.439 | -11.0% |
| EBITDA | 6.274 | 4.691 | 0.461 | -0.892 | 6.090 | -782.9% |
| Net Income | 2.710 | 1.066 | -2.410 | -5.548 | 0.166 | -103.0% |
Balance Sheet
|
|---|
| Cash | 3.029 | 2.206 | 0.775 | 0.895 | 1.411 | 57.7% |
| Short Term Debt | 0.514 | 6.548 | 10.451 | 4.171 | 15.424 | 269.8% |
| Long Term Debt | 9.239 | 5.512 | 7.161 | 12.983 | 8.905 | -31.4% |
Cash flow
|
|---|
| Capex | 10.328 | 5.441 | 2.872 | 8.636 | 4.002 | -53.7% |
Ratios
|
|---|
| Revenue growth | -0.2% | 9.8% | -1.0% | 7.5% | 10.3% | |
| EBITDA growth | 61.9% | -25.2% | -90.2% | -293.6% | -782.9% | |
| Gross Margin | 23.9% | 17.0% | 5.0% | -1.0% | 10.1% | 11.1% |
| EBITDA Margin | 17.4% | 11.8% | 1.2% | -2.1% | 13.1% | 15.2% |
| Net Income Margin | 7.5% | 2.7% | -6.1% | -13.2% | 0.4% | 13.5% |
| SG&A, % of revenue | | | 9.5% | 11.8% | 9.5% | -2.3% |
| CAPEX, % of revenue | 28.6% | 13.7% | 7.3% | 20.5% | 8.6% | -11.9% |
| ROIC | 9.8% | 3.6% | -5.8% | -10.2% | 1.1% | 11.3% |
| ROE | 8.2% | 3.0% | -6.6% | -16.0% | 0.5% | 16.4% |
| Net Debt/EBITDA | 1.1x | 2.1x | 36.6x | | 3.8x | 3.8x |
Revenue and profitability
Dynex Power Inc's Revenue jumped on 10.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 59.8% to 69.2% in 2015.
Gross Margin surged on 11.1 pp from -1.0% to 10.1% in 2015. SG&A as a % of Revenue decreased on 2.3 pp from 11.8% to 9.5% in 2015.
Net Income marign surged on 13.5 pp from -13.2% to 0.36% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 8.6% in 2015. CAPEX/Revenue decreased on 5.1 pp from 13.7% in 2012 to 8.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 12.1%.The company invested a big chunk of EBITDA (65.7%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (1.13%) and ROE (0.47%). ROIC jumped on 11.3 pp from -10.2% to 1.1% in 2015. ROE jumped on 16.4 pp from -16.0% to 0.47% in 2015.
Leverage (Debt)
Debt level is 3.8x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA jumped3.8x from to 3.8x in 2015. Debt surged on 41.8% in 2015 while cash surged on 57.7% in 2015.
Appendix 1: Peers in Industrial
Below we provide Dynex Power Inc benchmarking against other companies in Industrial 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 |
|---|
| Diversified Royalty Corp ($DIV) | | | | | 503.3% |
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| WSP Global Inc ($WSP) | | 92.9% | 60.3% | 44.0% | 108.9% |
| CEMATRIX Corp ($CVX) | | 9.2% | -5.6% | 7.9% | 76.5% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (93 companies) | | 10.3% | 5.3% | 9.4% | 10.3% |
|---|
| Dynex Power Inc ($DNX) | | 9.8% | -1.0% | 7.5% | 10.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% |
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | 69.3% |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| |
|---|
| Median (87 companies) | 22.6% | 23.4% | 23.4% | 23.1% | 23.8% |
|---|
| Dynex Power Inc ($DNX) | 23.9% | 17.0% | 5.0% | -1.0% | 10.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Photon Control Inc ($PHO) | 8.1% | 17.6% | 24.8% | 29.3% | 38.3% |
| Evertz Technologies Ltd ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| |
|---|
| Median (88 companies) | 8.0% | 9.2% | 8.3% | 7.7% | 7.7% |
|---|
| Dynex Power Inc ($DNX) | 17.4% | 11.8% | 1.2% | -2.1% | 13.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | 41.3% |
| Algoma Central Corp ($ALC) | 6.6% | 15.9% | 7.3% | 5.0% | 27.4% |
| Canadian Pacific Railway Ltd ($CP) | 21.3% | 20.2% | 20.2% | 21.9% | 22.7% |
| Canadian National Railway Co ($CNR) | 18.0% | 17.4% | 18.7% | 18.9% | 21.5% |
| |
|---|
| Median (92 companies) | 2.7% | 3.0% | 3.5% | 3.1% | 3.2% |
|---|
| Dynex Power Inc ($DNX) | 28.6% | 13.7% | 7.3% | 20.5% | 8.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biorem Inc ($BRM) | -141.4% | -15.1% | 32.3% | -29.7% | 54.4% |
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | 40.6% |
| Pacific Safety Products Inc ($PSP) | -19.0% | -1.5% | -11.5% | 3.7% | 38.2% |
| CEMATRIX Corp ($CVX) | 15.7% | 6.4% | -2.4% | -6.7% | 30.4% |
| |
|---|
| Median (93 companies) | 9.0% | 10.0% | 8.5% | 9.1% | 8.4% |
|---|
| Dynex Power Inc ($DNX) | 9.8% | 3.6% | -5.8% | -10.2% | 1.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Conifex Timber Inc ($CFF) | | | 2.7x | 6.1x | 35.9x |
| Ag Growth International Inc ($AFN) | 2.4x | 2.9x | -0.1x | 2.1x | 14.1x |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | 12.9x |
| Progressive Waste Solutions Ltd ($BIN) | 2.5x | 4.5x | 3.3x | 2.9x | 10.6x |
| Finning International Inc ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (75 companies) | 1.3x | 1.5x | 1.4x | 1.3x | 1.0x |
|---|
| Dynex Power Inc ($DNX) | 1.1x | 2.1x | 36.6x | | 3.8x |
