Neptune Technologies & Bioressources Inc reports 93.3% CAPEX decline while 50.2% Revenue growth
25.05.2016 • About Neptune Technologies & Bioressources Inc (
$NTB) • By InTwits
Neptune Technologies & Bioressources Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Neptune Technologies & Bioressources Inc doesn't have a profitable business model yet: FY2016 ROIC is -16.3%
- The company operates at negative EBITDA Margin: -54.2%
- Neptune Technologies & Bioressources Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -105.1% for the sames years0
- Neptune Technologies & Bioressources Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 57.4%. At the same time it's a lot of higher than industry average of 5.4%.
- CAPEX is quite volatile: 1.2 in FY2016, 17.9 in FY2015, 16.5 in FY2014, 19.0 in FY2013, 0.91 in FY2012
- The company has unprofitable business model: ROIC is at -16.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Neptune Technologies & Bioressources Inc ($NTB) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 19.124 | 25.864 | 19.496 | 15.070 | 22.632 | 50.2% |
| Gross Profit | 10.060 | 10.231 | 2.522 | -8.018 | 4.568 | |
| SG&A | | | 31.999 | 22.582 | 14.008 | -38.0% |
| EBITDA | -4.966 | -14.858 | -37.318 | -37.938 | -12.275 | |
| Net Income | -1.928 | -16.770 | -16.640 | -27.961 | -7.470 | |
Balance Sheet
|
|---|
| Cash | 3.765 | 14.902 | 6.522 | 4.253 | 5.473 | 28.7% |
| Short Term Debt | 2.909 | 0.005 | 0.018 | 0.540 | 7.527 | 1,293.9% |
| Long Term Debt | 2.845 | 1.866 | 10.081 | 14.007 | 20.154 | 43.9% |
Cash flow
|
|---|
| Capex | 0.907 | 19.036 | 16.503 | 17.927 | 1.200 | -93.3% |
Ratios
|
|---|
| Revenue growth | 15.3% | 35.2% | -24.6% | -22.7% | 50.2% | |
| EBITDA growth | 591.1% | 199.2% | 151.2% | 1.7% | -67.6% | |
| Gross Margin | 52.6% | 39.6% | 12.9% | -53.2% | 20.2% | 73.4% |
| EBITDA Margin | -26.0% | -57.4% | -191.4% | -251.7% | -54.2% | 197.5% |
| Net Income Margin | -10.1% | -64.8% | -85.4% | -185.5% | -33.0% | 152.5% |
| SG&A, % of revenue | | | 164.1% | 149.9% | 61.9% | -88.0% |
| CAPEX, % of revenue | 4.7% | 73.6% | 84.6% | 119.0% | 5.3% | -113.7% |
| ROIC | -20.4% | -32.2% | -56.3% | -48.7% | -16.3% | 32.4% |
| ROE | -9.2% | -37.4% | -28.2% | -46.7% | -12.4% | 34.3% |
Neptune Technologies & Bioressources Inc ($NTB) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 4 | 6 | 10 | -26.7% | 66.9% | 16.6% | 149.5% |
| EBITDA | -6 | -3 | -3 | -1 | | | | |
| Net Income | -4 | -2 | -2 | 1 | | | | |
Balance Sheet
|
|---|
| Cash | 4 | 4 | 10 | 5 | -87.4% | -58.2% | 34.1% | 28.7% |
| Short Term Debt | 2 | 2 | 3 | 8 | 8,084.1% | 35,693.2% | 17,949.2% | 1,293.9% |
| Long Term Debt | 13 | 12 | 11 | 20 | 29.6% | -14.2% | -20.6% | 43.9% |
Ratios
|
|---|
| Gross Margin | -31.1% | 15.9% | 29.9% | 30.5% | -45.3% | 165.4% | 20.6% | 156.4% |
| EBITDA Margin | -207.1% | -64.1% | -45.5% | -13.4% | 8.2% | 469.8% | 65.6% | 253.3% |
| Net Income Margin | -163.9% | -42.8% | -32.2% | 6.1% | -37.1% | 442.3% | -4.0% | 235.5% |
Revenue and profitability
Neptune Technologies & Bioressources Inc's Revenue jumped on 50.2%. Revenue growth showed acceleration in FY16Q4 - it increased 149.5% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 23.3 pp from 16.8% to -6.5% in 2016.
Gross Margin surged on 73.4 pp from -53.2% to 20.2% in FY2016. SG&A as a % of Revenue dropped on 88.0 pp from 150% to 61.9% in FY2016.
Net Income marign surged on 153 pp from -186% to -33.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Neptune Technologies & Bioressources Inc had CAPEX/Revenue of 5.3%. Neptune Technologies & Bioressources Inc showed big decline in CAPEX/Revenue of 68.3 pp from 73.6% in FY2013 to 5.3% in FY2016. For the last three years the average CAPEX/Revenue was 69.6%.
Return on investment
The company operates at negative ROIC (-16.27%) and ROE (-12.38%). ROIC jumped on 32.4 pp from -48.7% to -16.3% in FY2016. ROE jumped on 34.3 pp from -46.7% to -12.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt surged on 90.3% while cash jumped on 28.7%.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Neptune Technologies & Bioressources Inc benchmarking against other companies in Consumer, Non-cyclical 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | 107.0% |
| Nobilis Health Corp ($NHC) | | 49.0% | 169.9% | 172.8% | 24.7% |
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| EnerCare Inc ($ECI) | | 8.6% | 21.1% | 55.7% | 76.6% |
| |
|---|
| Median (54 companies) | 26.9% | 9.1% | 13.9% | 15.2% | 12.8% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | 88.3% |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | 85.1% |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| Concordia Healthcare Corp ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (45 companies) | 35.4% | 34.2% | 35.8% | 31.0% | 28.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | -92.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | 31.4% |
| EnerCare Inc ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (53 companies) | 8.0% | 9.7% | 10.4% | 8.5% | 10.0% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Feronia Inc/Canada ($FRN) | 191.4% | 117.4% | 42.4% | 81.0% | |
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | 15.5% |
| Black Diamond Group Ltd ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| |
|---|
| Median (53 companies) | 3.1% | 2.8% | 2.3% | 2.3% | 2.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Biosyent Inc ($RX) | 71.7% | 62.4% | 62.9% | 48.2% | |
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Medical Facilities Corp ($DR) | 36.1% | 39.5% | 26.5% | 28.5% | |
| Nobilis Health Corp ($NHC) | 49.4% | 29.7% | 39.0% | 24.5% | |
| Savaria Corp ($SIS) | 8.4% | 20.9% | 20.6% | 20.2% | |
| |
|---|
| Median (54 companies) | 7.8% | 7.3% | 8.3% | 5.9% | 8.4% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Noble Iron Inc ($NIR) | 25.5x | 12.9x | 227.3x | 244.1x | |
| Family Memorials Inc ($FAM) | | | 15.2x | 84.3x | |
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| |
|---|
| Median (43 companies) | 3.0x | 2.2x | 3.5x | 3.1x | 2.7x |
|---|
