Migao Corp EBITDA dropped on 119% in 2016 while Revenue surged on 17.5%
29.06.2016 • About Migao Corp (
$MGO) • By InTwits
Migao Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Migao Corp doesn't have a profitable business model yet: FY2016 ROIC is -2.1%
- The company operates at negative EBITDA Margin: -1.1%
- Migao Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: 3.3 in FY2016, 13.3 in FY2015, 13.8 in FY2014, 6.6 in FY2013, 48.1 in FY2012
- The company has unprofitable business model: ROIC is at -2.1%
- It operates with high leverage: Net Debt/EBITDA is 1.3x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Migao Corp ($MGO) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 402.7 | 284.3 | 369.3 | 444.5 | 522.3 | 17.5% |
| Gross Profit | 59.7 | 3.6 | -9.6 | 47.0 | 37.7 | -19.6% |
| SG&A | | 8.8 | 10.8 | 40.0 | 46.1 | 15.4% |
| EBITDA | 36.3 | -19.5 | -36.1 | 30.4 | -5.6 | -118.5% |
| Net Income | 16.5 | -38.8 | -58.2 | 12.7 | -25.9 | -304.7% |
Balance Sheet
|
|---|
| Cash | 42.9 | 10.2 | 13.8 | 14.7 | 1.8 | -87.6% |
| Short Term Debt | 109.7 | 177.3 | 309.0 | 272.7 | 295.9 | 8.5% |
| Long Term Debt | 4.6 | 4.1 | 3.5 | 2.0 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 48.1 | 6.6 | 13.8 | 13.3 | 3.3 | -75.2% |
Ratios
|
|---|
| Revenue growth | 27.1% | -29.4% | 29.9% | 20.4% | 17.5% | |
| EBITDA growth | -29.7% | -153.7% | 84.9% | -184.4% | -118.5% | |
| Gross Margin | 14.8% | 1.3% | -2.6% | 10.6% | 7.2% | -3.3% |
| EBITDA Margin | 9.0% | -6.9% | -9.8% | 6.8% | -1.1% | -7.9% |
| Net Income Margin | 4.1% | -13.7% | -15.8% | 2.8% | -5.0% | -7.8% |
| SG&A, % of revenue | | 3.1% | 2.9% | 9.0% | 8.8% | -0.2% |
| CAPEX, % of revenue | 12.0% | 2.3% | 3.7% | 3.0% | 0.6% | -2.4% |
| ROIC | 7.1% | -5.9% | -8.1% | 3.9% | -2.1% | -6.0% |
| ROE | 5.1% | -11.9% | -19.7% | 4.1% | -7.9% | -12.0% |
| Net Debt/EBITDA | 2.0x | | | 8.5x | | -8.5x |
Migao Corp ($MGO) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 117 | 171 | 54 | 180 | 97.0% | 235.8% | -56.7% | -13.8% |
| EBITDA | -2 | 2 | -4 | -2 | -160.6% | -39.3% | -234.0% | -108.6% |
| Net Income | -5 | -9 | -7 | -5 | -1,323.6% | | -247.5% | -159.9% |
Balance Sheet
|
|---|
| Cash | 8 | 27 | 5 | 2 | -74.5% | -19.3% | -89.4% | -87.6% |
| Short Term Debt | 310 | 345 | 339 | 296 | 3.9% | 26.6% | 20.8% | 8.5% |
| Long Term Debt | 2 | 1 | 1 | 0 | -42.3% | -74.8% | -75.1% | -100.0% |
Ratios
|
|---|
| Gross Margin | 6.8% | 4.6% | 8.6% | 9.6% | -6.1% | -10.8% | 0.4% | -0.6% |
| EBITDA Margin | -2.0% | 1.3% | -7.1% | -1.0% | -8.5% | -5.9% | -9.3% | -10.6% |
| Net Income Margin | -4.7% | -5.0% | -13.4% | -2.5% | -5.4% | -4.4% | -17.4% | -6.1% |
Revenue and profitability
The company's Revenue jumped on 17.5%. Revenue growth showed slow down in FY16Q4 - it was -13.8% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.5 pp from 13.0% to 16.5% in FY2016.
Gross Margin decreased on 3.3 pp from 10.6% to 7.2% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased on 7.8 pp from 2.8% to -5.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Migao Corp's CAPEX/Revenue was 0.63% in FY2016. CAPEX/Revenue decreased slightly on 1.7 pp from 2.3% in FY2013 to 0.63% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.5%.
Return on investment
The company operates at negative ROIC (-2.10%) and ROE (-7.95%). ROIC decreased on 6.0 pp from 3.9% to -2.1% in FY2016. ROE dropped on 12.0 pp from 4.1% to -7.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is . Net Debt / EBITDA dropped on 8.5x from 8.5x to in FY2016. Debt increased on 7.7% while cash dropped on 87.6%.
Appendix 1: Peers in Basic Materials
Below you can find Migao Corp benchmarking vs. other companies in Basic Materials 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 |
|---|
| Avino Silver & Gold Mines Ltd ($ASM) | | 613.6% | 19.9% | -1.1% | 109.1% |
| Trevali Mining Corp ($TV) | | | | 12.9% | 86.4% |
| Geodrill Ltd ($GEO) | | -43.3% | -4.3% | 34.6% | 53.1% |
| Tahoe Resources Inc ($THO) | | | | 48.4% | 50.9% |
| Osisko Gold Royalties Ltd ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (83 companies) | 100.8% | -2.9% | 1.9% | -1.8% | 6.2% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nevsun Resources Ltd ($NSU) | 89.9% | 94.8% | 95.5% | 82.3% | 79.7% |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.3% | 80.3% |
| Lucara Diamond Corp ($LUC) | 42.5% | 57.4% | 66.7% | 60.9% | 65.6% |
| Trevali Mining Corp ($TV) | | | 49.0% | 59.3% | |
| Perseus Mining Ltd ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (95 companies) | 32.1% | 22.4% | 18.6% | 16.5% | 24.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Labrador Iron Ore Royalty Corp ($LIF) | | | | 72.8% | 73.5% |
| Silver Wheaton Corp ($SLW) | 82.6% | 75.3% | 69.6% | 65.8% | 59.7% |
| Franco-Nevada Corp ($FNV) | 62.1% | 44.6% | 72.3% | 60.8% | 70.3% |
| Lucara Diamond Corp ($LUC) | 7.6% | 57.3% | 57.5% | 60.0% | 62.4% |
| Sandstorm Gold Ltd ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (101 companies) | 18.6% | 11.3% | 10.6% | 7.0% | 23.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Largo Resources Ltd ($LGO) | | | | 567.6% | |
| Sandstorm Gold Ltd ($SSL) | 152.1% | 118.8% | 49.4% | 412.7% | 17.3% |
| Silver Wheaton Corp ($SLW) | 75.5% | 286.8% | 22.5% | 279.2% | 90.3% |
| Franco-Nevada Corp ($FNV) | 3.7% | 35.5% | 201.6% | 230.0% | 122.4% |
| Avino Silver & Gold Mines Ltd ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (101 companies) | 27.8% | 26.9% | 17.5% | 16.7% | 17.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucara Diamond Corp ($LUC) | -2.9% | 41.3% | 54.7% | 39.6% | 58.5% |
| Western Forest Products Inc ($WEF) | 9.0% | 25.1% | 15.7% | 16.4% | 25.1% |
| Geodrill Ltd ($GEO) | 8.6% | -3.5% | -9.3% | 3.6% | 20.3% |
| Supremex Inc ($SXP) | 14.1% | 18.5% | 16.5% | 23.4% | 19.3% |
| Canfor Pulp Products Inc ($CFX) | 4.9% | 13.2% | 21.3% | 24.1% | 17.0% |
| |
|---|
| Median (100 companies) | 4.9% | 0.7% | 1.6% | -3.6% | 4.4% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canam Group Inc ($CAM) | 4.2x | 2.6x | 3.2x | 1.8x | 13.9x |
| Taseko Mines Ltd ($TKO) | 7.4x | 5.9x | 10.2x | 5.9x | 11.0x |
| Methanex Corp ($MX) | 5.2x | 0.7x | 0.9x | 3.0x | 5.2x |
| Copper Mountain Mining Corp ($CUM) | 3.9x | 5.0x | 5.4x | 30.6x | 5.1x |
| Cameco Corp ($CCO) | 2.0x | 2.1x | 2.5x | 1.9x | 5.1x |
| |
|---|
| Median (58 companies) | 0.3x | 0.8x | 1.1x | 1.6x | 0.6x |
|---|
