Electrovaya Inc reports 17.9% revenue growth in FY2016 and 23.7 pp EBITDA Margin decline from -12.1% to -35.8%
28.12.2016 • About Electrovaya Inc (
$EFL) • By InTwits
Electrovaya Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Electrovaya Inc doesn't have a profitable business model yet: FY2016 ROIC is -39.4%
- The company operates at negative EBITDA Margin: -35.8%
- Electrovaya Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -30.1% for the sames years0
- Electrovaya Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.5%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 0.61 in FY2016, 0.12 in FY2015, 0.57 in FY2014, 0.62 in FY2013, 0.39 in FY2012
- The company has unprofitable business model: ROIC is at -39.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Electrovaya Inc ($EFL) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9.854 | 2.842 | 7.404 | 16.568 | 19.535 | 17.9% |
| Gross Profit | 3.942 | 0.619 | 2.822 | 4.977 | 4.871 | -2.1% |
| SG&A | 2.341 | 1.482 | 2.044 | 1.771 | 5.236 | 195.7% |
| EBITDA | -1.935 | -3.140 | -2.860 | -2.006 | -6.992 | |
| Net Income | -3.872 | -4.561 | -3.446 | -3.193 | -8.791 | |
Balance Sheet
|
|---|
| Cash | 5.047 | 2.604 | 0.969 | 6.309 | 0.668 | -89.4% |
| Short Term Debt | 0.000 | 4.924 | 0.034 | 6.458 | 7.847 | 21.5% |
| Long Term Debt | 4.826 | 0.369 | 5.740 | 1.381 | 0.148 | -89.3% |
Cash flow
|
|---|
| Capex | 0.389 | 0.622 | 0.574 | 0.115 | 0.614 | 433.9% |
Ratios
|
|---|
| Revenue growth | -4.0% | -71.2% | 160.5% | 123.8% | 17.9% | |
| EBITDA growth | 173.3% | 62.3% | -8.9% | -29.9% | 248.6% | |
| Gross Margin | 40.0% | 21.8% | 38.1% | 30.0% | 24.9% | -5.1% |
| EBITDA Margin | -19.6% | -110.5% | -38.6% | -12.1% | -35.8% | -23.7% |
| Net Income Margin | -39.3% | -160.5% | -46.5% | -19.3% | -45.0% | -25.7% |
| SG&A, % of revenue | 23.8% | 52.1% | 27.6% | 10.7% | 26.8% | 16.1% |
| CAPEX, % of revenue | 3.9% | 21.9% | 7.8% | 0.7% | 3.1% | 2.4% |
| ROIC | -15.4% | -33.8% | -32.8% | -16.8% | -39.4% | -22.6% |
| ROE | -36.0% | -64.7% | -70.0% | -36.1% | -85.8% | -49.8% |
Electrovaya Inc ($EFL) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 4 | 3 | 4 | 2,842.9% | 653.4% | -56.8% | -54.9% |
| EBITDA | 3 | -2 | -3 | -5 | | | | -404.5% |
| Net Income | 3 | -3 | -3 | -6 | | | | -517.7% |
Balance Sheet
|
|---|
| Cash | 3 | 4 | 3 | 1 | 96.1% | 494.7% | -15.9% | -89.4% |
| Short Term Debt | 6 | 2 | 7 | 8 | 10,496.7% | -59.2% | 32.0% | 21.5% |
| Long Term Debt | 0 | 5 | 0 | 0 | -95.4% | 1,655.8% | -93.3% | -89.3% |
Ratios
|
|---|
| Gross Margin | 59.2% | 16.4% | 14.8% | -24.7% | 30.6% | -7.5% | -6.9% | -60.3% |
| EBITDA Margin | 40.5% | -56.4% | -103.5% | -118.7% | 656.9% | 139.5% | -88.8% | -136.3% |
| Net Income Margin | 35.9% | -71.8% | -119.1% | -126.8% | 711.3% | 94.9% | -90.8% | -140.5% |
Revenue and profitability
The company's Revenue surged on 17.9%. Revenue growth showed slow down in FY16Q4 - it was -54.9% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 23.7 pp from -12.1% to -35.8% in FY2016.
Gross Margin decreased on 5.1 pp from 30.0% to 24.9% in FY2016. SG&A as a % of Revenue surged on 16.1 pp from 10.7% to 26.8% in FY2016.
Net Income marign dropped on 25.7 pp from -19.3% to -45.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Electrovaya Inc had CAPEX/Revenue of 3.1%. CAPEX/Revenue dropped on 18.7 pp from 21.9% in FY2013 to 3.1% in FY2016. It's average CAPEX/Revenue for the last three years was 3.9%.
Return on investment
The company operates at negative ROIC (-39.43%) and ROE (-85.84%). ROIC dropped on 22.6 pp from -16.8% to -39.4% in FY2016. ROE dropped on 49.8 pp from -36.1% to -85.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt increased slightly on 2.0% while cash dropped on 89.4%.
Appendix 1: Peers in Industrial
Below we provide Electrovaya 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progressive Waste Solutions Ltd ($BIN) | | 16.1% | 7.8% | 1.8% | 59.4% |
| Baylin Technologies Inc ($BYL) | | 16.5% | -44.0% | -4.1% | 47.5% |
| CCL Industries Inc ($CCL.B) | | 44.4% | 36.8% | 17.5% | 30.8% |
| Stantec Inc ($STN) | | 17.9% | 13.3% | 14.4% | 30.5% |
| Avigilon Corp ($AVO) | | 72.6% | 41.9% | 17.7% | 22.2% |
| |
|---|
| Median (52 companies) | | 5.1% | 10.1% | 8.1% | 2.9% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
| WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | 76.7% |
| Avigilon Corp ($AVO) | 49.3% | 54.2% | 56.6% | 57.4% | 52.0% |
| Stantec Inc ($STN) | 55.0% | 54.7% | 54.9% | 54.5% | 54.1% |
| IWG Technologies Inc ($IWG) | 53.3% | 54.0% | 49.0% | 47.8% | 54.9% |
| |
|---|
| Median (50 companies) | 23.6% | 23.4% | 21.7% | 21.7% | 22.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | 54.3% |
| Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | 51.6% |
| Badger Daylighting Ltd ($BAD) | 25.7% | 25.9% | 27.9% | 24.6% | 24.2% |
| IWG Technologies Inc ($IWG) | 12.7% | 25.5% | 20.0% | 24.0% | 26.9% |
| Winpak Ltd ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
| |
|---|
| Median (54 companies) | 10.4% | 8.4% | 8.4% | 8.6% | 11.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($NAL) | 21.7% | 34.5% | 35.1% | 42.0% | 9.6% |
| Cargojet Inc ($CJT.A) | 7.0% | 6.3% | 54.1% | 41.3% | |
| Algoma Central Corp ($ALC) | 15.9% | 7.3% | 5.0% | 27.4% | 58.2% |
| Canadian Pacific Railway Ltd ($CP) | 20.2% | 20.2% | 21.9% | 22.7% | 19.0% |
| Canadian National Railway Co ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (55 companies) | 3.2% | 3.7% | 4.3% | 3.9% | 4.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($IBG) | 4.8% | -9.0% | 11.6% | 21.9% | 26.2% |
| IWG Technologies Inc ($IWG) | 17.0% | 36.3% | 23.4% | 27.2% | 25.7% |
| Winpak Ltd ($WPK) | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% |
| Toromont Industries Ltd ($TIH) | 28.8% | 25.8% | 24.3% | 23.5% | 21.7% |
| Intertape Polymer Group Inc ($ITP) | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% |
| |
|---|
| Median (56 companies) | 12.2% | 9.6% | 11.5% | 8.3% | 9.0% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($CFF) | | 2.7x | 6.1x | 35.9x | 3.6x |
| Ag Growth International Inc ($AFN) | 2.9x | -0.1x | 2.1x | 14.1x | |
| Cargojet Inc ($CJT.A) | 1.5x | 1.5x | 31.5x | 12.9x | |
| Progressive Waste Solutions Ltd ($BIN) | 4.5x | 3.3x | 2.9x | 10.6x | 3.8x |
| Finning International Inc ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| |
|---|
| Median (50 companies) | 1.5x | 1.6x | 1.3x | 1.0x | 1.9x |
|---|
