Sierra Metals Inc Net Income surged on 152% in 2016
15.02.2017 • About Sierra Metals Inc (
$SMT) • By InTwits
Sierra Metals Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with medium-size leverage: Net Debt/EBITDA is 0.9x while industry average is 0.8x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sierra Metals Inc ($SMT) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 179.8 | 143.5 | 172.6 | 134.1 | 97.3 | -27.4% |
| Gross Profit | 108.8 | 75.0 | 49.0 | 7.3 | | -100.0% |
| SG&A | 6.6 | 6.2 | 8.3 | 21.2 | | -100.0% |
| EBITDA | 82.9 | 52.4 | 70.9 | 11.4 | | -100.0% |
| Net Income | -28.7 | -34.0 | 9.3 | -33.3 | 17.2 | |
Balance Sheet
|
|---|
| Cash | 80.2 | 44.9 | 41.3 | 25.1 | | -100.0% |
| Short Term Debt | 33.1 | 25.1 | 30.2 | 17.5 | | -100.0% |
| Long Term Debt | 56.2 | 68.4 | 51.6 | 58.6 | | -100.0% |
Cash flow
|
|---|
| Capex | 33.2 | 44.0 | 39.9 | 37.6 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 76.6% | -20.2% | 20.3% | -22.3% | -27.4% | |
| EBITDA growth | 110.7% | -36.8% | 35.2% | -84.0% | | |
| Gross Margin | 60.5% | 52.2% | 28.4% | 5.5% | | -5.5% |
| EBITDA Margin | 46.1% | 36.5% | 41.1% | 8.5% | 0.0% | -8.5% |
| Net Income Margin | -16.0% | -23.7% | 5.4% | -24.8% | 17.7% | 42.6% |
| SG&A, % of revenue | 3.7% | 4.3% | 4.8% | 15.8% | | -15.8% |
| CAPEX, % of revenue | 18.5% | 30.7% | 23.1% | 28.0% | | -28.0% |
| ROIC | -2.0% | -6.1% | 5.1% | -10.2% | | 10.2% |
| ROE | -12.6% | -15.7% | 4.6% | -17.7% | | 17.7% |
| Net Debt/EBITDA | 0.1x | 0.9x | 0.6x | 4.5x | | -4.5x |
Sierra Metals Inc ($SMT) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 24 | 37 | 41 | 42 | -31.7% | -19.6% | 43.4% | 67.1% |
| EBITDA | 4 | 5 | 16 | 15 | -69.9% | -72.4% | 822.1% | |
| Net Income | -5 | -3 | 1 | -5 | | -384.5% | | |
Balance Sheet
|
|---|
| Cash | 19 | 21 | 27 | 42 | -49.8% | -31.1% | -15.4% | 67.9% |
| Short Term Debt | 26 | 29 | 30 | 29 | -11.9% | -3.8% | 88.1% | 67.7% |
| Long Term Debt | 57 | 56 | 53 | 49 | 2.8% | 13.3% | -13.6% | -15.8% |
Ratios
|
|---|
| Gross Margin | -6.5% | 2.8% | 26.9% | 15.1% | -23.4% | -25.5% | 39.7% | 46.6% |
| EBITDA Margin | 17.0% | 13.2% | 38.8% | 35.4% | -21.6% | -25.2% | 32.8% | 120.8% |
| Net Income Margin | -21.6% | -9.3% | 3.4% | -12.1% | -19.6% | -12.0% | 27.1% | 96.1% |
Revenue and profitability
The company's Revenue dropped on 27.4%. Annual revenue decline showed slowdown in FY16Q4 - revenue jumped on 67.1%.
Net Income marign jumped on 42.6 pp from -24.8% to 17.7% in FY2016.
Appendix 1: Peers in Basic Materials
Below you can find Sierra Metals Inc 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 ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (82 companies) | 100.8% | -2.5% | 1.8% | -1.7% | 6.8% |
|---|
| Sierra Metals Inc ($SMT) | | -20.2% | 20.3% | -22.3% | -27.4% |
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 ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (94 companies) | 32.1% | 22.1% | 18.2% | 16.9% | 24.8% |
|---|
| Sierra Metals Inc ($SMT) | 60.5% | 52.2% | 28.4% | 5.5% | |
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 ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (100 companies) | 17.4% | 10.8% | 10.3% | 6.7% | 23.5% |
|---|
| Sierra Metals Inc ($SMT) | 46.1% | 36.5% | 41.1% | 8.5% | |
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 ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (100 companies) | 28.1% | 26.5% | 17.5% | 16.6% | 17.9% |
|---|
| Sierra Metals Inc ($SMT) | 18.5% | 30.7% | 23.1% | 28.0% | |
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 ($CFX) | 4.9% | 13.2% | 21.3% | 24.1% | 17.0% |
| |
|---|
| Median (99 companies) | 4.9% | 1.3% | 1.2% | -3.6% | 4.4% |
|---|
| Sierra Metals Inc ($SMT) | -2.0% | -6.1% | 5.1% | -10.2% | |
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 | 0.7x | 1.2x | 1.5x | 0.6x |
|---|
