Supremex Inc EBITDA dropped on 17.3% in 2016 while Revenue surged on 12.8%
16.02.2017 • About Supremex Inc (
$SXP) • By InTwits
Supremex Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Supremex Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 24.1%.
- CAPEX is quite volatile: 63.3 in 2016, 52.1 in 2015, 23.1 in 2014, 41.9 in 2013, 37.9 in 2012
- The company has highly profitable business model: ROIC is at 19.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.9x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Supremex Inc ($SXP) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 131.9 | 129.0 | 131.9 | 142.3 | 160.6 | 12.8% |
| SG&A | 16.9 | 15.5 | 16.9 | 15.3 | 18.7 | 22.4% |
| EBITDA | 24.6 | 28.0 | 26.2 | 33.1 | 27.4 | -17.3% |
| Net Income | -19.6 | 11.5 | 11.0 | 15.9 | 14.6 | -8.4% |
Balance Sheet
|
|---|
| Cash | 5.1 | 1.5 | 0.4 | 3.5 | 2.0 | -44.4% |
| Short Term Debt | 5.0 | 4.8 | 5.2 | 0.0 | 0.0 | |
| Long Term Debt | 44.4 | 32.8 | 17.2 | 28.7 | 26.9 | -6.2% |
Cash flow
|
|---|
| Capex | 2.3 | 1.2 | 2.0 | 1.3 | 1.6 | 25.4% |
Ratios
|
|---|
| Revenue growth | -8.4% | -2.2% | 2.3% | 7.9% | 12.8% | |
| EBITDA growth | -16.7% | 13.7% | -6.3% | 26.2% | -17.3% | |
| EBITDA Margin | 18.7% | 21.7% | 19.9% | 23.3% | 17.0% | -6.2% |
| Net Income Margin | -14.9% | 8.9% | 8.4% | 11.2% | 9.1% | -2.1% |
| SG&A, % of revenue | 12.8% | 12.0% | 12.8% | 10.8% | 11.7% | 0.9% |
| CAPEX, % of revenue | 1.8% | 0.9% | 1.5% | 0.9% | 1.0% | 0.1% |
| ROIC | 14.1% | 18.5% | 16.5% | 23.4% | 19.3% | -4.2% |
| ROE | -38.3% | 22.3% | 17.1% | 23.4% | 18.8% | -4.5% |
| Net Debt/EBITDA | 1.8x | 1.3x | 0.8x | 0.8x | 0.9x | 0.2x |
Supremex Inc ($SXP) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 41 | 39 | 37 | 43 | 18.9% | 16.4% | 12.6% | 5.1% |
| EBITDA | 7 | 7 | 6 | 8 | -12.1% | -33.1% | -15.7% | -3.8% |
| Net Income | 3 | 4 | 3 | 5 | -15.1% | -29.9% | 2.2% | 22.1% |
Balance Sheet
|
|---|
| Cash | 1 | 0 | 1 | 2 | -35.7% | -42.8% | -54.2% | -44.4% |
| Long Term Debt | 27 | 21 | 26 | 27 | 35.7% | 29.3% | 68.7% | -6.2% |
Ratios
|
|---|
| EBITDA Margin | 17.2% | 17.5% | 15.2% | 18.0% | -6.1% | -13.0% | -5.1% | -1.7% |
| Net Income Margin | 7.8% | 9.9% | 7.8% | 10.7% | -3.1% | -6.5% | -0.8% | 1.5% |
Revenue and profitability
Supremex Inc's Revenue surged on 12.8%. Revenue growth showed slow down in 16Q4 - it was 5.1% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 6.2 pp from 23.3% to 17.0% in 2016.
SG&A as a % of Revenue increased slightly on 0.91 pp from 10.8% to 11.7% in 2016.
Net Income marign decreased on 2.1 pp from 11.2% to 9.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.0% in 2016. Supremex Inc showed almost no change in CAPEX/Revenue from 2013 to 2016. Average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at good ROIC (19.26%) and ROE (18.83%). ROIC decreased on 4.2 pp from 23.4% to 19.3% in 2016. ROE decreased on 4.5 pp from 23.4% to 18.8% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is 1.0x. Net Debt / EBITDA jumped on 0.2x from 0.8x to 0.9x in 2016. Debt decreased on 6.2% while cash dropped on 44.4%.
Appendix 1: Peers in Basic Materials
Below we provide Supremex Inc benchmarking against other companies in Basic Materials 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 |
|---|
| 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% | -3.8% | 1.8% | -2.9% | 5.7% |
|---|
| Supremex Inc ($SXP) | | -2.2% | 2.3% | 7.9% | 12.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nevsun Resources Ltd ($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 ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (100 companies) | 17.4% | 10.8% | 10.3% | 6.7% | 24.5% |
|---|
| Supremex Inc ($SXP) | 18.7% | 21.7% | 19.9% | 23.3% | 17.0% |
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 ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (100 companies) | 28.1% | 27.4% | 17.8% | 17.2% | 18.3% |
|---|
| Supremex Inc ($SXP) | 1.8% | 0.9% | 1.5% | 0.9% | 1.0% |
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 ($GEO) | 8.6% | -3.5% | -9.3% | 3.6% | 20.3% |
| Canfor Pulp Products Inc ($CFX) | 4.9% | 13.2% | 21.3% | 24.1% | 17.0% |
| West Fraser Timber Co Ltd ($WFT) | 6.3% | 15.9% | 16.2% | 9.0% | 16.7% |
| |
|---|
| Median (99 companies) | 4.9% | 0.1% | 1.2% | -3.8% | 4.0% |
|---|
| Supremex Inc ($SXP) | 14.1% | 18.5% | 16.5% | 23.4% | 19.3% |
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 ($CCO) | 2.0x | 2.1x | 2.5x | 1.9x | 5.1x |
| |
|---|
| Median (57 companies) | 0.3x | 0.7x | 1.2x | 1.6x | 0.6x |
|---|
| Supremex Inc ($SXP) | 1.8x | 1.3x | 0.8x | 0.8x | 0.9x |
