5N Plus Inc revenue decline decelerated to 25.6% in FY2016 vs. 38.8% a year earliner
21.02.2017 • About 5N Plus Inc (
$VNP) • By InTwits
5N Plus Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- 5N Plus Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -8.3% for the sames years0
- The company has potentially unprofitable business model: ROIC is at 2.4%
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
5N Plus Inc ($VNP) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 551.7 | 459.0 | 508.2 | 311.0 | 231.5 | -25.6% |
| Gross Profit | 31.4 | 53.9 | 62.5 | -36.0 | 41.5 | |
| SG&A | 45.7 | 36.1 | 36.9 | 25.8 | 26.0 | 0.6% |
| EBITDA | -218.0 | 63.4 | 28.7 | -59.5 | 14.2 | |
| Net Income | -227.7 | 42.7 | 10.8 | -97.2 | -5.9 | |
Balance Sheet
|
|---|
| Cash | 9.5 | 22.4 | 12.8 | 8.8 | 24.3 | 175.6% |
| Short Term Debt | 37.5 | 14.9 | 1.6 | 0.4 | 0.3 | -25.3% |
| Long Term Debt | 110.9 | 68.3 | 97.3 | 41.8 | 43.2 | 3.2% |
Cash flow
|
|---|
| Capex | 16.5 | 11.1 | 13.6 | 14.8 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 210.3% | -16.8% | 10.7% | -38.8% | -25.6% | |
| EBITDA growth | -701.7% | -129.1% | -54.7% | -307.2% | -123.8% | |
| Gross Margin | 5.7% | 11.7% | 12.3% | -11.6% | 17.9% | 29.5% |
| EBITDA Margin | -39.5% | 13.8% | 5.6% | -19.1% | 6.1% | 25.2% |
| Net Income Margin | -41.3% | 9.3% | 2.1% | -31.3% | -2.5% | 28.7% |
| SG&A, % of revenue | 8.3% | 7.9% | 7.3% | 8.3% | 11.2% | 2.9% |
| CAPEX, % of revenue | 3.0% | 2.4% | 2.7% | 4.8% | | -4.8% |
| ROIC | -51.9% | 18.4% | 6.0% | -40.3% | 2.4% | 42.7% |
| ROE | -90.2% | 25.5% | 5.6% | -66.3% | -6.4% | 60.0% |
| Net Debt/EBITDA | | 1.0x | 3.0x | | 1.4x | 1.4x |
5N Plus Inc ($VNP) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 64 | 57 | 55 | 55 | -33.2% | -34.2% | -19.3% | -7.9% |
| EBITDA | 4 | 5 | 2 | 4 | 869.7% | | | |
| Net Income | -2 | 0 | -4 | 0 | | | | |
Balance Sheet
|
|---|
| Cash | 15 | 15 | 23 | 24 | 18.1% | -7.8% | 189.7% | 175.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | -70.9% | -40.6% | -26.4% | -25.3% |
| Long Term Debt | 43 | 44 | 44 | 43 | -50.6% | -41.0% | -18.8% | 3.2% |
Ratios
|
|---|
| Gross Margin | 15.9% | 18.3% | 19.7% | 18.1% | 9.9% | 17.6% | 49.0% | 55.4% |
| EBITDA Margin | 6.6% | 8.4% | 3.6% | 8.1% | 6.2% | 12.7% | 45.7% | 53.9% |
| Net Income Margin | -3.0% | 0.1% | -7.6% | 0.3% | -0.9% | 23.6% | 39.2% | 72.1% |
Revenue and profitability
5N Plus Inc's Revenue dropped on 25.6%. Annual revenue decline showed slowdown in FY16Q4 - revenue decreased on 7.9%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 25.2 pp from -19.1% to 6.1% in FY2016.
Gross Margin jumped on 29.5 pp from -11.6% to 17.9% in FY2016. SG&A as a % of Revenue increased on 2.9 pp from 8.3% to 11.2% in FY2016.
Net Income marign jumped on 28.7 pp from -31.3% to -2.5% in FY2016.
Return on investment
The company operates at low but positive ROIC (2.43%) and negative ROE (-6.37%). ROIC surged on 42.7 pp from -40.3% to 2.4% in FY2016. ROE jumped on 60.0 pp from -66.3% to -6.4% in FY2016.
Leverage (Debt)
Debt level is 1.4x Net Debt / EBITDA and 3.1x Debt / EBITDA. Net Debt / EBITDA jumped1.4x from to 1.4x in FY2016. Debt increased on 3.0% while cash surged on 176%.
Appendix 1: Peers in Basic Materials
Below you can find 5N Plus 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 ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (82 companies) | 100.8% | -2.5% | 1.8% | -1.7% | 6.8% |
|---|
| 5N Plus Inc ($VNP) | | -16.8% | 10.7% | -38.8% | -25.6% |
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 ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (94 companies) | 32.2% | 22.7% | 19.1% | 16.9% | 24.8% |
|---|
| 5N Plus Inc ($VNP) | 5.7% | 11.7% | 12.3% | -11.6% | 17.9% |
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 ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (100 companies) | 18.6% | 10.8% | 10.7% | 7.3% | 24.5% |
|---|
| 5N Plus Inc ($VNP) | -39.5% | 13.8% | 5.6% | -19.1% | 6.1% |
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 ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (100 companies) | 28.1% | 27.4% | 17.8% | 17.2% | 17.9% |
|---|
| 5N Plus Inc ($VNP) | 3.0% | 2.4% | 2.7% | 4.8% | |
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 ($CFX) | 4.9% | 13.2% | 21.3% | 24.1% | 17.0% |
| |
|---|
| Median (99 companies) | 4.9% | 0.1% | 1.2% | -3.6% | 4.8% |
|---|
| 5N Plus Inc ($VNP) | -51.9% | 18.4% | 6.0% | -40.3% | 2.4% |
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 ($CCO) | 2.0x | 2.1x | 2.5x | 1.9x | 5.1x |
| |
|---|
| Median (57 companies) | 0.3x | 0.7x | 1.1x | 1.6x | 0.6x |
|---|
| 5N Plus Inc ($VNP) | | 1.0x | 3.0x | | 1.4x |
