Silver Standard Resources Inc EBITDA jumped on 2,016% in 2016 and EBITDA Margin jumped on 36.1 pp from 2.4% to 38.4%
23.02.2017 • About Silver Standard Resources Inc (
$SSO) • By InTwits
Silver Standard Resources Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Silver Standard Resources Inc is a growth stock: 2016 revenue growth was 30.8%, 5 year revenue CAGR was 27.1% at 2016 ROIC 11.7%
- EBITDA Margin is expanding: 38.4% in 2016 vs. 2.4% in 2015 vs. 27.0% in 2012
- Silver Standard Resources Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 17.7%. At the same time it's in pair with industry average of 24.1%.
- CAPEX is quite volatile: 86.1 in 2016, 62.5 in 2015, 23.9 in 2014, 36.0 in 2013, 62.0 in 2012
- The company has business model with average profitability: ROIC is at 11.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Silver Standard Resources Inc ($SSO) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 241.1 | 174.7 | 300.1 | 375.3 | 491.0 | 30.8% |
| Gross Profit | 58.1 | 5.2 | 36.2 | 18.8 | 154.0 | 717.4% |
| SG&A | 23.7 | 23.4 | 21.9 | 22.3 | 22.1 | -1.1% |
| EBITDA | 65.2 | -201.1 | -10.2 | 8.9 | 188.8 | 2,016.3% |
| Net Income | 55.3 | -230.0 | -126.4 | -124.3 | 65.0 | |
Balance Sheet
|
|---|
| Cash | 366.9 | 415.7 | 184.6 | 211.9 | 327.1 | 54.4% |
| Short Term Debt | 135.8 | 0.0 | 5.9 | 4.3 | 0.0 | -100.0% |
| Long Term Debt | 0.0 | 187.1 | 197.1 | 208.1 | 220.1 | 5.8% |
Cash flow
|
|---|
| Capex | 62.0 | 36.0 | 23.9 | 62.5 | 86.1 | 37.7% |
Ratios
|
|---|
| Revenue growth | 63.1% | -27.6% | 71.8% | 25.1% | 30.8% | |
| EBITDA growth | 65.5% | -408.5% | -94.9% | -187.6% | 2,016.3% | |
| Gross Margin | 24.1% | 3.0% | 12.1% | 5.0% | 31.4% | 26.3% |
| EBITDA Margin | 27.0% | -115.1% | -3.4% | 2.4% | 38.4% | 36.1% |
| Net Income Margin | 22.9% | -131.7% | -42.1% | -33.1% | 13.2% | 46.3% |
| SG&A, % of revenue | 9.8% | 13.4% | 7.3% | 6.0% | 4.5% | -1.5% |
| CAPEX, % of revenue | 25.7% | 20.6% | 7.9% | 16.7% | 17.5% | 0.9% |
| ROIC | 1.8% | -23.4% | -6.2% | -9.5% | 11.7% | 21.2% |
| ROE | 5.4% | -26.4% | -19.9% | -24.2% | 9.6% | 33.9% |
| Net Debt/EBITDA | -3.5x | | | 0.1x | -0.6x | -0.6x |
Silver Standard Resources Inc ($SSO) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 102 | 119 | 143 | 127 | -9.1% | 24.0% | 85.7% | 40.5% |
| EBITDA | 35 | 37 | 69 | 48 | -8.4% | 41.7% | | |
| Net Income | 2 | 12 | 38 | 12 | -74.7% | | | |
Balance Sheet
|
|---|
| Cash | 218 | 233 | 278 | 327 | 23.9% | 7.1% | 38.8% | 54.4% |
| Short Term Debt | 2 | 0 | 0 | 0 | -62.7% | -100.0% | -100.0% | -100.0% |
| Long Term Debt | 211 | 214 | 217 | 220 | 5.6% | 5.6% | 5.7% | 5.8% |
Ratios
|
|---|
| Gross Margin | 23.0% | 37.1% | 41.3% | 21.6% | -4.3% | 20.1% | 50.9% | 44.2% |
| EBITDA Margin | 34.1% | 31.1% | 48.4% | 37.6% | 0.3% | 3.9% | 88.2% | 64.3% |
| Net Income Margin | 2.3% | 10.5% | 26.5% | 9.5% | -5.9% | 18.2% | 103.5% | 83.1% |
Revenue and profitability
Silver Standard Resources Inc's Revenue surged on 30.8%. Revenue growth showed acceleration in 16Q4 - it increased 40.5% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 36.1 pp from 2.4% to 38.4% in 2016.
Gross Margin jumped on 26.3 pp from 5.0% to 31.4% in 2016. SG&A as a % of Revenue decreased slightly on 1.5 pp from 6.0% to 4.5% in 2016.
Net Income marign surged on 46.3 pp from -33.1% to 13.2% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 17.5%. Silver Standard Resources Inc's CAPEX/Revenue decreased on 3.1 pp from 20.6% in 2013 to 17.5% in 2016. Average CAPEX/Revenue for the last three years was 14.0%.
Return on investment
The company operates at low ROIC (11.68%) and ROE (9.63%). ROIC jumped on 21.2 pp from -9.5% to 11.7% in 2016. ROE surged on 33.9 pp from -24.2% to 9.6% in 2016.
Leverage (Debt)
Debt level is -0.6x Net Debt / EBITDA and 1.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 0.1x to -0.6x in 2016. Debt increased on 3.6% while cash jumped on 54.4%.
Management team
Paul Benson is a Silver Standard Resources Inc's CEO. Paul Benson is a founder and has spent 3 years at the company. The company's CFO is Gregory J Martin "Greg". Gregory J Martin "Greg" has 6 years tenure at the company.
Appendix 1: Peers in Basic Materials
Below we provide Silver Standard Resources 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 ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (82 companies) | 100.8% | -2.5% | 1.8% | -2.9% | 5.7% |
|---|
| Silver Standard Resources Inc ($SSO) | | -27.6% | 71.8% | 25.1% | 30.8% |
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 ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (94 companies) | 32.2% | 22.7% | 19.1% | 16.9% | 24.7% |
|---|
| Silver Standard Resources Inc ($SSO) | 24.1% | 3.0% | 12.1% | 5.0% | 31.4% |
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 ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (100 companies) | 17.4% | 11.5% | 10.7% | 7.3% | 23.0% |
|---|
| Silver Standard Resources Inc ($SSO) | 27.0% | -115.1% | -3.4% | 2.4% | 38.4% |
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 ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (100 companies) | 28.1% | 27.4% | 17.8% | 17.2% | 18.3% |
|---|
| Silver Standard Resources Inc ($SSO) | 25.7% | 20.6% | 7.9% | 16.7% | 17.5% |
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 ($CFX) | 4.9% | 13.2% | 21.3% | 24.1% | 17.0% |
| |
|---|
| Median (99 companies) | 4.9% | 1.3% | 1.6% | -3.6% | 4.0% |
|---|
| Silver Standard Resources Inc ($SSO) | 1.8% | -23.4% | -6.2% | -9.5% | 11.7% |
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 ($CCO) | 2.0x | 2.1x | 2.5x | 1.9x | 5.1x |
| |
|---|
| Median (57 companies) | 0.3x | 0.8x | 1.1x | 1.6x | 0.7x |
|---|
| Silver Standard Resources Inc ($SSO) | -3.5x | | | 0.1x | -0.6x |
