Great Panther Silver Ltd reports 201% EBITDA growth and 16.3 pp EBITDA Margin growth from 6.3% to 22.6%
27.02.2017 • About Great Panther Silver Ltd (
$GPR) • By InTwits
Great Panther Silver Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 22.6% in FY2016, 6.3% in FY2015, -1.8% in FY2014, 7.0% in FY2013, 25.6% in FY2012
- Great Panther Silver Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.0%. At the same time it's in pair with industry average of 24.1%.
- CAPEX is quite volatile: 4.7 in FY2016, 9.6 in FY2015, 8.4 in FY2014, 13.5 in FY2013, 26.7 in FY2012
- The company has highly profitable business model: ROIC is at 12.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Great Panther Silver Ltd ($GPR) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 61.139 | 53.954 | 54.390 | 73.374 | 61.881 | -15.7% |
| Gross Profit | 19.591 | 0.640 | -6.161 | 5.699 | 22.022 | 286.4% |
| SG&A | | | | 7.092 | 4.959 | -30.1% |
| EBITDA | 15.629 | 3.759 | -0.960 | 4.651 | 13.979 | 200.6% |
| Net Income | 5.510 | -12.729 | -33.013 | -9.341 | -4.118 | |
Balance Sheet
|
|---|
| Cash | 20.735 | 21.760 | 17.968 | 17.860 | 41.642 | 133.2% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 26.712 | 13.524 | 8.428 | 9.626 | 4.673 | -51.5% |
Ratios
|
|---|
| Revenue growth | 5.7% | -11.8% | 0.8% | 34.9% | -15.7% | |
| EBITDA growth | -28.9% | -75.9% | -125.5% | -584.5% | 200.6% | |
| Gross Margin | 32.0% | 1.2% | -11.3% | 7.8% | 35.6% | 27.8% |
| EBITDA Margin | 25.6% | 7.0% | -1.8% | 6.3% | 22.6% | 16.3% |
| Net Income Margin | 9.0% | -23.6% | -60.7% | -12.7% | -6.7% | 6.1% |
| SG&A, % of revenue | | | | 9.7% | 8.0% | -1.7% |
| CAPEX, % of revenue | 43.7% | 25.1% | 15.5% | 13.1% | 7.6% | -5.6% |
| ROIC | 6.7% | -9.7% | -23.2% | -23.0% | 12.5% | 35.5% |
| ROE | 5.7% | -13.5% | -44.7% | -16.9% | -6.4% | 10.5% |
| Net Debt/EBITDA | -1.3x | -5.8x | | -3.8x | -3.0x | 0.9x |
Great Panther Silver Ltd ($GPR) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 18 | 26 | 16 | 2 | -8.9% | 33.3% | -6.9% | |
| EBITDA | 3 | 7 | 4 | -1 | 0.1% | 82.8% | 140.6% | |
| Net Income | -4 | -2 | 2 | -0 | -224.3% | | | |
Balance Sheet
|
|---|
| Cash | 17 | 29 | 53 | 42 | -9.2% | 48.4% | 183.2% | |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 33.3% | 45.1% | 38.8% | -77.6% | 30.7% | 36.4% | 37.2% | |
| EBITDA Margin | 18.3% | 28.1% | 28.2% | -45.3% | 1.6% | 7.6% | 17.3% | |
| Net Income Margin | -24.2% | -6.8% | 13.6% | -2.2% | -41.9% | 17.8% | 33.6% | |
Revenue and profitability
The company's Revenue dropped on 15.7%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 16.3 pp from 6.3% to 22.6% in FY2016.
Gross Margin surged on 27.8 pp from 7.8% to 35.6% in FY2016. SG&A as a % of Revenue decreased slightly on 1.7 pp from 9.7% to 8.0% in FY2016.
Net Income marign increased on 6.1 pp from -12.7% to -6.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Great Panther Silver Ltd had CAPEX/Revenue of 7.6%. Great Panther Silver Ltd showed big decline in CAPEX/Revenue of 17.5 pp from 25.1% in FY2013 to 7.6% in FY2016. For the last three years the average CAPEX/Revenue was 12.1%.
Return on investment
The company operates at low but positive ROIC (12.49%) and negative ROE (-6.39%). ROIC jumped on 35.5 pp from -23.0% to 12.5% in FY2016. ROE surged on 10.5 pp from -16.9% to -6.4% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 133%.
Appendix 1: Peers in Basic Materials
Below you can find Great Panther Silver Ltd 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% | 2.0% | -2.9% | 6.8% |
|---|
| Great Panther Silver Ltd ($GPR) | | -11.8% | 0.8% | 34.9% | -15.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nevsun Resources Ltd ($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% |
|---|
| Great Panther Silver Ltd ($GPR) | 32.0% | 1.2% | -11.3% | 7.8% | 35.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Labrador Iron Ore Royalty Corp ($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% | 24.5% |
|---|
| Great Panther Silver Ltd ($GPR) | 25.6% | 7.0% | -1.8% | 6.3% | 22.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Largo Resources Ltd ($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) | 27.4% | 27.4% | 17.8% | 17.2% | 18.3% |
|---|
| Great Panther Silver Ltd ($GPR) | 43.7% | 25.1% | 15.5% | 13.1% | 7.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucara Diamond Corp ($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% |
|---|
| Great Panther Silver Ltd ($GPR) | 6.7% | -9.7% | -23.2% | -23.0% | 12.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canam Group Inc ($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 | 0.9x | 1.1x | 1.6x | 0.7x |
|---|
| Great Panther Silver Ltd ($GPR) | -1.3x | -5.8x | | -3.8x | -3.0x |
