Ballard Power Systems Inc revenue jumped on 51.0% in 2016 and EBITDA Margin jumped on 20.5 pp from -36.3% to -15.9%
01.03.2017 • About Ballard Power Systems Inc (
$BLD) • By InTwits
Ballard Power Systems Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ballard Power Systems Inc doesn't have a profitable business model yet: 2016 ROIC is -14.5%
- The company operates at negative EBITDA Margin: -15.9%
- Ballard Power Systems Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 was 0.0%. On average EBITDA Margin was -30.2% for the sames years0
- Ballard Power Systems Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.4%. At the same time it's in pair with industry average of 1.7%.
- CAPEX is quite volatile: 2.8 in 2016, 2.3 in 2015, 0.83 in 2014, 0.49 in 2013, 1.2 in 2012
- The company has unprofitable business model: ROIC is at -14.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ballard Power Systems Inc ($BLD) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 43.690 | 61.251 | 68.721 | 56.463 | 85.270 | 51.0% |
| Gross Profit | 7.369 | 16.759 | 10.246 | 9.974 | 24.184 | 142.5% |
| SG&A | 19.207 | 18.152 | 17.715 | 18.022 | 20.128 | 11.7% |
| EBITDA | -25.183 | -13.640 | -22.444 | -20.509 | -13.525 | |
| Net Income | -42.320 | -19.988 | -28.188 | -5.815 | -21.112 | |
Balance Sheet
|
|---|
| Cash | 9.770 | 30.301 | 23.671 | 40.049 | 72.628 | 81.3% |
| Short Term Debt | 10.401 | 1.399 | 1.008 | 1.011 | 1.090 | 7.8% |
| Long Term Debt | 13.011 | 10.772 | 9.226 | 6.723 | 6.428 | -4.4% |
Cash flow
|
|---|
| Capex | 1.168 | 0.485 | 0.829 | 2.282 | 2.778 | 21.7% |
Ratios
|
|---|
| Revenue growth | -21.7% | 40.2% | 12.2% | -17.8% | 51.0% | |
| EBITDA growth | -20.5% | -45.8% | 64.5% | -8.6% | -34.1% | |
| Gross Margin | 16.9% | 27.4% | 14.9% | 17.7% | 28.4% | 10.7% |
| EBITDA Margin | -57.6% | -22.3% | -32.7% | -36.3% | -15.9% | 20.5% |
| Net Income Margin | -96.9% | -32.6% | -41.0% | -10.3% | -24.8% | -14.5% |
| SG&A, % of revenue | 44.0% | 29.6% | 25.8% | 31.9% | 23.6% | -8.3% |
| CAPEX, % of revenue | 2.7% | 0.8% | 1.2% | 4.0% | 3.3% | -0.8% |
| ROIC | -32.0% | -23.6% | -32.6% | -23.8% | -14.5% | 9.3% |
| ROE | -53.7% | -29.8% | -36.7% | -5.9% | -17.6% | -11.7% |
Ballard Power Systems Inc ($BLD) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 16 | 18 | 21 | 31 | 76.0% | 57.9% | 28.7% | 53.5% |
| EBITDA | -8 | -4 | -3 | 1 | | | | |
| Net Income | -10 | -6 | -4 | -1 | -242.4% | | | |
Balance Sheet
|
|---|
| Cash | 44 | 41 | 68 | 73 | -7.0% | 0.2% | 38.7% | 81.3% |
| Short Term Debt | 1 | 1 | 1 | 1 | 5.1% | -48.1% | -46.0% | 7.8% |
| Long Term Debt | 8 | 8 | 7 | 6 | -13.0% | -9.5% | -4.8% | -4.4% |
Ratios
|
|---|
| Gross Margin | 20.1% | 29.0% | 31.2% | 30.5% | 9.2% | 19.3% | 5.9% | 11.4% |
| EBITDA Margin | -52.1% | -22.2% | -12.3% | 4.6% | 14.4% | 37.3% | 11.1% | 24.4% |
| Net Income Margin | -61.3% | -32.9% | -20.3% | -3.7% | -137.1% | 32.8% | 5.5% | 3.1% |
Revenue and profitability
Ballard Power Systems Inc's Revenue jumped on 51.0%. Revenue growth showed acceleration in 16Q4 - it increased 53.5% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 20.5 pp from -36.3% to -15.9% in 2016.
Gross Margin jumped on 10.7 pp from 17.7% to 28.4% in 2016. SG&A as a % of Revenue decreased on 8.3 pp from 31.9% to 23.6% in 2016.
Net Income marign dropped on 14.5 pp from -10.3% to -24.8% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 3.3%. The company's CAPEX/Revenue increased on 2.5 pp from 0.79% in 2013 to 3.3% in 2016. It's average level of CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at negative ROIC (-14.51%) and ROE (-17.64%). ROIC increased on 9.3 pp from -23.8% to -14.5% in 2016. ROE dropped on 11.7 pp from -5.9% to -17.6% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2016. Debt decreased on 2.8% while cash surged on 81.3%.
Management team
The company's CEO is R Randall Macewen "Randy". R Randall Macewen "Randy" is a founder and has 4 years tenure at the company.
Appendix 1: Peers in Energy
Below you can find Ballard Power Systems Inc benchmarking vs. other companies in Energy 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 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | | -18.4% | 141.2% |
| Seven Generations Energy Ltd ($VII) | | 115.7% | 340.2% | 39.0% | 94.4% |
| Athabasca Oil Corp ($ATH) | | 342.7% | 5.5% | -22.9% | 73.1% |
| Painted Pony Petroleum Ltd ($PPY) | | 41.3% | 56.0% | -42.5% | 60.7% |
| ONEnergy Inc ($OEG) | | | 6,002.6% | 231.5% | 57.4% |
| |
|---|
| Median (116 companies) | | 15.4% | 17.0% | -29.5% | -19.1% |
|---|
| Ballard Power Systems Inc ($BLD) | | 40.2% | 12.2% | -17.8% | 51.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Americas Petrogas Inc ($BOE) | 77.1% | 43.3% | -34.3% | 121.1% | |
| TransAlta Renewables Inc ($RNW) | | 94.4% | 94.5% | 94.5% | 91.1% |
| Serinus Energy Inc ($SEN) | 80.5% | 76.5% | 86.8% | 88.5% | |
| Advantage Oil & Gas Ltd ($AAV) | 62.0% | 84.5% | 92.5% | 88.5% | 90.3% |
| Polaris Infrastructure Inc ($PIF) | 39.9% | 33.6% | 32.0% | 86.7% | 88.6% |
| |
|---|
| Median (114 companies) | 32.0% | 32.2% | 32.4% | 33.9% | 32.5% |
|---|
| Ballard Power Systems Inc ($BLD) | 16.9% | 27.4% | 14.9% | 17.7% | 28.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Granite Oil Corp ($GXO) | 59.4% | 64.5% | 70.8% | 201.9% | |
| Perpetual Energy Inc ($PMT) | 35.5% | 70.7% | 58.0% | 110.3% | |
| Petro Rio SA ($PRJ) | -4,809.7% | -6,899.7% | 28.2% | 90.7% | |
| Peyto Exploration & Development Corp ($PEY) | 86.1% | 83.2% | 86.3% | 84.6% | 80.7% |
| Innergex Renewable Energy Inc ($INE) | 111.8% | 110.0% | 82.9% | 83.4% | 83.5% |
| |
|---|
| Median (128 companies) | 25.9% | 35.7% | 28.9% | 9.0% | 29.2% |
|---|
| Ballard Power Systems Inc ($BLD) | -57.6% | -22.3% | -32.7% | -36.3% | -15.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Oryx Petroleum Corp Ltd ($OXC) | | | 1,997.8% | 712.8% | |
| WesternZagros Resources Ltd ($WZR) | | | | 385.6% | |
| Athabasca Oil Corp ($ATH) | 2,426.4% | 596.6% | 504.7% | 315.2% | 83.7% |
| TORC Oil & Gas Ltd ($TOG) | 453.8% | 466.9% | 104.5% | 229.4% | 76.3% |
| Seven Generations Energy Ltd ($VII) | 452.8% | 513.1% | 227.4% | 191.2% | 73.5% |
| |
|---|
| Median (129 companies) | 43.8% | 39.2% | 45.6% | 28.1% | 23.8% |
|---|
| Ballard Power Systems Inc ($BLD) | 2.7% | 0.8% | 1.2% | 4.0% | 3.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Enerplus Corp ($ERF) | -17.3% | 10.2% | 11.5% | -55.5% | 16.3% |
| Whitecap Resources Inc ($WCP) | 7.1% | 8.1% | 9.6% | -10.6% | 10.1% |
| Ecopetrol SA ($ECP) | 29.3% | 24.4% | 16.5% | 3.0% | 9.6% |
| Parkland Fuel Corp ($PKI) | 22.3% | 23.3% | 9.9% | 7.8% | 8.6% |
| Inter Pipeline Ltd ($IPL) | 9.5% | 8.0% | 7.5% | 9.6% | 8.5% |
| |
|---|
| Median (128 companies) | 3.9% | 5.8% | 5.7% | -8.2% | -1.9% |
|---|
| Ballard Power Systems Inc ($BLD) | -32.0% | -23.6% | -32.6% | -23.8% | -14.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BlackPearl Resources Inc ($PXX) | -0.2x | -0.1x | 0.2x | 3,726.1x | -0.2x |
| Paramount Resources Ltd ($POU) | 14.6x | 23.9x | 8.9x | 421.5x | -5.8x |
| Precision Drilling Corp ($PD) | 2.2x | 1.9x | 2.0x | 68.4x | 7.6x |
| Trican Well Service Ltd ($TCW) | 2.5x | 3.4x | 2.9x | 31.4x | |
| Trilogy Energy Corp ($TET) | 2.6x | 1.8x | 2.3x | 25.5x | 7.3x |
| |
|---|
| Median (79 companies) | 1.6x | 1.4x | 1.4x | 2.6x | 2.7x |
|---|
