Geodrill Ltd Net Income surged on 471% in 2016 and EBITDA Margin increased on 4.8 pp from 21.6% to 26.4%
06.03.2017 • About Geodrill Ltd (
$GEO) • By InTwits
Geodrill Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Geodrill Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.4%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 8.9 in 2016, 2.7 in 2015, 1.8 in 2014, 1.5 in 2013, 22.8 in 2012
- The company has highly profitable business model: ROIC is at 20.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Geodrill Ltd ($GEO) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 65.586 | 37.212 | 35.595 | 47.922 | 73.350 | 53.1% |
| Gross Profit | 25.852 | 11.854 | 6.823 | 15.446 | 29.480 | 90.9% |
| SG&A | 19.806 | 14.289 | 12.808 | 13.456 | 17.648 | 31.1% |
| EBITDA | 14.023 | 7.190 | 3.531 | 10.369 | 19.367 | 86.8% |
| Net Income | 3.205 | -4.908 | -6.701 | -1.908 | 7.070 | |
Balance Sheet
|
|---|
| Cash | 7.562 | 3.209 | 5.197 | 5.849 | 9.329 | 59.5% |
| Short Term Debt | 6.391 | 5.445 | 6.464 | 2.481 | 2.194 | -11.6% |
| Long Term Debt | 5.838 | 1.070 | 0.900 | 3.669 | 2.157 | -41.2% |
Cash flow
|
|---|
| Capex | 22.822 | 1.543 | 1.814 | 2.750 | 8.877 | 222.8% |
Ratios
|
|---|
| Revenue growth | -6.5% | -43.3% | -4.3% | 34.6% | 53.1% | |
| EBITDA growth | -44.3% | -48.7% | -50.9% | 193.6% | 86.8% | |
| Gross Margin | 39.4% | 31.9% | 19.2% | 32.2% | 40.2% | 8.0% |
| EBITDA Margin | 21.4% | 19.3% | 9.9% | 21.6% | 26.4% | 4.8% |
| Net Income Margin | 4.9% | -13.2% | -18.8% | -4.0% | 9.6% | 13.6% |
| SG&A, % of revenue | 30.2% | 38.4% | 36.0% | 28.1% | 24.1% | -4.0% |
| CAPEX, % of revenue | 34.8% | 4.1% | 5.1% | 5.7% | 12.1% | 6.4% |
| ROIC | 8.6% | -3.5% | -9.3% | 3.6% | 20.3% | 16.7% |
| ROE | 5.5% | -8.5% | -12.8% | -4.0% | 13.8% | 17.7% |
| Net Debt/EBITDA | 0.3x | 0.5x | 0.6x | 0.0x | -0.3x | -0.3x |
Geodrill Ltd ($GEO) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 15 | 19 | 20 | 19 | 64.6% | 21.4% | 93.5% | 52.0% |
| EBITDA | 5 | 5 | 5 | 4 | 469.2% | 3.3% | 189.4% | 60.8% |
| Net Income | 2 | 3 | 2 | 1 | | 36.0% | | |
Balance Sheet
|
|---|
| Cash | 5 | 7 | 5 | 9 | 69.9% | 77.1% | -16.0% | 59.5% |
| Short Term Debt | 2 | 2 | 2 | 2 | -67.8% | -65.0% | -69.4% | -11.6% |
| Long Term Debt | 4 | 3 | 3 | 2 | 538.6% | 1,004.7% | | -41.2% |
Ratios
|
|---|
| Gross Margin | 42.7% | 40.0% | 39.6% | 37.4% | 21.3% | -1.1% | 15.2% | 3.7% |
| EBITDA Margin | 32.1% | 28.1% | 24.8% | 21.6% | 22.8% | -4.9% | 8.2% | 1.2% |
| Net Income Margin | 10.4% | 12.9% | 9.7% | 5.6% | 25.4% | 1.4% | 27.1% | 10.2% |
Revenue and profitability
The company's Revenue jumped on 53.1%. Revenue growth showed slow down in 16Q4 - it was 52.0% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.8 pp from 21.6% to 26.4% in 2016.
Gross Margin increased on 8.0 pp from 32.2% to 40.2% in 2016. SG&A as a % of Revenue decreased on 4.0 pp from 28.1% to 24.1% in 2016.
Net Income marign surged on 13.6 pp from -4.0% to 9.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Geodrill Ltd had CAPEX/Revenue of 12.1%. The company's CAPEX/Revenue increased on 8.0 pp from 4.1% in 2013 to 12.1% in 2016. Average CAPEX/Revenue for the last three years was 7.6%.
Return on investment
The company operates at high and attractive ROIC (20.29%) while ROE is a bit lower (13.79%). ROIC jumped on 16.7 pp from 3.6% to 20.3% in 2016. ROE jumped on 17.7 pp from -4.0% to 13.8% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.3x and Debt / EBITDA is 0.2x. Net Debt / EBITDA dropped on 0.3x from 0.029x to -0.3x in 2016. Debt dropped on 29.3% while cash jumped on 59.5%.
Appendix 1: Peers in Basic Materials
Below you can find Geodrill 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% |
| Tahoe Resources Inc ($THO) | | | | 48.4% | 50.9% |
| Osisko Gold Royalties Ltd ($OR) | | | | 164.4% | 38.0% |
| Franco-Nevada Corp ($FNV) | | -6.1% | 10.4% | 0.3% | 37.6% |
| |
|---|
| Median (82 companies) | 100.8% | -2.5% | 2.0% | -2.9% | 5.7% |
|---|
| Geodrill Ltd ($GEO) | | -43.3% | -4.3% | 34.6% | 53.1% |
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 ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (94 companies) | 32.1% | 22.1% | 18.2% | 16.4% | 24.7% |
|---|
| Geodrill Ltd ($GEO) | 39.4% | 31.9% | 19.2% | 32.2% | 40.2% |
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 ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (100 companies) | 17.4% | 10.8% | 10.7% | 6.7% | 23.0% |
|---|
| Geodrill Ltd ($GEO) | 21.4% | 19.3% | 9.9% | 21.6% | 26.4% |
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 ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (100 companies) | 27.4% | 27.4% | 17.8% | 17.2% | 18.3% |
|---|
| Geodrill Ltd ($GEO) | 34.8% | 4.1% | 5.1% | 5.7% | 12.1% |
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% |
| 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% |
| West Fraser Timber Co Ltd ($WFT) | 6.3% | 15.9% | 16.2% | 9.0% | 16.7% |
| |
|---|
| Median (99 companies) | 4.9% | 1.3% | 1.6% | -3.8% | 4.0% |
|---|
| Geodrill Ltd ($GEO) | 8.6% | -3.5% | -9.3% | 3.6% | 20.3% |
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 ($CCO) | 2.0x | 2.1x | 2.5x | 1.9x | 5.1x |
| |
|---|
| Median (57 companies) | 0.3x | 0.9x | 1.2x | 1.6x | 0.7x |
|---|
| Geodrill Ltd ($GEO) | 0.3x | 0.5x | 0.6x | 0.0x | -0.3x |
