Denison Mines Corp revenue increased on 9.2% in 2016
08.03.2017 • About Denison Mines Corp (
$DML) • By InTwits
Denison Mines Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: in FY2016 vs. -356.1% in FY2015 vs. -86.6% in FY2012
- Denison Mines Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -250.2%0
- It operates with high leverage: Net Debt/EBITDA is 3.5x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Denison Mines Corp ($DML) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11.127 | 10.407 | 9.619 | 12.670 | 13.833 | 9.2% |
| Gross Profit | -3.257 | 1.596 | -2.032 | 0.262 | | -100.0% |
| SG&A | 10.475 | 8.167 | 6.636 | 6.463 | | -100.0% |
| EBITDA | -9.633 | -67.230 | -22.294 | -45.124 | | |
| Net Income | -117.964 | -83.835 | -31.703 | -51.560 | -17.343 | |
Balance Sheet
|
|---|
| Cash | 38.188 | 21.786 | 18.640 | 5.367 | | -100.0% |
| Short Term Debt | 0.125 | 0.055 | 0.030 | 0.300 | | -100.0% |
| Long Term Debt | 0.104 | 0.042 | 0.009 | 0.000 | | |
Cash flow
|
|---|
| Capex | 13.122 | 2.262 | 0.859 | 1.987 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -56.9% | -6.5% | -7.6% | 31.7% | 9.2% | |
| EBITDA growth | -169.3% | 597.9% | -66.8% | 102.4% | | |
| Gross Margin | -29.3% | 15.3% | -21.1% | 2.1% | | -2.1% |
| EBITDA Margin | -86.6% | -646.0% | -231.8% | -356.1% | 0.0% | 356.1% |
| Net Income Margin | -1,060.2% | -805.6% | -329.6% | -406.9% | -125.4% | 281.6% |
| SG&A, % of revenue | 94.1% | 78.5% | 69.0% | 51.0% | | -51.0% |
| CAPEX, % of revenue | 117.9% | 21.7% | 8.9% | 15.7% | | -15.7% |
| ROIC | -7.8% | -23.4% | -8.4% | -21.1% | | 21.1% |
| ROE | -32.8% | -31.0% | -11.9% | -24.4% | | 24.4% |
Denison Mines Corp ($DML) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 4 | 3 | 3 | 43.0% | 25.1% | -1.0% | -13.8% |
| EBITDA | -4 | -3 | -3 | -0 | | | | |
| Net Income | -10 | -4 | 7 | -10 | | | | |
Balance Sheet
|
|---|
| Cash | 6 | 18 | 12 | 12 | -56.0% | 20.0% | 67.5% | 120.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | 579.3% | 259.1% | -100.0% | -8.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 27.7% | 27.3% | 26.8% | 10.6% | 10.5% | 4.7% | 1.1% | 46.7% |
| EBITDA Margin | -113.6% | -86.2% | -73.3% | -8.9% | 155.1% | 7.6% | 34.1% | 132.1% |
| Net Income Margin | -288.5% | -116.9% | 187.6% | -298.4% | 132.2% | 24.2% | 795.4% | 118.4% |
Revenue and profitability
The company's Revenue increased on 9.2%. Revenue growth showed slow down in FY16Q4 - it was -13.8% YoY.
Net Income marign surged on 282 pp from -407% to -125% in FY2016.
Management team
David D Cates is a Denison Mines Corp's CEO. David D Cates is a founder and has spent 3 years at the company. The company's CFO Mac Mcdonald has spent 3 years at the company.
Appendix 1: Peers in Basic Materials
Below you can find Denison Mines Corp 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 ($OR) | | | | 164.4% | 38.0% |
| |
|---|
| Median (82 companies) | 100.8% | -2.5% | 2.0% | -2.9% | 5.7% |
|---|
| Denison Mines Corp ($DML) | | -6.5% | -7.6% | 31.7% | 9.2% |
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 ($PRU) | 52.5% | 50.9% | 32.0% | 53.7% | 26.3% |
| |
|---|
| Median (94 companies) | 32.2% | 22.7% | 19.1% | 16.9% | 24.8% |
|---|
| Denison Mines Corp ($DML) | -29.3% | 15.3% | -21.1% | 2.1% | |
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 ($SSL) | 74.3% | 49.9% | 62.1% | 56.5% | 64.6% |
| |
|---|
| Median (100 companies) | 18.6% | 11.5% | 10.7% | 7.3% | 23.5% |
|---|
| Denison Mines Corp ($DML) | -86.6% | -646.0% | -231.8% | -356.1% | |
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 ($ASM) | 211.7% | 5.6% | 89.8% | 163.3% | |
| |
|---|
| Median (100 companies) | 27.4% | 27.4% | 17.8% | 17.2% | 17.9% |
|---|
| Denison Mines Corp ($DML) | 117.9% | 21.7% | 8.9% | 15.7% | |
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 ($CFX) | 4.9% | 13.2% | 21.3% | 24.1% | 17.0% |
| |
|---|
| Median (99 companies) | 4.9% | 1.3% | 1.6% | -3.6% | 4.4% |
|---|
| Denison Mines Corp ($DML) | -7.8% | -23.4% | -8.4% | -21.1% | |
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 (58 companies) | 0.3x | 0.8x | 1.1x | 1.6x | 0.6x |
|---|
