Maxim Power Corp revenue dropped on 66.8% in 2016 and EBITDA Margin dropped on 238 pp from -213% to -451%
16.03.2017 • About Maxim Power Corp (
$MXG) • By InTwits
Maxim Power Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Maxim Power Corp is a company in decline: 2016 revenue growth was -66.8%, 5 years revenue CAGR was -47.4%
- The company operates at negative EBITDA Margin: -450.8%
- Maxim Power Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: 0 in 2016, 0 in 2015, 29.5 in 2014, 11.8 in 2013, 22.3 in 2012
- The company has unprofitable business model: ROIC is at -15.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Maxim Power Corp ($MXG) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 156.5 | 173.7 | 142.9 | 19.6 | 6.5 | -66.8% |
| Gross Profit | 19.8 | 24.2 | -4.0 | -12.7 | -25.8 | |
| SG&A | | | | 4.4 | 4.4 | 1.0% |
| EBITDA | 33.6 | 35.7 | 15.0 | -41.6 | -29.2 | |
| Net Income | 3.6 | 9.6 | -9.1 | -77.4 | -53.8 | |
Balance Sheet
|
|---|
| Cash | 11.3 | 21.4 | 17.1 | 5.9 | 15.3 | 160.1% |
| Short Term Debt | 6.7 | 5.8 | 6.1 | 7.6 | 0.0 | -100.0% |
| Long Term Debt | 58.7 | 53.3 | 50.3 | 61.1 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 22.3 | 11.8 | 29.5 | 0.0 | 0.0 | |
Ratios
|
|---|
| Revenue growth | -2.9% | 11.0% | -17.7% | -86.3% | -66.8% | |
| EBITDA growth | -19.1% | 6.3% | -58.0% | -377.5% | -29.7% | |
| Gross Margin | 12.7% | 13.9% | -2.8% | -64.8% | -397.9% | -333.0% |
| EBITDA Margin | 21.5% | 20.6% | 10.5% | -212.7% | -450.8% | -238.1% |
| Net Income Margin | 2.3% | 5.5% | -6.4% | -395.9% | -829.7% | -433.9% |
| SG&A, % of revenue | | | | 22.5% | 68.4% | 45.9% |
| CAPEX, % of revenue | 14.2% | 6.8% | 20.6% | 0.0% | 0.0% | 0.0% |
| ROIC | 4.9% | 5.3% | -2.4% | -16.1% | -15.2% | 0.8% |
| ROE | 1.5% | 3.7% | -3.4% | -32.1% | -28.8% | 3.2% |
| Net Debt/EBITDA | 1.6x | 1.1x | 2.6x | | | 0.0x |
Revenue and profitability
Maxim Power Corp's Revenue dropped on 66.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 238 pp from -213% to -451% in 2016.
Gross Margin dropped on 333 pp from -64.8% to -398% in 2016. SG&A as a % of Revenue surged on 45.9 pp from 22.5% to 68.4% in 2016.
Net Income marign dropped on 434 pp from -396% to -830% in 2016.
Return on investment
The company operates at negative ROIC (-15.24%) and ROE (-28.82%). ROIC increased slightly on 0.82 pp from -16.1% to -15.2% in 2016. ROE increased on 3.2 pp from -32.1% to -28.8% in 2016.
Leverage (Debt)
The company paid down all the debt in 2016. Cash surged on 160%.
Appendix 1: Peers in Utilities
Below we provide Maxim Power Corp benchmarking against other companies in Utilities 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 |
|---|
| Emera Inc ($EMA) | | 8.3% | 31.8% | -5.1% | 53.3% |
| Northland Power Inc ($NPI) | | 54.1% | 36.4% | -4.2% | 50.9% |
| Boralex Inc ($BLX) | | -6.7% | 13.5% | 37.1% | 11.7% |
| Algonquin Power & Utilities Corp ($AQN) | | 93.6% | 39.4% | 9.2% | 6.6% |
| TransAlta Corp ($TA) | | 3.7% | 14.4% | -13.6% | 5.7% |
| |
|---|
| Median (14 companies) | | 10.8% | 13.1% | -5.1% | 1.1% |
|---|
| Maxim Power Corp ($MXG) | | 11.0% | -17.7% | -86.3% | -66.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Atco Ltd/Canada ($ACO.X) | 85.6% | 85.1% | 82.3% | 85.0% | 88.8% |
| Canadian Utilities Ltd ($CU) | 81.0% | 80.8% | 77.7% | 81.0% | 86.6% |
| Northland Power Inc ($NPI) | 52.5% | 63.7% | 61.8% | 69.0% | 82.4% |
| GWR Global Water Resources Corp ($GWR) | | | | 77.8% | 79.2% |
| Fortis Inc/Canada ($FTS) | 34.6% | 34.4% | 59.3% | 61.7% | 65.8% |
| |
|---|
| Median (12 companies) | 43.5% | 46.8% | 56.7% | 61.4% | 62.6% |
|---|
| Maxim Power Corp ($MXG) | 12.7% | 13.9% | -2.8% | -64.8% | -397.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northland Power Inc ($NPI) | 54.2% | 52.4% | 51.2% | 57.5% | 68.8% |
| Canadian Utilities Ltd ($CU) | 45.9% | 45.7% | 47.4% | 45.8% | 53.5% |
| Atco Ltd/Canada ($ACO.X) | 39.8% | 41.0% | 41.4% | 38.7% | 47.7% |
| TransAlta Corp ($TA) | 27.3% | 34.0% | 39.5% | 33.2% | 47.6% |
| Algonquin Power & Utilities Corp ($AQN) | 26.1% | 29.5% | 26.7% | 32.5% | 39.3% |
| |
|---|
| Median (12 companies) | 31.1% | 34.0% | 34.3% | 35.4% | 37.2% |
|---|
| Maxim Power Corp ($MXG) | 21.5% | 20.6% | 10.5% | -212.7% | -450.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northland Power Inc ($NPI) | 84.0% | 60.2% | 238.7% | 265.9% | 148.0% |
| Algonquin Power & Utilities Corp ($AQN) | 21.7% | 23.5% | 45.9% | 19.9% | 37.0% |
| Canadian Utilities Ltd ($CU) | 70.7% | 66.4% | 58.5% | 47.2% | 35.4% |
| Atco Ltd/Canada ($ACO.X) | 58.8% | 54.2% | 48.3% | 39.6% | 33.1% |
| Caribbean Utilities Co Ltd ($CUP.U) | 13.8% | 13.0% | 17.0% | 41.3% | 29.2% |
| |
|---|
| Median (12 companies) | 31.8% | 29.0% | 21.7% | 24.6% | 28.4% |
|---|
| Maxim Power Corp ($MXG) | 14.2% | 6.8% | 20.6% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Keyera Corp ($KEY) | 13.8% | 12.7% | 14.3% | 12.6% | 10.5% |
| Atco Ltd/Canada ($ACO.X) | 10.8% | 10.5% | 9.6% | 5.6% | 8.1% |
| Canadian Utilities Ltd ($CU) | 10.0% | 9.4% | 9.2% | 5.9% | 8.0% |
| Northland Power Inc ($NPI) | 6.0% | 7.4% | 7.2% | 5.3% | 7.3% |
| Caribbean Utilities Co Ltd ($CUP.U) | 5.8% | 6.3% | 6.1% | 5.7% | 5.8% |
| |
|---|
| Median (14 companies) | 4.7% | 6.0% | 5.4% | 5.4% | 4.7% |
|---|
| Maxim Power Corp ($MXG) | 4.9% | 5.3% | -2.4% | -16.1% | -15.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Atlantic Power Corp ($ATP) | 12.6x | 13.0x | 22.4x | 251.1x | 24.3x |
| Emera Inc ($EMA) | 5.7x | 5.6x | 3.8x | 4.3x | 13.3x |
| Algonquin Power & Utilities Corp ($AQN) | 7.9x | 6.2x | 5.0x | 4.1x | 9.7x |
| Fortis Inc/Canada ($FTS) | 5.0x | 5.6x | 6.7x | 5.3x | 9.2x |
| GWR Global Water Resources Corp ($GWR) | | | | 6.3x | 8.1x |
| |
|---|
| Median (12 companies) | 5.3x | 5.5x | 4.6x | 5.1x | 6.1x |
|---|
