Fortress Paper Ltd revenue increased on 7.6% in 2016
20.03.2017 • About Fortress Paper Ltd (
$FTP) • By InTwits
Fortress Paper Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Fortress Paper Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -4.4% for the sames years0
- It operates with high leverage: Net Debt/EBITDA is 1.4x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Fortress Paper Ltd ($FTP) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 314.4 | 207.8 | 275.9 | 307.6 | 331.0 | 7.6% |
| Gross Profit | 10.4 | -14.9 | -4.5 | 56.3 | | -100.0% |
| SG&A | | 41.2 | 46.5 | 44.7 | | -100.0% |
| EBITDA | -10.2 | -41.3 | -23.2 | 11.0 | | -100.0% |
| Net Income | -20.9 | 54.6 | -63.5 | -34.3 | 6.9 | |
Balance Sheet
|
|---|
| Cash | 31.5 | 61.9 | 44.9 | 34.0 | | -100.0% |
| Short Term Debt | 7.8 | 14.6 | 1.2 | 41.1 | | -100.0% |
| Long Term Debt | 248.1 | 213.6 | 231.2 | 200.3 | | -100.0% |
Cash flow
|
|---|
| Capex | 132.9 | 60.7 | 15.1 | 11.1 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 1.8% | -33.9% | 32.8% | 11.5% | 7.6% | |
| EBITDA growth | -828.9% | 304.6% | -43.7% | -147.5% | | |
| Gross Margin | 3.3% | -7.2% | -1.6% | 18.3% | | -18.3% |
| EBITDA Margin | -3.2% | -19.9% | -8.4% | 3.6% | 0.0% | -3.6% |
| Net Income Margin | -6.6% | 26.3% | -23.0% | -11.2% | 2.1% | 13.2% |
| SG&A, % of revenue | | 19.8% | 16.9% | 14.5% | | -14.5% |
| CAPEX, % of revenue | 42.3% | 29.2% | 5.5% | 3.6% | | -3.6% |
| ROIC | -6.6% | -12.0% | -10.2% | -4.1% | | 4.1% |
| ROE | -9.1% | 20.5% | -23.7% | -15.3% | | 15.3% |
| Net Debt/EBITDA | | | | 18.8x | | -18.8x |
Fortress Paper Ltd ($FTP) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 80 | 88 | 82 | 81 | 8.3% | 18.9% | -3.5% | 8.4% |
| Net Income | -13 | 7 | 20 | -7 | | | | |
Balance Sheet
|
|---|
Ratios
|
|---|
| Net Income Margin | -16.3% | 7.8% | 24.7% | -9.0% | 8.0% | 18.0% | 30.8% | -4.1% |
Revenue and profitability
The company's Revenue increased on 7.6%. Revenue growth showed acceleration in FY16Q4 - it increased 8.4% YoY.
Net Income marign surged on 13.2 pp from -11.2% to 2.1% in FY2016.
Appendix 1: Peers in Basic Materials
Below you can find Fortress Paper Ltd benchmarking vs. other companies in Basic Materials industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Avino Silver & Gold Mines Ltd ($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% | 1.8% | -2.9% | 5.7% |
|---|
| Fortress Paper Ltd ($FTP) | | -33.9% | 32.8% | 11.5% | 7.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nevsun Resources Ltd ($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% | 16.4% | 24.8% |
|---|
| Fortress Paper Ltd ($FTP) | 3.3% | -7.2% | -1.6% | 18.3% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Labrador Iron Ore Royalty Corp ($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% |
|---|
| Fortress Paper Ltd ($FTP) | -3.2% | -19.9% | -8.4% | 3.6% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Largo Resources Ltd ($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% | 26.5% | 17.8% | 17.2% | 17.9% |
|---|
| Fortress Paper Ltd ($FTP) | 42.3% | 29.2% | 5.5% | 3.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lucara Diamond Corp ($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% | 4.4% |
|---|
| Fortress Paper Ltd ($FTP) | -6.6% | -12.0% | -10.2% | -4.1% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canam Group Inc ($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 | 1.5x | 0.6x |
|---|
