Strata-X Energy Ltd revenue dropped on 81.0% while EBITDA Margin jumped on 12,409 pp from -31,806% to -19,396%
24.09.2020 • About Strata-X Energy Ltd (
$SXE) • By InTwits
Strata-X Energy Ltd reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Strata-X Energy Ltd is a company in decline: FY2020 revenue growth was -81.0%, 5 years revenue CAGR was -63.3%
- The company operates at negative EBITDA Margin: -19,396.4%
- Strata-X Energy Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -4,098.9%
- Strata-X Energy Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 1,243.4%. At the same time it's a lot of higher than industry average of 93.4%.
- CAPEX is quite volatile: 0 m in FY2020, 0 m in FY2019, 1 m in FY2018, 0 m in FY2017, 1 m in FY2016
- The company has unprofitable business model: ROIC is -128.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 81.0%. Annual revenue decline showed slowdown in FY20Q4 - revenue dropped on 71.0%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 12,409 pp from -31,806% to -19,396% in FY2020.
SG&A as a % of Revenue surged on 6,534 pp from 2,287% to 8,820% in FY2020. During the last 5 years SG&A as a % of Revenue bottomed in FY2017 at 397% and was growing since that time.
Net Income margin jumped on 15,078 pp from -33,307% to -18,229% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3,887% in FY2020. Strata-X Energy Ltd showed fast CAPEX/Revenue growth of 3,838 pp from 48.4% in FY2017 to 3,887% in FY2020. For the last three years the average CAPEX/Revenue was 1,905%.
Return on investment
The company operates at negative ROIC (-128.3%) and ROE (-125.7%). ROIC jumped on 54.3 pp from -183% to -128% in FY2020. ROE jumped on 57.7 pp from -183% to -126% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is . Debt increased on 4.4% while cash surged on 43.1%.
The company has no short term refinancing risk: short term debt is zero.
Financial and operational results
FY ended 30.06.2020
Strata-X Energy Ltd ($SXE) key annual financial indicators| mln. | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 0.134 | 0.167 | 0.054 | 0.034 | 0.006 | -81.0% |
| SG&A | 0.581 | 0.664 | 0.610 | 0.773 | 0.565 | -26.9% |
| EBITDA | -2.949 | -0.667 | -0.599 | -10.753 | -1.243 | |
| Net Income | -2.442 | -0.706 | -1.662 | -11.261 | -1.168 | |
Balance Sheet
|
|---|
| Cash | 0.744 | 0.975 | 0.296 | 0.267 | 0.382 | 43.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.049 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.051 | |
Cash flow
|
|---|
| Capex | 0.608 | 0.081 | 0.578 | 0.255 | 0.249 | -2.3% |
Ratios
|
|---|
| Revenue growth | -86.0% | 24.6% | -67.8% | -37.2% | -81.0% | |
| EBITDA growth | -78.3% | -77.4% | -10.3% | 1,695.5% | -88.4% | |
|
|---|
| EBITDA Margin | -2,196.8% | -399.1% | -1,113.2% | -31,805.9% | -19,396.4% | 12,409.4% |
| SG&A, % of revenue | 432.8% | 396.8% | 1,134.2% | 2,286.5% | 8,820.5% | 6,533.9% |
| Net Income Margin | -1,818.9% | -422.2% | -3,089.1% | -33,306.8% | -18,229.0% | 15,077.8% |
| CAPEX, % of revenue | 452.6% | 48.4% | 1,075.3% | 754.1% | 3,886.6% | 3,132.5% |
|
|---|
| ROIC | -24.5% | -7.7% | -13.7% | -182.7% | -128.3% | 54.3% |
| ROE | -19.0% | -5.7% | -13.9% | -183.4% | -125.7% | 57.7% |
Peers in Energy
Below you can find Strata-X Energy Ltd 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Wescan Energy Corp ($WCE) | - | 41.1% | 5.0% | 9.4% | -23.5% |
| KFG Resources Ltd ($KFG) | - | -17.5% | -0.5% | 4.5% | -23.7% |
| Tamarack Valley Energy Ltd ($TVE) | - | - | 31.3% | -3.0% | -30.4% |
| Arctic Hunter Energy Inc ($AHU) | - | 564.3% | 57.9% | -37.7% | -47.8% |
| |
|---|
| Median (4 companies) | -19.0% | 32.1% | 5.0% | 3.3% | -27.1% |
|---|
| Strata-X Energy Ltd ($SXE) | - | 24.6% | -67.8% | -37.2% | -81.0% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Tamarack Valley Energy Ltd ($TVE) | - | 68.4% | 72.6% | 72.9% | 62.5% |
| Arctic Hunter Energy Inc ($AHU) | -104.8% | 33.2% | 47.6% | 17.3% | 25.6% |
| Pennine Petroleum Corp ($PNN) | -19.9% | -12.7% | -20.0% | -2.9% | - |
| |
|---|
| Median (3 companies) | 31.5% | 33.2% | 47.6% | 17.3% | 44.0% |
|---|
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Wescan Energy Corp ($WCE) | -28.4% | 9.9% | -0.9% | -4.4% | -27.3% |
| KFG Resources Ltd ($KFG) | -14.1% | -19.6% | 8.4% | -3.5% | -28.6% |
| Tamarack Valley Energy Ltd ($TVE) | - | 54.6% | 72.9% | 38.5% | -115.9% |
| Arctic Hunter Energy Inc ($AHU) | -1,288.0% | -221.2% | -180.7% | -214.6% | -354.0% |
| |
|---|
| Median (4 companies) | 25.6% | -19.6% | -0.9% | -4.4% | -72.2% |
|---|
| Strata-X Energy Ltd ($SXE) | -2,196.8% | -399.1% | -1,113.2% | -31,805.9% | -19,396.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Tamarack Valley Energy Ltd ($TVE) | - | 73.9% | 66.2% | 54.0% | 44.9% |
| KFG Resources Ltd ($KFG) | 34.8% | 0.1% | 6.3% | 12.7% | 0.5% |
| Wescan Energy Corp ($WCE) | 16.2% | 2.0% | 0.0% | 0.0% | 0.3% |
| Arctic Hunter Energy Inc ($AHU) | 10.7% | 9.2% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (4 companies) | 23.0% | 9.2% | 6.3% | 0.0% | 0.4% |
|---|
| Strata-X Energy Ltd ($SXE) | 452.6% | 48.4% | 1,075.3% | 754.1% | 3,886.6% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Wescan Energy Corp ($WCE) | -39.2% | -9.3% | -12.4% | -13.2% | -28.3% |
| Tamarack Valley Energy Ltd ($TVE) | - | -0.9% | 7.1% | -3.9% | -45.7% |
| KFG Resources Ltd ($KFG) | -46.7% | -50.8% | -11.8% | -22.4% | -131.6% |
| Arctic Hunter Energy Inc ($AHU) | -576.3% | -119.1% | -93.7% | -92.3% | -541.5% |
| Eurogas International Inc ($EI) | - | - | - | - | - |
| |
|---|
| Median (7 companies) | -2.2% | -50.8% | -12.4% | -22.4% | -88.6% |
|---|
| Strata-X Energy Ltd ($SXE) | -24.5% | -7.7% | -13.7% | -182.7% | -128.3% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Tamarack Valley Energy Ltd ($TVE) | - | 1.2x | 0.6x | 1.6x | - |
| |
|---|
| Median (1 company) | 2.7x | 4.3x | -2.7x | 1.6x | - |
|---|
