Orbit Garant Drilling Inc Debt surged on 39.8% and Net Debt / EBITDA surged on 1.1x from 3.0x to 4.1x
28.09.2020 • About Orbit Garant Drilling Inc (
$OGD) • By InTwits
Orbit Garant Drilling Inc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.4% in FY2020, 5.9% in FY2019, 8.5% in FY2018, 2.2% in FY2017, 10.3% in FY2016
- Orbit Garant Drilling Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.1%. At the same time it's in pair with industry average of 5.6%
- CAPEX is quite volatile: 2 CADm in FY2020, 7 CADm in FY2019, 1 CADm in FY2018, 15 CADm in FY2017, 36 CADm in FY2016
- The company has unprofitable business model: ROIC is -2.4%
- It operates with high leverage: Net Debt/EBITDA is 4.1x while industry average is 1.0x
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 decreased on 9.8%. Revenue decline showed acceleration in FY20Q4 - it was 54.4% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 6.6% to 5.0% in FY2020.
Gross Margin decreased slightly on 1.3 pp from 10.7% to 9.4% in FY2020. SG&A as a % of Revenue decreased slightly on 0.64 pp from 10.5% to 9.9% in FY2020.
Net Income margin decreased on 3.1 pp from -2.3% to -5.3% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 7.6% in FY2020. The company showed small growth in CAPEX/Revenue of 1.4 pp from 6.2% in FY2017 to 7.6% in FY2020. For the last three years the average CAPEX/Revenue was 6.0%. Battling declining revenue Orbit Garant Drilling Inc made large investments to CAPEX (119% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-2.4%) and ROE (-10.2%). ROIC decreased slightly on 1.4 pp from -1.0% to -2.4% in FY2020. ROE decreased on 5.7 pp from -4.5% to -10.2% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.1x and Debt / EBITDA is 4.7x. Net Debt / EBITDA surged on 1.1x from 3.0x to 4.1x in FY2020. Debt surged on 39.8% while cash jumped on 101%.
Orbit Garant Drilling Inc has no short term refinancing risk: cash is higher than short term debt (101.3%).
Financial and operational results
FY ended 30.06.2020
Orbit Garant Drilling Inc ($OGD) key annual financial indicators| mln. CAD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 107.5 | 125.2 | 173.1 | 152.8 | 137.8 | -9.8% |
| Gross Profit | 10.2 | 8.0 | 21.5 | 16.3 | 12.9 | -20.5% |
| SG&A | 14.3 | 14.7 | 15.8 | 16.1 | 13.6 | -15.3% |
| EBITDA | 11.1 | 2.7 | 14.7 | 9.0 | 8.8 | -2.2% |
| Net Income | -0.2 | -5.9 | 4.5 | -3.5 | -7.4 | |
Balance Sheet
|
|---|
| Cash | 2.3 | 1.6 | 4.6 | 2.5 | 5.0 | 101.5% |
| Short Term Debt | 0.9 | 14.9 | 0.8 | 1.4 | 4.9 | 252.4% |
| Long Term Debt | 8.4 | 2.1 | 19.2 | 28.2 | 36.4 | 29.2% |
Cash flow
|
|---|
| Capex | 6.6 | 7.8 | 8.6 | 8.3 | 10.5 | 25.8% |
Ratios
|
|---|
| Revenue growth | 36.2% | 16.4% | 38.3% | -11.7% | -9.8% | |
| EBITDA growth | 533.7% | -75.6% | 443.3% | -38.9% | -2.2% | |
|
|---|
| Gross Margin | 9.5% | 6.4% | 12.4% | 10.7% | 9.4% | -1.3% |
| EBITDA Margin | 10.3% | 2.2% | 8.5% | 5.9% | 6.4% | 0.5% |
| SG&A, % of revenue | 13.3% | 11.8% | 9.1% | 10.5% | 9.9% | -0.6% |
| Net Income Margin | -0.2% | -4.7% | 2.6% | -2.3% | -5.3% | -3.1% |
| CAPEX, % of revenue | 6.1% | 6.2% | 5.0% | 5.4% | 7.6% | 2.2% |
|
|---|
| ROIC | 0.3% | -7.8% | 6.4% | -1.0% | -2.4% | -1.4% |
| ROE | -0.3% | -7.7% | 5.9% | -4.5% | -10.2% | -5.7% |
| Net Debt/EBITDA | 0.6x | 5.7x | 1.0x | 3.0x | 4.1x | 1.1x |
Orbit Garant Drilling Inc ($OGD) key quoterly financial indicators
| mln. CAD | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 43 | 38 | 36 | 20 | | 16.1% | 13.6% | -3.8% | -54.4% |
| EBITDA | 5 | 1 | 0 | 2 | | 52.0% | 116.8% | -93.7% | -34.5% |
| Net Income | 1 | -2 | -3 | -3 | | 206.4% | - | - | - |
Balance Sheet
|
|---|
| Cash | 4 | 1 | 2 | 5 | | -11.6% | -28.6% | -30.4% | 101.5% |
| Short Term Debt | 2 | 5 | 5 | 5 | | 176.1% | 692.6% | 297.6% | 252.4% |
| Long Term Debt | 35 | 37 | 38 | 36 | | 66.8% | 31.7% | 35.3% | 29.2% |
Ratios
|
|---|
| Gross Margin | 16.0% | 6.3% | 3.5% | 11.5% | | 1.1% | -2.4% | -4.7% | 0.9% |
| EBITDA Margin | 12.1% | 2.8% | 0.3% | 11.7% | | 2.9% | 1.3% | -4.0% | 3.6% |
| Net Income Margin | 2.5% | -6.2% | -9.4% | -13.5% | | 1.6% | -1.3% | -5.6% | -11.7% |
Peers in Basic Materials
Below you can find Orbit Garant Drilling Inc benchmarking vs. other companies in Basic Materials industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Archon Minerals Ltd ($ACS) | - | - | - | -13.3% | 127.6% |
| B2Gold Corp ($BTO) | - | -6.5% | 64.6% | 9.9% | 54.8% |
| Monument Mining Ltd ($MMY) | - | -33.4% | 22.5% | 9.1% | 42.8% |
| Rochester Resources Ltd ($RCT) | - | 0.0% | 16.7% | -19.2% | 13.2% |
| Graphene 3D Lab Inc ($GGG) | - | 43.6% | -21.2% | 8.3% | -1.3% |
| |
|---|
| Median (6 companies) | 5.7% | -6.5% | 16.7% | 5.1% | 28.0% |
|---|
| Orbit Garant Drilling Inc ($OGD) | - | 16.4% | 38.3% | -11.7% | -9.8% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Monarques Gold Corp ($MQR) | - | - | 4.8% | 13.7% | 61.8% |
| B2Gold Corp ($BTO) | 30.7% | 23.5% | 36.2% | 39.0% | 53.6% |
| Monument Mining Ltd ($MMY) | 23.4% | 23.7% | 42.3% | 43.9% | 43.2% |
| Graphene 3D Lab Inc ($GGG) | 23.4% | 43.5% | 67.9% | 62.6% | 21.9% |
| Rochester Resources Ltd ($RCT) | -43.8% | 2.3% | 15.9% | -18.2% | 1.4% |
| |
|---|
| Median (5 companies) | 23.4% | 23.6% | 36.2% | 39.0% | 43.2% |
|---|
| Orbit Garant Drilling Inc ($OGD) | 9.5% | 6.4% | 12.4% | 10.7% | 9.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| B2Gold Corp ($BTO) | 43.7% | 38.9% | 50.4% | 65.6% | 76.6% |
| Archon Minerals Ltd ($ACS) | - | - | -28.3% | -12.1% | 63.2% |
| Monument Mining Ltd ($MMY) | 26.6% | -10.7% | 17.9% | 33.8% | 33.6% |
| Rochester Resources Ltd ($RCT) | -148.8% | -13.5% | -32.9% | -31.9% | -10.3% |
| Monarques Gold Corp ($MQR) | - | - | - | -3.3% | -49.0% |
| |
|---|
| Median (6 companies) | 22.6% | -13.5% | -30.6% | -12.1% | 11.6% |
|---|
| Orbit Garant Drilling Inc ($OGD) | 10.3% | 2.2% | 8.5% | 5.9% | 6.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Monarques Gold Corp ($MQR) | - | - | 20.8% | 29.9% | 43.9% |
| B2Gold Corp ($BTO) | 57.7% | 55.5% | 21.1% | 22.6% | 19.7% |
| Monument Mining Ltd ($MMY) | 43.3% | 46.0% | 35.1% | 37.2% | 18.3% |
| Rochester Resources Ltd ($RCT) | 5.0% | 4.3% | 2.8% | 3.8% | 2.9% |
| Archon Minerals Ltd ($ACS) | - | - | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (6 companies) | 17.9% | 46.0% | 20.8% | 22.6% | 10.6% |
|---|
| Orbit Garant Drilling Inc ($OGD) | 6.1% | 6.2% | 5.0% | 5.4% | 7.6% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| B2Gold Corp ($BTO) | - | 4.0% | 12.3% | 21.3% | 37.6% |
| Archon Minerals Ltd ($ACS) | -111.6% | -20.4% | -3.5% | -1.2% | 13.7% |
| Monument Mining Ltd ($MMY) | 1.0% | -2.6% | -0.4% | 1.2% | 2.0% |
| Teras Resources Inc ($TRA) | -2.9% | -3.4% | -3.3% | -3.9% | -3.1% |
| Cadillac Ventures Inc ($CDC) | -2.9% | -3.6% | -2.5% | -2.5% | -3.6% |
| |
|---|
| Median (35 companies) | 1.1% | -27.8% | -43.3% | -39.1% | -21.4% |
|---|
| Orbit Garant Drilling Inc ($OGD) | 0.3% | -7.8% | 6.4% | -1.0% | -2.4% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Archon Minerals Ltd ($ACS) | - | - | - | - | 7.6x |
| B2Gold Corp ($BTO) | 1.1x | 2.2x | 0.7x | 0.2x | -0.2x |
| Monument Mining Ltd ($MMY) | -3.3x | - | -4.4x | -1.3x | -1.0x |
| |
|---|
| Median (3 companies) | 0.6x | 2.2x | -1.8x | -0.6x | -0.2x |
|---|
| Orbit Garant Drilling Inc ($OGD) | 0.6x | 5.7x | 1.0x | 3.0x | 4.1x |
