Rochester Resources Ltd revenue returned to growth in FY2020: increased 13.2% vs. 19.2% decline a year earliner
28.09.2020 • About Rochester Resources Ltd (
$RCT) • By InTwits
Rochester Resources Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -10.3%
- Rochester Resources Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -46.7%
- Rochester Resources Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 22.7%.
- CAPEX is quite volatile: 0 CADm in FY2020, 1 CADm in FY2019, 0 CADm in FY2018, 0 CADm in FY2017, 0 CADm in FY2016
- It operates with medium-size leverage: Net Debt/EBITDA is 0.9x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 13.2%. Revenue growth showed acceleration in FY20Q4 - it increased 61.1% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 21.6 pp from -31.9% to -10.3% in FY2020.
Gross Margin jumped on 19.6 pp from -18.2% to 1.4% in FY2020. SG&A as a % of Revenue decreased slightly on 0.96 pp from 8.8% to 7.9% in FY2020.
Net Income margin jumped on 35.2 pp from -56.6% to -21.4% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.9% in FY2020. Rochester Resources Ltd showed small CAPEX/Revenue decline of 1.4 pp from 4.3% in FY2017 to 2.9% in FY2020. For the last three years the average CAPEX/Revenue was 3.2%.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.9x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2020. Debt didn't change in FY2020 while cash jumped on 5,033%.
Rochester Resources Ltd has short term refinancing risk: cash is only 7.0% of short term debt.
Financial and operational results
FY ended 31.05.2020
Rochester Resources Ltd ($RCT) key annual financial indicators| mln. CAD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 7.403 | 7.406 | 8.644 | 6.988 | 7.910 | 13.2% |
| Gross Profit | -3.242 | 0.174 | 1.373 | -1.269 | 0.111 | |
| SG&A | 0.766 | 0.642 | 0.714 | 0.616 | 0.622 | 0.8% |
| EBITDA | -11.019 | -0.997 | -2.841 | -2.229 | -0.814 | |
| Net Income | -13.046 | -3.124 | -3.785 | -3.955 | -1.692 | |
Balance Sheet
|
|---|
| Cash | 0.025 | 0.024 | 0.036 | 0.006 | 0.323 | 5,033.2% |
| Short Term Debt | 4.581 | 4.581 | 4.581 | 4.581 | 4.581 | 0.0% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.371 | 0.316 | 0.242 | 0.265 | 0.228 | -14.1% |
Ratios
|
|---|
| Revenue growth | -30.9% | 0.0% | 16.7% | -19.2% | 13.2% | |
| EBITDA growth | 310.0% | -91.0% | 185.1% | -21.5% | -63.5% | |
|
|---|
| Gross Margin | -43.8% | 2.3% | 15.9% | -18.2% | 1.4% | 19.6% |
| EBITDA Margin | -148.8% | -13.5% | -32.9% | -31.9% | -10.3% | 21.6% |
| SG&A, % of revenue | 10.4% | 8.7% | 8.3% | 8.8% | 7.9% | -1.0% |
| Net Income Margin | -176.2% | -42.2% | -43.8% | -56.6% | -21.4% | 35.2% |
| CAPEX, % of revenue | 5.0% | 4.3% | 2.8% | 3.8% | 2.9% | -0.9% |
|
|---|
Rochester Resources Ltd ($RCT) key quoterly financial indicators
| mln. CAD | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 2 | 2 | | -12.9% | 8.0% | 9.4% | 61.1% |
| EBITDA | -0 | 0 | -0 | -0 | | - | - | - | - |
| Net Income | -0 | -0 | -1 | -0 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | 144.6% | 64.8% | 255.3% | 5,033.2% |
| Short Term Debt | 5 | 5 | 5 | 5 | | 0.0% | 0.0% | 0.0% | 0.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
Ratios
|
|---|
| Gross Margin | -5.8% | 20.5% | -0.4% | -7.6% | | -7.1% | 39.5% | 11.7% | 43.5% |
| EBITDA Margin | -16.9% | 8.8% | -10.7% | -20.6% | | -6.6% | 44.5% | -10.7% | 46.6% |
| Net Income Margin | -13.4% | -22.8% | -42.6% | -12.3% | | 27.4% | 17.5% | 13.9% | 87.4% |
Peers in Basic Materials
Below we provide Rochester Resources Ltd benchmarking against other companies in Basic Materials industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Archon Minerals Ltd ($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% |
| Graphene 3D Lab Inc ($GGG) | - | 43.6% | -21.2% | 8.3% | -1.3% |
| Orbit Garant Drilling Inc ($OGD) | - | 16.4% | 38.3% | -11.7% | -9.8% |
| |
|---|
| Median (6 companies) | 5.7% | -6.5% | 22.5% | 5.1% | 20.7% |
|---|
| Rochester Resources Ltd ($RCT) | - | 0.0% | 16.7% | -19.2% | 13.2% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Monarques Gold Corp ($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 ($GGG) | 23.4% | 43.5% | 67.9% | 62.6% | 21.9% |
| Orbit Garant Drilling Inc ($OGD) | 9.5% | 6.4% | 12.4% | 10.7% | 9.4% |
| |
|---|
| Median (5 companies) | 23.4% | 23.6% | 36.2% | 39.0% | 43.2% |
|---|
| Rochester Resources Ltd ($RCT) | -43.8% | 2.3% | 15.9% | -18.2% | 1.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| B2Gold Corp ($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% |
| Orbit Garant Drilling Inc ($OGD) | 10.3% | 2.2% | 8.5% | 5.9% | 6.4% |
| Monarques Gold Corp ($MQR) | - | - | - | -3.3% | -49.0% |
| |
|---|
| Median (6 companies) | 22.6% | -10.7% | -9.9% | -3.3% | 20.0% |
|---|
| Rochester Resources Ltd ($RCT) | -148.8% | -13.5% | -32.9% | -31.9% | -10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Monarques Gold Corp ($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% |
| Orbit Garant Drilling Inc ($OGD) | 6.1% | 6.2% | 5.0% | 5.4% | 7.6% |
| Archon Minerals Ltd ($ACS) | - | - | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (6 companies) | 17.9% | 46.0% | 20.8% | 22.6% | 12.9% |
|---|
| Rochester Resources Ltd ($RCT) | 5.0% | 4.3% | 2.8% | 3.8% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| B2Gold Corp ($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% |
| Orbit Garant Drilling Inc ($OGD) | 0.3% | -7.8% | 6.4% | -1.0% | -2.4% |
| Teras Resources Inc ($TRA) | -2.9% | -3.4% | -3.3% | -3.9% | -3.1% |
| |
|---|
| Median (35 companies) | 1.0% | -27.2% | -33.8% | -35.1% | -18.9% |
|---|
| Rochester Resources Ltd ($RCT) | - | - | - | - | - |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Archon Minerals Ltd ($ACS) | - | - | - | - | 7.6x |
| Orbit Garant Drilling Inc ($OGD) | 0.6x | 5.7x | 1.0x | 3.0x | 4.1x |
| B2Gold Corp ($BTO) | 1.1x | 2.2x | 0.7x | 0.2x | -0.2x |
| Monument Mining Ltd ($MMY) | -3.3x | - | -4.4x | -1.3x | -1.0x |
| |
|---|
| Median (4 companies) | 0.6x | 4.0x | 0.7x | 0.2x | 2.0x |
|---|
