Arctic Hunter Energy Inc revenue decline accelerated to 47.8% in FY2020 vs. 37.7% a year earliner
02.10.2020 • About Arctic Hunter Energy Inc (
$AHU) • By InTwits
Arctic Hunter Energy Inc reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Arctic Hunter Energy Inc is a company in decline: FY2020 revenue growth was -47.8%, 5 years revenue CAGR was -18.9%
- The company operates at negative EBITDA Margin: -354.0%
- Arctic Hunter Energy Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -258.7%
- Arctic Hunter Energy Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 7.2%.
- CAPEX is quite volatile: 0 m in FY2020, 0 m in FY2019, 0 m in FY2018, 0 m in FY2017, 0 m in FY2016
- The company has unprofitable business model: ROIC is -541.5%
- It operates with high leverage: Net Debt/EBITDA is 12.0x while industry average is 4.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Arctic Hunter Energy Inc's Revenue dropped on 47.8%. During the last 5 years Revenue growth topped in FY2017 at 564% and was decelerating since that time. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 139 pp from -215% to -354% in FY2020. During FY2016-FY2020 EBITDA Margin topped in FY2018 at -181% and was declining since that time.
Gross Margin increased on 8.3 pp from 17.3% to 25.6% in FY2020. SG&A as a % of Revenue increased on 6.6 pp from 30.8% to 37.4% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue bottomed in FY2018 at 22.2% and was growing since that time.
Net Income margin dropped on 637 pp from -234% to -870% in FY2020.
Leverage (Debt)
The company has no debt. Cash dropped on 96.2%.
Financial and operational results
FY ended 30.06.2020
Arctic Hunter Energy Inc ($AHU) key annual financial indicators| mln. | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 0.013 | 0.087 | 0.137 | 0.085 | 0.045 | -47.8% |
| Gross Profit | -0.014 | 0.029 | 0.065 | 0.015 | 0.011 | -22.8% |
| SG&A | 0.022 | 0.030 | 0.030 | 0.026 | 0.017 | -36.6% |
| EBITDA | -0.168 | -0.192 | -0.248 | -0.183 | -0.158 | |
| Net Income | -0.176 | -0.213 | -0.579 | -0.199 | -0.388 | |
Balance Sheet
|
|---|
| Cash | 0.014 | 0.039 | 0.170 | 0.032 | 0.001 | -96.2% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.001 | 0.008 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | -89.7% | 564.3% | 57.9% | -37.7% | -47.8% | |
| EBITDA growth | -30.5% | 14.1% | 29.0% | -26.0% | -13.8% | |
|
|---|
| Gross Margin | -104.8% | 33.2% | 47.6% | 17.3% | 25.6% | 8.3% |
| EBITDA Margin | -1,288.0% | -221.2% | -180.7% | -214.6% | -354.0% | -139.4% |
| SG&A, % of revenue | 166.4% | 34.4% | 22.2% | 30.8% | 37.4% | 6.6% |
| Net Income Margin | -1,344.5% | -245.0% | -422.7% | -233.6% | -870.4% | -636.8% |
| CAPEX, % of revenue | 10.7% | 9.2% | 0.0% | 0.0% | 0.0% | |
|
|---|
| ROIC | -576.3% | -119.1% | -93.7% | -92.3% | -541.5% | -449.2% |
| ROE | | | -207.5% | -93.9% | | |
Peers in Energy
Below we provide Arctic Hunter Energy Inc benchmarking against other companies in Energy 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 | 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 ($TVE) | - | - | 31.3% | -3.0% | -30.4% |
| Strata-X Energy Ltd ($SXE) | - | 24.6% | -67.8% | -37.2% | -81.0% |
| |
|---|
| Median (4 companies) | -19.0% | 23.9% | -0.5% | 3.3% | -27.1% |
|---|
| Arctic Hunter Energy Inc ($AHU) | - | 564.3% | 57.9% | -37.7% | -47.8% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Tamarack Valley Energy Ltd ($TVE) | - | 68.4% | 72.6% | 72.9% | 62.5% |
| Pennine Petroleum Corp ($PNN) | -19.9% | -12.7% | -20.0% | -2.9% | - |
| |
|---|
| Median (2 companies) | 32.0% | 27.8% | 26.3% | 35.0% | 62.5% |
|---|
| Arctic Hunter Energy Inc ($AHU) | -104.8% | 33.2% | 47.6% | 17.3% | 25.6% |
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 ($TVE) | - | 54.6% | 72.9% | 38.5% | -115.9% |
| Strata-X Energy Ltd ($SXE) | -2,196.8% | -399.1% | -1,113.2% | -31,805.9% | -19,396.4% |
| |
|---|
| Median (4 companies) | 25.6% | -19.6% | -0.9% | -4.4% | -72.2% |
|---|
| Arctic Hunter Energy Inc ($AHU) | -1,288.0% | -221.2% | -180.7% | -214.6% | -354.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Strata-X Energy Ltd ($SXE) | 452.6% | 48.4% | 1,075.3% | 754.1% | 3,886.6% |
| 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 ($WCE) | 16.2% | 2.0% | 0.0% | 0.0% | 0.3% |
| |
|---|
| Median (4 companies) | 24.6% | 48.4% | 66.2% | 12.7% | 22.7% |
|---|
| Arctic Hunter Energy Inc ($AHU) | 10.7% | 9.2% | 0.0% | 0.0% | 0.0% |
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% |
| Strata-X Energy Ltd ($SXE) | -24.5% | -7.7% | -13.7% | -182.7% | -128.3% |
| KFG Resources Ltd ($KFG) | -46.7% | -50.8% | -11.8% | -22.4% | -131.6% |
| Eurogas International Inc ($EI) | - | - | - | - | - |
| |
|---|
| Median (7 companies) | -2.2% | -9.3% | -12.4% | -22.4% | -87.0% |
|---|
| Arctic Hunter Energy Inc ($AHU) | -576.3% | -119.1% | -93.7% | -92.3% | -541.5% |
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 | - |
|---|
