CST Mining Group Ltd EBITDA surged on 193% in 2015 and EBITDA Margin surged on 16.8 pp from 5.5% to 22.3%
29/06/2015 • About CST Mining Group Ltd (
$985) • By InTwits
CST Mining Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 22.3% in FY2015, 5.5% in FY2014, 150.6% in FY2013, -29.3% in FY2012, -60.7% in FY2011
- CST Mining Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 36.7%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 9.0 in FY2015, 10.9 in FY2014, 48.7 in FY2013, 63.6 in FY2012, 43.6 in FY2011
- The company has potentially unprofitable business model: ROIC is at 2.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CST Mining Group Ltd ($985) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 45.4 | 147.4 | 168.2 | 152.6 | 109.9 | -28.0% |
| Gross Profit | 18.5 | 40.6 | 42.3 | 8.4 | 32.4 | 286.0% |
| SG&A | 26.7 | 44.7 | 43.8 | 36.8 | 33.2 | -9.9% |
| EBITDA | -27.6 | -43.2 | 253.3 | 8.4 | 24.5 | 192.6% |
| Net Income | -27.2 | -70.1 | 119.7 | -61.7 | 28.2 | -145.6% |
Balance Sheet
|
|---|
| Cash | 191.8 | 119.9 | 197.4 | 135.7 | 99.5 | -26.7% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 43.6 | 63.6 | 48.7 | 10.9 | 9.0 | -17.6% |
Ratios
|
|---|
| Revenue growth | 8,934.0% | 224.3% | 14.2% | -9.3% | -28.0% | |
| EBITDA growth | 259.3% | 56.7% | -686.0% | -96.7% | 192.6% | |
| Gross Margin | 40.8% | 27.6% | 25.2% | 5.5% | 29.4% | 23.9% |
| EBITDA Margin | -60.7% | -29.3% | 150.6% | 5.5% | 22.3% | 16.8% |
| Net Income Margin | -59.8% | -47.6% | 71.1% | -40.5% | 25.6% | 66.1% |
| SG&A, % of revenue | 58.7% | 30.3% | 26.0% | 24.1% | 30.2% | 6.1% |
| CAPEX, % of revenue | 96.0% | 43.1% | 29.0% | 7.1% | 8.1% | 1.0% |
| ROIC | -5.8% | -8.6% | 20.4% | -5.6% | 2.3% | 7.8% |
| ROE | -4.3% | -7.7% | 12.5% | -6.3% | 2.9% | 9.2% |
| Net Debt/EBITDA | | | -0.8x | -16.2x | -4.1x | 12.2x |
Revenue and profitability
CST Mining Group Ltd's Revenue dropped on 28.0% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 16.8 pp from 5.5% to 22.3% in FY2015.
Gross Margin jumped on 23.9 pp from 5.5% to 29.4% in FY2015. SG&A as a % of Revenue increased on 6.1 pp from 24.1% to 30.2% in FY2015.
Net Income marign surged on 66.1 pp from -40.5% to 25.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
CST Mining Group Ltd's CAPEX/Revenue was 8.1% in FY2015. The company's CAPEX/Revenue dropped on 35.0 pp from 43.1% in FY2012 to 8.1% in FY2015. Average CAPEX/Revenue for the last three years was 14.7%.
Return on investment
The company operates at low ROIC (2.29%) and ROE (2.93%). ROIC increased on 7.8 pp from -5.6% to 2.3% in FY2015. ROE increased on 9.2 pp from -6.3% to 2.9% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 26.7% in FY2015.
Appendix 1: Peers in Mining
Below you can find CST Mining Group Ltd benchmarking vs. other companies in Mining 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 24.0% | 4.8% | -44.7% | 303.0% | |
| Huili Resources Group Ltd ($1303) | -47.8% | -33.6% | -91.6% | 219.4% | |
| North Mining Shares Co Ltd ($433) | 1.7% | -5.5% | -57.1% | 187.0% | |
| China Kingstone Mining Holdings Ltd ($1380) | 4,275.3% | -94.5% | -55.6% | 155.2% | |
| Ding He Mining Holdings Ltd ($705) | 31.6% | 29.9% | 43.8% | 89.8% | |
| |
|---|
| Median (45 companies) | 31.0% | 5.4% | 2.4% | -5.3% | 4.0% |
|---|
| CST Mining Group Ltd ($985) | | 224.3% | 14.2% | -9.3% | -28.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sun International Resources Ltd ($8029) | 77.6% | 83.2% | 73.1% | 64.8% | 69.4% |
| China Polymetallic Mining Ltd ($2133) | 76.9% | 81.8% | 74.2% | 51.8% | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 64.7% | 63.9% | 54.9% | 51.2% | |
| Hengshi Mining Investments Ltd ($1370) | 54.6% | 32.4% | 55.3% | 50.1% | |
| China Kingstone Mining Holdings Ltd ($1380) | 60.1% | 67.1% | 50.7% | 49.8% | |
| |
|---|
| Median (45 companies) | 19.1% | 13.4% | 14.0% | 15.6% | 39.9% |
|---|
| CST Mining Group Ltd ($985) | 40.8% | 27.6% | 25.2% | 5.5% | 29.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Precious Metal Resources Holdings Co Ltd ($1194) | 73.1% | 70.0% | 64.6% | 59.6% | |
| China Polymetallic Mining Ltd ($2133) | -322.0% | 62.8% | 58.5% | 54.1% | |
| G-Resources Group Ltd ($1051) | | | 54.5% | 53.4% | |
| China Gold International Resources Corp Ltd ($2099) | | 41.7% | 38.3% | 47.3% | 33.7% |
| Hengshi Mining Investments Ltd ($1370) | 45.7% | 22.8% | 52.0% | 45.4% | |
| |
|---|
| Median (45 companies) | 6.4% | 4.9% | 8.3% | 4.9% | -5.4% |
|---|
| CST Mining Group Ltd ($985) | -60.7% | -29.3% | 150.6% | 5.5% | 22.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% |
| Huili Resources Group Ltd ($1303) | 3.9% | 181.0% | 1,508.6% | 279.5% | |
| Kaz Minerals ($847) | 19.8% | 36.6% | 136.5% | 168.8% | |
| China Gold International Resources Corp Ltd ($2099) | | 64.7% | 156.1% | 95.6% | 81.4% |
| IRC Ltd ($1029) | 129.7% | 102.1% | 70.6% | 82.5% | |
| |
|---|
| Median (45 companies) | 15.6% | 17.0% | 15.3% | 15.8% | 5.5% |
|---|
| CST Mining Group Ltd ($985) | 96.0% | 43.1% | 29.0% | 7.1% | 8.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Silver Group Ltd ($815) | 48.0% | 57.6% | 31.6% | 35.8% | |
| Hengshi Mining Investments Ltd ($1370) | 153.0% | 50.1% | 60.1% | 20.7% | |
| China Hongqiao Group Ltd ($1378) | 44.6% | 24.8% | 17.0% | 14.1% | |
| China Nonferrous Mining Corp Ltd ($1258) | 10.9% | 14.7% | 10.8% | 11.8% | |
| Xingfa Aluminium Holdings Ltd ($98) | 3.8% | 7.6% | 8.8% | 11.7% | |
| |
|---|
| Median (46 companies) | 3.8% | 2.5% | 3.1% | 2.1% | -1.1% |
|---|
| CST Mining Group Ltd ($985) | -5.8% | -8.6% | 20.4% | -5.6% | 2.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Xinjiang Xinxin Mining Industry Co Ltd ($3833) | 0.9x | 8.4x | 39.4x | 10.3x | |
| MMG Ltd ($1208) | -0.0x | 2.1x | 2.0x | 10.2x | |
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 5.8x | 9.2x | 9.7x | 9.2x | |
| Midas Holdings Ltd ($1021) | 1.4x | 4.3x | 6.5x | 8.7x | |
| Lingbao Gold Co Ltd ($3330) | 3.5x | 5.3x | | 8.3x | |
| |
|---|
| Median (26 companies) | 0.9x | 1.5x | 2.0x | 4.5x | 0.7x |
|---|
| CST Mining Group Ltd ($985) | | | -0.8x | -16.2x | -4.1x |
