Brockman Mining Ltd CAPEX dropped on 30.9% in 2015 and Revenue decreased on 5.7%
30/09/2015 • About Brockman Mining Ltd (
$159) • By InTwits
Brockman Mining Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Brockman Mining Ltd is a company in decline: FY2015 revenue growth was -5.7%, 5 years revenue CAGR was -22.7%
- The company operates at negative EBITDA Margin: -383.0%
- Brockman Mining Ltd motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 was 0.0%. On average EBITDA Margin was -261.7% for the sames years0
- Brockman Mining Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 15.6%. At the same time it's in pair with industry average of 19.3%.
- CAPEX is quite volatile: 2.0 in FY2015, 2.9 in FY2014, 12.3 in FY2013, 28.3 in FY2012, 25.8 in FY2011
- The company has unprofitable business model: ROIC is at -6.0%
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Brockman Mining Ltd ($159) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 131.8 | 132.8 | 50.3 | 38.7 | 36.5 | -5.7% |
| Gross Profit | 12.0 | 14.0 | -7.1 | 4.6 | -2.0 | -143.2% |
| SG&A | | | 101.7 | 88.9 | 73.5 | -17.4% |
| EBITDA | -230.5 | -356.1 | -153.1 | -141.5 | -139.9 | -1.1% |
| Net Income | 303.4 | -2,045.8 | -449.4 | -207.1 | -1,236.6 | 497.1% |
Balance Sheet
|
|---|
| Cash | 1,137.8 | 336.4 | 253.0 | 223.7 | 98.3 | -56.1% |
| Short Term Debt | 39.0 | 32.2 | 17.6 | 0.0 | 0.0 | |
| Long Term Debt | 9.5 | 165.3 | 7.6 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 25.8 | 28.3 | 12.3 | 2.9 | 2.0 | -30.9% |
Ratios
|
|---|
| Revenue growth | -0.1% | 0.7% | -62.1% | -23.0% | -5.7% | |
| EBITDA growth | 379.8% | 54.5% | -57.0% | -7.6% | -1.1% | |
| Gross Margin | 9.1% | 10.5% | -14.0% | 11.8% | -5.4% | -17.2% |
| EBITDA Margin | -174.8% | -268.1% | -304.3% | -365.3% | -383.0% | -17.8% |
| Net Income Margin | 230.1% | -1,540.4% | -893.4% | -534.6% | -3,385.5% | -2,850.9% |
| SG&A, % of revenue | | | 202.1% | 229.6% | 201.2% | -28.4% |
| CAPEX, % of revenue | 19.6% | 21.3% | 24.4% | 7.4% | 5.4% | -2.0% |
| ROIC | -5.3% | -6.8% | -5.0% | -4.6% | -6.0% | -1.4% |
| ROE | 10.6% | -63.0% | -15.7% | -7.5% | -62.9% | -55.3% |
Revenue and profitability
The company's Revenue decreased on 5.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 17.8 pp from -365% to -383% in FY2015.
Gross Margin dropped on 17.2 pp from 11.8% to -5.4% in FY2015. SG&A as a % of Revenue dropped on 28.4 pp from 230% to 201% in FY2015.
Net Income marign dropped on 2,851 pp from -535% to -3,385% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Brockman Mining Ltd had CAPEX/Revenue of 5.4%. CAPEX/Revenue dropped on 15.9 pp from 21.3% in FY2012 to 5.4% in FY2015. For the last three years the average CAPEX/Revenue was 12.4%.
Return on investment
The company operates at negative ROIC (-6.03%) and ROE (-62.88%). ROIC decreased slightly on 1.4 pp from -4.6% to -6.0% in FY2015. ROE dropped on 55.3 pp from -7.5% to -62.9% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 56.1% in FY2015.
Appendix 1: Peers in Transportation
Below you can find Brockman Mining Ltd benchmarking vs. other companies in Transportation 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 |
|---|
| Frontier Services Group Ltd ($500) | -90.5% | -10.8% | -49.9% | 1,021.1% | |
| China Best Group Holding Ltd ($370) | 333.1% | 202.4% | -53.6% | 459.4% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 11.7% | -4.2% | -5.9% | 60.4% | |
| Tianjin Port Development Holdings Ltd ($3382) | 9.8% | 8.7% | 24.9% | 51.9% | |
| CIG Yangtze Ports PLC ($8233) | 71.2% | 17.9% | 30.6% | 23.5% | |
| |
|---|
| Median (28 companies) | 8.9% | 7.2% | 4.6% | 5.6% | 3.8% |
|---|
| Brockman Mining Ltd ($159) | | 0.7% | -62.1% | -23.0% | -5.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIG Yangtze Ports PLC ($8233) | 51.0% | 51.3% | 44.8% | 46.6% | |
| Frontier Services Group Ltd ($500) | 80.7% | 83.8% | 65.9% | 44.8% | |
| Qinhuangdao Port Co Ltd ($3369) | 43.2% | 43.1% | 42.4% | 43.3% | |
| Chu Kong Shipping Enterprise Group Co Ltd ($560) | 21.5% | 23.1% | 25.1% | 24.1% | |
| Kwoon Chung Bus Holdings Ltd ($306) | 17.6% | 18.9% | 20.4% | 22.7% | 26.8% |
| |
|---|
| Median (25 companies) | 18.7% | 13.0% | 10.9% | 10.0% | 8.0% |
|---|
| Brockman Mining Ltd ($159) | 9.1% | 10.5% | -14.0% | 11.8% | -5.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Qinhuangdao Port Co Ltd ($3369) | 45.3% | 46.0% | 44.6% | 46.5% | |
| MTR Corp Ltd ($66) | 49.1% | 42.7% | 37.6% | 45.2% | |
| CIG Yangtze Ports PLC ($8233) | 29.9% | 30.2% | 27.6% | 38.5% | |
| Great Harvest Maeta Group Holdings Ltd ($3683) | 61.3% | 56.3% | 18.7% | 32.6% | -8.5% |
| China Shipping Development Co Ltd ($1138) | 24.7% | 12.5% | 3.0% | 24.7% | |
| |
|---|
| Median (29 companies) | 16.5% | 10.0% | 8.2% | 9.1% | 2.4% |
|---|
| Brockman Mining Ltd ($159) | -174.8% | -268.1% | -304.3% | -365.3% | -383.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Century Investment Holdings Ltd ($2322) | | 0.0% | | 296.6% | 1.4% |
| Frontier Services Group Ltd ($500) | 5.4% | 6.3% | 3.6% | 63.3% | |
| China Shipping Development Co Ltd ($1138) | 68.9% | 55.8% | 34.0% | 54.9% | |
| Courage Marine Group Ltd ($1145) | 78.9% | 235.0% | 37.7% | 50.4% | |
| Qinhuangdao Port Co Ltd ($3369) | 47.2% | 57.9% | 35.8% | 46.3% | |
| |
|---|
| Median (29 companies) | 11.1% | 7.9% | 9.0% | 7.4% | 7.2% |
|---|
| Brockman Mining Ltd ($159) | 19.6% | 21.3% | 24.4% | 7.4% | 5.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Changan Minsheng APLL Logistics Co Ltd ($1292) | 34.2% | 21.1% | 20.9% | 19.1% | |
| ASR Logistics Holdings Ltd ($1803) | 79.6% | 54.7% | 38.9% | 13.4% | |
| CIG Yangtze Ports PLC ($8233) | 4.3% | 4.9% | 5.7% | 11.0% | |
| Kerry Logistics Network Ltd ($636) | 11.3% | 12.0% | 13.4% | 10.5% | |
| Guangdong Yueyun Transportation Co Ltd-H ($3399) | 8.9% | 5.6% | 7.2% | 9.6% | |
| |
|---|
| Median (29 companies) | 5.3% | 3.3% | 2.8% | 3.7% | 0.3% |
|---|
| Brockman Mining Ltd ($159) | -5.3% | -6.8% | -5.0% | -4.6% | -6.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jinhui Holdings Co Ltd ($137) | 2.8x | 5.0x | 4.2x | 17.5x | |
| China Shipping Development Co Ltd ($1138) | 7.2x | 20.2x | 92.8x | 12.8x | |
| Tianjin Binhai Teda Logistics Group Corp Ltd ($8348) | -0.5x | 9.7x | 9.3x | 9.5x | |
| China COSCO Holdings Co Ltd ($1919) | | | 18.8x | 9.0x | |
| AMS Public Transport Holdings Ltd ($77) | 0.7x | 1.2x | 11.6x | 7.7x | 4.5x |
| |
|---|
| Median (23 companies) | 0.2x | 1.6x | 1.7x | 0.9x | 2.8x |
|---|
