EPI Holdings Ltd reports 145% CAPEX growth while 22.3% Revenue decline
30/03/2016 • About EPI Holdings Ltd (
$689) • By InTwits
EPI Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EPI Holdings Ltd is a company in decline: 2015 revenue growth was -22.3%, 5 years revenue CAGR was -41.1%
- The company operates at negative EBITDA Margin: -33.0%
- EPI Holdings Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -22.0%0
- EPI Holdings Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 22.4%. At the same time it's a lot of higher than industry average of 13.8%.
- CAPEX is quite volatile: 8.5 in 2015, 3.5 in 2014, 27.7 in 2013, 26.6 in 2012, 208 in 2011
- The company has unprofitable business model: ROIC is at -21.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
EPI Holdings Ltd ($689) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 619.8 | 86.7 | 89.9 | 85.7 | 66.6 | -22.3% |
| Gross Profit | 2.1 | 50.3 | 45.5 | 46.8 | 27.4 | -41.4% |
| SG&A | | | 56.2 | 34.3 | 21.9 | -35.9% |
| EBITDA | -57.7 | -3.5 | -64.6 | -60.8 | -21.9 | -63.9% |
| Net Income | -217.7 | -3,352.0 | -679.2 | -381.1 | -276.5 | -27.4% |
Balance Sheet
|
|---|
| Cash | 29.5 | 2.7 | 48.0 | 28.6 | 13.2 | -53.9% |
| Short Term Debt | 56.3 | 91.7 | 64.6 | 117.5 | 74.6 | -36.5% |
| Long Term Debt | 371.1 | 273.0 | 294.5 | 163.8 | 109.2 | -33.3% |
Cash flow
|
|---|
| Capex | 208.0 | 26.6 | 27.7 | 3.5 | 8.5 | 145.2% |
Ratios
|
|---|
| Revenue growth | -33.9% | -86.0% | 3.7% | -4.6% | -22.3% | |
| EBITDA growth | -74.4% | -93.9% | 1,742.2% | -5.9% | -63.9% | |
| Gross Margin | 0.3% | 58.0% | 50.7% | 54.6% | 41.2% | -13.4% |
| EBITDA Margin | -9.3% | -4.0% | -71.9% | -70.9% | -33.0% | 38.0% |
| Net Income Margin | -35.1% | -3,867.1% | -755.9% | -444.8% | -415.4% | 29.4% |
| SG&A, % of revenue | | | 62.5% | 40.0% | 33.0% | -7.0% |
| CAPEX, % of revenue | 33.6% | 30.6% | 30.9% | 4.1% | 12.8% | 8.7% |
| ROIC | -2.0% | -1.5% | -11.4% | -17.7% | -21.3% | -3.5% |
| ROE | -5.5% | -146.0% | -152.3% | -306.3% | | 306.3% |
Revenue and profitability
The company's Revenue dropped on 22.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 38.0 pp from -70.9% to -33.0% in 2015.
Gross Margin dropped on 13.4 pp from 54.6% to 41.2% in 2015. SG&A as a % of Revenue decreased on 7.0 pp from 40.0% to 33.0% in 2015.
Net Income marign jumped on 29.4 pp from -445% to -415% in 2015.
Capital expenditures (CAPEX) and working capital investments
EPI Holdings Ltd's CAPEX/Revenue was 12.8% in 2015. The company's CAPEX/Revenue dropped on 17.8 pp from 30.6% in 2012 to 12.8% in 2015. For the last three years the average CAPEX/Revenue was 15.9%.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.5x and Debt / EBITDA is . Net Debt / EBITDA didn't change in 2015. Debt dropped on 34.7% in 2015 while cash dropped on 53.9% in 2015.
Appendix 1: Peers in Oil&Gas
Below you can find EPI Holdings Ltd benchmarking vs. other companies in Oil&Gas 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 |
|---|
| China CBM Group Co Ltd ($8270) | | -27.6% | 1.8% | 60.9% | 9.3% |
| Brightoil Petroleum Holdings Ltd ($933) | | 76.9% | -20.8% | 52.5% | -12.3% |
| United Energy Group Ltd ($467) | | 266.5% | 49.0% | 27.8% | -11.5% |
| Yanchang Petroleum International Ltd ($346) | -1.8% | 641.9% | 155.6% | 15.5% | |
| Kunlun Energy Co Ltd ($135) | | 27.2% | 31.8% | 10.6% | -13.3% |
| |
|---|
| Median (17 companies) | 30.1% | 15.7% | 8.7% | -1.8% | -15.7% |
|---|
| EPI Holdings Ltd ($689) | | -86.0% | 3.7% | -4.6% | -22.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Energy Group Ltd ($467) | 15.4% | 39.4% | 48.0% | 53.8% | 51.5% |
| Enviro Energy International Holdings Ltd ($1102) | 25.0% | 49.3% | 76.9% | 38.6% | 3.4% |
| South Sea Petroleum Holdings Ltd ($76) | 48.2% | 27.3% | 25.3% | 38.5% | |
| Zhongyu Gas Holdings Ltd ($3633) | 23.9% | 23.6% | 23.8% | 24.9% | |
| COSCO International Holdings Ltd ($517) | 8.4% | 6.9% | 7.5% | 10.6% | 11.5% |
| |
|---|
| Median (11 companies) | 6.4% | 6.9% | 4.1% | 8.7% | 5.3% |
|---|
| EPI Holdings Ltd ($689) | 0.3% | 58.0% | 50.7% | 54.6% | 41.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| United Energy Group Ltd ($467) | 100.6% | 71.2% | 65.3% | 69.8% | -31.9% |
| MIE Holdings Corp ($1555) | 58.1% | 57.0% | 54.5% | 57.1% | -74.8% |
| CNOOC Ltd ($883) | 50.3% | 48.5% | 47.2% | 50.7% | 53.0% |
| Sino Oil And Gas Holdings Ltd ($702) | -273.6% | -170.8% | -132.3% | 49.6% | -63.8% |
| Kunlun Energy Co Ltd ($135) | 46.8% | 47.0% | 39.5% | 34.9% | 30.9% |
| |
|---|
| Median (17 companies) | 5.6% | 5.2% | 4.1% | 6.9% | 4.4% |
|---|
| EPI Holdings Ltd ($689) | -9.3% | -4.0% | -71.9% | -70.9% | -33.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Enviro Energy International Holdings Ltd ($1102) | 1,208.5% | 301.4% | 46.5% | 111.0% | 7.9% |
| MIE Holdings Corp ($1555) | 43.9% | 52.2% | 43.3% | 44.1% | 62.4% |
| United Energy Group Ltd ($467) | 60.0% | 37.2% | 62.7% | 42.4% | 49.1% |
| CNOOC Ltd ($883) | 21.9% | 25.4% | 30.3% | 34.8% | 39.5% |
| China CBM Group Co Ltd ($8270) | 52.3% | 58.1% | 81.7% | 22.5% | 9.7% |
| |
|---|
| Median (17 companies) | 17.6% | 12.5% | 6.7% | 11.0% | 8.8% |
|---|
| EPI Holdings Ltd ($689) | 33.6% | 30.6% | 30.9% | 4.1% | 12.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CNOOC Ltd ($883) | 32.4% | 25.7% | 18.1% | 15.8% | 3.2% |
| United Energy Group Ltd ($467) | 3.6% | 7.4% | 10.3% | 15.7% | -25.0% |
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 5.4% | 7.3% | 12.6% | 13.0% | |
| Zhongyu Gas Holdings Ltd ($3633) | 10.6% | 17.4% | 15.0% | 12.3% | |
| Kunlun Energy Co Ltd ($135) | 12.3% | 13.0% | 12.6% | 11.0% | 7.7% |
| |
|---|
| Median (19 companies) | 4.5% | 4.2% | 6.3% | 4.7% | -1.3% |
|---|
| EPI Holdings Ltd ($689) | -2.0% | -1.5% | -11.4% | -17.7% | -21.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Titan Petrochemicals Group Ltd ($1192) | | | | 95.2x | |
| Sino Oil And Gas Holdings Ltd ($702) | | | | 55.5x | |
| Zhongyu Gas Holdings Ltd ($3633) | 2.0x | 1.6x | 2.3x | 3.7x | |
| Shanghai Tonva Petrochemical Co Ltd ($1103) | 8.3x | 6.0x | 4.3x | 3.6x | |
| China CBM Group Co Ltd ($8270) | 1.3x | 3.2x | | 3.3x | 2.1x |
| |
|---|
| Median (13 companies) | 1.2x | 1.5x | 1.1x | 2.2x | 1.7x |
|---|
