CST Mining Group Ltd EBITDA dropped on 371% and EBITDA Margin dropped on 165 pp from 22.3% to -143%
29/06/2016 • About CST Mining Group Ltd (
$985) • By InTwits
CST Mining Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CST Mining Group Ltd doesn't have a profitable business model yet: FY2016 ROIC is -6.7%
- The company operates at negative EBITDA Margin: -143.2%
- EBITDA Margin is quite volatile: -143.2% in FY2016, 22.3% in FY2015, 5.5% in FY2014, 150.6% in FY2013, -29.3% in FY2012
- CST Mining Group Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.4%. At the same time it's in pair with industry average of 24.2%.
- CAPEX is quite volatile: 4.3 in FY2016, 9.0 in FY2015, 10.9 in FY2014, 48.7 in FY2013, 63.6 in FY2012
- The company has unprofitable business model: ROIC is at -6.7%
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. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 147.4 | 168.2 | 152.6 | 109.9 | 46.2 | -57.9% |
| Gross Profit | 40.6 | 42.3 | 8.4 | 32.4 | 19.5 | -39.7% |
| SG&A | 44.7 | 43.8 | 36.8 | 33.2 | 31.0 | -6.5% |
| EBITDA | -43.2 | 253.3 | 8.4 | 24.5 | -66.2 | -370.6% |
| Net Income | -70.1 | 119.7 | -61.7 | 28.2 | -68.3 | -342.5% |
Balance Sheet
|
|---|
| Cash | 119.9 | 197.4 | 135.7 | 99.5 | 44.5 | -55.3% |
| 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 | 63.6 | 48.7 | 10.9 | 9.0 | 4.3 | -51.4% |
Ratios
|
|---|
| Revenue growth | 224.3% | 14.2% | -9.3% | -28.0% | -57.9% | |
| EBITDA growth | 56.7% | -686.0% | -96.7% | 192.6% | -370.6% | |
| Gross Margin | 27.6% | 25.2% | 5.5% | 29.4% | 42.2% | 12.8% |
| EBITDA Margin | -29.3% | 150.6% | 5.5% | 22.3% | -143.2% | -165.4% |
| Net Income Margin | -47.6% | 71.1% | -40.5% | 25.6% | -147.7% | -173.4% |
| SG&A, % of revenue | 30.3% | 26.0% | 24.1% | 30.2% | 67.1% | 36.9% |
| CAPEX, % of revenue | 43.1% | 29.0% | 7.1% | 8.1% | 9.4% | 1.3% |
| ROIC | -8.6% | 20.4% | -5.6% | 2.3% | -6.7% | -9.0% |
| ROE | -7.7% | 12.5% | -6.3% | 2.9% | -6.7% | -9.7% |
| Net Debt/EBITDA | | -0.8x | -16.2x | -4.1x | | 4.1x |
Revenue and profitability
The company's Revenue dropped on 57.9%. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 165 pp from 22.3% to -143% in FY2016.
Gross Margin jumped on 12.8 pp from 29.4% to 42.2% in FY2016. SG&A as a % of Revenue surged on 36.9 pp from 30.2% to 67.1% in FY2016.
Net Income marign dropped on 173 pp from 25.6% to -148% in FY2016.
Capital expenditures (CAPEX) and working capital investments
CST Mining Group Ltd's CAPEX/Revenue was 9.4% in FY2016. The company showed big decline in CAPEX/Revenue of 19.6 pp from 29.0% in FY2013 to 9.4% in FY2016. For the last three years the average CAPEX/Revenue was 8.2%.
Return on investment
The company operates at negative ROIC (-6.73%) and ROE (-6.72%). ROIC decreased on 9.0 pp from 2.3% to -6.7% in FY2016. ROE decreased on 9.7 pp from 2.9% to -6.7% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 55.3%.
Appendix 1: Peers in Mining
Below we provide CST Mining Group Ltd benchmarking against other companies in Mining 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mongolia Energy Corp Ltd ($276) | | 89.7% | -95.8% | 2,361.6% | 1,178.3% |
| Real Gold Mining Ltd ($246) | -44.0% | -68.0% | -26.2% | 106.2% | |
| REX Global Entertainment Holdings Ltd ($164) | | 81.6% | -15.5% | 96.4% | 30.4% |
| Hengxing Gold Holding Co Ltd ($2303) | | | 3,467.3% | 78.0% | |
| Zijin Mining Group Co Ltd ($2899) | 21.6% | 2.5% | 18.1% | 26.9% | |
| |
|---|
| Median (47 companies) | 6.4% | -1.7% | -5.1% | -14.0% | -4.4% |
|---|
| CST Mining Group Ltd ($985) | | 14.2% | -9.3% | -28.0% | -57.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Sino Prosper Group Holdings Ltd ($766) | 2.5% | 5.1% | 39.6% | 93.0% | 87.4% |
| REX Global Entertainment Holdings Ltd ($164) | -15.8% | -7.8% | -0.8% | 88.6% | 87.3% |
| China Billion Resources Ltd ($274) | 71.4% | 47.2% | 73.4% | 79.7% | |
| Sun International Resources Ltd ($8029) | 83.2% | 73.1% | 64.8% | 69.4% | 58.8% |
| Timeless Software Ltd ($8028) | 17.7% | 48.5% | 29.4% | 42.1% | 39.9% |
| |
|---|
| Median (48 companies) | 14.4% | 13.8% | 15.5% | 12.7% | 34.0% |
|---|
| CST Mining Group Ltd ($985) | 27.6% | 25.2% | 5.5% | 29.4% | 42.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| G-Resources Group Ltd ($1051) | | 54.5% | 53.4% | 58.3% | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 70.0% | 64.6% | 59.6% | 51.3% | |
| Timeless Software Ltd ($8028) | -113.1% | 24.7% | -13.7% | 46.1% | 28.0% |
| Hengxing Gold Holding Co Ltd ($2303) | | -766.2% | 24.5% | 43.9% | |
| Sino Prosper Group Holdings Ltd ($766) | -138.6% | -138.2% | -378.4% | 42.9% | 28.5% |
| |
|---|
| Median (48 companies) | 5.3% | 7.8% | 6.0% | 4.4% | -32.2% |
|---|
| CST Mining Group Ltd ($985) | -29.3% | 150.6% | 5.5% | 22.3% | -143.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mongolia Energy Corp Ltd ($276) | 8,006.5% | 1,061.7% | 30,555.4% | 1,973.0% | 20.9% |
| Kaz Minerals ($847) | 36.6% | 136.5% | 168.8% | 168.7% | |
| Chinalco Mining Corp International ($3668) | | | | 115.6% | |
| China Dynamics Holdings Ltd ($476) | 1.8% | 0.0% | 1.0% | 113.8% | 5.7% |
| MMG Ltd ($1208) | 25.7% | 22.6% | 41.9% | 100.4% | |
| |
|---|
| Median (48 companies) | 17.2% | 16.8% | 16.5% | 12.5% | 3.3% |
|---|
| CST Mining Group Ltd ($985) | 43.1% | 29.0% | 7.1% | 8.1% | 9.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CGN Mining Co Ltd ($1164) | 2.6% | 3.3% | 7.9% | 16.7% | |
| United Co RUSAL PLC ($486) | 0.3% | -9.0% | 6.3% | 12.3% | |
| Xingfa Aluminium Holdings Ltd ($98) | 7.6% | 8.8% | 11.7% | 11.8% | |
| Timeless Software Ltd ($8028) | -29.1% | 7.3% | -4.6% | 11.6% | 3.9% |
| China Hongqiao Group Ltd ($1378) | 24.8% | 17.0% | 14.1% | 10.6% | |
| |
|---|
| Median (49 companies) | 1.9% | 2.3% | 1.5% | -1.1% | -5.7% |
|---|
| CST Mining Group Ltd ($985) | -8.6% | 20.4% | -5.6% | 2.3% | -6.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| China Daye Non-Ferrous Metals Mining Ltd ($661) | 9.2x | 9.7x | 9.2x | 31.5x | |
| Chinalco Mining Corp International ($3668) | | | | 25.0x | |
| MMG Ltd ($1208) | 2.1x | 2.0x | 10.2x | 20.2x | |
| Kaz Minerals ($847) | 2.4x | 2.9x | 5.5x | 18.7x | |
| China Precious Metal Resources Holdings Co Ltd ($1194) | 1.5x | 4.1x | 6.4x | 13.5x | |
| |
|---|
| Median (28 companies) | 2.0x | 1.9x | 4.6x | 3.8x | -2.3x |
|---|
| CST Mining Group Ltd ($985) | | -0.8x | -16.2x | -4.1x | |
