Enteq Upstream revenue surged on 35.7% and EBITDA Margin jumped on 16.5 pp from -16.0% to 0.45%
13 Jun 2018 • About Enteq Upstream (
$NTQ) • By InTwits
Enteq Upstream reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Enteq Upstream has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.7%. At the same time it's in pair with industry average of 5.6%
- CAPEX is quite volatile: $0m in FY2018, $0m in FY2017, $0m in FY2016, $2m in FY2015, $2m in FY2014
- The company has unprofitable business model: ROIC is -3.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 35.7%. During the last 5 years Revenue growth bottomed in FY2016 at -66.1% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 16.5 pp from -16.0% to 0.45% in FY2018. During the last 5 years EBITDA Margin bottomed in FY2016 at -54.1% and was growing since that time.
Gross Margin increased slightly on 1.7 pp from 65.1% to 66.9% in FY2018. Gross Margin stuck to a growing trend at 8.1 pp per annum in the last 5 years. SG&A as a % of Revenue dropped on 12.8 pp from 91.7% to 78.9% in FY2018.
Net Income margin jumped on 15.5 pp from -24.9% to -9.3% in FY2018. During FY2014-FY2018 Net Income margin bottomed in FY2015 at -255% and was growing since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.7% in FY2018. Enteq Upstream showed decline in CAPEX/Revenue of 8.7 pp from 12.4% in FY2015 to 3.7% in FY2018. To secure its fast growth the company made large investments to CAPEX (814% of EBITDA).
Return on investment
The company operates at negative ROIC (-3.5%) and ROE (-2.6%). ROIC increased slightly on 1.7 pp from -5.2% to -3.5% in FY2018. ROE increased on 2.4 pp from -4.9% to -2.6% in FY2018. During FY2014-FY2018 ROIC bottomed in FY2016 at -17.4% and was growing since that time. During FY2014-FY2018 ROE bottomed in FY2015 at -90.1% and was growing since that time.
Leverage (Debt)
The company has no debt. Cash increased slightly on 1.1%.
Financial and operational results
FY ended 31 Mar 2018
Enteq Upstream ($NTQ) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 24.554 | 18.525 | 6.289 | 4.762 | 6.460 | 35.7% |
| Gross Profit | 9.829 | 6.911 | 4.088 | 3.101 | 4.319 | 39.3% |
| SG&A | | 8.809 | 8.841 | 4.365 | 5.095 | 16.7% |
| EBITDA | 8.210 | -1.128 | -3.403 | -0.762 | 0.029 | |
| Net Income | -11.572 | -47.227 | -4.741 | -1.185 | -0.604 | |
Balance Sheet
|
|---|
| Cash | 18.829 | 14.091 | 15.121 | 15.335 | 15.501 | 1.1% |
| 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 | 1.604 | 2.297 | 0.066 | 0.000 | 0.236 | |
Ratios
|
|---|
| Revenue growth | 59.8% | -24.6% | -66.1% | -24.3% | 35.7% | |
| EBITDA growth | 49.3% | -113.7% | 201.7% | -77.6% | -103.8% | |
|
|---|
| Gross Margin | 40.0% | 37.3% | 65.0% | 65.1% | 66.9% | 1.7% |
| EBITDA Margin | 33.4% | -6.1% | -54.1% | -16.0% | 0.4% | 16.5% |
| SG&A, % of revenue | | 47.6% | 140.6% | 91.7% | 78.9% | -12.8% |
| Net Income Margin | -47.1% | -254.9% | -75.4% | -24.9% | -9.3% | 15.5% |
| CAPEX, % of revenue | 6.5% | 12.4% | 1.0% | 0.0% | 3.7% | |
|
|---|
| ROIC | 1.6% | -14.7% | -17.4% | -5.2% | -3.5% | 1.7% |
| ROE | -14.2% | -90.1% | -17.8% | -4.9% | -2.6% | 2.4% |
| Net Debt/EBITDA | -2.3x | | | | -534.5x |
Peers in Oil Equipment, Services & Distribution
Below you can find Enteq Upstream benchmarking vs. other companies in Oil Equipment, Services & Distribution 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Mycelx Technologies Corp ($MYX) | | 0.1% | -41.7% | 73.6% | |
| Wood Group(John) ($WG.) | | -23.9% | -17.6% | 30.9% | |
| Eurasia Drilling Co Ltd ($EDCL) | -14.5% | -40.9% | -8.5% | 24.5% | |
| Schlumberger ($SCL) | 7.3% | -27.0% | -21.6% | 9.5% | |
| |
|---|
| Median (4 companies) | -17.2% | -11.9% | -23.7% | 27.7% | |
|---|
| Enteq Upstream ($NTQ) | | -24.6% | -66.1% | -24.3% | 35.7% |
Top companies by Gross margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Mycelx Technologies Corp ($MYX) | 52.3% | 53.3% | 51.8% | 54.3% | |
| Eurasia Drilling Co Ltd ($EDCL) | 24.3% | 22.3% | 19.6% | 21.7% | |
| Schlumberger ($SCL) | 23.0% | 20.2% | 13.3% | 12.8% | |
| Wood Group(John) ($WG.) | 15.4% | 16.3% | 15.1% | 12.6% | |
| |
|---|
| Median (4 companies) | 25.0% | 21.2% | 17.3% | 17.2% | |
|---|
| Enteq Upstream ($NTQ) | 40.0% | 37.3% | 65.0% | 65.1% | 66.9% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Eurasia Drilling Co Ltd ($EDCL) | 28.0% | 21.7% | 24.7% | 27.1% | |
| Schlumberger ($SCL) | 24.3% | 19.9% | 9.2% | 9.8% | |
| Mycelx Technologies Corp ($MYX) | -30.3% | -11.6% | -20.2% | 3.5% | |
| Wood Group(John) ($WG.) | 9.4% | 5.8% | 5.6% | 3.5% | |
| |
|---|
| Median (4 companies) | 8.3% | 7.6% | 7.4% | 6.7% | |
|---|
| Enteq Upstream ($NTQ) | 33.4% | -6.1% | -54.1% | -16.0% | 0.4% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Eurasia Drilling Co Ltd ($EDCL) | 17.8% | 12.3% | 6.2% | 7.3% | |
| Schlumberger ($SCL) | 8.2% | 6.8% | 7.4% | 6.9% | |
| Wood Group(John) ($WG.) | 0.9% | 0.7% | 0.7% | 0.4% | |
| Mycelx Technologies Corp ($MYX) | 22.3% | 5.9% | 1.4% | 0.0% | |
| |
|---|
| Median (4 companies) | 13.0% | 6.3% | 4.4% | 3.7% | |
|---|
| Enteq Upstream ($NTQ) | 6.5% | 12.4% | 1.0% | 0.0% | 3.7% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Eurasia Drilling Co Ltd ($EDCL) | 20.9% | 9.0% | 10.2% | 15.3% | |
| Wood Group(John) ($WG.) | 16.0% | 4.5% | 2.5% | 0.1% | |
| Schlumberger ($SCL) | 14.3% | 5.4% | -2.6% | -1.4% | |
| Mycelx Technologies Corp ($MYX) | -19.3% | -11.0% | -13.2% | -3.6% | |
| |
|---|
| Median (4 companies) | 6.0% | 0.4% | -0.0% | -0.7% | |
|---|
| Enteq Upstream ($NTQ) | 1.6% | -14.7% | -17.4% | -5.2% | -3.5% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Wood Group(John) ($WG.) | 0.6x | 1.1x | 1.5x | 8.8x | |
| Schlumberger ($SCL) | 0.9x | 2.3x | 6.5x | 5.5x | |
| Eurasia Drilling Co Ltd ($EDCL) | 0.8x | 2.8x | 1.8x | 1.1x | |
| Mycelx Technologies Corp ($MYX) | | | | -6.8x | |
| |
|---|
| Median (4 companies) | 0.8x | 1.8x | 1.7x | 3.3x | |
|---|
