Camco Clean Energy revenue growth accelerated from 9.3% in 2017 to 97,197% in 2018
14 Feb 2019 • About Camco Clean Energy (
$CCE) • By InTwits
Camco Clean Energy reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Camco Clean Energy is a fast growth stock: 2018 revenue growth was 97,197%, 5 year revenue CAGR was 293% at 2018 ROIC 8.9%
- Camco Clean Energy has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 2.4%
- CAPEX is quite volatile: €525m in 2018, €1m in 2017, €0m in 2016, €0m in 2015, €0m in 2014
- The company has business model with low profitability: ROIC is 8.9%
- It operates with high leverage: Net Debt/EBITDA is 2.9x while industry average is 0.6x
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 97,197%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 81.2 pp from -65.5% to 15.7% in 2018.
Gross Margin increased on 8.2 pp from 30.5% to 38.7% in 2018. SG&A as a % of Revenue dropped on 69.7 pp from 97.1% to 27.4% in 2018.
Net Income margin surged on 77.0 pp from -69.1% to 7.9% in 2018.
Investments (CAPEX, working capital and M&A)
Camco Clean Energy's CAPEX/Revenue was 4.6% in 2018. CAPEX/Revenue increased on 4.1 pp from 0.47% in 2015 to 4.6% in 2018. Average CAPEX/Revenue for the last three years was 3.2%. CAPEX as a % of Revenue grew at 1.2 pp per annum in 2014-2018.
Return on investment
The company operates at good ROE (13.7%) while ROIC is low (8.9%). ROIC jumped on 51.0 pp from -42.0% to 8.9% in 2018. ROE surged on 56.7 pp from -42.9% to 13.7% in 2018.
Leverage (Debt)
Debt level is 2.9x Net Debt / EBITDA and 3.1x Debt / EBITDA. Net Debt / EBITDA surged2.9x from to 2.9x in 2018. Debt jumped while cash jumped on 4,058%.
Camco Clean Energy has short term refinancing risk: cash is only 62.9% of short term debt.
Valuation and dividends
Camco Clean Energy's trades at EV/EBITDA 3.0x and P/E 0.2x.
Management team
Camco Clean Energy's CEO is Damian Paul Gammell. Damian Paul Gammell is a founder and has 3 years tenure with the company. Manik H Jhangiani "Nik" is a Camco Clean Energy's CFO. Manik H Jhangiani "Nik" has spent 3 years at the company.
Financial and operational results
FY ended 31 Dec 2018
Camco Clean Energy ($CCE) key annual financial indicators| mln. € | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 6 | 11 | 11 | 12 | 11,518 | 97,196.8% |
| Gross Profit | 2 | 5 | 2 | 4 | 4,458 | 123,356.1% |
| SG&A | 5 | 6 | 8 | 11 | 3,158 | 27,368.0% |
| EBITDA | -2 | -1 | -6 | -8 | 1,812 | |
| Net Income | -2 | 1 | -6 | -8 | 909 | |
Balance Sheet
|
|---|
| Cash | 3 | 3 | 3 | 7 | 309 | 4,058.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | 491 | |
| Long Term Debt | 12 | 0 | 0 | 0 | 5,127 | |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 1 | 525 | 101,056.1% |
Ratios
|
|---|
| Revenue growth | -54.7% | 99.4% | -2.5% | 9.3% | 97,196.8% | |
| EBITDA growth | 53.8% | -5.1% | 282.0% | 38.4% | -23,462.6% | |
|
|---|
| Gross Margin | 42.6% | 43.6% | 20.9% | 30.5% | 38.7% | 8.2% |
| EBITDA Margin | -27.8% | -13.2% | -51.7% | -65.5% | 15.7% | 81.2% |
| SG&A, % of revenue | 92.5% | 57.1% | 73.2% | 97.1% | 27.4% | -69.7% |
| Net Income Margin | -39.2% | 6.2% | -50.9% | -69.1% | 7.9% | 77.0% |
| CAPEX, % of revenue | 0.6% | 0.5% | 0.7% | 4.4% | 4.6% | 0.2% |
|
|---|
| ROIC | -15.0% | -8.9% | -37.7% | -42.0% | 8.9% | 51.0% |
| ROE | -35.2% | 6.3% | -36.2% | -42.9% | 13.7% | 56.7% |
| Net Debt/EBITDA | | | | | 2.9x |
Peers in Support Services
Below we provide Camco Clean Energy benchmarking against other companies in Support Services 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Mobilityone Ltd ($MBO) | 3.7% | 23.0% | -5.3% | 37.9% | |
| Mortice Ltd ($MORT) | | 18.9% | 51.1% | 36.1% | 21.1% |
| Rws Hldgs ($RWS) | | 1.8% | 28.1% | 34.5% | 86.6% |
| Empresaria Group ($EMR) | -3.3% | -0.3% | 44.4% | 32.1% | |
| Norish ($NSH) | 3.7% | 16.4% | 16.7% | 31.4% | |
| |
|---|
| Median (49 companies) | 3.7% | 6.9% | 3.5% | 6.9% | 8.7% |
|---|
| Camco Clean Energy ($CCE) | | 99.4% | -2.5% | 9.3% | 97,196.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Inspired Energy ($INSE) | 78.7% | 76.2% | 80.5% | 83.1% | |
| Ienergizer Ltd ($IBPO) | 76.8% | 72.7% | 71.3% | 71.2% | 69.7% |
| Spectra Systems Corp ($SPSY) | 51.4% | 47.6% | 68.3% | 71.1% | |
| Vianet Group ($VNET) | 58.8% | 69.2% | 70.1% | 69.7% | 69.9% |
| Grafenia ($GRA) | 56.1% | 70.8% | 66.3% | 63.0% | 57.0% |
| |
|---|
| Median (43 companies) | 29.2% | 28.1% | 27.3% | 27.9% | 26.0% |
|---|
| Camco Clean Energy ($CCE) | 42.6% | 43.6% | 20.9% | 30.5% | 38.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Northgate ($67GX) | 40.6% | 39.4% | 38.3% | 35.9% | 35.4% |
| Spectra Systems Corp ($SPSY) | 12.3% | 6.0% | 19.7% | 34.0% | |
| Inspired Energy ($INSE) | 1.5% | 35.4% | 34.4% | 32.4% | |
| Vp ($VP.) | 24.2% | 26.2% | 28.4% | 28.6% | 27.2% |
| Rws Hldgs ($RWS) | 22.8% | 23.1% | 26.4% | 25.5% | 20.8% |
| |
|---|
| Median (49 companies) | 6.8% | 7.6% | 5.7% | 5.7% | 6.5% |
|---|
| Camco Clean Energy ($CCE) | -27.8% | -13.2% | -51.7% | -65.5% | 15.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Vp ($VP.) | 21.6% | 25.7% | 24.1% | 26.0% | 23.6% |
| Augean ($AUG) | 12.3% | 12.3% | 11.0% | 10.0% | |
| Petards Group ($PEG) | 0.5% | 0.9% | 1.7% | 10.0% | |
| Capital Drilling Ltd ($CAPD) | 13.9% | 10.1% | 13.7% | 9.0% | |
| Billing Services Group ($BILL) | 2.1% | 4.1% | 3.0% | 4.5% | |
| |
|---|
| Median (49 companies) | 1.0% | 1.0% | 1.1% | 0.9% | 0.9% |
|---|
| Camco Clean Energy ($CCE) | 0.6% | 0.5% | 0.7% | 4.4% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Sthree ($STHR) | 38.1% | 50.2% | 46.2% | 43.4% | 36.3% |
| Mortice Ltd ($MORT) | 19.6% | 21.9% | 14.5% | 23.2% | 18.4% |
| Petards Group ($PEG) | 24.7% | 23.9% | 22.7% | 20.3% | |
| Rws Hldgs ($RWS) | 24.5% | 23.3% | 23.5% | 20.2% | 12.8% |
| Latham(James) ($LTHM) | 17.5% | 16.8% | 19.2% | 19.3% | 17.4% |
| |
|---|
| Median (50 companies) | 11.1% | 10.7% | 7.9% | 7.6% | 7.9% |
|---|
| Camco Clean Energy ($CCE) | -15.0% | -8.9% | -37.7% | -42.0% | 8.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Nakama Group ($NAK) | 5.2x | 1.4x | 3.1x | 48.5x | |
| 21St Century Technology ($C21) | -0.8x | -0.2x | | 11.2x | |
| Ceps ($CEPS) | 6.6x | 3.8x | 13.9x | 5.8x | |
| Ibex Global Solutions ($IBEX) | 2.7x | 1.0x | 1.7x | 4.5x | |
| Menzies(John) ($68HN) | 2.0x | 2.4x | 1.2x | 3.0x | |
| |
|---|
| Median (43 companies) | 0.2x | 0.0x | 0.1x | 0.5x | 0.5x |
|---|
