Sylvania Platinum Ltd Net Income jumped on 125% and EBITDA Margin increased on 8.1 pp from 42.9% to 51.0%
07 Sep 2020 • About Sylvania Platinum Ltd (
$SLP) • By InTwits
Sylvania Platinum Ltd reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Sylvania Platinum Ltd is a fast growth stock: FY2020 revenue growth was 61.7%, 5 year revenue CAGR was 19.0% at FY2020 ROIC 35.9%
- Sylvania Platinum Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.2%. At the same time it's in pair with industry average of 2.8%
- CAPEX is quite volatile: $5m in FY2020, $8m in FY2019, $8m in FY2018, $4m in FY2017, $1m in FY2016
- The company has highly profitable business model: ROIC is 35.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Sylvania Platinum Ltd's Revenue surged on 61.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.5 pp from 9.1% to 13.6% in FY2020. EBITDA Margin followed a growing trend at 5.4 pp per annum in the last 5 years.
Gross Margin surged on 21.5 pp from 36.4% to 57.9% in FY2020. Gross Margin followed a growing trend at 8.5 pp per annum in the last 5 years.
Net Income margin surged on 10.1 pp from 25.8% to 35.9% in FY2020. Net Income margin followed a growing trend at 6.1 pp per annum in FY2016-FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 4.7% in FY2020. CAPEX/Revenue decreased on 3.6 pp from 8.3% in FY2017 to 4.7% in FY2020. Average CAPEX/Revenue for the last three years was 9.7%. During FY2016-FY2020 CAPEX as a % of Revenue topped in FY2018 at 12.6% and was declining since that time.
Return on investment
The company operates at high and attractive ROIC (35.9%) and ROE (30.6%). ROIC surged on 18.2 pp from 17.7% to 35.9% in FY2020. ROE jumped on 15.4 pp from 15.2% to 30.6% in FY2020. ROIC followed a growing trend at 6.8 pp per annum in FY2016-FY2020. ROE followed a growing trend at 5.9 pp per annum in FY2016-FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.9x and Debt / EBITDA is 0.0x. Debt jumped on 21.2% while cash surged on 165%.
Sylvania Platinum Ltd has no short term refinancing risk: cash is higher than short term debt (25,512.0%).
Management team
Sylvania Platinum Ltd's CEO Johannes Jacobus Prinsloo "Jaco" has spent 1 year with the company. Sylvania Platinum Ltd's CFO Lewanne Carminati has spent 1 year with the company.
Financial and operational results
FY ended 30 Jun 2020
Sylvania Platinum Ltd ($SLP) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 39.5 | 50.5 | 62.8 | 70.5 | 114.1 | 61.7% |
| Gross Profit | 7.7 | 14.3 | 17.5 | 25.7 | 66.1 | 157.2% |
| SG&A | 2.2 | 1.9 | 2.0 | 0.0 | 0.0 | |
| EBITDA | 10.8 | 18.3 | 22.2 | 30.2 | 58.2 | 92.3% |
| Net Income | 3.7 | 8.9 | 11.0 | 18.2 | 41.0 | 125.2% |
Balance Sheet
|
|---|
| Cash | 5.9 | 14.4 | 13.1 | 20.8 | 55.1 | 164.6% |
| Short Term Debt | 0.2 | 0.1 | 0.1 | 0.2 | 0.2 | 14.9% |
| Long Term Debt | 0.2 | 0.3 | 0.2 | 0.2 | 0.2 | 27.8% |
Cash flow
|
|---|
| Capex | 1.5 | 4.2 | 7.9 | 8.3 | 5.4 | -34.7% |
Ratios
|
|---|
| Revenue growth | -17.3% | 27.8% | 24.3% | 12.4% | 61.7% | |
| EBITDA growth | 8.8% | 69.9% | 21.0% | 36.2% | 92.3% | |
|
|---|
| Gross Margin | 19.6% | 28.2% | 27.9% | 36.4% | 57.9% | 21.5% |
| EBITDA Margin | 27.3% | 36.3% | 35.4% | 42.9% | 51.0% | 8.1% |
| SG&A, % of revenue | 5.6% | 3.8% | 3.2% | 0.0% | 0.0% | 0.0% |
| Net Income Margin | 9.4% | 17.6% | 17.5% | 25.8% | 35.9% | 10.1% |
| CAPEX, % of revenue | 3.7% | 8.3% | 12.6% | 11.8% | 4.7% | -7.0% |
|
|---|
| ROIC | 5.0% | 11.2% | 12.5% | 17.7% | 35.9% | 18.2% |
| ROE | 3.9% | 9.0% | 10.1% | 15.2% | 30.6% | 15.4% |
| Net Debt/EBITDA | -0.5x | -0.8x | -0.6x | -0.7x | -0.9x | -0.3x |
Peers in Mining
Below you can find Sylvania Platinum Ltd benchmarking vs. other companies in Mining 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pan African Resources ($PAF) | 13.0% | -36.8% | -7.9% | 48.7% | - |
| Glencore ($GLEN) | 3.8% | 34.3% | 6.9% | -2.1% | - |
| Firestone Diamonds ($FDI) | - | - | - | -8.0% | - |
| |
|---|
| Median (3 companies) | 5.7% | 13.5% | -0.6% | -2.1% | - |
|---|
| Sylvania Platinum Ltd ($SLP) | - | 27.8% | 24.3% | 12.4% | 61.7% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 62.6% | - | - | 64.1% | - |
| Pan African Resources ($PAF) | 35.5% | 38.9% | 26.5% | 29.6% | - |
| Firestone Diamonds ($FDI) | - | - | 8.2% | 18.0% | - |
| Glencore ($GLEN) | 2.1% | 3.8% | 4.1% | 2.2% | - |
| |
|---|
| Median (4 companies) | 29.1% | 24.8% | 8.2% | 23.8% | - |
|---|
| Sylvania Platinum Ltd ($SLP) | 19.6% | 28.2% | 27.9% | 36.4% | 57.9% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Polyus Gold Intl Ltd ($PGIL) | 61.4% | - | - | 66.7% | - |
| Pan African Resources ($PAF) | 26.7% | 45.2% | 19.4% | 34.4% | - |
| Glencore ($GLEN) | 5.0% | 5.8% | 6.4% | 4.9% | - |
| Firestone Diamonds ($FDI) | - | - | 9.4% | -54.0% | - |
| |
|---|
| Median (4 companies) | 24.6% | 28.5% | 9.4% | 19.6% | - |
|---|
| Sylvania Platinum Ltd ($SLP) | 27.3% | 36.3% | 35.4% | 42.9% | 51.0% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pan African Resources ($PAF) | 8.3% | 28.4% | 85.5% | 25.4% | - |
| Polyus Gold Intl Ltd ($PGIL) | 16.5% | - | - | 19.2% | - |
| Firestone Diamonds ($FDI) | - | - | 3.2% | 6.9% | - |
| Glencore ($GLEN) | 2.0% | 1.7% | 2.1% | 2.2% | - |
| |
|---|
| Median (4 companies) | 15.3% | 13.1% | 5.2% | 13.1% | - |
|---|
| Sylvania Platinum Ltd ($SLP) | 3.7% | 8.3% | 12.6% | 11.8% | 4.7% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pan African Resources ($PAF) | 17.9% | 20.3% | 4.7% | 18.7% | - |
| Glencore ($GLEN) | 2.4% | 7.6% | 8.7% | 3.9% | - |
| Red Rock Resources ($RRR) | 7.9% | -2.8% | -12.6% | -23.0% | - |
| Firestone Diamonds ($FDI) | -4.4% | -87.2% | -6.0% | -42.4% | - |
| Regency Mines ($RGM) | -40.5% | -9.5% | -49.8% | -50.0% | - |
| |
|---|
| Median (6 companies) | 5.4% | 7.0% | -6.0% | -23.0% | - |
|---|
| Sylvania Platinum Ltd ($SLP) | 5.0% | 11.2% | 12.5% | 17.7% | 35.9% |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Glencore ($GLEN) | 4.0x | 2.7x | 2.4x | 3.4x | - |
| Pan African Resources ($PAF) | 0.1x | 0.1x | 4.2x | 1.8x | - |
| Polyus Gold Intl Ltd ($PGIL) | 2.1x | 64.5x | - | 1.2x | - |
| |
|---|
| Median (3 companies) | 1.4x | 0.6x | 3.3x | 1.8x | - |
|---|
| Sylvania Platinum Ltd ($SLP) | -0.5x | -0.8x | -0.6x | -0.7x | -0.9x |
