First Capital Realty Inc reports 22.2% CAPEX decline while 1.3% Revenue growth
17.02.2016 • About First Capital Realty Inc (
$FCR) • By InTwits
First Capital Realty Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- First Capital Realty Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 87.5%. At the same time it's a lot of higher than industry average of 8.9%.
- CAPEX is quite volatile: 475 in 2015, 1,270 in 2014, 598 in 2013, 250 in 2012, 182 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.8%
- It operates with high leverage: Net Debt/EBITDA is 10.2x while industry average is 5.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
First Capital Realty Inc ($FCR) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 526.7 | 579.3 | 631.6 | 648.4 | 656.6 | 1.3% |
| EBITDA | 318.9 | 343.6 | 365.8 | 374.8 | 375.3 | 0.1% |
| Net Income | 548.9 | 392.9 | 214.9 | 196.7 | 203.9 | 3.6% |
Balance Sheet
|
|---|
| Cash | 3.1 | 64.0 | 5.0 | 17.4 | 9.2 | -47.2% |
| Short Term Debt | 1,522.9 | 1,787.9 | 2,236.0 | 2,522.5 | 2,788.3 | 10.5% |
| Long Term Debt | 1,584.2 | 1,597.2 | 1,366.6 | 1,166.3 | 1,058.0 | -9.3% |
Cash flow
|
|---|
| Capex | 541.7 | 740.7 | 480.5 | 478.6 | 372.2 | -22.2% |
Ratios
|
|---|
| Revenue growth | 9.2% | 10.0% | 9.0% | 2.7% | 1.3% | |
| EBITDA growth | 9.0% | 7.8% | 6.5% | 2.5% | 0.1% | |
| EBITDA Margin | 60.5% | 59.3% | 57.9% | 57.8% | 57.2% | -0.6% |
| Net Income Margin | 104.2% | 67.8% | 34.0% | 30.3% | 31.0% | 0.7% |
| CAPEX, % of revenue | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% | -17.1% |
| ROIC | 5.9% | 5.3% | 5.1% | 5.0% | 4.8% | -0.2% |
| ROE | 25.3% | 13.7% | 6.5% | 5.8% | 5.7% | -0.1% |
| Net Debt/EBITDA | 9.7x | 9.7x | 9.8x | 9.8x | 10.2x | 0.4x |
Revenue and profitability
First Capital Realty Inc's Revenue increased slightly on 1.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 52.8 pp from -62.6% to -9.8% in 2015.
Net Income marign increased slightly on 0.70 pp from 30.3% to 31.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 First Capital Realty Inc had CAPEX/Revenue of 56.7%. First Capital Realty Inc's CAPEX/Revenue dropped on 71.2 pp from 128% in 2012 to 56.7% in 2015. For the last three years the average CAPEX/Revenue was 68.9%.The company invested a large share of EBITDA (99.2%) to CAPEX.
Return on investment
The company operates at low ROIC (4.76%) and ROE (5.73%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 10.2x and Debt / EBITDA is 10.2x. Net Debt / EBITDA jumped on 0.4x from 9.8x to 10.2x in 2015. Debt increased on 4.3% in 2015 while cash dropped on 47.2% in 2015.
Management team
The company's CEO Adam Elliot Paul is a founder and has spent 3 years at the company. The company's CFO is Kay Brekken. Kay Brekken has 4 years tenure at the company.
Appendix 1: Peers in Financial
Below we provide First Capital Realty Inc benchmarking against other companies in Financial 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Gluskin Sheff + Associates Inc ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 11.2% | 8.5% | 7.1% | 8.9% | 0.8% |
|---|
| First Capital Realty Inc ($FCR) | | 10.0% | 9.0% | 2.7% | 1.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | 27.5% |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 27.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | |
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | |
| |
|---|
| Median (48 companies) | 35.6% | 32.3% | 32.0% | 30.5% | 43.5% |
|---|
| First Capital Realty Inc ($FCR) | 60.5% | 59.3% | 57.9% | 57.8% | 57.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | 46.7% |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | 56.3% |
| Gazit-Globe Ltd ($GZT) | 111.1% | 80.2% | 43.3% | 52.1% | |
| |
|---|
| Median (75 companies) | 1.2% | 1.2% | 0.7% | 1.0% | 1.1% |
|---|
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (77 companies) | 4.9% | 4.8% | 4.5% | 4.8% | 5.0% |
|---|
| First Capital Realty Inc ($FCR) | 5.9% | 5.3% | 5.1% | 5.0% | 4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (40 companies) | 2.9x | 5.1x | 4.6x | 4.2x | 2.9x |
|---|
| First Capital Realty Inc ($FCR) | 9.7x | 9.7x | 9.8x | 9.8x | 10.2x |
