DirectCash Payments Inc Debt surged on 10.5% in 2015 while EBITDA decreased on 5.4%
22.03.2016 • About DirectCash Payments Inc (
$DCI) • By InTwits
DirectCash Payments Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- DirectCash Payments Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's a lot of higher than industry average of 6.8%.
- CAPEX is quite volatile: 10.6 in 2015, 5.6 in 2014, 4.0 in 2013, 8.6 in 2012, 4.2 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
DirectCash Payments Inc ($DCI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 112.3 | 192.1 | 241.7 | 277.1 | 283.7 | 2.4% |
| Gross Profit | 51.8 | 80.6 | 104.9 | 124.9 | 136.0 | 8.9% |
| EBITDA | 36.7 | 52.5 | 67.0 | 73.0 | 69.1 | -5.4% |
| Net Income | 20.3 | 6.9 | 0.1 | 3.7 | -7.3 | -298.3% |
Balance Sheet
|
|---|
| Cash | 56.3 | 42.9 | 50.9 | 14.2 | 21.2 | 49.2% |
| Short Term Debt | 52.1 | 19.1 | 11.6 | 1.5 | 9.1 | 521.6% |
| Long Term Debt | 0.0 | 197.9 | 231.8 | 194.9 | 207.9 | 6.6% |
Cash flow
|
|---|
| Capex | 4.2 | 8.6 | 4.0 | 5.6 | 10.6 | 89.5% |
Ratios
|
|---|
| Revenue growth | 6.0% | 71.0% | 25.8% | 14.7% | 2.4% | |
| EBITDA growth | 5.2% | 43.2% | 27.6% | 9.0% | -5.4% | |
| Gross Margin | 46.1% | 41.9% | 43.4% | 45.1% | 47.9% | 2.9% |
| EBITDA Margin | 32.6% | 27.3% | 27.7% | 26.4% | 24.4% | -2.0% |
| Net Income Margin | 18.1% | 3.6% | 0.0% | 1.3% | -2.6% | -3.9% |
| CAPEX, % of revenue | 3.8% | 4.5% | 1.7% | 2.0% | 3.7% | 1.7% |
| ROIC | 15.6% | 6.3% | 3.8% | 5.3% | 4.0% | -1.3% |
| ROE | 23.4% | 5.9% | 0.0% | 3.5% | -8.6% | -12.1% |
| Net Debt/EBITDA | -0.1x | 3.3x | 2.9x | 2.5x | 2.8x | 0.3x |
Revenue and profitability
The company's Revenue increased on 2.4% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 10.8 pp from 50.1% to 39.3% in 2015.
Gross Margin increased on 2.9 pp from 45.1% to 47.9% in 2015.
Net Income marign decreased on 3.9 pp from 1.3% to -2.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
DirectCash Payments Inc's CAPEX/Revenue was 3.7% in 2015. CAPEX/Revenue decreased slightly on 0.76 pp from 4.5% in 2012 to 3.7% in 2015. Average CAPEX/Revenue for the last three years was 2.5%.
Return on investment
The company operates at low but positive ROIC (4.04%) and negative ROE (-8.62%). ROIC decreased slightly on 1.3 pp from 5.3% to 4.0% in 2015. ROE dropped on 12.1 pp from 3.5% to -8.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 3.1x. Net Debt / EBITDA surged on 0.3x from 2.5x to 2.8x in 2015. Debt surged on 10.5% in 2015 while cash surged on 49.2% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide DirectCash Payments Inc benchmarking against other companies in Consumer, Non-cyclical 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 |
|---|
| Theratechnologies Inc ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Nobilis Health Corp ($NHC) | | 45.3% | 49.0% | 169.9% | 172.8% |
| Merus Labs International Inc ($MSL) | | | 172.4% | -7.9% | 87.2% |
| |
|---|
| Median (70 companies) | 20.5% | 8.7% | 5.3% | 12.7% | 11.9% |
|---|
| DirectCash Payments Inc ($DCI) | | 71.0% | 25.8% | 14.7% | 2.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | 62.5% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.4% | 36.1% | 35.9% | 35.1% | 35.1% |
|---|
| DirectCash Payments Inc ($DCI) | 46.1% | 41.9% | 43.4% | 45.1% | 47.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| CRH Medical Corp ($CRH) | 22.1% | 21.0% | 24.5% | 29.1% | 44.1% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.9% | 36.8% | 36.3% | 36.4% | 39.7% |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | 39.3% |
| |
|---|
| Median (69 companies) | 7.5% | 7.4% | 8.7% | 10.6% | 10.6% |
|---|
| DirectCash Payments Inc ($DCI) | 32.6% | 27.3% | 27.7% | 26.4% | 24.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Westbond Enterprises Corp ($WBE) | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| ProMetic Life Sciences Inc ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (69 companies) | 2.3% | 2.6% | 2.4% | 2.6% | 2.4% |
|---|
| DirectCash Payments Inc ($DCI) | 3.8% | 4.5% | 1.7% | 2.0% | 3.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Response Biomedical Corp ($RBM) | -75.0% | -158.5% | | | 52.0% |
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Immunotec Inc ($IMM) | -11.5% | 1.8% | 8.8% | -10.5% | 40.8% |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | 38.1% |
| Medical Facilities Corp ($DR) | 41.0% | 36.1% | 39.5% | 26.5% | 28.5% |
| |
|---|
| Median (70 companies) | 7.0% | 7.1% | 6.9% | 7.3% | 7.5% |
|---|
| DirectCash Payments Inc ($DCI) | 15.6% | 6.3% | 3.8% | 5.3% | 4.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIBT Education Group Inc ($MBA) | | -7.0x | -0.3x | | 18.4x |
| SunOpta Inc ($SOY) | 2.9x | 2.9x | 3.5x | 1.3x | 16.9x |
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | 15.6x |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Sienna Senior Living Inc ($SIA) | 10.6x | 9.5x | 11.8x | 9.2x | 9.1x |
| |
|---|
| Median (60 companies) | 1.9x | 2.5x | 2.2x | 2.7x | 1.6x |
|---|
| DirectCash Payments Inc ($DCI) | -0.1x | 3.3x | 2.9x | 2.5x | 2.8x |
