Photon Control Inc Net Income surged on 82.7% in 2015 and Revenue jumped on 31.1%
31.03.2016 • About Photon Control Inc (
$PHO) • By InTwits
Photon Control Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Photon Control Inc is a fast growth stock: 2015 revenue growth was 31.1%, 5 year revenue CAGR was 15.7% at 2015 ROIC 40.6%
- EBITDA Margin is expanding: 38.3% in 2015 vs. 29.3% in 2014 vs. 8.1% in 2011
- EBITDA Margin is quite volatile: 38.3% in 2015, 29.3% in 2014, 24.8% in 2013, 17.6% in 2012, 8.1% in 2011
- Photon Control Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has highly profitable business model: ROIC is at 40.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Photon Control Inc ($PHO) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11.486 | 10.500 | 17.257 | 21.035 | 27.575 | 31.1% |
| Gross Profit | 4.436 | 3.899 | 7.299 | 10.143 | 14.580 | 43.8% |
| SG&A | | 1.830 | 2.256 | | 2.749 | |
| EBITDA | 0.932 | 1.852 | 4.272 | 6.167 | 10.561 | 71.2% |
| Net Income | 4.648 | 3.037 | 3.493 | 5.039 | 9.204 | 82.7% |
Balance Sheet
|
|---|
| Cash | 0.975 | 3.608 | 6.068 | 14.061 | 26.227 | 86.5% |
| 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 | 0.084 | 0.019 | 0.041 | 0.089 | 0.295 | 230.0% |
Ratios
|
|---|
| Revenue growth | -13.5% | -8.6% | 64.3% | 21.9% | 31.1% | |
| EBITDA growth | -70.1% | 98.6% | 130.6% | 44.4% | 71.2% | |
| Gross Margin | 38.6% | 37.1% | 42.3% | 48.2% | 52.9% | 4.7% |
| EBITDA Margin | 8.1% | 17.6% | 24.8% | 29.3% | 38.3% | 9.0% |
| Net Income Margin | 40.5% | 28.9% | 20.2% | 24.0% | 33.4% | 9.4% |
| SG&A, % of revenue | | 17.4% | 13.1% | | 10.0% | 10.0% |
| CAPEX, % of revenue | 0.7% | 0.2% | 0.2% | 0.4% | 1.1% | 0.6% |
| ROIC | 10.1% | 21.0% | 44.4% | 38.0% | 40.6% | 2.6% |
| ROE | 67.9% | 28.2% | 24.7% | 26.8% | 34.5% | 7.7% |
| Net Debt/EBITDA | -1.0x | -1.9x | -1.4x | -2.3x | -2.5x | -0.2x |
Revenue and profitability
Photon Control Inc's Revenue surged on 31.1% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 9.0 pp from 29.3% to 38.3% in 2015.
Gross Margin increased on 4.7 pp from 48.2% to 52.9% in 2015.
Net Income marign increased on 9.4 pp from 24.0% to 33.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
Photon Control Inc's CAPEX/Revenue was 1.1% in 2015. The company showed small growth in CAPEX/Revenue of 0.88 pp from 0.19% in 2012 to 1.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 0.58%.
Return on investment
The company operates at high and attractive ROIC (40.56%) and ROE (34.55%). ROIC increased on 2.6 pp from 38.0% to 40.6% in 2015. ROE increased on 7.7 pp from 26.8% to 34.5% in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 86.5% in 2015.
Appendix 1: Peers in Industrial
Below you can find Photon Control Inc benchmarking vs. other companies in Industrial 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 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Diversified Royalty Corp ($DIV) | | | | | 503.3% |
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| WSP Global Inc ($WSP) | | 92.9% | 60.3% | 44.0% | 108.9% |
| CEMATRIX Corp ($CVX) | | 9.2% | -5.6% | 7.9% | 76.5% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (78 companies) | 0.7% | 11.5% | 4.9% | 9.1% | 10.0% |
|---|
| Photon Control Inc ($PHO) | | -8.6% | 64.3% | 21.9% | 31.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% |
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| Avigilon Corp ($AVO) | 45.7% | 49.3% | 54.2% | 56.6% | 57.4% |
| |
|---|
| Median (72 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 24.0% |
|---|
| Photon Control Inc ($PHO) | 38.6% | 37.1% | 42.3% | 48.2% | 52.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Evertz Technologies Ltd ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| Badger Daylighting Ltd ($BAD) | 27.2% | 25.7% | 25.9% | 27.9% | 24.6% |
| |
|---|
| Median (73 companies) | 8.3% | 9.2% | 8.3% | 7.2% | 9.5% |
|---|
| Photon Control Inc ($PHO) | 8.1% | 17.6% | 24.8% | 29.3% | 38.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | 41.3% |
| Algoma Central Corp ($ALC) | 6.6% | 15.9% | 7.3% | 5.0% | 27.4% |
| Canadian Pacific Railway Ltd ($CP) | 21.3% | 20.2% | 20.2% | 21.9% | 22.7% |
| Canadian National Railway Co ($CNR) | 18.0% | 17.4% | 18.7% | 18.9% | 21.5% |
| |
|---|
| Median (77 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 3.9% |
|---|
| Photon Control Inc ($PHO) | 0.7% | 0.2% | 0.2% | 0.4% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Pacific Safety Products Inc ($PSP) | -19.0% | -1.5% | -11.5% | 3.7% | 38.2% |
| CEMATRIX Corp ($CVX) | 15.7% | 6.4% | -2.4% | -6.7% | 30.4% |
| IWG Technologies Inc ($IWG) | 13.4% | 17.0% | 36.3% | 23.4% | 27.2% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (78 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 10.0% |
|---|
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | 40.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Conifex Timber Inc ($CFF) | | | 2.7x | 6.1x | 35.9x |
| Ag Growth International Inc ($AFN) | 2.4x | 2.9x | -0.1x | 2.1x | 14.1x |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | 12.9x |
| Progressive Waste Solutions Ltd ($BIN) | 2.5x | 4.5x | 3.3x | 2.9x | 10.6x |
| Finning International Inc ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (66 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.2x |
|---|
| Photon Control Inc ($PHO) | -1.0x | -1.9x | -1.4x | -2.3x | -2.5x |
