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Power Financial Corp revenue surged on 34.5% in 2016

24.03.2017 • About Power Financial Corp ($PWF) • By InTwits

Power Financial Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has potentially unprofitable business model: ROIC is at 2.2%.

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Power Financial Corp ($PWF) key annual financial indicators

mln. CAD201220132014201520162016/2015
P&L
Revenue32,93428,83041,77536,51249,12234.5%
Net Income1,7352,0272,2682,4492,043-16.6%
Balance Sheet
Cash3,3134,3443,9894,1884,3965.0%
Long Term Debt10,68212,84713,64114,01915,2348.7%
Cash flow
Capex00000
Ratios
Revenue growth1.6%-12.5%44.9%-12.6%34.5%
Net Income Margin5.3%7.0%5.4%6.7%4.2%-2.5%
ROIC2.5%2.4%2.5%2.4%2.2%-0.2%
ROE14.1%15.4%15.4%14.8%11.3%-3.4%


Power Financial Corp ($PWF) key quoterly financial indicators

mln. CAD16Q116Q216Q316Q4YoY change
P&L
Revenue12,97013,47014,1068,576-3.0%174.8%52.0%-4.3%
Net Income290536570647-52.1%-17.3%-10.2%15.5%
Balance Sheet
Cash3,9804,1804,2384,396-14.9%7.0%-14.7%5.0%
Long Term Debt13,97114,23314,17215,2342.8%4.7%3.0%8.7%
Ratios
Net Income Margin 2.2% 4.0% 4.0% 7.5%-2.3%-9.2%-2.8%1.3%

Revenue and profitability


The company's Revenue surged on 34.5%. Revenue growth showed slow down in 16Q4 - it was -4.3% YoY.

Net Income marign decreased on 2.5 pp from 6.7% to 4.2% in 2016.

Return on investment


The company operates at low ROIC (2.17%) and ROE (11.33%). ROIC showed almost no change in 2016. ROE decreased on 3.4 pp from 14.8% to 11.3% in 2016.

Management team


Power Financial Corp's CEO is R Jeffrey Orr. R Jeffrey Orr has 13 years tenure at the company. The company's CFO is Gregory D Tretiak. Gregory D Tretiak has 6 years tenure at the company.

Appendix 1: Peers in Financial


Below we provide Power Financial Corp 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 FY2012 FY2013 FY2014 FY2015 FY2016
Grenville Strategic Royalty Corp ($GRC)317.2%
StorageVault Canada Inc ($SVI)22.2%7.5%111.8%
Slate Retail REIT ($SRT.UN)316.8%229.7%92.5%21.6%
Mogo Finance Technology Inc ($GO)13.7%34.6%86.0%14.6%
Morguard Corp ($MRC)27.2%9.2%58.8%4.6%
 
Median (53 companies)7.5%9.0%3.6%5.1%
Power Financial Corp ($PWF)-12.5%44.9%-12.6%34.5%


Top companies by Gross margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Olympia Financial Group Inc ($OLY)80.9%82.6%83.2%84.5%83.5%
Morguard Corp ($MRC)74.0%69.9%68.6%76.5%75.5%
Mogo Finance Technology Inc ($GO)70.4%64.5%63.4%62.3%
StorageVault Canada Inc ($SVI)18.2%22.6%18.3%52.4%
Clarke Inc ($CKI)28.1%20.0%18.9%43.4%41.6%
 
Median (9 companies)28.1%30.7%28.3%43.4%30.3%


Top companies by EBITDA margin, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Firm Capital Mortgage Investment Corp ($FC)87.6%87.9%88.8%86.6%
Equitable Group Inc ($EQB)88.1%87.4%86.0%84.7%83.0%
Atrium Mortgage Investment Corp ($AI)79.8%81.9%83.2%
Trez Capital Mortgage Investment Corp ($TZZ)76.2%
First National Financial Corp ($FN)67.8%76.5%77.1%74.6%
 
Median (37 companies)43.7%33.5%39.8%32.5%43.1%


Top companies by CAPEX/Revenue, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Dundee Corp ($DC.A)10.3%14.1%88.8%123.6%
Gazit-Globe Ltd ($GZT)80.2%43.3%52.1%69.3%95.5%
First Capital Realty Inc ($FCR)127.9%76.1%73.8%56.7%79.7%
Killam Properties Inc ($KMP)80.7%114.1%143.5%46.7%59.9%
StorageVault Canada Inc ($SVI)150.5%73.3%79.1%21.4%
 
Median (55 companies)0.6%0.6%0.7%0.7%0.9%
Power Financial Corp ($PWF)0.0%0.0%0.0%0.0%0.0%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
CI Financial Corp ($CIX)24.1%
FirstService Corp ($FSV)17.4%
IGM Financial Inc ($IGM)14.2%14.2%13.7%13.7%13.1%
Alaris Royalty Corp ($AD)9.5%10.1%10.7%7.3%12.3%
Genworth MI Canada Inc ($MIC)11.9%9.6%9.7%9.5%9.4%
 
Median (55 companies)4.8%4.3%4.3%3.5%3.2%
Power Financial Corp ($PWF)2.5%2.4%2.5%2.4%2.2%


Top companies by Net Debt / EBITDA

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Element Financial Corp ($EFN)140.2x31.9x37.6x79.9x22.6x
First National Financial Corp ($FN)34.3x33.7x40.9x37.4x
StorageVault Canada Inc ($SVI)11.2x9.7x13.6x35.7x
Gazit-Globe Ltd ($GZT)12.8x12.7x15.3x22.1x15.2x
Equitable Group Inc ($EQB)11.8x10.2x9.8x12.3x13.7x
 
Median (28 companies)5.3x4.6x4.7x6.0x7.8x