Gluskin Sheff + Associates Inc is a powerful growth stock
25.09.2014 • About Gluskin Sheff + Associates Inc (
$GS) • By InTwits
Pay attention to Gluskin Sheff + Associates Inc as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Gluskin Sheff + Associates Inc showed growth in the last financial year. Gluskin Sheff + Associates Inc's revenue surged on 97.9% in FY2014. In addition to revenue Gluskin Sheff + Associates Inc also keeps delivering EBITDA growth. It was 123% in FY2014
In the last 3 years Gluskin Sheff + Associates Inc showed fast revenue growth of 24.7% from FY2011 to FY2014 annually. EBITDA surged on 30.9% from FY2011 to FY2014 annually.
Gluskin Sheff + Associates Inc ($GS) financials for the last 5 years
| mln. CAD | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 123 | 128 | 78 | 125 | 247 |
|---|
| Revenue growth, % | | 4.1% | -39.1% | 60.6% | 97.9% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 60 | 67 | 20 | 67 | 150 |
|---|
| EBITDA growth, % | | 12.0% | -69.9% | 233.3% | 123.3% |
|---|
| EBITDA margin, % | 48.7% | 52.4% | 25.9% | 53.8% | 60.7% |
|---|
| Net Income | 38 | 50 | 17 | 49 | 107 |
|---|
| Net Income margin, % | 31.3% | 39.0% | 22.4% | 39.5% | 43.1% |
|---|
| |
| CAPEX | 2 | 14 | 10 | 0 | 1 |
|---|
| CAPEX/Revenue, % | 1.89% | 11.2% | 12.4% | 0.216% | 0.251% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 97 | 10 | 19 | 22 | 8 |
|---|
| Net Debt/EBITDA | -1.6x | -0.2x | -0.9x | -0.3x | -0.1x |
|---|
| |
| ROIC, % | 77.7% | 71.3% | 21.0% | 82.9% | 153.9% |
|---|
| ROE, % | 51.1% | 53.6% | 20.3% | 62.3% | 120.7% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Gluskin Sheff + Associates Inc's EBITDA margin surged on 6.90 pp from 53.8% to 60.7% in FY2014. In the last 3 years Gluskin Sheff + Associates Inc showed fast EBITDA margin growth of 8.30 pp from 52.4% in FY2011 to 60.7% in FY2014.
Gluskin Sheff + Associates Inc shows attractive ROIC at 154% for the last 12 months which assumes stable development model. During the last three years it surged - it was 71.3% in FY2011. Average ROIC for the last three years was 85.9%.
The company's Net Income margin increased on 3.60 pp from 39.5% to 43.1% in FY2014. In the longer period the company showed fast Net Income margin growth of 4.10 pp from 39% in FY2011 to 43.1% in FY2014.
Gluskin Sheff + Associates Inc operates at ROE of 121%. For the last three years the average ROE was 67.8%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 0.251% in FY2014. The company showed big decline in CAPEX/Revenue of 11.0 pp from 11.2% in FY2011 to 0.251% in FY2014. It's average level of CAPEX/Revenue for the last three years was 4.30%.
Leverage (Debt)
The company has negative net debt at -0.1x Net Debt/EBITDA - at the same time with high growth. In the longer period leverage surged on 0.10x from -0.16x in FY2011 to -0.05x in FY2014.
Valuation vs. comparable companies
At the end of trading day today Gluskin Sheff + Associates Inc traded at 5.8x EV/EBITDA which is 64.5% lower than 16.3x Financial peer group avearge calculated on the basis of 449 companies. The market closed today at 8.2x P/E for Gluskin Sheff + Associates Inc which is 40.6% lower than 13.8x Financial peer group avearge calculated on the basis of 55 companies.
Peers in Financial
Below you can find Gluskin Sheff + Associates Inc benchmarking vs. other companies in Financial 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Wall Financial Corp ($WFC) | | 21.7% | 35.2% | -74.1% | 285.4% |
| Rifco Inc ($RFC) | | 46.9% | 0.5% | 44.0% | 26.1% |
| Clairvest Group Inc ($CVG) | | 52.6% | 16.4% | 37.9% | 25.9% |
| Ceres Global Ag Corp ($CRP) | | | 25.2% | 21.0% | 4.2% |
| Dalmac Energy Inc ($DAL) | | 58.3% | 35.9% | 15.8% | -10.1% |
| |
|---|
| Median (7 companies) | | 49.8% | 25.2% | 21.0% | 4.2% |
|---|
| Gluskin Sheff + Associates Inc ($GS) | | 4.1% | -39.1% | 60.6% | 97.9% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Dalmac Energy Inc ($DAL) | 13.2% | 25.2% | 25.0% | 25.2% | 14.5% |
| Ceres Global Ag Corp ($CRP) | | 12.4% | 8.7% | 0.9% | 1.9% |
| |
|---|
| Median (2 companies) | 13.2% | 18.8% | 16.9% | 13.0% | 8.2% |
|---|
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Clairvest Group Inc ($CVG) | 28.3% | 63.9% | 65.8% | 71.1% | 59.2% |
| Rifco Inc ($RFC) | | | 64.9% | 63.3% | 57.4% |
| Wall Financial Corp ($WFC) | 22.3% | 22.3% | 26.7% | 24.5% | 23.1% |
| Dalmac Energy Inc ($DAL) | 4.1% | 19.9% | 17.6% | 12.1% | 9.3% |
| Ceres Global Ag Corp ($CRP) | | 7.3% | 4.2% | -2.5% | -4.2% |
| |
|---|
| Median (6 companies) | 22.3% | 21.1% | 23.2% | 18.3% | 16.2% |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 48.7% | 52.4% | 25.9% | 53.8% | 60.7% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Dundee Corp ($DC.A) | | | 10.3% | 14.1% | 88.8% |
| Dalmac Energy Inc ($DAL) | 1.1% | 4.2% | 7.3% | 17.3% | 11.2% |
| Wall Financial Corp ($WFC) | 7.6% | 1.8% | 13.5% | 9.8% | 6.1% |
| Ceres Global Ag Corp ($CRP) | | 6.1% | 8.9% | 0.7% | 1.1% |
| Rifco Inc ($RFC) | | | 0.7% | 0.4% | 0.9% |
| |
|---|
| Median (7 companies) | 1.1% | 3.0% | 8.1% | 0.7% | 1.1% |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 1.9% | 11.2% | 12.4% | 0.2% | 0.3% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Wall Financial Corp ($WFC) | 6.7% | 8.4% | 17.3% | 3.0% | 12.7% |
| Clairvest Group Inc ($CVG) | 2.6% | 7.6% | 8.6% | 12.3% | 11.5% |
| Dalmac Energy Inc ($DAL) | -7.1% | 18.3% | 19.9% | 9.7% | 0.9% |
| Ceres Global Ag Corp ($CRP) | | | 1.8% | -3.1% | -5.5% |
| Dundee Corp ($DC.A) | | | | | |
| |
|---|
| Median (8 companies) | 2.6% | 8.4% | 13.0% | 4.9% | 6.2% |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 77.7% | 71.3% | 21.0% | 82.9% | 153.9% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top |
|---|
| Rifco Inc ($RFC) | | | 9.8x | 9.4x | 10.7x |
| Wall Financial Corp ($WFC) | 8.7x | 6.2x | 3.4x | 19.9x | 4.6x |
| Dalmac Energy Inc ($DAL) | 15.2x | 1.9x | 1.4x | 2.7x | 4.2x |
| Clairvest Group Inc ($CVG) | -6.2x | -2.5x | -1.1x | -2.7x | -1.1x |
| |
|---|
| Median (4 companies) | 8.7x | 3.6x | 6.6x | 6.0x | 4.4x |
|---|
| Gluskin Sheff + Associates Inc ($GS) | -1.6x | -0.2x | -0.9x | -0.3x | -0.1x |
