Avigilon Corp demonstrates fast growth
10.03.2015 • About Avigilon Corp (
$AVO) • By InTwits
Pay attention to Avigilon Corp as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Avigilon Corp showed growth in the last financial year. The company's revenue surged on 41.9% in FY2014. At the same time the company well managed its profitability and also showed EBITDA growth of 37.5% for the same period.
If we look for the longer period Avigilon Corp showed fast revenue growth of 59.4% from 2011 to 2014 annually. EBITDA surged on 100% from 2011 to 2014 annually.
Avigilon Corp ($AVO) financials for the last 5 years
| mln. $ | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 31 | 61 | 100 | 173 | 246 |
|---|
| Revenue growth, % | | 93.7% | 65.2% | 72.6% | 41.9% |
|---|
| Gross margin, % | 45.1% | 45.7% | 49.3% | 54.2% | 56.6% |
|---|
| SG&A, % | 30.0% | 31.1% | 33.8% | 33.5% | 35.3% |
|---|
| EBITDA | 0 | 0 | 11 | 30 | 41 |
|---|
| EBITDA growth, % | | -100.0% | -100.0% | 161.1% | 37.5% |
|---|
| EBITDA margin, % | 0% | 0% | 11.3% | 17.1% | 16.6% |
|---|
| Net Income | 1 | 4 | 7 | 21 | 32 |
|---|
| Net Income margin, % | 4.69% | 6.38% | 7.15% | 12.1% | 12.9% |
|---|
| |
| CAPEX | 1 | 1 | 2 | 6 | 7 |
|---|
| CAPEX/Revenue, % | 4.61% | 2.18% | 2.23% | 3.48% | 2.80% |
|---|
| Debt | 2 | 0 | 1 | 1 | 1 |
|---|
| Cash | 2 | 12 | 50 | 99 | 63 |
|---|
| Net Debt/EBITDA | | | -4.4x | -3.3x | -1.5x |
|---|
| |
| ROIC, % | 20.0% | 24.5% | 20.1% | 22.2% | 15.9% |
|---|
| ROE, % | 37.7% | 17.8% | 13.6% | 18.2% | 15.1% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 17.1% in FY2013 to 16.6% in FY2014. In the last 3 years Avigilon Corp's EBITDA margin surged on 16.6 pp from 0% in 2011 to 16.6% in 2014.
We call Avigilon Corp an attractive growth stock as together with the growth it delivers high ROIC at 15.9%. During the last three years it dropped - it was 24.5% in FY2011. Average ROIC for the last three years was 19.4%.
Net Income margin increased on 0.800 pp from 12.1% to 12.9% in 2014. If we look for the longer period the company showed fast Net Income margin growth of 6.50 pp from 6.40% in 2011 to 12.9% in 2014.
Avigilon Corp operates at ROE of 15.1%. Average ROE for the last three years was 15.6%.
Capital expenditures (CAPEX)
Avigilon Corp's CAPEX/Revenue was 2.80% in FY2014. The company showed fast CAPEX/Revenue growth of 0.620 pp from 2.18% in 2011 to 2.80% in 2014. It's average CAPEX/Revenue for the last three years was 2.83%.
Leverage (Debt)
Having such a fast growth profile Avigilon Corp keeps negative net debt at -1.5x Net Debt/EBITDA. In the longer period Avigilon Corp showed fast leverage growth of 1.53x from in 2011 to -1.53x in 2014.
Management team
Avigilon Corp is headed by Alexander Fernandes as a CEO.
Peers in Industrial
Below you can find Avigilon Corp 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Electrovaya Inc ($EFL) | | 104.3% | -4.0% | -71.2% | 160.5% |
| Exco Technologies Ltd ($XTC) | | 22.4% | 19.7% | 0.9% | 50.5% |
| Lumenpulse Inc ($LMP) | | | 56.7% | 33.9% | 47.0% |
| CCL Industries Inc ($CCL.B) | | 6.4% | 3.2% | 44.4% | 36.8% |
| International Barrier Technology Inc ($IBH) | | 24.9% | 27.3% | 44.6% | 36.0% |
| |
|---|
| Median (45 companies) | | 12.4% | 11.5% | 4.9% | 8.5% |
|---|
| Avigilon Corp ($AVO) | | 93.7% | 65.2% | 72.6% | 41.9% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Alarmforce Industries Inc ($AF) | 69.7% | 76.4% | 75.0% | 76.5% | 72.2% |
| Epicore BioNetworks Inc ($EBN) | 61.3% | 59.0% | 60.8% | 63.2% | 64.1% |
| Evertz Technologies Ltd ($ET) | 58.3% | 57.7% | 56.6% | 57.5% | 57.2% |
| Stantec Inc ($STN) | 56.1% | 55.4% | 55.0% | 54.7% | 54.9% |
| Titan Logix Corp ($TLA) | 35.3% | 44.7% | 52.3% | 53.9% | 51.0% |
| |
|---|
| Median (43 companies) | 23.7% | 24.8% | 25.5% | 24.7% | 25.0% |
|---|
| Avigilon Corp ($AVO) | 45.1% | 45.7% | 49.3% | 54.2% | 56.6% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 46.3% | 46.5% | 45.9% | 46.8% |
| Canadian Pacific Railway Ltd ($CP) | 32.2% | 28.1% | 26.1% | 32.4% | 43.7% |
| Vitreous Glass Inc ($VCI) | 31.8% | 29.0% | 31.4% | 32.2% | 37.8% |
| Progressive Waste Solutions Ltd ($BIN) | 31.8% | 32.2% | 30.7% | 33.1% | 34.0% |
| Epicore BioNetworks Inc ($EBN) | 15.9% | 17.7% | 22.4% | 16.4% | 27.7% |
| |
|---|
| Median (41 companies) | 9.0% | 9.3% | 12.1% | 11.6% | 11.6% |
|---|
| Avigilon Corp ($AVO) | | | 11.3% | 17.1% | 16.6% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Newalta Corp ($NAL) | 11.9% | 17.2% | 21.7% | 34.5% | 35.1% |
| Horizon North Logistics Inc ($HNL) | 17.4% | 25.1% | 26.5% | 16.3% | 24.1% |
| Canadian Pacific Railway Ltd ($CP) | 14.6% | 21.3% | 20.2% | 20.2% | 21.9% |
| Conifex Timber Inc ($CFF) | 46.0% | 10.1% | 13.3% | 18.1% | 20.6% |
| Canadian National Railway Co ($CNR) | 19.1% | 18.0% | 17.4% | 18.7% | 18.9% |
| |
|---|
| Median (45 companies) | 2.7% | 2.4% | 3.6% | 4.0% | 3.1% |
|---|
| Avigilon Corp ($AVO) | 4.6% | 2.2% | 2.2% | 3.5% | 2.8% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Vitreous Glass Inc ($VCI) | 28.8% | 26.1% | 30.5% | 32.3% | 48.3% |
| Alarmforce Industries Inc ($AF) | 26.8% | 18.3% | 5.3% | 24.0% | 33.9% |
| Epicore BioNetworks Inc ($EBN) | 20.4% | 24.8% | 28.1% | 16.1% | 32.5% |
| Toromont Industries Ltd ($TIH) | 9.1% | 13.8% | 28.8% | 25.8% | 24.3% |
| IWG Technologies Inc ($IWG) | 6.2% | 13.4% | 17.0% | 36.3% | 23.4% |
| |
|---|
| Median (45 companies) | 8.2% | 9.5% | 9.5% | 10.5% | 10.6% |
|---|
| Avigilon Corp ($AVO) | 20.0% | 24.5% | 20.1% | 22.2% | 15.9% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Sigma Industries Inc ($SSG) | | | 4.4x | 11.3x | 225.9x |
| H2O Innovation Inc ($HEO) | | | | 4.2x | 73.2x |
| Conifex Timber Inc ($CFF) | | | | 2.7x | 6.1x |
| Norbord Inc ($NBD) | 3.7x | 9.4x | 1.6x | 0.8x | 5.7x |
| Tree Island Steel Ltd ($TSL) | 710.9x | 42.8x | 11.1x | 6.3x | 5.6x |
| |
|---|
| Median (36 companies) | 0.8x | 0.7x | 1.0x | 1.6x | 1.3x |
|---|
| Avigilon Corp ($AVO) | | | -4.4x | -3.3x | -1.5x |
