Stella-Jones Inc's three year revenue growth was 25.0% and EBITDA growth was 22.2% per year
20.03.2015 • About Stella-Jones Inc (
$SJ) • By InTwits
Have you thought about Stella-Jones Inc as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Stella-Jones Inc showed fast growth in the last financial year. Stella-Jones Inc's revenue surged on 23.6% in FY2014. In addition to revenue Stella-Jones Inc also keeps delivering EBITDA growth. It was 13.7% in FY2014
In the longer period the company showed fast revenue growth of 25.0% from 2011 to 2014 annually. EBITDA surged on 22.2% from 2011 to 2014 annually.
Stella-Jones Inc ($SJ) financials for the last 5 years
| mln. CAD | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 561 | 640 | 717 | 1,011 | 1,249 |
|---|
| Revenue growth, % | | 14.1% | 12.1% | 40.9% | 23.6% |
|---|
| Gross margin, % | 16.6% | 19.5% | 21.2% | 19.5% | 17.9% |
|---|
| SG&A, % | 5.80% | 5.60% | 5.93% | 5.65% | 5.53% |
|---|
| EBITDA | 71 | 97 | 120 | 155 | 176 |
|---|
| EBITDA growth, % | | 36.1% | 24.4% | 28.9% | 13.7% |
|---|
| EBITDA margin, % | 12.7% | 15.1% | 16.8% | 15.3% | 14.1% |
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| Net Income | 34 | 56 | 73 | 93 | 104 |
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| Net Income margin, % | 6.14% | 8.70% | 10.2% | 9.15% | 8.31% |
|---|
| |
| CAPEX | 5 | 8 | 15 | 26 | 24 |
|---|
| CAPEX/Revenue, % | 0.919% | 1.22% | 2.06% | 2.59% | 1.94% |
|---|
| Debt | 158 | 183 | 364 | 373 | 445 |
|---|
| Cash | 0 | 0 | 14 | 3 | 0 |
|---|
| Net Debt/EBITDA | 2.2x | 1.9x | 2.9x | 2.4x | 2.5x |
|---|
| |
| ROIC, % | 15.0% | 17.1% | 15.3% | 14.9% | 14.3% |
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| ROE, % | 15.0% | 18.2% | 18.3% | 17.8% | 16.4% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 15.3% in FY2013 to 14.1% in FY2014. In the longer period EBITDA margin decreased on 1 pp from 15.1% in 2011 to 14.1% in 2014.
Stella-Jones Inc shows attractive ROIC at 14.3% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 17.1% in FY2011. It's average level of ROIC for the last three years was 14.8%.
Net Income margin decreased on 0.900 pp from 9.20% to 8.30% in 2014. If we look for the longer period Stella-Jones Inc showed small Net Income margin decline of 0.400 pp from 8.70% in 2011 to 8.30% in 2014.
Stella-Jones Inc operates at ROE of 16.4%. It's average level of ROE for the last three years was 17.5%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 1.94% in FY2014. Stella-Jones Inc's CAPEX/Revenue surged on 0.714 pp from 1.22% in 2011 to 1.94% in 2014. It's average level of CAPEX/Revenue for the last three years was 2.20%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 2.5x Net Debt/EBITDA. In the last 3 years the company showed fast leverage growth of 0.63x from 1.89x in 2011 to 2.52x in 2014.
Valuation vs. comparable companies
The market closed today at 17.9x EV/EBITDA for Stella-Jones Inc which is 9.79% higher than 16.3x Industrial peer group avearge calculated on the basis of 168 companies. At the end of trading day today Stella-Jones Inc traded at 26.2x P/E which is 11.5% higher than 23.5x Industrial peer group avearge calculated on the basis of 47 companies.
Management team
Stella-Jones Inc is run by Brian Mcmanus as a CEO and by Eric Vachon as a CFO.
Peers in Industrial
Below you can find Stella-Jones 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, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Electrovaya Inc ($EFL) | | 104.3% | -4.0% | -71.2% | 160.5% |
| Carmanah Technologies Corp ($CMH) | | 5.8% | -26.4% | -2.0% | 68.8% |
| Exco Technologies Ltd ($XTC) | | 22.4% | 19.7% | 0.9% | 50.5% |
| Lumenpulse Inc ($LMP) | | | 56.7% | 33.9% | 47.0% |
| Avigilon Corp ($AVO) | | 93.7% | 65.2% | 72.6% | 41.9% |
| |
|---|
| Median (64 companies) | | 13.3% | 11.5% | 3.9% | 8.5% |
|---|
| Stella-Jones Inc ($SJ) | | 14.1% | 12.1% | 40.9% | 23.6% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Pure Technologies Ltd ($PUR) | 64.5% | 75.7% | 77.9% | 78.0% | 77.5% |
| Alarmforce Industries Inc ($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% |
| Avigilon Corp ($AVO) | 45.1% | 45.7% | 49.3% | 54.2% | 56.6% |
| |
|---|
| Median (62 companies) | 23.2% | 23.3% | 23.9% | 24.6% | 24.6% |
|---|
| Stella-Jones Inc ($SJ) | 16.6% | 19.5% | 21.2% | 19.5% | 17.9% |
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 ($EBN) | 15.9% | 17.7% | 22.4% | 16.4% | 27.7% |
| |
|---|
| Median (58 companies) | 7.7% | 7.9% | 8.8% | 9.4% | 10.3% |
|---|
| Stella-Jones Inc ($SJ) | 12.7% | 15.1% | 16.8% | 15.3% | 14.1% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Cargojet Inc ($CJT.A) | 3.1% | 6.8% | 7.0% | 6.3% | 54.1% |
| Newalta Corp ($NAL) | 11.9% | 17.2% | 21.7% | 34.5% | 35.1% |
| ENTREC Corp ($ENT) | 0.0% | | 35.0% | 26.7% | 29.5% |
| Horizon North Logistics Inc ($HNL) | 17.4% | 25.1% | 26.5% | 16.3% | 24.1% |
| Canadian Pacific Railway Ltd ($CP) | 14.6% | 21.3% | 20.2% | 20.2% | 21.9% |
| |
|---|
| Median (64 companies) | 2.2% | 2.3% | 3.1% | 3.7% | 3.2% |
|---|
| Stella-Jones Inc ($SJ) | 0.9% | 1.2% | 2.1% | 2.6% | 1.9% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Vitreous Glass Inc ($VCI) | 28.8% | 26.1% | 30.5% | 32.3% | 48.3% |
| SNC-Lavalin Group Inc ($SNC) | 17.5% | 14.6% | 10.7% | 4.0% | 35.2% |
| 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% |
| STT Enviro Corp ($STT) | -65.1% | 88.7% | 55.1% | 44.3% | 30.4% |
| |
|---|
| Median (64 companies) | 8.5% | 9.6% | 10.4% | 8.5% | 10.7% |
|---|
| Stella-Jones Inc ($SJ) | 15.0% | 17.1% | 15.3% | 14.9% | 14.3% |
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 |
| Cargojet Inc ($CJT.A) | 1.5x | 1.8x | 1.5x | 1.5x | 31.5x |
| Conifex Timber Inc ($CFF) | | | | 2.7x | 6.1x |
| Norbord Inc ($NBD) | 3.7x | 9.4x | 1.6x | 0.8x | 5.7x |
| |
|---|
| Median (52 companies) | 0.9x | 0.9x | 1.5x | 1.5x | 1.1x |
|---|
| Stella-Jones Inc ($SJ) | 2.2x | 1.9x | 2.9x | 2.4x | 2.5x |
