New Look Vision Group Inc is a powerful growth stock
23.03.2015 • About New Look Vision Group Inc (
$BCI) • By InTwits
New Look Vision Group Inc is an attractive growth stock in Consumer, Cyclical industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
New Look Vision Group Inc showed growth in the last financial year. New Look Vision Group Inc's revenue surged on 54.2% in FY2014. At the same time New Look Vision Group Inc well managed its profitability and showed even faster growth in EBITDA of 67.5% for the same period.
In the longer period New Look Vision Group Inc showed fast revenue growth of 20.5% from FY2011 to FY2014 annually. EBITDA surged on 22.5% from FY2011 to FY2014 annually.
New Look Vision Group Inc ($BCI) financials for the last 5 years
| mln. CAD | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Revenue | 71 | 80 | 82 | 91 | 140 |
|---|
| Revenue growth, % | | 13.3% | 2.6% | 10.5% | 54.2% |
|---|
| Gross margin, % | 70.4% | 72.3% | 71.8% | 72.6% | 72.6% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 10 | 13 | 15 | 14 | 24 |
|---|
| EBITDA growth, % | | 28.7% | 14.6% | -4.2% | 67.5% |
|---|
| EBITDA margin, % | 14.2% | 16.2% | 18.0% | 15.6% | 17.0% |
|---|
| Net Income | 11 | 6 | 6 | 6 | 8 |
|---|
| Net Income margin, % | 16.2% | 7.51% | 7.87% | 6.86% | 5.54% |
|---|
| |
| CAPEX | 3 | 4 | 9 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 4.21% | 4.79% | 10.7% | 0% | 0% |
|---|
| Debt | 11 | 8 | 10 | 63 | 68 |
|---|
| Cash | 1 | 1 | 2 | 0 | 4 |
|---|
| Net Debt/EBITDA | 0.9x | 0.5x | 0.6x | 4.4x | 2.7x |
|---|
| |
| ROIC, % | 22.8% | 32.5% | 32.8% | 12.6% | 12.2% |
|---|
| ROE, % | 57.2% | 25.2% | 25.7% | 16.3% | 13.9% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. The company showed EBITDA margin growth of 1.40 pp from 15.6% to 17% in FY2014. If we look for the longer period New Look Vision Group Inc's EBITDA margin increased slightly on 0.800 pp from 16.2% in FY2011 to 17% in FY2014.
We call New Look Vision Group Inc an attractive growth stock as together with the growth it delivers high ROIC at 12.2%. Three years ago it was considerably higher at 32.5%. Average ROIC for the last three years was 19.2%.
The company showed big decline in Net Income margin of 1.40 pp from 6.90% to 5.50% in FY2014. In the last 3 years Net Income margin dropped on 2 pp from 7.50% in FY2011 to 5.50% in FY2014.
New Look Vision Group Inc operates at ROE of 13.9%. It's average level of ROE for the last three years was 18.6%.
Capital expenditures (CAPEX)
In FY2014 the company had CAPEX/Revenue of 0%. The company's CAPEX/Revenue dropped on 4.79 pp from 4.79% in FY2011 to 0% in FY2014.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 2.7x Net Debt/EBITDA. If we look for the longer period leverage surged on 2.17x from 0.50x in FY2011 to 2.67x in FY2014.
Valuation vs. comparable companies
At the end of trading day today New Look Vision Group Inc traded at 19.0x EV/EBITDA which is 16.7% higher than 16.3x Consumer, Cyclical peer group avearge calculated on the basis of 111 companies. The market closed today at 50.2x P/E for New Look Vision Group Inc which is 97.3% higher than 25.4x Consumer, Cyclical peer group avearge calculated on the basis of 32 companies.
Peers in Consumer, Cyclical
Below you can find New Look Vision Group Inc benchmarking vs. other companies in Consumer, Cyclical 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 |
|---|
| Partner Jet Corp ($PJT) | | -19.9% | -15.2% | 1.2% | 119.7% |
| Holloway Lodging Corp ($HLC) | | 5.4% | -24.6% | 2.7% | 62.7% |
| Boyuan Construction Group Inc ($BOY) | | 26.3% | 1.7% | 10.5% | 31.6% |
| Hudson's Bay Co ($HBC) | | 2.7% | 3.5% | 5.9% | 28.1% |
| D-BOX Technologies Inc ($DBO) | | 47.2% | 32.1% | 61.4% | 23.4% |
| |
|---|
| Median (55 companies) | | 7.1% | 5.2% | 3.4% | 5.5% |
|---|
| New Look Vision Group Inc ($BCI) | | 13.3% | 2.6% | 10.5% | 54.2% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Restaurant Brands International Inc ($QSR) | | | | 69.7% | 87.0% |
| Imvescor Restaurant Group Inc ($IRG) | 95.5% | 96.2% | 94.2% | 89.7% | 84.9% |
| Second Cup Ltd/The ($SCU) | 89.6% | 91.1% | 86.6% | 85.1% | 72.7% |
| Cineplex Inc ($CGX) | 62.3% | 63.9% | 63.4% | 64.1% | 65.1% |
| Air Canada ($AC) | 66.5% | 62.3% | 62.4% | 63.5% | 64.0% |
| |
|---|
| Median (49 companies) | 29.4% | 33.4% | 36.5% | 31.6% | 34.6% |
|---|
| New Look Vision Group Inc ($BCI) | 70.4% | 72.3% | 71.8% | 72.6% | 72.6% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | | 49.7% | 65.9% | 60.9% |
| Gamehost Inc ($GH) | 44.4% | 44.2% | 46.1% | 45.7% | 45.9% |
| Great Canadian Gaming Corp ($GC) | 20.6% | 34.1% | 16.8% | 41.1% | 40.1% |
| MTY Food Group Inc ($MTY) | 38.6% | 32.2% | 36.3% | 38.7% | 37.0% |
| Whistler Blackcomb Holdings Inc ($WB) | 27.3% | 34.8% | 36.0% | 35.9% | 36.4% |
| |
|---|
| Median (52 companies) | 10.2% | 10.2% | 9.7% | 10.5% | 10.1% |
|---|
| New Look Vision Group Inc ($BCI) | 14.2% | 16.2% | 18.0% | 15.6% | 17.0% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| WestJet Airlines Ltd ($WJA) | 1.9% | 3.9% | 7.9% | 19.5% | 18.6% |
| Exchange Income Corp ($EIF) | 23.9% | 8.2% | 7.9% | 15.8% | 15.5% |
| Holloway Lodging Corp ($HLC) | 4.9% | 3.4% | 8.2% | 6.7% | 14.8% |
| Gildan Activewear Inc ($GIL) | 9.7% | 9.0% | 3.7% | 7.4% | 12.1% |
| Whistler Blackcomb Holdings Inc ($WB) | 3.3% | 3.7% | 4.5% | 10.2% | 12.0% |
| |
|---|
| Median (55 companies) | 2.1% | 2.8% | 3.0% | 2.7% | 2.3% |
|---|
| New Look Vision Group Inc ($BCI) | 4.2% | 4.8% | 10.7% | 0.0% | 0.0% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Partner Jet Corp ($PJT) | 4.9% | -30.7% | -51.6% | -50.8% | 85.1% |
| Westshore Terminals Investment Corp ($WTE) | | | 24.0% | 37.8% | 35.0% |
| Iplayco Corp Ltd ($IPC) | -11.7% | -35.4% | 23.0% | 58.5% | 33.6% |
| BRP Inc/CA ($DOO) | | | 29.8% | 26.8% | 32.3% |
| Jean Coutu Group PJC Inc/The ($PJC.A) | 32.8% | 33.5% | 34.4% | 29.8% | 29.2% |
| |
|---|
| Median (55 companies) | 12.1% | 10.9% | 10.5% | 11.8% | 10.1% |
|---|
| New Look Vision Group Inc ($BCI) | 22.8% | 32.5% | 32.8% | 12.6% | 12.2% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Restaurant Brands International Inc ($QSR) | | | | 3.8x | 33.6x |
| Hudson's Bay Co ($HBC) | 0.0x | 8.7x | 3.8x | 3.6x | 19.1x |
| Dorel Industries Inc ($DII.A) | 1.6x | 1.6x | 1.5x | 2.8x | 12.2x |
| Performance Sports Group Ltd ($PSG) | | | 2.6x | 3.5x | 12.2x |
| Taiga Building Products Ltd ($TBL) | 2.8x | 7.5x | 7.7x | 7.2x | 8.6x |
| |
|---|
| Median (47 companies) | 0.7x | 1.2x | 1.0x | 1.6x | 1.7x |
|---|
| New Look Vision Group Inc ($BCI) | 0.9x | 0.5x | 0.6x | 4.4x | 2.7x |
