Dollarama Inc Net Income surged on 18.1% in 2015 and EBITDA Margin showed almost no change
25.03.2015 • About Dollarama Inc (
$DOL) • By InTwits
Dollarama Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Dollarama Inc is a growth stock: FY2015 revenue growth was 12.9%, 5 year revenue CAGR was 13.2% at FY2015 ROIC 29.9%
- Dollarama Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.6%. At the same time it's in pair with industry average of 4.0%.
- CAPEX is quite volatile: 38.1 in 2015, 42.7 in 2014, 52.6 in 2013, 22.7 in 2012, 21.8 in 2011
- The company has highly profitable business model: ROIC is at 29.9%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.1x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Dollarama Inc ($DOL) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,420 | 1,603 | 1,859 | 2,065 | 2,331 | 12.9% |
| Gross Profit | 513 | 600 | 695 | 766 | 860 | 12.3% |
| SG&A | 279 | 305 | 340 | 363 | 399 | 9.8% |
| EBITDA | 236 | 296 | 355 | 402 | 461 | 14.5% |
| Net Income | 117 | 173 | 221 | 250 | 295 | 18.1% |
Balance Sheet
|
|---|
| Cash | 53 | 70 | 53 | 71 | 40 | -43.7% |
| Short Term Debt | 14 | 14 | 1 | 3 | 4 | 27.5% |
| Long Term Debt | 348 | 258 | 262 | 398 | 562 | 41.3% |
Cash flow
|
|---|
| Capex | 43 | 53 | 70 | 96 | 74 | -23.1% |
Ratios
|
|---|
| Revenue growth | 13.3% | 12.9% | 16.0% | 11.1% | 12.9% | |
| EBITDA growth | | 25.7% | 19.8% | 13.3% | 14.5% | |
| Gross Margin | 36.1% | 37.5% | 37.4% | 37.1% | 36.9% | -0.2% |
| EBITDA Margin | 16.6% | 18.5% | 19.1% | 19.5% | 19.8% | 0.3% |
| Net Income Margin | 8.2% | 10.8% | 11.9% | 12.1% | 12.7% | 0.6% |
| SG&A, % of revenue | 19.6% | 19.0% | 18.3% | 17.6% | 17.1% | -0.5% |
| CAPEX, % of revenue | 3.0% | 3.3% | 3.7% | 4.7% | 3.2% | -1.5% |
| ROIC | 17.7% | 21.6% | 24.7% | 26.5% | 29.9% | 3.4% |
| ROE | 17.4% | 21.3% | 24.2% | 27.9% | 36.8% | 9.0% |
| Net Debt/EBITDA | 1.3x | 0.7x | 0.6x | 0.8x | 1.1x | 0.3x |
Revenue and profitability
Dollarama Inc's Revenue surged on 12.9% in FY2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.77 pp from 7.1% to 7.9% in 2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 0.56 pp from 12.1% to 12.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Dollarama Inc had CAPEX/Revenue of 3.2%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 3.9%.
Return on investment
The company operates at high and attractive ROIC (29.86%) and ROE (36.82%). ROIC increased on 3.4 pp from 26.5% to 29.9% in FY2015. ROE increased on 9.0 pp from 27.9% to 36.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 1.2x. Net Debt / EBITDA jumped on 0.3x from 0.8x to 1.1x in FY2015. Debt surged on 41.2% in FY2015 while cash dropped on 43.7% in FY2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Dollarama Inc benchmarking against other companies in Consumer, Cyclical 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| AutoCanada Inc ($ACQ) | 16.1% | 9.2% | 27.9% | 57.2% | |
| New Look Vision Group Inc ($BCI) | 13.3% | 2.6% | 10.5% | 54.2% | |
| |
|---|
| Median (59 companies) | 7.1% | 5.2% | 4.1% | 5.7% | -11.2% |
|---|
| Dollarama Inc ($DOL) | | 12.9% | 16.0% | 11.1% | 12.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (53 companies) | 34.3% | 34.1% | 31.6% | 34.6% | 32.6% |
|---|
| Dollarama Inc ($DOL) | 36.1% | 37.5% | 37.4% | 37.1% | 36.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| Whistler Blackcomb Holdings Inc ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | |
| |
|---|
| Median (56 companies) | 8.9% | 8.7% | 9.8% | 10.1% | 0.3% |
|---|
| Dollarama Inc ($DOL) | 16.6% | 18.5% | 19.1% | 19.5% | 19.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| Gildan Activewear Inc ($GIL) | 9.0% | 3.7% | 7.4% | 12.1% | |
| |
|---|
| Median (59 companies) | 2.8% | 2.7% | 2.7% | 2.2% | 2.7% |
|---|
| Dollarama Inc ($DOL) | 3.0% | 3.3% | 3.7% | 4.7% | 3.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | |
| BRP Inc/CA ($DOO) | | 29.8% | 26.8% | 32.3% | |
| |
|---|
| Median (59 companies) | 10.9% | 10.2% | 11.2% | 10.1% | -48.5% |
|---|
| Dollarama Inc ($DOL) | 17.7% | 21.6% | 24.7% | 26.5% | 29.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | |
| Dorel Industries Inc ($DII.A) | 1.6x | 1.5x | 2.8x | 12.2x | |
| Performance Sports Group Ltd ($PSG) | | 2.6x | 3.5x | 12.2x | 6.5x |
| Taiga Building Products Ltd ($TBL) | 7.5x | 7.7x | 7.2x | 8.6x | |
| |
|---|
| Median (51 companies) | 1.2x | 1.3x | 1.9x | 1.9x | 3.0x |
|---|
| Dollarama Inc ($DOL) | 1.3x | 0.7x | 0.6x | 0.8x | 1.1x |
