Nobilis Health Corp is an attractive stock for a growth investor
30.03.2015 • About Nobilis Health Corp (
$NHC) • By InTwits
Have you thought about Nobilis Health Corp as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Nobilis Health Corp showed growth in the last financial year. The company's revenue surged on 170% in FY2014. In addition to revenue Nobilis Health Corp also keeps delivering EBITDA growth. It was 316% in FY2014
If we look for the longer period the company showed fast revenue growth of 80.1% from 2011 to 2014 annually. EBITDA surged on nan% from 2011 to 2014 annually.
Nobilis Health Corp ($NHC) financials for the last 5 years
| mln. $ | 2010 | 2011 | 2012 | 2013 | 2014 |
|---|
| Revenue | 12 | 14 | 21 | 31 | 84 |
|---|
| Revenue growth, % | | 16.6% | 45.3% | 49.0% | 169.9% |
|---|
| Gross margin, % | | | | | 99.8% |
|---|
| SG&A, % | 50.1% | 41.9% | 29.5% | 41.4% | 42.7% |
|---|
| EBITDA | -5 | -1 | 6 | 5 | 22 |
|---|
| EBITDA growth, % | | -83.7% | -802.9% | -12.9% | 315.7% |
|---|
| EBITDA margin, % | -44.0% | -6.14% | 29.7% | 17.4% | 26.7% |
|---|
| Net Income | -5 | -2 | 1 | 1 | 7 |
|---|
| Net Income margin, % | -40.4% | -15.1% | 5.74% | 4.55% | 8.00% |
|---|
| |
| CAPEX | 0 | 0 | 0 | 1 | 2 |
|---|
| CAPEX/Revenue, % | 0.884% | 2.87% | 1.35% | 3.79% | 2.41% |
|---|
| Debt | 0 | 2 | 2 | 2 | 21 |
|---|
| Cash | 4 | 3 | 4 | 6 | 8 |
|---|
| Net Debt/EBITDA | 0.8x | 0.5x | -0.4x | -0.7x | 0.6x |
|---|
| |
| ROIC, % | -68.6% | -20.2% | 49.4% | 29.7% | 39.0% |
|---|
| ROE, % | -87.7% | -50.6% | 33.7% | 17.8% | 23.4% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The company showed fast EBITDA margin growth of 9.30 pp from 17.4% to 26.7% in 2014. In the longer period the company's EBITDA margin surged on 32.8 pp from -6.10% in 2011 to 26.7% in 2014.
We call Nobilis Health Corp an attractive growth stock as together with the growth it delivers high ROIC at 39.0%. Three years ago it was considerably lower at -20.2%. For the last three years the average ROIC was 39.4%.
The company showed fast Net Income margin growth of 3.50 pp from 4.50% to 8% in 2014. In the longer period Nobilis Health Corp's Net Income margin surged on 23.1 pp from -15.1% in 2011 to 8% in 2014.
Nobilis Health Corp operates at ROE of 23.4%. It's average level of ROE for the last three years was 24.9%.
Capital expenditures (CAPEX)
In FY2014 the company had CAPEX/Revenue of 2.41%. The company showed big decline in CAPEX/Revenue of 0.465 pp from 2.87% in 2011 to 2.41% in 2014. It's average level of CAPEX/Revenue for the last three years was 2.52%.
Leverage (Debt)
The company has low debt level at 0.6x Net Debt/EBITDA - at the same time with high growth. In the last 3 years leverage surged on 0.13x from 0.47x in 2011 to 0.59x in 2014.
Peers in Consumer, Non-cyclical
Below you can find Nobilis Health Corp benchmarking vs. other companies in Consumer, Non-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 |
|---|
| Cardiome Pharma Corp ($COM) | | -97.7% | -47.6% | 471.7% | 566.0% |
| Concordia Healthcare Corp ($CXR) | | | | | 159.5% |
| Covalon Technologies Ltd ($COV) | | -19.9% | 46.6% | 9.0% | 119.2% |
| Medicure Inc ($MPH) | | 9.4% | 32.2% | -45.7% | 94.1% |
| Feronia Inc/Canada ($FRN) | | 83.2% | -3.3% | -3.3% | 73.6% |
| |
|---|
| Median (67 companies) | | 10.6% | 7.0% | 5.1% | 11.4% |
|---|
| Nobilis Health Corp ($NHC) | | 16.6% | 45.3% | 49.0% | 169.9% |
Top companies by Gross margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | 99.0% | | | 99.5% | 98.3% |
| Ritchie Bros Auctioneers Inc ($RBA) | 86.8% | 87.9% | 88.7% | 88.4% | 88.0% |
| Concordia Healthcare Corp ($CXR) | | | | 79.4% | 86.0% |
| Merus Labs International Inc ($MSL) | | | 88.6% | 91.4% | 82.8% |
| Medicure Inc ($MPH) | 55.1% | 58.3% | 77.7% | 74.4% | 82.8% |
| |
|---|
| Median (57 companies) | 29.5% | 27.5% | 33.7% | 35.6% | 34.6% |
|---|
| Nobilis Health Corp ($NHC) | | | | | 99.8% |
Top companies by EBITDA margin, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | 13.9% | -50.0% | 40.6% | 71.4% | 63.7% |
| Merus Labs International Inc ($MSL) | | | 32.9% | 64.7% | 46.2% |
| Valeant Pharmaceuticals International Inc ($VRX) | 12.2% | 37.0% | 30.6% | 27.8% | 45.6% |
| EnerCare Inc ($ECI) | | 59.0% | 52.8% | 51.0% | 45.5% |
| Information Services Corp ($ISV) | 36.8% | 34.1% | 39.6% | 39.6% | 37.6% |
| |
|---|
| Median (67 companies) | 9.1% | 8.5% | 8.6% | 8.2% | 11.0% |
|---|
| Nobilis Health Corp ($NHC) | -44.0% | -6.1% | 29.7% | 17.4% | 26.7% |
Top companies by CAPEX/Revenue, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | | 6.0% | 4.7% | 73.6% | 84.6% |
| CanaDream Corp ($CDN) | 22.1% | 68.6% | 43.3% | 38.1% | 70.4% |
| Feronia Inc/Canada ($FRN) | 122.4% | 129.0% | 191.4% | 117.4% | 42.4% |
| Microbix Biosystems Inc ($MBX) | 2.4% | 1.0% | 1.2% | 3.0% | 40.3% |
| ProMetic Life Sciences Inc ($PLI) | | | 2.1% | 33.6% | 34.6% |
| |
|---|
| Median (67 companies) | 1.9% | 2.3% | 2.6% | 2.3% | 2.6% |
|---|
| Nobilis Health Corp ($NHC) | 0.9% | 2.9% | 1.4% | 3.8% | 2.4% |
Top companies by ROIC, %
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Biosyent Inc ($RX) | 8.3% | 45.5% | 71.7% | 62.4% | 62.9% |
| Information Services Corp ($ISV) | | 56.0% | 71.8% | 72.8% | 58.9% |
| Covalon Technologies Ltd ($COV) | -22.1% | -49.6% | -75.8% | -30.1% | 50.6% |
| Cipher Pharmaceuticals Inc ($CPH) | -0.1% | -22.9% | 21.8% | 81.4% | 44.6% |
| Medical Facilities Corp ($DR) | 25.9% | 41.0% | 36.1% | 39.5% | 26.5% |
| |
|---|
| Median (67 companies) | 8.3% | 8.2% | 7.5% | 6.4% | 7.8% |
|---|
| Nobilis Health Corp ($NHC) | -68.6% | -20.2% | 49.4% | 29.7% | 39.0% |
Top companies by Net Debt / EBITDA
| FY2010 | FY2011 | FY2012 | FY2013 | FY2014 |
|---|
| Top 5 |
|---|
| Amica Mature Lifestyles Inc ($ACC) | 10.9x | 11.7x | 9.4x | 14.7x | 13.8x |
| Cott Corp ($BCB) | 3.3x | 2.6x | 2.0x | 2.2x | 13.4x |
| CRH Medical Corp ($CRH) | | -2.3x | -3.1x | -3.5x | 12.0x |
| Centric Health Corp ($CHH) | 2.1x | 10.3x | 5.6x | 10.2x | 11.2x |
| Sienna Senior Living Inc ($SIA) | 11.6x | 10.6x | 9.5x | 11.8x | 9.2x |
| |
|---|
| Median (56 companies) | 1.5x | 2.1x | 2.4x | 2.3x | 2.9x |
|---|
| Nobilis Health Corp ($NHC) | | | -0.4x | -0.7x | 0.6x |
