Jean Coutu Group PJC Inc/The reports 49.9% Net Income decline while 2.9% Revenue growth
29.04.2015 • About Jean Coutu Group PJC Inc/The (
$PJC.A) • By InTwits
Jean Coutu Group PJC Inc/The reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 11.8% in FY2015 vs. 12.2% in FY2014 vs. 11.1% in FY2011
- Jean Coutu Group PJC Inc/The has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 88.7%.
- CAPEX is quite volatile: 79.1 in FY2015, 31.8 in FY2014, 20.9 in FY2013, 24.9 in FY2012, 43.5 in FY2011
- The company has highly profitable business model: ROIC is at 30.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jean Coutu Group PJC Inc/The ($PJC.A) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,613 | 2,733 | 2,740 | 2,733 | 2,814 | 2.9% |
| Gross Profit | 521 | 549 | 571 | 596 | 617 | 3.5% |
| SG&A | 231 | 238 | 248 | 261 | 285 | 9.0% |
| EBITDA | 291 | 311 | 323 | 335 | 332 | -0.8% |
| Net Income | 183 | 230 | 558 | 437 | 219 | -49.9% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | 122 | |
| Short Term Debt | 17 | 155 | 22 | 0 | 0 | |
| Long Term Debt | 185 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 44 | 25 | 21 | 32 | 79 | 148.7% |
Ratios
|
|---|
| Revenue growth | 2.7% | 4.6% | 0.2% | -0.2% | 2.9% | |
| EBITDA growth | 8.1% | 7.1% | 3.8% | 3.6% | -0.8% | |
| Gross Margin | 19.9% | 20.1% | 20.8% | 21.8% | 21.9% | 0.1% |
| EBITDA Margin | 11.1% | 11.4% | 11.8% | 12.2% | 11.8% | -0.4% |
| Net Income Margin | 7.0% | 8.4% | 20.4% | 16.0% | 7.8% | -8.2% |
| SG&A, % of revenue | 8.8% | 8.7% | 9.0% | 9.6% | 10.1% | 0.6% |
| CAPEX, % of revenue | 1.7% | 0.9% | 0.8% | 1.2% | 2.8% | 1.6% |
| ROIC | 33.5% | 34.4% | 29.8% | 29.2% | 30.2% | 1.0% |
| ROE | 33.0% | 36.9% | 63.5% | 42.8% | 22.3% | -20.4% |
| Net Debt/EBITDA | 0.7x | 0.5x | 0.1x | 0.0x | -0.4x | -0.4x |
Revenue and profitability
The company's Revenue increased on 2.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 155 pp from 17.1% to -137% in 2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue increased slightly on 0.56 pp from 9.6% to 10.1% in FY2015.
Net Income marign decreased on 8.2 pp from 16.0% to 7.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Jean Coutu Group PJC Inc/The had CAPEX/Revenue of 2.8%. Jean Coutu Group PJC Inc/The's CAPEX/Revenue increased slightly on 1.9 pp from 0.91% in FY2012 to 2.8% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.6%.
Return on investment
The company operates at high and attractive ROIC (30.18%) and ROE (22.34%). ROIC increased slightly on 0.95 pp from 29.2% to 30.2% in FY2015. ROE dropped on 20.4 pp from 42.8% to 22.3% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged.
Management team
Jean Coutu Group PJC Inc/The's CEO Francois Jean Coutu is a founder and has spent 16 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Jean Coutu Group PJC Inc/The 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (65 companies) | 10.9% | 5.4% | 5.1% | 7.2% | 4.1% |
|---|
| Jean Coutu Group PJC Inc/The ($PJC.A) | | 4.6% | 0.2% | -0.2% | 2.9% |
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 ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (57 companies) | 37.0% | 35.3% | 32.1% | 34.6% | 36.9% |
|---|
| Jean Coutu Group PJC Inc/The ($PJC.A) | 19.9% | 20.1% | 20.8% | 21.8% | 21.9% |
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 ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (63 companies) | 8.7% | 8.0% | 9.7% | 9.6% | 10.0% |
|---|
| Jean Coutu Group PJC Inc/The ($PJC.A) | 11.1% | 11.4% | 11.8% | 12.2% | 11.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($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 ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (66 companies) | 2.8% | 2.7% | 2.7% | 2.4% | 3.8% |
|---|
| Jean Coutu Group PJC Inc/The ($PJC.A) | 1.7% | 0.9% | 0.8% | 1.2% | 2.8% |
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% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | |
| |
|---|
| Median (66 companies) | 10.6% | 9.8% | 10.5% | 9.8% | 4.4% |
|---|
| Jean Coutu Group PJC Inc/The ($PJC.A) | 33.5% | 34.4% | 29.8% | 29.2% | 30.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (56 companies) | 1.3x | 1.4x | 1.8x | 2.0x | 1.9x |
|---|
| Jean Coutu Group PJC Inc/The ($PJC.A) | 0.7x | 0.5x | 0.1x | 0.0x | -0.4x |
