Canaccord Genuity Group Inc Net Income dropped on 126% in 2015 while Revenue increased on 3.0%
02.06.2015 • About Canaccord Genuity Group Inc (
$CF) • By InTwits
Canaccord Genuity Group Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Canaccord Genuity Group Inc doesn't have a profitable business model yet: FY2015 ROIC is 0.4%
- Canaccord Genuity Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 0.6%.
- CAPEX is quite volatile: 5.2 in FY2015, 15.5 in FY2014, 7.0 in FY2013, 10.6 in FY2012, 8.1 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 10.2x while industry average is 10.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Canaccord Genuity Group Inc ($CF) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 803.6 | 604.9 | 797.1 | 855.2 | 880.8 | 3.0% |
| SG&A | 67.9 | 69.5 | 89.5 | 83.8 | 94.7 | 12.9% |
| EBITDA | | | | | 36.2 | |
| Net Income | 99.7 | -20.3 | -16.8 | 51.4 | -13.2 | -125.6% |
Balance Sheet
|
|---|
| Cash | 954.1 | 814.2 | 491.0 | 364.3 | 322.3 | -11.5% |
| Short Term Debt | 751.2 | 1,154.8 | 770.2 | 928.9 | 689.9 | -25.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 8.1 | 10.6 | 7.0 | 15.5 | 5.2 | -66.2% |
Ratios
|
|---|
| Revenue growth | 39.1% | -24.7% | 31.8% | 7.3% | 3.0% | |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | 0.0% | 4.1% | 4.1% |
| Net Income Margin | 12.4% | -3.4% | -2.1% | 6.0% | -1.5% | -7.5% |
| SG&A, % of revenue | 8.4% | 11.5% | 11.2% | 9.8% | 10.8% | 0.9% |
| CAPEX, % of revenue | 1.0% | 1.8% | 0.9% | 1.8% | 0.6% | -1.2% |
| ROIC | 12.6% | -0.3% | -0.4% | 4.0% | 0.4% | -3.7% |
| ROE | 17.2% | -3.1% | -3.3% | 4.4% | -2.7% | -7.1% |
| Net Debt/EBITDA | | | | | 10.2x | 10.2x |
Revenue and profitability
The company's Revenue increased on 3.0% in FY2015.
SG&A as a % of Revenue increased slightly on 0.95 pp from 9.8% to 10.8% in FY2015.
Net Income marign decreased on 7.5 pp from 6.0% to -1.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Canaccord Genuity Group Inc's CAPEX/Revenue was 0.59% in FY2015. Canaccord Genuity Group Inc showed small CAPEX/Revenue decline of 1.2 pp from 1.8% in FY2012 to 0.59% in FY2015. For the last three years the average CAPEX/Revenue was 1.1%.
Return on investment
The company operates at low but positive ROIC (0.39%) and negative ROE (-2.69%). ROIC decreased on 3.7 pp from 4.0% to 0.39% in FY2015. ROE decreased on 7.1 pp from 4.4% to -2.7% in FY2015.
Leverage (Debt)
Debt level is 10.2x Net Debt / EBITDA and 19.1x Debt / EBITDA. Net Debt / EBITDA jumped10.2x from to 10.2x in FY2015. Debt dropped on 25.7% in FY2015 while cash dropped on 11.5% in FY2015.
Appendix 1: Peers in Financial Services
Below you can find Canaccord Genuity Group Inc benchmarking vs. other companies in Financial Services 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.
