Saputo Inc revenue growth decelerated to 15.4% in FY2015 vs. 26.5% a year earliner
04.06.2015 • About Saputo Inc (
$SAP) • By InTwits
Saputo Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Saputo Inc is a growth stock: FY2015 revenue growth was 15.4%, 5 year revenue CAGR was 12.9% at FY2015 ROIC 16.5%
- Saputo Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 8.1%.
- CAPEX is quite volatile: 516 in FY2015, 539 in FY2014, 404 in FY2013, 222 in FY2012, 231 in FY2011
- The company has highly profitable business model: ROIC is at 16.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Saputo Inc ($SAP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6,003 | 6,930 | 7,298 | 9,233 | 10,658 | 15.4% |
| Gross Profit | 788 | 831 | 861 | 1,020 | 1,062 | 4.1% |
| EBITDA | 788 | 831 | 818 | 975 | 1,094 | 12.3% |
| Net Income | 450 | 381 | 482 | 533 | 608 | 14.0% |
Balance Sheet
|
|---|
| Cash | 77 | 144 | 43 | 39 | 73 | 84.4% |
| Short Term Debt | 171 | 167 | 334 | 704 | 223 | -68.3% |
| Long Term Debt | 378 | 380 | 1,396 | 1,396 | 1,517 | 8.7% |
Cash flow
|
|---|
| Capex | 112 | 119 | 178 | 224 | 187 | -16.4% |
Ratios
|
|---|
| Revenue growth | 3.3% | 15.4% | 5.3% | 26.5% | 15.4% | |
| EBITDA growth | 13.9% | 5.4% | -1.5% | 19.1% | 12.3% | |
| Gross Margin | 13.1% | 12.0% | 11.8% | 11.1% | 10.0% | -1.1% |
| EBITDA Margin | 13.1% | 12.0% | 11.2% | 10.6% | 10.3% | -0.3% |
| Net Income Margin | 7.5% | 5.5% | 6.6% | 5.8% | 5.7% | -0.1% |
| CAPEX, % of revenue | 1.9% | 1.7% | 2.4% | 2.4% | 1.8% | -0.7% |
| ROIC | 23.8% | 24.6% | 19.2% | 17.0% | 16.5% | -0.5% |
| ROE | 21.9% | 18.2% | 21.8% | 21.0% | 19.2% | -1.8% |
| Net Debt/EBITDA | 0.6x | 0.5x | 2.1x | 2.1x | 1.5x | -0.6x |
Revenue and profitability
Saputo Inc's Revenue jumped on 15.4% in FY2015. EBITDA Margin showed almost no change in FY2015.
Gross Margin decreased slightly on 1.1 pp from 11.1% to 10.0% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.8%. Saputo Inc showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at good ROIC (16.47%) and ROE (19.18%). ROIC decreased slightly on 0.50 pp from 17.0% to 16.5% in FY2015. ROE decreased slightly on 1.8 pp from 21.0% to 19.2% in FY2015.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 1.6x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 2.1x to 1.5x in FY2015. Debt dropped on 17.1% in FY2015 while cash surged on 84.4% in FY2015.
Management team
Lino A Saputo Jr is a the company's CEO. Lino A Saputo Jr is a founder and has spent 14 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Saputo Inc benchmarking against other companies in Consumer, Non-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 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | 43.8% | -38.8% | -72.9% | 218,969.1% | |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 11.2% | 7.7% | 6.9% | 12.2% | 5.3% |
|---|
| Saputo Inc ($SAP) | | 15.4% | 5.3% | 26.5% | 15.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 28.6% |
|---|
| Saputo Inc ($SAP) | 13.1% | 12.0% | 11.8% | 11.1% | 10.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 7.9% | 7.9% | 8.3% | 10.7% | -92.5% |
|---|
| Saputo Inc ($SAP) | 13.1% | 12.0% | 11.2% | 10.6% | 10.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | |
| |
|---|
| Median (85 companies) | 2.4% | 2.6% | 2.4% | 2.6% | 5.4% |
|---|
| Saputo Inc ($SAP) | 1.9% | 1.7% | 2.4% | 2.4% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 7.4% | 6.7% | 6.7% | 6.9% | 6.8% |
|---|
| Saputo Inc ($SAP) | 23.8% | 24.6% | 19.2% | 17.0% | 16.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (69 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.7x |
|---|
| Saputo Inc ($SAP) | 0.6x | 0.5x | 2.1x | 2.1x | 1.5x |
