Evertz Technologies Ltd reports 31.3% EBITDA growth and 11.7% Revenue growth
10.06.2015 • About Evertz Technologies Ltd (
$ET) • By InTwits
Evertz Technologies Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Evertz Technologies Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's in pair with industry average of 6.7%.
- CAPEX is quite volatile: 8.3 in FY2015, 10.8 in FY2014, 11.0 in FY2013, 16.6 in FY2012, 4.1 in FY2011
- The company has highly profitable business model: ROIC is at 24.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Evertz Technologies Ltd ($ET) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 309.3 | 293.4 | 316.3 | 325.5 | 363.6 | 11.7% |
| Gross Profit | 178.3 | 166.2 | 181.9 | 186.2 | 206.1 | 10.7% |
| SG&A | 44.3 | | | 62.0 | 65.0 | 4.7% |
| EBITDA | 114.9 | 86.9 | 92.0 | 74.9 | 98.3 | 31.3% |
| Net Income | 77.7 | 59.5 | 64.6 | 63.1 | 65.5 | 3.7% |
Balance Sheet
|
|---|
| Cash | 175.8 | 173.7 | 208.7 | 102.0 | 100.7 | -1.3% |
| Short Term Debt | 0.5 | 0.4 | 0.4 | 0.4 | 0.3 | -38.8% |
| Long Term Debt | 2.5 | 1.9 | 1.5 | 1.4 | 1.0 | -27.4% |
Cash flow
|
|---|
| Capex | 4.1 | 16.6 | 11.0 | 10.8 | 8.3 | -23.0% |
Ratios
|
|---|
| Revenue growth | 8.0% | -5.1% | 7.8% | 2.9% | 11.7% | |
| EBITDA growth | 7.7% | -24.4% | 5.9% | -18.6% | 31.3% | |
| Gross Margin | 57.7% | 56.6% | 57.5% | 57.2% | 56.7% | -0.5% |
| EBITDA Margin | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% | 4.0% |
| Net Income Margin | 25.1% | 20.3% | 20.4% | 19.4% | 18.0% | -1.4% |
| SG&A, % of revenue | 14.3% | | | 19.1% | 17.9% | -1.2% |
| CAPEX, % of revenue | 1.3% | 5.7% | 3.5% | 3.3% | 2.3% | -1.0% |
| ROIC | 30.0% | 19.9% | 20.5% | 16.5% | 24.3% | 7.8% |
| ROE | 22.7% | 15.9% | 16.5% | 17.1% | 19.1% | 2.0% |
| Net Debt/EBITDA | -1.5x | -2.0x | -2.2x | -1.3x | -1.0x | 0.3x |
Revenue and profitability
Evertz Technologies Ltd's Revenue surged on 11.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.9 pp from 19.8% to 15.9% in 2015.
Gross Margin decreased slightly on 0.51 pp from 57.2% to 56.7% in FY2015. SG&A as a % of Revenue decreased slightly on 1.2 pp from 19.1% to 17.9% in FY2015.
Net Income marign decreased slightly on 1.4 pp from 19.4% to 18.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Evertz Technologies Ltd had CAPEX/Revenue of 2.3%. CAPEX/Revenue decreased on 3.4 pp from 5.7% in FY2012 to 2.3% in FY2015. For the last three years the average CAPEX/Revenue was 3.0%.
Return on investment
The company operates at high and attractive ROIC (24.32%) while ROE is a bit lower (19.07%). ROIC increased on 7.8 pp from 16.5% to 24.3% in FY2015. ROE increased on 2.0 pp from 17.1% to 19.1% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is 0.0x. Net Debt / EBITDA surged on 0.3x from -1.3x to -1.0x in FY2015. Debt dropped on 30.1% in FY2015 while cash decreased slightly on 1.3% in FY2015.
Appendix 1: Peers in Industrial
Below we provide Evertz Technologies Ltd benchmarking against other companies in Industrial 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 |
|---|
| Electrovaya Inc ($EFL) | 104.3% | -4.0% | -71.2% | 160.5% | |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | 22.4% | 19.7% | 0.9% | 50.5% | |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | |
| |
|---|
| Median (91 companies) | 12.5% | 11.0% | 4.9% | 9.2% | 8.1% |
|---|
| Evertz Technologies Ltd ($ET) | | -5.1% | 7.8% | 2.9% | 11.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (87 companies) | 23.2% | 22.9% | 23.3% | 22.3% | 26.0% |
|---|
| Evertz Technologies Ltd ($ET) | 57.7% | 56.6% | 57.5% | 57.2% | 56.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (84 companies) | 8.1% | 9.1% | 8.1% | 7.1% | 10.8% |
|---|
| Evertz Technologies Ltd ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (91 companies) | 2.7% | 3.0% | 3.7% | 3.1% | 2.8% |
|---|
| Evertz Technologies Ltd ($ET) | 1.3% | 5.7% | 3.5% | 3.3% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | |
| |
|---|
| Median (92 companies) | 8.9% | 9.2% | 8.5% | 8.3% | 7.4% |
|---|
| Evertz Technologies Ltd ($ET) | 30.0% | 19.9% | 20.5% | 16.5% | 24.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (71 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.7x |
|---|
| Evertz Technologies Ltd ($ET) | -1.5x | -2.0x | -2.2x | -1.3x | -1.0x |
