Empire Co Ltd EBITDA jumped on 61.4% in 2015 and Revenue jumped on 14.2%
24.06.2015 • About Empire Co Ltd (
$EMP.A) • By InTwits
Empire Co Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 5.1% in FY2015 vs. 3.6% in FY2014 vs. 5.4% in FY2011
- Empire Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 7,273 in 2015, 10,524 in 2014, 8,235 in 2013, 5,194 in 2012, 3,508 in 2011
- The company has business model with low profitability: ROIC is at 8.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Empire Co Ltd ($EMP.A) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 15,957 | 16,249 | 17,401 | 20,958 | 23,929 | 14.2% |
| Gross Profit | 3,980 | 4,029 | 4,075 | 5,016 | 5,962 | 18.8% |
| SG&A | 3,539 | 3,577 | 3,600 | 4,787 | 5,404 | 12.9% |
| EBITDA | 863 | 877 | 933 | 759 | 1,225 | 61.4% |
| Net Income | 401 | 339 | 380 | 235 | 419 | 78.0% |
Balance Sheet
|
|---|
| Cash | 616 | 510 | 455 | 429 | 296 | -31.1% |
| Short Term Debt | 49 | 242 | 54 | 218 | 54 | -75.3% |
| Long Term Debt | 1,090 | 889 | 916 | 3,282 | 2,230 | -32.0% |
Cash flow
|
|---|
| Capex | 552 | 603 | 532 | 563 | 497 | -11.7% |
Ratios
|
|---|
| Revenue growth | 2.8% | 1.8% | 7.1% | 20.4% | 14.2% | |
| EBITDA growth | 4.9% | 1.6% | 6.4% | -18.6% | 61.4% | |
| Gross Margin | 24.9% | 24.8% | 23.4% | 23.9% | 24.9% | 1.0% |
| EBITDA Margin | 5.4% | 5.4% | 5.4% | 3.6% | 5.1% | 1.5% |
| Net Income Margin | 2.5% | 2.1% | 2.2% | 1.1% | 1.8% | 0.6% |
| SG&A, % of revenue | 22.2% | 22.0% | 20.7% | 22.8% | 22.6% | -0.3% |
| CAPEX, % of revenue | 3.5% | 3.7% | 3.1% | 2.7% | 2.1% | -0.6% |
| ROIC | 11.8% | 11.6% | 11.9% | 4.6% | 8.4% | 3.8% |
| ROE | 13.1% | 10.3% | 10.7% | 5.0% | 7.2% | 2.2% |
| Net Debt/EBITDA | 0.6x | 0.7x | 0.6x | 4.0x | 1.6x | -2.4x |
Revenue and profitability
Empire Co Ltd's Revenue jumped on 14.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.96 pp from 4.2% to 5.1% in FY2015.
Gross Margin increased slightly on 0.98 pp from 23.9% to 24.9% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 0.63 pp from 1.1% to 1.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Empire Co Ltd's CAPEX/Revenue was 2.1% in FY2015. CAPEX/Revenue decreased slightly on 1.6 pp from 3.7% in FY2012 to 2.1% in FY2015. Average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at low ROIC (8.43%) and ROE (7.17%). ROIC increased on 3.8 pp from 4.6% to 8.4% in FY2015. ROE increased on 2.2 pp from 5.0% to 7.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 2.4x from 4.0x to 1.6x in FY2015. Debt dropped on 34.7% in FY2015 while cash dropped on 31.1% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Empire Co Ltd 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 ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 11.5% | 8.7% | 6.0% | 12.2% | 5.6% |
|---|
| Empire Co Ltd ($EMP.A) | | 1.8% | 7.1% | 20.4% | 14.2% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 28.3% |
|---|
| Empire Co Ltd ($EMP.A) | 24.9% | 24.8% | 23.4% | 23.9% | 24.9% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 8.2% | 8.5% | 9.0% | 10.8% | 10.3% |
|---|
| Empire Co Ltd ($EMP.A) | 5.4% | 5.4% | 5.4% | 3.6% | 5.1% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | |
| |
|---|
| Median (85 companies) | 2.3% | 2.6% | 2.4% | 2.4% | 4.2% |
|---|
| Empire Co Ltd ($EMP.A) | 3.5% | 3.7% | 3.1% | 2.7% | 2.1% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 7.4% | 6.7% | 6.7% | 7.8% | 8.5% |
|---|
| Empire Co Ltd ($EMP.A) | 11.8% | 11.6% | 11.9% | 4.6% | 8.4% |
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 ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (69 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.5x |
|---|
| Empire Co Ltd ($EMP.A) | 0.6x | 0.7x | 0.6x | 4.0x | 1.6x |
