CanaDream Corp reports 87.8% Net Income growth and 16.5% Revenue growth
10.07.2015 • About CanaDream Corp (
$CDN) • By InTwits
CanaDream Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CanaDream Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 56.8%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 0.57 in 2015, 0.53 in 2014, 1.8 in 2013, 0.85 in 2012, 0.28 in 2011
- The company has business model with low profitability: ROIC is at 7.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CanaDream Corp ($CDN) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24.975 | 26.492 | 27.836 | 29.276 | 34.111 | 16.5% |
| Gross Profit | 8.137 | 8.919 | 8.760 | 9.384 | 10.800 | 15.1% |
| EBITDA | 6.039 | 6.470 | 6.392 | 7.306 | 7.425 | 1.6% |
| Net Income | 0.308 | 1.093 | 0.608 | 1.133 | 2.128 | 87.8% |
Balance Sheet
|
|---|
| Cash | 2.578 | 3.029 | 2.883 | 3.743 | 6.938 | 85.4% |
| Short Term Debt | 17.462 | 16.490 | 14.929 | 13.142 | 15.224 | 15.8% |
| Long Term Debt | 6.828 | 7.012 | 6.708 | 13.409 | 15.781 | 17.7% |
Cash flow
|
|---|
| Capex | 17.145 | 11.463 | 10.594 | 20.600 | 21.636 | 5.0% |
Ratios
|
|---|
| Revenue growth | 12.0% | 6.1% | 5.1% | 5.2% | 16.5% | |
| EBITDA growth | 37.4% | 7.1% | -1.2% | 14.3% | 1.6% | |
| Gross Margin | 32.6% | 33.7% | 31.5% | 32.1% | 31.7% | -0.4% |
| EBITDA Margin | 24.2% | 24.4% | 23.0% | 25.0% | 21.8% | -3.2% |
| Net Income Margin | 1.2% | 4.1% | 2.2% | 3.9% | 6.2% | 2.4% |
| CAPEX, % of revenue | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% | -6.9% |
| ROIC | 10.5% | 7.2% | 5.8% | 7.8% | 7.5% | -0.2% |
| ROE | 3.7% | 11.5% | 5.9% | 10.2% | 16.6% | 6.4% |
| Net Debt/EBITDA | 3.6x | 3.2x | 2.9x | 3.1x | 3.2x | 0.1x |
Revenue and profitability
The company's Revenue jumped on 16.5% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.5 pp from -6.9% to -21.4% in 2015.
Gross Margin showed almost no change in FY2015.
Net Income marign increased on 2.4 pp from 3.9% to 6.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
CanaDream Corp's CAPEX/Revenue was 63.4% in FY2015. CAPEX/Revenue jumped on 20.2 pp from 43.3% in FY2012 to 63.4% in FY2015. It's average CAPEX/Revenue for the last three years was 57.3%.The company has spent a lot to CAPEX (291% of EBITDA) to secure its growth.
Return on investment
The company operates at good ROE (16.59%) while ROIC is low (7.54%). ROIC showed almost no change in FY2015. ROE increased on 6.4 pp from 10.2% to 16.6% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.2x and Debt / EBITDA is 4.2x. Net Debt / EBITDA jumped on 0.1x from 3.1x to 3.2x in FY2015. Debt surged on 16.8% in FY2015 while cash jumped on 85.4% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find CanaDream Corp benchmarking vs. other companies in Consumer, Non-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 |
|---|
| 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 ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 11.2% | 8.7% | 6.9% | 13.2% | 6.0% |
|---|
| CanaDream Corp ($CDN) | | 6.1% | 5.1% | 5.2% | 16.5% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 28.1% |
|---|
| CanaDream Corp ($CDN) | 32.6% | 33.7% | 31.5% | 32.1% | 31.7% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 7.9% | 7.9% | 8.3% | 10.5% | 7.7% |
|---|
| CanaDream Corp ($CDN) | 24.2% | 24.4% | 23.0% | 25.0% | 21.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| Ceapro Inc ($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% | |
| ProMetic Life Sciences Inc ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (85 companies) | 2.3% | 2.6% | 2.4% | 2.4% | 3.0% |
|---|
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 7.4% | 6.7% | 6.7% | 6.9% | 8.4% |
|---|
| CanaDream Corp ($CDN) | 10.5% | 7.2% | 5.8% | 7.8% | 7.5% |
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 ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (69 companies) | 1.8x | 2.5x | 2.1x | 2.7x | 1.6x |
|---|
| CanaDream Corp ($CDN) | 3.6x | 3.2x | 2.9x | 3.1x | 3.2x |
