Sigma Industries Inc EBITDA surged on 6,127% in 2015 and Revenue jumped on 19.0%
28.08.2015 • About Sigma Industries Inc (
$SSG) • By InTwits
Sigma Industries Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 5.9% in FY2015, 0.1% in FY2014, 2.6% in FY2013, 5.9% in FY2012, -0.9% in FY2011
- Sigma Industries Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has highly profitable business model: ROIC is at 18.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.9x while industry average is 3.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sigma Industries Inc ($SSG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 53.375 | 73.696 | 55.461 | 54.680 | 65.068 | 19.0% |
| Gross Profit | | 4.355 | 1.486 | 0.141 | 3.759 | 2,564.3% |
| EBITDA | -0.469 | 4.355 | 1.426 | 0.062 | 3.857 | 6,127.2% |
| Net Income | -0.076 | 3.141 | -1.359 | -3.575 | 1.862 | -152.1% |
Balance Sheet
|
|---|
| Cash | 0.184 | 0.397 | 0.743 | 0.749 | 0.246 | -67.2% |
| Short Term Debt | 9.762 | 18.972 | 14.167 | 12.745 | 9.527 | -25.2% |
| Long Term Debt | 15.116 | 0.427 | 2.746 | 2.000 | 2.000 | 0.0% |
Cash flow
|
|---|
| Capex | 0.099 | 0.289 | 0.000 | 0.667 | 1.007 | 51.1% |
Ratios
|
|---|
| Revenue growth | 18.0% | 38.1% | -24.7% | -1.4% | 19.0% | |
| EBITDA growth | | -1,029.5% | -67.3% | -95.7% | 6,127.2% | |
| Gross Margin | | 5.9% | 2.7% | 0.3% | 5.8% | 5.5% |
| EBITDA Margin | -0.9% | 5.9% | 2.6% | 0.1% | 5.9% | 5.8% |
| Net Income Margin | -0.1% | 4.3% | -2.5% | -6.5% | 2.9% | 9.4% |
| CAPEX, % of revenue | 0.2% | 0.4% | 0.0% | 1.2% | 1.5% | 0.3% |
| ROIC | | 10.1% | 0.8% | -6.5% | 18.6% | 25.0% |
| ROE | | 108.7% | -37.8% | | | 0.0% |
| Net Debt/EBITDA | | 4.4x | 11.3x | 225.9x | 2.9x | -223.0x |
Revenue and profitability
The company's Revenue surged on 19.0% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 67.9 pp from 65.0% to -2.9% in 2015.
Gross Margin increased on 5.5 pp from 0.26% to 5.8% in FY2015.
Net Income marign increased on 9.4 pp from -6.5% to 2.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sigma Industries Inc's CAPEX/Revenue was 1.5% in FY2015. CAPEX/Revenue increased slightly on 1.2 pp from 0.39% in FY2012 to 1.5% in FY2015.
Leverage (Debt)
Debt level is 2.9x Net Debt / EBITDA and 3.0x Debt / EBITDA. Net Debt / EBITDA dropped on 223.0x from 225.9x to 2.9x in FY2015. Debt dropped on 21.8% in FY2015 while cash dropped on 67.2% in FY2015.
Appendix 1: Peers in Industrial
Below you can find Sigma Industries Inc benchmarking vs. other companies in Industrial 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 |
|---|
| 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (91 companies) | 12.5% | 10.3% | 5.1% | 9.2% | 11.7% |
|---|
| Sigma Industries Inc ($SSG) | | 38.1% | -24.7% | -1.4% | 19.0% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (87 companies) | 23.2% | 23.2% | 23.4% | 22.9% | 26.2% |
|---|
| Sigma Industries Inc ($SSG) | | 5.9% | 2.7% | 0.3% | 5.8% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (84 companies) | 8.2% | 9.3% | 8.3% | 7.4% | 10.8% |
|---|
| Sigma Industries Inc ($SSG) | -0.9% | 5.9% | 2.6% | 0.1% | 5.9% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (91 companies) | 2.7% | 3.1% | 3.7% | 3.3% | 2.8% |
|---|
| Sigma Industries Inc ($SSG) | 0.2% | 0.4% | 0.0% | 1.2% | 1.5% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | |
| |
|---|
| Median (92 companies) | 9.0% | 9.2% | 8.5% | 8.8% | 7.4% |
|---|
| Sigma Industries Inc ($SSG) | | 10.1% | 0.8% | -6.5% | 18.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 | |
| Conifex Timber Inc ($CFF) | | | 2.7x | 6.1x | |
| |
|---|
| Median (71 companies) | 1.1x | 1.5x | 1.5x | 1.3x | -1.0x |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
