Gluskin Sheff + Associates Inc reports 90.3 pp ROIC decline from 154% to 63.6% in 2015 and 47.5% EBITDA decline
17.09.2015 • About Gluskin Sheff + Associates Inc (
$GS) • By InTwits
Gluskin Sheff + Associates Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gluskin Sheff + Associates Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's a lot of higher than industry average of 9.1%.
- CAPEX is quite volatile: 0.20 in FY2015, 0.62 in FY2014, 0.27 in FY2013, 9.7 in FY2012, 14.4 in FY2011
- The company has highly profitable business model: ROIC is at 63.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gluskin Sheff + Associates Inc ($GS) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 127.8 | 77.8 | 125.0 | 247.5 | 164.5 | -33.5% |
| SG&A | | | | | 13.9 | |
| EBITDA | 67.0 | 20.2 | 67.3 | 150.3 | 78.8 | -47.5% |
| Net Income | 49.9 | 17.4 | 49.4 | 106.8 | 52.3 | -51.0% |
Balance Sheet
|
|---|
| Cash | 10.5 | 18.7 | 22.0 | 8.2 | 28.9 | 253.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 14.4 | 9.7 | 0.3 | 0.6 | 0.2 | -67.2% |
Ratios
|
|---|
| Revenue growth | 4.1% | -39.1% | 60.6% | 97.9% | -33.5% | |
| EBITDA growth | 12.0% | -69.9% | 233.3% | 123.3% | -47.5% | |
| EBITDA Margin | 52.4% | 25.9% | 53.8% | 60.7% | 47.9% | -12.8% |
| Net Income Margin | 39.0% | 22.4% | 39.5% | 43.1% | 31.8% | -11.3% |
| SG&A, % of revenue | | | | | 8.4% | 8.4% |
| CAPEX, % of revenue | 11.2% | 12.4% | 0.2% | 0.3% | 0.1% | -0.1% |
| ROIC | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% | -90.3% |
| ROE | 53.6% | 20.3% | 62.3% | 120.7% | 48.3% | -72.4% |
| Net Debt/EBITDA | -0.2x | -0.9x | -0.3x | -0.1x | -0.4x | -0.3x |
Revenue and profitability
The company's Revenue dropped on 33.5% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 12.8 pp from 60.7% to 47.9% in FY2015.
Net Income marign dropped on 11.3 pp from 43.1% to 31.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.12%. Gluskin Sheff + Associates Inc's CAPEX/Revenue dropped on 12.3 pp from 12.4% in FY2012 to 0.12% in FY2015. For the last three years the average CAPEX/Revenue was 0.20%.
Return on investment
The company operates at high and attractive ROIC (63.60%) and ROE (48.28%). ROIC dropped on 90.3 pp from 154% to 63.6% in FY2015. ROE dropped on 72.4 pp from 121% to 48.3% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 253% in FY2015.
Appendix 1: Peers in Financial
Below we provide Gluskin Sheff + Associates Inc benchmarking against other companies in Financial 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 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Sun Life Financial Inc ($SLF) | -20.0% | -11.5% | -21.0% | 85.7% | |
| |
|---|
| Median (72 companies) | 10.8% | 9.3% | 7.1% | 8.4% | -13.7% |
|---|
| Gluskin Sheff + Associates Inc ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 16.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | |
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | |
| |
|---|
| Median (48 companies) | 34.5% | 32.5% | 32.0% | 30.5% | 27.0% |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 52.4% | 25.9% | 53.8% | 60.7% | 47.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | |
| |
|---|
| Median (74 companies) | 1.3% | 1.4% | 0.8% | 1.1% | 5.0% |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 11.2% | 12.4% | 0.2% | 0.3% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| Wall Financial Corp ($WFC) | 8.4% | 17.3% | 3.0% | 12.7% | 2.1% |
| |
|---|
| Median (76 companies) | 4.9% | 4.8% | 4.5% | 4.8% | 1.3% |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (40 companies) | 5.3x | 5.5x | 5.0x | 4.5x | 7.2x |
|---|
| Gluskin Sheff + Associates Inc ($GS) | -0.2x | -0.9x | -0.3x | -0.1x | -0.4x |
