Pacific Safety Products Inc Net Income surged on 689% in 2015
17.09.2015 • About Pacific Safety Products Inc (
$PSP) • By InTwits
Pacific Safety Products Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pacific Safety Products Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has highly profitable business model: ROIC is at 38.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Safety Products Inc ($PSP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 22.664 | 16.734 | 11.697 | 14.342 | 17.729 | 23.6% |
| Gross Profit | 4.988 | 4.824 | 2.903 | 3.791 | 5.129 | 35.3% |
| SG&A | | 4.437 | 2.628 | 3.245 | 2.965 | -8.6% |
| Net Income | -4.066 | -1.236 | -0.667 | -0.173 | 1.017 | -689.4% |
Balance Sheet
|
|---|
| Cash | 2.898 | 1.708 | 1.334 | 1.334 | 0.128 | -90.4% |
| Short Term Debt | 1.554 | 0.835 | 0.367 | 0.868 | 0.356 | -58.9% |
| Long Term Debt | 1.582 | 1.480 | 0.411 | 0.196 | 0.693 | 252.8% |
Cash flow
|
|---|
| Capex | 0.025 | 0.064 | 0.044 | 0.084 | 0.092 | 10.3% |
Ratios
|
|---|
| Revenue growth | -24.4% | -26.2% | -30.1% | 22.6% | 23.6% | |
| Gross Margin | 22.0% | 28.8% | 24.8% | 26.4% | 28.9% | 2.5% |
| Net Income Margin | -17.9% | -7.4% | -5.7% | -1.2% | 5.7% | 6.9% |
| SG&A, % of revenue | | 26.5% | 22.5% | 22.6% | 16.7% | -5.9% |
| CAPEX, % of revenue | 0.1% | 0.4% | 0.4% | 0.6% | 0.5% | -0.1% |
| ROIC | -19.0% | -1.5% | -11.5% | 3.7% | 38.2% | 34.5% |
| ROE | -107.0% | -49.3% | -36.9% | -10.1% | 41.1% | 51.2% |
Revenue and profitability
Pacific Safety Products Inc's Revenue jumped on 23.6% in FY2015.
Gross Margin increased on 2.5 pp from 26.4% to 28.9% in FY2015. SG&A as a % of Revenue decreased on 5.9 pp from 22.6% to 16.7% in FY2015.
Net Income marign increased on 6.9 pp from -1.2% to 5.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Pacific Safety Products Inc's CAPEX/Revenue was 0.52% in FY2015. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average level of CAPEX/Revenue for the last three years was 0.49%.
Return on investment
The company operates at high and attractive ROIC (38.17%) and ROE (41.14%). ROIC jumped on 34.5 pp from 3.7% to 38.2% in FY2015. ROE surged on 51.2 pp from -10.1% to 41.1% in FY2015.
Leverage (Debt)
Debt decreased slightly on 1.4% in FY2015 while cash dropped on 90.4% in FY2015.
Appendix 1: Peers in Industrial
Below we provide Pacific Safety Products Inc 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (91 companies) | 12.5% | 11.0% | 5.1% | 9.1% | 13.3% |
|---|
| Pacific Safety Products Inc ($PSP) | | -26.2% | -30.1% | 22.6% | 23.6% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (87 companies) | 23.3% | 22.9% | 23.3% | 22.3% | 26.0% |
|---|
| Pacific Safety Products Inc ($PSP) | 22.0% | 28.8% | 24.8% | 26.4% | 28.9% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (85 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 10.8% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($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% |
|---|
| Pacific Safety Products Inc ($PSP) | 0.1% | 0.4% | 0.4% | 0.6% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($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) | 9.1% | 9.7% | 8.5% | 8.8% | 7.4% |
|---|
| Pacific Safety Products Inc ($PSP) | -19.0% | -1.5% | -11.5% | 3.7% | 38.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
| 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 (72 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.7x |
|---|
