Pacific Insight Electronics Corp Debt jumped on 72.9% in 2015 and EBITDA jumped on 26.0%
18.09.2015 • About Pacific Insight Electronics Corp (
$PIH) • By InTwits
Pacific Insight Electronics Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pacific Insight Electronics Corp is a fast growth stock: FY2015 revenue growth was 39.4%, 5 year revenue CAGR was 23.1% at FY2015 ROIC 13.0%
- EBITDA Margin is quite volatile: 9.5% in FY2015, 10.6% in FY2014, 5.0% in FY2013, 3.8% in FY2012, 5.5% in FY2011
- Pacific Insight Electronics Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.2%. At the same time it's in pair with industry average of 6.7%.
- CAPEX is quite volatile: 2.6 in FY2015, 1.3 in FY2014, 2.2 in FY2013, 4.5 in FY2012, 1.6 in FY2011
- The company has highly profitable business model: ROIC is at 13.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Insight Electronics Corp ($PIH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 32.783 | 38.569 | 53.610 | 59.189 | 82.487 | 39.4% |
| Gross Profit | 6.995 | 7.747 | 10.555 | 14.108 | 15.565 | 10.3% |
| SG&A | | | 7.861 | 7.863 | 9.772 | 24.3% |
| EBITDA | 1.793 | 1.463 | 2.694 | 6.245 | 7.870 | 26.0% |
| Net Income | 0.163 | -0.482 | -0.281 | 1.860 | 2.445 | 31.5% |
Balance Sheet
|
|---|
| Cash | 2.389 | 1.503 | 0.000 | 0.000 | 0.502 | |
| Short Term Debt | 0.134 | 3.483 | 3.639 | 7.764 | 11.731 | 51.1% |
| Long Term Debt | 0.798 | 0.715 | 3.972 | 2.675 | 6.319 | 136.2% |
Cash flow
|
|---|
| Capex | 1.597 | 4.533 | 2.234 | 1.280 | 2.568 | 100.6% |
Ratios
|
|---|
| Revenue growth | 12.3% | 17.6% | 39.0% | 10.4% | 39.4% | |
| EBITDA growth | -21.5% | -18.4% | 84.1% | 131.8% | 26.0% | |
| Gross Margin | 21.3% | 20.1% | 19.7% | 23.8% | 18.9% | -5.0% |
| EBITDA Margin | 5.5% | 3.8% | 5.0% | 10.6% | 9.5% | -1.0% |
| Net Income Margin | 0.5% | -1.3% | -0.5% | 3.1% | 3.0% | -0.2% |
| SG&A, % of revenue | | | 14.7% | 13.3% | 11.8% | -1.4% |
| CAPEX, % of revenue | 4.9% | 11.8% | 4.2% | 2.2% | 3.1% | 1.0% |
| ROIC | 1.5% | -2.9% | -0.8% | 11.7% | 13.0% | 1.3% |
| ROE | 1.0% | -3.0% | -1.8% | 11.2% | 13.0% | 1.8% |
| Net Debt/EBITDA | -0.8x | 1.8x | 2.8x | 1.7x | 2.2x | 0.6x |
Revenue and profitability
Pacific Insight Electronics Corp's Revenue surged on 39.4% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 125 pp from 55.4% to -69.8% in 2015.
Gross Margin decreased on 5.0 pp from 23.8% to 18.9% in FY2015. SG&A as a % of Revenue decreased slightly on 1.4 pp from 13.3% to 11.8% in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Pacific Insight Electronics Corp had CAPEX/Revenue of 3.1%. The company showed decline in CAPEX/Revenue of 8.6 pp from 11.8% in FY2012 to 3.1% in FY2015. Average CAPEX/Revenue for the last three years was 3.1%.
Return on investment
The company operates at good ROIC (12.99%) and ROE (13.00%). ROIC increased slightly on 1.3 pp from 11.7% to 13.0% in FY2015. ROE increased slightly on 1.8 pp from 11.2% to 13.0% in FY2015.
Leverage (Debt)
Debt level is 2.2x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.6x from 1.7x to 2.2x in FY2015. Debt jumped on 72.9% in FY2015 while cash jumped.
Appendix 1: Peers in Industrial
Below you can find Pacific Insight Electronics Corp 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (91 companies) | 12.5% | 10.3% | 4.9% | 9.1% | 16.2% |
|---|
| Pacific Insight Electronics Corp ($PIH) | | 17.6% | 39.0% | 10.4% | 39.4% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (87 companies) | 23.3% | 23.2% | 23.4% | 22.3% | 26.1% |
|---|
| Pacific Insight Electronics Corp ($PIH) | 21.3% | 20.1% | 19.7% | 23.8% | 18.9% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (84 companies) | 8.2% | 9.3% | 8.3% | 7.1% | 10.8% |
|---|
| Pacific Insight Electronics Corp ($PIH) | 5.5% | 3.8% | 5.0% | 10.6% | 9.5% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (91 companies) | 2.4% | 3.0% | 3.6% | 3.3% | 2.6% |
|---|
| Pacific Insight Electronics Corp ($PIH) | 4.9% | 11.8% | 4.2% | 2.2% | 3.1% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | |
| |
|---|
| Median (92 companies) | 9.1% | 9.7% | 8.5% | 8.3% | 8.4% |
|---|
| Pacific Insight Electronics Corp ($PIH) | 1.5% | -2.9% | -0.8% | 11.7% | 13.0% |
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 ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (71 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.7x |
|---|
| Pacific Insight Electronics Corp ($PIH) | -0.8x | 1.8x | 2.8x | 1.7x | 2.2x |
