International Barrier Technology Inc CAPEX surged on 254% in 2015 and Revenue increased on 3.9%
29.09.2015 • About International Barrier Technology Inc (
$IBH) • By InTwits
International Barrier Technology Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 13.1% in FY2015, 12.4% in FY2014, 5.1% in FY2013, -7.7% in FY2012, -4.7% in FY2011
- International Barrier Technology Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's a lot of higher than industry average of 1.6%.
- CAPEX is quite volatile: 0.47 in FY2015, 0.13 in FY2014, 0.16 in FY2013, 0.12 in FY2012, 0.075 in FY2011
- The company has highly profitable business model: ROIC is at 19.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
International Barrier Technology Inc ($IBH) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.256 | 4.145 | 5.995 | 8.154 | 8.472 | 3.9% |
| Gross Profit | 0.110 | 0.258 | 0.710 | 1.566 | 1.791 | 14.4% |
| SG&A | 0.209 | 0.097 | 0.093 | 0.096 | 0.114 | 18.9% |
| EBITDA | -0.152 | -0.319 | 0.303 | 1.012 | 1.112 | 9.9% |
| Net Income | 0.896 | -0.140 | -0.059 | 0.586 | 0.702 | 19.7% |
Balance Sheet
|
|---|
| Cash | 0.269 | 0.102 | 0.180 | 0.709 | 0.804 | 13.5% |
| Short Term Debt | 0.134 | 0.158 | 0.124 | 0.139 | 0.049 | -65.0% |
| Long Term Debt | 0.572 | 0.742 | 0.694 | 0.548 | 0.280 | -48.9% |
Cash flow
|
|---|
| Capex | 0.075 | 0.116 | 0.155 | 0.134 | 0.475 | 253.9% |
Ratios
|
|---|
| Revenue growth | 24.9% | 27.3% | 44.6% | 36.0% | 3.9% | |
| EBITDA growth | -83.6% | 110.6% | -195.1% | 233.7% | 9.9% | |
| Gross Margin | 3.4% | 6.2% | 11.8% | 19.2% | 21.1% | 1.9% |
| EBITDA Margin | -4.7% | -7.7% | 5.1% | 12.4% | 13.1% | 0.7% |
| Net Income Margin | 27.5% | -3.4% | -1.0% | 7.2% | 8.3% | 1.1% |
| SG&A, % of revenue | 6.4% | 2.3% | 1.5% | 1.2% | 1.3% | 0.2% |
| CAPEX, % of revenue | 2.3% | 2.8% | 2.6% | 1.6% | 5.6% | 4.0% |
| ROIC | -22.2% | -20.9% | -0.0% | 20.8% | 19.7% | -1.2% |
| ROE | 53.5% | -6.3% | -2.6% | 22.7% | 20.5% | -2.2% |
| Net Debt/EBITDA | | | 2.1x | -0.0x | -0.4x | -0.4x |
Revenue and profitability
The company's Revenue increased on 3.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.3 pp from -3.2% to -19.5% in 2015.
Gross Margin increased slightly on 1.9 pp from 19.2% to 21.1% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 1.1 pp from 7.2% to 8.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 5.6%. The company's CAPEX/Revenue increased on 2.8 pp from 2.8% in FY2012 to 5.6% in FY2015. Average CAPEX/Revenue for the last three years was 3.3%.
Return on investment
The company operates at high and attractive ROE (20.46%) while ROIC is a bit lower (19.68%). ROIC decreased slightly on 1.2 pp from 20.8% to 19.7% in FY2015. ROE decreased on 2.2 pp from 22.7% to 20.5% in FY2015.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from -0.022x to -0.4x in FY2015. Debt dropped on 52.1% in FY2015 while cash jumped on 13.5% in FY2015.
Appendix 1: Peers in Industrial
Below we provide International Barrier Technology 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (91 companies) | 12.5% | 10.3% | 4.9% | 9.1% | 21.3% |
|---|
| International Barrier Technology Inc ($IBH) | | 27.3% | 44.6% | 36.0% | 3.9% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (87 companies) | 23.3% | 23.2% | 23.4% | 22.9% | 26.1% |
|---|
| International Barrier Technology Inc ($IBH) | 3.4% | 6.2% | 11.8% | 19.2% | 21.1% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (84 companies) | 8.2% | 9.3% | 8.3% | 7.1% | 9.8% |
|---|
| International Barrier Technology Inc ($IBH) | -4.7% | -7.7% | 5.1% | 12.4% | 13.1% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (91 companies) | 2.7% | 3.1% | 3.7% | 3.3% | 2.6% |
|---|
| International Barrier Technology Inc ($IBH) | 2.3% | 2.8% | 2.6% | 1.6% | 5.6% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | |
| |
|---|
| Median (92 companies) | 9.1% | 9.7% | 8.5% | 8.3% | 8.4% |
|---|
| International Barrier Technology Inc ($IBH) | -22.2% | -20.9% | -0.0% | 20.8% | 19.7% |
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 | 1.6x |
| 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 ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (71 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.7x |
|---|
| International Barrier Technology Inc ($IBH) | | | 2.1x | -0.0x | -0.4x |
