Bevo Agro Inc reports 175% CAPEX growth and 12.5% Revenue growth
15.10.2015 • About Bevo Agro Inc (
$BVO) • By InTwits
Bevo Agro Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bevo Agro Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.7%. At the same time it's a lot of higher than industry average of 8.7%.
- CAPEX is quite volatile: 4.6 in FY2015, 1.7 in FY2014, 0.52 in FY2013, 3.0 in FY2012, 2.7 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.7x while industry average is 5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bevo Agro Inc ($BVO) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 18.264 | 18.898 | 20.587 | 23.309 | 26.222 | 12.5% |
| Gross Profit | 4.539 | 4.758 | 5.083 | 5.919 | 6.801 | 14.9% |
| SG&A | | | 4.053 | 4.154 | 4.504 | 8.4% |
| EBITDA | 2.211 | 2.606 | 2.610 | 3.340 | 4.011 | 20.1% |
| Net Income | 0.044 | 0.572 | 0.185 | 0.739 | 1.198 | 62.1% |
Balance Sheet
|
|---|
| Cash | 0.647 | 0.630 | 0.331 | 1.072 | 1.197 | 11.7% |
| Short Term Debt | 1.009 | 1.229 | 1.213 | 1.407 | 2.748 | 95.3% |
| Long Term Debt | 19.814 | 19.678 | 18.466 | 17.209 | 17.459 | 1.5% |
Cash flow
|
|---|
| Capex | 2.727 | 3.001 | 0.518 | 1.692 | 4.646 | 174.6% |
Ratios
|
|---|
| Revenue growth | -8.3% | 3.5% | 8.9% | 13.2% | 12.5% | |
| EBITDA growth | -37.6% | 17.9% | 0.2% | 28.0% | 20.1% | |
| Gross Margin | 24.9% | 25.2% | 24.7% | 25.4% | 25.9% | 0.5% |
| EBITDA Margin | 12.1% | 13.8% | 12.7% | 14.3% | 15.3% | 1.0% |
| Net Income Margin | 0.2% | 3.0% | 0.9% | 3.2% | 4.6% | 1.4% |
| SG&A, % of revenue | | | 19.7% | 17.8% | 17.2% | -0.6% |
| CAPEX, % of revenue | 14.9% | 15.9% | 2.5% | 7.3% | 17.7% | 10.5% |
| ROIC | 2.2% | 2.9% | 2.9% | 5.1% | 6.2% | 1.1% |
| ROE | 0.4% | 4.1% | 1.3% | 4.9% | 7.2% | 2.4% |
| Net Debt/EBITDA | 9.1x | 7.8x | 7.4x | 5.3x | 4.7x | -0.5x |
Revenue and profitability
The company's Revenue jumped on 12.5% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.96 pp from 14.3% to 15.3% in FY2015.
Gross Margin increased slightly on 0.55 pp from 25.4% to 25.9% in FY2015. SG&A as a % of Revenue decreased slightly on 0.65 pp from 17.8% to 17.2% in FY2015.
Net Income marign increased slightly on 1.4 pp from 3.2% to 4.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Bevo Agro Inc's CAPEX/Revenue was 17.7% in FY2015. The company's CAPEX/Revenue increased slightly on 1.8 pp from 15.9% in FY2012 to 17.7% in FY2015. Average CAPEX/Revenue for the last three years was 9.2%.The company has spent a lot to CAPEX (116% of EBITDA) to secure its growth.
Return on investment
The company operates at low ROIC (6.23%) and ROE (7.25%). ROIC increased slightly on 1.1 pp from 5.1% to 6.2% in FY2015. ROE increased on 2.4 pp from 4.9% to 7.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.7x and Debt / EBITDA is 5.0x. Net Debt / EBITDA dropped on 0.5x from 5.3x to 4.7x in FY2015. Debt increased on 8.5% in FY2015 while cash jumped on 11.7% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Bevo Agro Inc benchmarking against other companies in Consumer, Non-cyclical 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 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | 43.8% | -38.8% | -72.9% | 218,969.1% | |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 11.8% | 8.7% | 6.0% | 12.2% | 6.0% |
|---|
| Bevo Agro Inc ($BVO) | | 3.5% | 8.9% | 13.2% | 12.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 28.3% |
|---|
| Bevo Agro Inc ($BVO) | 24.9% | 25.2% | 24.7% | 25.4% | 25.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 7.9% | 7.9% | 8.3% | 10.5% | 10.6% |
|---|
| Bevo Agro Inc ($BVO) | 12.1% | 13.8% | 12.7% | 14.3% | 15.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | |
| |
|---|
| Median (85 companies) | 2.3% | 2.6% | 2.4% | 2.4% | 5.4% |
|---|
| Bevo Agro Inc ($BVO) | 14.9% | 15.9% | 2.5% | 7.3% | 17.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 8.0% | 7.2% | 6.7% | 7.8% | 7.5% |
|---|
| Bevo Agro Inc ($BVO) | 2.2% | 2.9% | 2.9% | 5.1% | 6.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (69 companies) | 1.8x | 2.5x | 2.1x | 2.7x | 1.6x |
|---|
| Bevo Agro Inc ($BVO) | 9.1x | 7.8x | 7.4x | 5.3x | 4.7x |
