Epicore BioNetworks Inc reports 683% CAPEX growth and 27.4% Revenue growth
19.10.2015 • About Epicore BioNetworks Inc (
$EBN) • By InTwits
Epicore BioNetworks Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Epicore BioNetworks Inc is a fast growth stock: FY2015 revenue growth was 27.4%, 5 year revenue CAGR was 20.4% at FY2015 ROIC 26.3%
- Epicore BioNetworks Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.2%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 1.5 in FY2015, 0.20 in FY2014, 0.45 in FY2013, 1.6 in FY2012, 0.088 in FY2011
- The company has highly profitable business model: ROIC is at 26.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Epicore BioNetworks Inc ($EBN) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5.015 | 5.636 | 5.613 | 7.617 | 9.707 | 27.4% |
| Gross Profit | 2.956 | 3.429 | 3.545 | 4.879 | 5.638 | 15.6% |
| SG&A | | 1.016 | 1.128 | 1.259 | 2.820 | 123.9% |
| EBITDA | 0.889 | 1.261 | 0.919 | 2.112 | 2.100 | -0.5% |
| Net Income | 0.401 | 0.660 | 0.482 | 1.174 | 1.242 | 5.8% |
Balance Sheet
|
|---|
| Cash | 1.690 | 1.628 | 1.939 | 2.976 | 2.262 | -24.0% |
| Short Term Debt | 0.000 | 0.016 | 0.017 | 0.019 | 0.018 | -2.8% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.088 | 1.569 | 0.449 | 0.197 | 1.544 | 682.9% |
Ratios
|
|---|
| Revenue growth | 30.4% | 12.4% | -0.4% | 35.7% | 27.4% | |
| EBITDA growth | 45.4% | 41.9% | -27.1% | 129.8% | -0.5% | |
| Gross Margin | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% | -6.0% |
| EBITDA Margin | 17.7% | 22.4% | 16.4% | 27.7% | 21.6% | -6.1% |
| Net Income Margin | 8.0% | 11.7% | 8.6% | 15.4% | 12.8% | -2.6% |
| SG&A, % of revenue | | 18.0% | 20.1% | 16.5% | 29.1% | 12.5% |
| CAPEX, % of revenue | 1.8% | 27.8% | 8.0% | 2.6% | 15.9% | 13.3% |
| ROIC | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% | -6.2% |
| ROE | 10.3% | 14.7% | 9.4% | 19.3% | 16.7% | -2.6% |
| Net Debt/EBITDA | -1.9x | -1.3x | -2.1x | -1.4x | -1.1x | 0.3x |
Revenue and profitability
The company's Revenue surged on 27.4% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 26.1 pp from 9.3% to 35.4% in 2015.
Gross Margin decreased on 6.0 pp from 64.1% to 58.1% in FY2015. SG&A as a % of Revenue jumped on 12.5 pp from 16.5% to 29.1% in FY2015.
Net Income marign decreased on 2.6 pp from 15.4% to 12.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 15.9%. The company showed big decline in CAPEX/Revenue of 11.9 pp from 27.8% in FY2012 to 15.9% in FY2015. It's average level of CAPEX/Revenue for the last three years was 8.8%.The company invested a big chunk of EBITDA (73.5%) to CAPEX to fuel its growth.
Return on investment
The company operates at high and attractive ROIC (26.30%) while ROE is a bit lower (16.66%). ROIC decreased on 6.2 pp from 32.5% to 26.3% in FY2015. ROE decreased on 2.6 pp from 19.3% to 16.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.1x and Debt / EBITDA is 0.0x. Net Debt / EBITDA jumped on 0.3x from -1.4x to -1.1x in FY2015. Debt decreased on 2.8% in FY2015 while cash dropped on 24.0% in FY2015.
Appendix 1: Peers in Industrial
Below you can find Epicore BioNetworks Inc 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (91 companies) | 12.5% | 10.3% | 5.1% | 9.1% | 21.3% |
|---|
| Epicore BioNetworks Inc ($EBN) | | 12.4% | -0.4% | 35.7% | 27.4% |
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 ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| Evertz Technologies Ltd ($ET) | 57.7% | 56.6% | 57.5% | 57.2% | 56.7% |
| |
|---|
| Median (87 companies) | 23.2% | 22.9% | 23.3% | 22.3% | 25.5% |
|---|
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (84 companies) | 8.1% | 9.1% | 8.1% | 7.1% | 10.8% |
|---|
| Epicore BioNetworks Inc ($EBN) | 17.7% | 22.4% | 16.4% | 27.7% | 21.6% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (91 companies) | 2.7% | 3.0% | 3.6% | 3.3% | 3.0% |
|---|
| Epicore BioNetworks Inc ($EBN) | 1.8% | 27.8% | 8.0% | 2.6% | 15.9% |
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% | |
| STT Enviro Corp ($STT) | 88.7% | 55.1% | 44.3% | 30.4% | |
| |
|---|
| Median (92 companies) | 8.9% | 9.2% | 8.5% | 8.3% | 10.3% |
|---|
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
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 ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (71 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.7x |
|---|
| Epicore BioNetworks Inc ($EBN) | -1.9x | -1.3x | -2.1x | -1.4x | -1.1x |
