Metro Inc reports 9.8% EBITDA growth and 5.5% Revenue growth
18.11.2015 • About Metro Inc (
$MRU) • By InTwits
Metro Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 7.0% in FY2015 vs. 6.7% in FY2014 vs. 6.7% in FY2011
- Metro Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 516 in FY2015, 539 in FY2014, 404 in FY2013, 222 in FY2012, 231 in FY2011
- The company has highly profitable business model: ROIC is at 17.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Metro Inc ($MRU) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 11,396 | 11,675 | 11,400 | 11,590 | 12,224 | 5.5% |
| Gross Profit | 2,063 | 823 | 805 | 788 | 858 | 8.9% |
| EBITDA | 766 | 823 | 765 | 782 | 858 | 9.8% |
| Net Income | 393 | 482 | 695 | 447 | 506 | 13.2% |
Balance Sheet
|
|---|
| Cash | 256 | 73 | 81 | 36 | 22 | -40.3% |
| Short Term Debt | 378 | 12 | 14 | 14 | 17 | 25.2% |
| Long Term Debt | 656 | 974 | 650 | 1,045 | 1,145 | 9.6% |
Cash flow
|
|---|
| Capex | 148 | 211 | 208 | 191 | 220 | 15.4% |
Ratios
|
|---|
| Revenue growth | 0.5% | 2.4% | -2.4% | 1.7% | 5.5% | |
| EBITDA growth | -2.6% | 7.4% | -7.0% | 2.1% | 9.8% | |
| Gross Margin | 18.1% | 7.0% | 7.1% | 6.8% | 7.0% | 0.2% |
| EBITDA Margin | 6.7% | 7.0% | 6.7% | 6.7% | 7.0% | 0.3% |
| Net Income Margin | 3.4% | 4.1% | 6.1% | 3.9% | 4.1% | 0.3% |
| CAPEX, % of revenue | 1.3% | 1.8% | 1.8% | 1.6% | 1.8% | 0.2% |
| ROIC | 16.3% | 17.7% | 15.9% | 15.9% | 17.2% | 1.3% |
| ROE | 16.2% | 19.5% | 26.0% | 16.4% | 19.1% | 2.7% |
| Net Debt/EBITDA | 1.0x | 1.1x | 0.8x | 1.3x | 1.3x | 0.0x |
Revenue and profitability
The company's Revenue increased on 5.5% in FY2015. EBITDA Margin showed almost no change in FY2015.
Gross Margin showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.8%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at good ROIC (17.16%) and ROE (19.05%). ROIC increased slightly on 1.3 pp from 15.9% to 17.2% in FY2015. ROE increased on 2.7 pp from 16.4% to 19.1% in FY2015.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA increased on 0.022x from 1.3x to 1.3x in FY2015. Debt increased on 9.8% in FY2015 while cash dropped on 40.3% in FY2015.
Management team
Metro Inc's CEO Eric Richer La Fleche is a founder and has spent 10 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Metro Inc benchmarking vs. other companies in Consumer, Non-cyclical 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 |
|---|
| 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 ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 12.1% | 8.7% | 6.9% | 13.2% | 6.6% |
|---|
| Metro Inc ($MRU) | | 2.4% | -2.4% | 1.7% | 5.5% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 27.1% |
|---|
| Metro Inc ($MRU) | 18.1% | 7.0% | 7.1% | 6.8% | 7.0% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 8.2% | 8.5% | 9.0% | 10.8% | 8.5% |
|---|
| Metro Inc ($MRU) | 6.7% | 7.0% | 6.7% | 6.7% | 7.0% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | |
| |
|---|
| Median (85 companies) | 2.4% | 2.6% | 2.5% | 2.6% | 3.2% |
|---|
| Metro Inc ($MRU) | 1.3% | 1.8% | 1.8% | 1.6% | 1.8% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 7.4% | 6.7% | 6.7% | 6.9% | 7.5% |
|---|
| Metro Inc ($MRU) | 16.3% | 17.7% | 15.9% | 15.9% | 17.2% |
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 ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (69 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.6x |
|---|
| Metro Inc ($MRU) | 1.0x | 1.1x | 0.8x | 1.3x | 1.3x |
