IWG Technologies Inc reports 70.7% Net Income growth and 4.0 pp EBITDA Margin growth from 20.0% to 24.0%
23.11.2015 • About IWG Technologies Inc (
$IWG) • By InTwits
IWG Technologies Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- IWG Technologies Inc is a fast growth stock: FY2015 revenue growth was 28.6%, 5 year revenue CAGR was 16.8% at FY2015 ROIC 27.2%
- EBITDA Margin is quite volatile: 24.0% in FY2015, 20.0% in FY2014, 25.5% in FY2013, 12.7% in FY2012, 10.8% in FY2011
- IWG Technologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 59.3%.
- CAPEX is quite volatile: 0.22 in FY2015, 0.16 in FY2014, 0.038 in FY2013, 0.023 in FY2012, 0.029 in FY2011
- The company has highly profitable business model: ROIC is at 27.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
IWG Technologies Inc ($IWG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4.431 | 6.014 | 6.606 | 7.397 | 9.514 | 28.6% |
| Gross Profit | 2.407 | 3.205 | 3.566 | 3.621 | 4.543 | 25.5% |
| SG&A | | 0.400 | 0.439 | 0.486 | 2.082 | 328.5% |
| EBITDA | 0.478 | 0.765 | 1.683 | 1.480 | 2.286 | 54.4% |
| Net Income | 0.271 | 0.526 | 0.970 | 0.751 | 1.282 | 70.7% |
Balance Sheet
|
|---|
| Cash | 0.720 | 0.924 | 1.363 | 1.451 | 3.350 | 130.9% |
| Short Term Debt | 0.115 | 0.228 | 0.253 | 0.111 | 0.013 | -88.0% |
| Long Term Debt | 0.219 | 0.313 | 0.107 | 0.026 | 0.281 | 966.2% |
Cash flow
|
|---|
| Capex | 0.029 | 0.023 | 0.038 | 0.163 | 0.218 | 33.5% |
Ratios
|
|---|
| Revenue growth | 1.1% | 35.7% | 9.9% | 12.0% | 28.6% | |
| EBITDA growth | 118.5% | 60.0% | 120.0% | -12.0% | 54.4% | |
| Gross Margin | 54.3% | 53.3% | 54.0% | 49.0% | 47.8% | -1.2% |
| EBITDA Margin | 10.8% | 12.7% | 25.5% | 20.0% | 24.0% | 4.0% |
| Net Income Margin | 6.1% | 8.8% | 14.7% | 10.2% | 13.5% | 3.3% |
| SG&A, % of revenue | | 6.7% | 6.6% | 6.6% | 21.9% | 15.3% |
| CAPEX, % of revenue | 0.7% | 0.4% | 0.6% | 2.2% | 2.3% | 0.1% |
| ROIC | 13.4% | 17.0% | 36.3% | 23.4% | 27.2% | 3.8% |
| ROE | 9.1% | 16.5% | 25.4% | 15.8% | 21.9% | 6.0% |
| Net Debt/EBITDA | -0.8x | -0.5x | -0.6x | -0.9x | -1.3x | -0.4x |
Revenue and profitability
IWG Technologies Inc's Revenue jumped on 28.6% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.0 pp from 20.0% to 24.0% in FY2015.
Gross Margin decreased slightly on 1.2 pp from 49.0% to 47.8% in FY2015. SG&A as a % of Revenue jumped on 15.3 pp from 6.6% to 21.9% in FY2015.
Net Income marign increased on 3.3 pp from 10.2% to 13.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 2.3%. IWG Technologies Inc's CAPEX/Revenue increased slightly on 1.9 pp from 0.38% in FY2012 to 2.3% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at high and attractive ROIC (27.23%) and ROE (21.87%). ROIC increased on 3.8 pp from 23.4% to 27.2% in FY2015. ROE increased on 6.0 pp from 15.8% to 21.9% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.3x and Debt / EBITDA is 0.1x. Net Debt / EBITDA dropped on 0.4x from -0.9x to -1.3x in FY2015. Debt surged on 114% in FY2015 while cash surged on 131% in FY2015.
Appendix 1: Peers in Industrial
Below you can find IWG Technologies 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 12.9% | 10.4% | 4.9% | 9.1% | 21.3% |
|---|
| IWG Technologies Inc ($IWG) | | 35.7% | 9.9% | 12.0% | 28.6% |
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% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 25.5% |
|---|
| IWG Technologies Inc ($IWG) | 54.3% | 53.3% | 54.0% | 49.0% | 47.8% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (85 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 10.8% |
|---|
| IWG Technologies Inc ($IWG) | 10.8% | 12.7% | 25.5% | 20.0% | 24.0% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (92 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 3.0% |
|---|
| IWG Technologies Inc ($IWG) | 0.7% | 0.4% | 0.6% | 2.2% | 2.3% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 10.3% |
|---|
| IWG Technologies Inc ($IWG) | 13.4% | 17.0% | 36.3% | 23.4% | 27.2% |
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 ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.6x |
|---|
| IWG Technologies Inc ($IWG) | -0.8x | -0.5x | -0.6x | -0.9x | -1.3x |
