IWG Technologies Inc is a powerful growth stock
30.11.2015 • About IWG Technologies Inc (
$IWG) • By InTwits
IWG Technologies Inc is a growth stock in Industrial industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
IWG Technologies Inc showed fast growth in the last financial year. The company's revenue surged on 28.6% in FY2015. EBITDA also increased considerably: 54.4% for the same period.
If we look for the longer period IWG Technologies Inc showed fast revenue growth of 16.5% from FY2012 to FY2015 annually. EBITDA surged on 44.0% from FY2012 to FY2015 annually.
IWG Technologies Inc ($IWG) financials for the last 5 years
| mln. CAD | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 4 | 6 | 7 | 7 | 10 |
|---|
| Revenue growth, % | | 35.7% | 9.9% | 12.0% | 28.6% |
|---|
| Gross margin, % | 54.3% | 53.3% | 54.0% | 49.0% | 47.8% |
|---|
| SG&A, % | | 6.65% | 6.65% | 6.57% | 21.9% |
|---|
| EBITDA | 0 | 1 | 2 | 1 | 2 |
|---|
| EBITDA growth, % | | 60.0% | 120.0% | -12.0% | 54.4% |
|---|
| EBITDA margin, % | 10.8% | 12.7% | 25.5% | 20.0% | 24.0% |
|---|
| Net Income | 0 | 1 | 1 | 1 | 1 |
|---|
| Net Income margin, % | 6.11% | 8.75% | 14.7% | 10.2% | 13.5% |
|---|
| |
| CAPEX | 0 | 0 | 0 | 0 | 0 |
|---|
| CAPEX/Revenue, % | 0.660% | 0.376% | 0.568% | 2.21% | 2.29% |
|---|
| Debt | 0 | 1 | 0 | 0 | 0 |
|---|
| Cash | 1 | 1 | 1 | 1 | 3 |
|---|
| Net Debt/EBITDA | -0.8x | -0.5x | -0.6x | -0.9x | -1.3x |
|---|
| |
| ROIC, % | 13.4% | 17.0% | 36.3% | 23.4% | 27.2% |
|---|
| ROE, % | 9.1% | 16.5% | 25.4% | 15.8% | 21.9% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. EBITDA margin surged on 4 pp from 20% to 24% in FY2015. In the longer period EBITDA margin surged on 11.3 pp from 12.7% in FY2012 to 24% in FY2015.
We call IWG Technologies Inc an attractive growth stock as together with the growth it delivers high ROIC at 27.2%. During the last three years it surged - it was 17.0% in FY2012. It's average level of ROIC for the last three years was 29.0%.
IWG Technologies Inc showed fast Net Income margin growth of 3.30 pp from 10.2% to 13.5% in FY2015. If we look for the longer period Net Income margin surged on 4.70 pp from 8.80% in FY2012 to 13.5% in FY2015.
IWG Technologies Inc operates at ROE of 21.9%. For the last three years the average ROE was 21.0%.
Capital expenditures (CAPEX)
In FY2015 IWG Technologies Inc had CAPEX/Revenue of 2.29%. CAPEX/Revenue surged on 1.91 pp from 0.376% in FY2012 to 2.29% in FY2015. It's average CAPEX/Revenue for the last three years was 1.69%.
Leverage (Debt)
Having such a fast growth profile the company keeps negative net debt at -1.3x Net Debt/EBITDA. If we look for the longer period the company's leverage surged on 0.84x from -0.50x in FY2012 to -1.34x in FY2015.
Valuation vs. comparable companies
At the end of trading day today IWG Technologies Inc traded at 4.3x EV/EBITDA which is 84.9% lower than 28.4x Industrial peer group avearge calculated on the basis of 168 companies. The market closed today at 10.0x P/E for IWG Technologies Inc which is 53.8% lower than 21.7x Industrial peer group avearge calculated on the basis of 40 companies.
Peers in Industrial
Below we provide IWG Technologies 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 |
