Imperial Equities Inc revenue dropped on 84.0% in 2015
09.12.2015 • About Imperial Equities Inc (
$IEI) • By InTwits
Imperial Equities Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Imperial Equities Inc is a company in decline: FY2015 revenue growth was -84.0%, 5 years revenue CAGR was -22.0%
- EBITDA Margin is declining: in FY2015 vs. in FY2014 vs. 6.9% in FY2011
- Imperial Equities Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 47.4%. At the same time it's a lot of higher than industry average of 10.6%.
- CAPEX is quite volatile: 2.4 in 2015, 4.2 in 2014, 3.6 in 2013, 6.0 in 2012, 1.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.4%
- It operates with high leverage: Net Debt/EBITDA is 35.7x while industry average is 5.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Imperial Equities Inc ($IEI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 48.346 | 55.011 | 64.561 | 67.413 | 10.769 | -84.0% |
| Gross Profit | 6.651 | 7.953 | 9.022 | 9.548 | | -100.0% |
| SG&A | | | | 3.192 | | -100.0% |
| EBITDA | 3.321 | 4.517 | 4.625 | | | |
| Net Income | 2.204 | 8.863 | 4.834 | 7.629 | 6.646 | -12.9% |
Balance Sheet
|
|---|
| Cash | 0.107 | 0.098 | 0.337 | 0.743 | 1.010 | 35.9% |
| Short Term Debt | 10.208 | 15.402 | 22.727 | 19.524 | 30.633 | 56.9% |
| Long Term Debt | 27.469 | 28.005 | 24.843 | 49.251 | 43.225 | -12.2% |
Cash flow
|
|---|
| Capex | 11.147 | 12.523 | 10.353 | 18.653 | 15.888 | -14.8% |
Ratios
|
|---|
| Revenue growth | 29.8% | 13.8% | 17.4% | 4.4% | -84.0% | |
| EBITDA growth | 96.7% | 36.0% | 2.4% | | | |
| Gross Margin | 13.8% | 14.5% | 14.0% | 14.2% | | -14.2% |
| EBITDA Margin | 6.9% | 8.2% | 7.2% | 0.0% | 0.0% | 0.0% |
| Net Income Margin | 4.6% | 16.1% | 7.5% | 11.3% | 61.7% | 50.4% |
| SG&A, % of revenue | | | | 4.7% | | -4.7% |
| CAPEX, % of revenue | 23.1% | 22.8% | 16.0% | 27.7% | 147.5% | 119.9% |
| ROIC | 5.0% | 4.4% | 3.8% | 3.2% | 5.4% | 2.2% |
| ROE | 7.9% | 17.6% | 8.5% | 12.1% | 9.5% | -2.6% |
| Net Debt/EBITDA | 11.3x | 9.6x | 10.2x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 84.0% in FY2015.
Net Income marign jumped on 50.4 pp from 11.3% to 61.7% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 148% in FY2015. CAPEX/Revenue jumped on 125 pp from 22.8% in FY2012 to 148% in FY2015. It's average CAPEX/Revenue for the last three years was 63.7%.
Return on investment
The company operates at low ROIC (5.40%) and ROE (9.50%). ROIC increased on 2.2 pp from 3.2% to 5.4% in FY2015. ROE decreased on 2.6 pp from 12.1% to 9.5% in FY2015.
Leverage (Debt)
Debt increased on 7.4% in FY2015 while cash surged on 35.9% in FY2015.
Appendix 1: Peers in Financial
Below we provide Imperial Equities Inc benchmarking against other companies in Financial 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 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Gluskin Sheff + Associates Inc ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (72 companies) | 9.9% | 7.7% | 7.1% | 8.9% | 0.9% |
|---|
| Imperial Equities Inc ($IEI) | | 13.8% | 17.4% | 4.4% | -84.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (10 companies) | 29.8% | 25.0% | 26.2% | 24.2% | 16.9% |
|---|
| Imperial Equities Inc ($IEI) | 13.8% | 14.5% | 14.0% | 14.2% | |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | |
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | |
| |
|---|
| Median (49 companies) | 35.8% | 32.5% | 32.1% | 31.5% | 48.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | 56.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | |
| |
|---|
| Median (74 companies) | 1.3% | 1.4% | 0.8% | 1.0% | 1.7% |
|---|
| Imperial Equities Inc ($IEI) | 23.1% | 22.8% | 16.0% | 27.7% | 147.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (76 companies) | 5.3% | 4.8% | 4.6% | 4.8% | 5.4% |
|---|
| Imperial Equities Inc ($IEI) | 5.0% | 4.4% | 3.8% | 3.2% | 5.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (41 companies) | 4.1x | 5.2x | 4.6x | 4.3x | 2.9x |
|---|
