Franchise Bancorp Inc CAPEX jumped on 949% in 2015 and Revenue surged on 19.7%
10.12.2015 • About Franchise Bancorp Inc (
$FBI) • By InTwits
Franchise Bancorp Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Franchise Bancorp Inc is a growth stock: FY2015 revenue growth was 19.7%, 5 year revenue CAGR was 13.2% at FY2015 ROIC 18.0%
- EBITDA Margin is quite volatile: 7.3% in FY2015, 8.3% in FY2014, 6.8% in FY2013, 1.2% in FY2012, 1.2% in FY2011
- Franchise Bancorp Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's a lot of higher than industry average of 35.3%.
- CAPEX is quite volatile: 1.3 in FY2015, 0.12 in FY2014, 0.41 in FY2013, 0.12 in FY2012, 0.30 in FY2011
- The company has highly profitable business model: ROIC is at 18.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Franchise Bancorp Inc ($FBI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 10.197 | 9.529 | 15.528 | 13.972 | 16.718 | 19.7% |
| Gross Profit | 3.862 | 3.684 | 4.720 | 5.240 | 5.638 | 7.6% |
| SG&A | | | | | 1.350 | |
| EBITDA | 0.124 | 0.117 | 1.062 | 1.153 | 1.226 | 6.3% |
| Net Income | 0.323 | 0.244 | 0.263 | 0.558 | 0.348 | -37.6% |
Balance Sheet
|
|---|
| Cash | 1.432 | 1.817 | 1.141 | 1.736 | 1.466 | -15.5% |
| Short Term Debt | 0.165 | 0.022 | 0.039 | 0.042 | 0.821 | 1,873.7% |
| Long Term Debt | 0.085 | 0.062 | 0.122 | 0.080 | 0.038 | -52.2% |
Cash flow
|
|---|
| Capex | 0.300 | 0.123 | 0.412 | 0.121 | 1.273 | 949.3% |
Ratios
|
|---|
| Revenue growth | 13.3% | -6.5% | 63.0% | -10.0% | 19.7% | |
| EBITDA growth | -66.5% | -5.6% | 807.4% | 8.6% | 6.3% | |
| Gross Margin | 37.9% | 38.7% | 30.4% | 37.5% | 33.7% | -3.8% |
| EBITDA Margin | 1.2% | 1.2% | 6.8% | 8.3% | 7.3% | -0.9% |
| Net Income Margin | 3.2% | 2.6% | 1.7% | 4.0% | 2.1% | -1.9% |
| SG&A, % of revenue | | | | | 8.1% | 8.1% |
| CAPEX, % of revenue | 2.9% | 1.3% | 2.7% | 0.9% | 7.6% | 6.7% |
| ROIC | -1.6% | -3.9% | 22.1% | 21.4% | 18.0% | -3.4% |
| ROE | 17.5% | 11.4% | 11.0% | 19.9% | 10.7% | -9.2% |
| Net Debt/EBITDA | -9.5x | -14.8x | -0.9x | -1.4x | -0.5x | 0.9x |
Revenue and profitability
Franchise Bancorp Inc's Revenue surged on 19.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.8 pp from -14.1% to -9.3% in 2015.
Gross Margin decreased on 3.8 pp from 37.5% to 33.7% in FY2015.
Net Income marign decreased slightly on 1.9 pp from 4.0% to 2.1% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Franchise Bancorp Inc had CAPEX/Revenue of 7.6%. CAPEX/Revenue increased on 6.3 pp from 1.3% in FY2012 to 7.6% in FY2015. Average CAPEX/Revenue for the last three years was 3.7%.To fuel this fast growth the company made large investments to CAPEX (104% of EBITDA).
Return on investment
The company operates at good ROIC (18.01%) while ROE is low (10.71%). ROIC decreased on 3.4 pp from 21.4% to 18.0% in FY2015. ROE decreased on 9.2 pp from 19.9% to 10.7% in FY2015.
Leverage (Debt)
Debt level is -0.5x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA jumped on 0.9x from -1.4x to -0.5x in FY2015. Debt surged on 606% in FY2015 while cash dropped on 15.5% in FY2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Franchise Bancorp Inc benchmarking against other companies in Consumer, Cyclical 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 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 11.0% | 5.3% | 4.9% | 7.7% | 3.7% |
|---|
| Franchise Bancorp Inc ($FBI) | | -6.5% | 63.0% | -10.0% | 19.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 36.1% | 34.1% | 32.1% | 32.5% | 36.9% |
|---|
| Franchise Bancorp Inc ($FBI) | 37.9% | 38.7% | 30.4% | 37.5% | 33.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (65 companies) | 8.7% | 8.1% | 9.8% | 10.0% | 8.0% |
|---|
| Franchise Bancorp Inc ($FBI) | 1.2% | 1.2% | 6.8% | 8.3% | 7.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.6% | 2.7% | 2.9% | 2.4% | 2.7% |
|---|
| Franchise Bancorp Inc ($FBI) | 2.9% | 1.3% | 2.7% | 0.9% | 7.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.7% | 9.8% | 10.1% | 9.7% | 6.8% |
|---|
| Franchise Bancorp Inc ($FBI) | -1.6% | -3.9% | 22.1% | 21.4% | 18.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.4x | 1.8x | 2.0x | 1.3x |
|---|
| Franchise Bancorp Inc ($FBI) | -9.5x | -14.8x | -0.9x | -1.4x | -0.5x |
