People Corp Debt jumped on 163% in 2015 and Revenue jumped on 15.8%
14.12.2015 • About People Corp (
$PEO) • By InTwits
People Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- People Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's a lot of higher than industry average of 84.8%.
- CAPEX is quite volatile: 0.73 in FY2015, 1.1 in FY2014, 0.40 in FY2013, 0.17 in FY2012, 0.31 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
People Corp ($PEO) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24.414 | 27.157 | 32.892 | 42.576 | 49.293 | 15.8% |
| SG&A | | 7.119 | 8.008 | | | |
| EBITDA | 2.253 | 2.607 | 4.207 | 7.344 | 7.856 | 7.0% |
| Net Income | 0.471 | 0.726 | 0.260 | 1.541 | 1.394 | -9.5% |
Balance Sheet
|
|---|
| Cash | 1.288 | 3.200 | 2.449 | 2.750 | 6.515 | 136.9% |
| Short Term Debt | 0.761 | 0.465 | 3.804 | 3.081 | 2.472 | -19.8% |
| Long Term Debt | 2.203 | 1.771 | 15.445 | 6.580 | 22.937 | 248.6% |
Cash flow
|
|---|
| Capex | 0.306 | 0.165 | 0.395 | 1.118 | 0.734 | -34.4% |
Ratios
|
|---|
| Revenue growth | 18.0% | 11.2% | 21.1% | 29.4% | 15.8% | |
| EBITDA growth | 20.6% | 15.7% | 61.4% | 74.5% | 7.0% | |
| EBITDA Margin | 9.2% | 9.6% | 12.8% | 17.2% | 15.9% | -1.3% |
| Net Income Margin | 1.9% | 2.7% | 0.8% | 3.6% | 2.8% | -0.8% |
| SG&A, % of revenue | | 26.2% | 24.3% | | | 0.0% |
| CAPEX, % of revenue | 1.3% | 0.6% | 1.2% | 2.6% | 1.5% | -1.1% |
| ROIC | 6.1% | 8.4% | 9.3% | 11.4% | 6.6% | -4.9% |
| ROE | 3.7% | 5.4% | 1.9% | 7.7% | 4.0% | -3.7% |
| Net Debt/EBITDA | 0.7x | -0.4x | 4.0x | 0.9x | 2.4x | 1.5x |
Revenue and profitability
The company's Revenue jumped on 15.8% in FY2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 1.3 pp from 17.2% to 15.9% in FY2015.
Net Income marign decreased slightly on 0.79 pp from 3.6% to 2.8% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 People Corp had CAPEX/Revenue of 1.5%. CAPEX/Revenue increased slightly on 0.88 pp from 0.61% in FY2012 to 1.5% in FY2015. For the last three years the average CAPEX/Revenue was 1.8%.
Return on investment
The company operates at low ROIC (6.56%) and ROE (3.98%). ROIC decreased on 4.9 pp from 11.4% to 6.6% in FY2015. ROE decreased on 3.7 pp from 7.7% to 4.0% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.4x and Debt / EBITDA is 3.2x. Net Debt / EBITDA jumped on 1.5x from 0.9x to 2.4x in FY2015. Debt jumped on 163% in FY2015 while cash jumped on 137% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find People Corp 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 ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 12.3% | 7.7% | 6.0% | 12.2% | 6.0% |
|---|
| People Corp ($PEO) | | 11.2% | 21.1% | 29.4% | 15.8% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 34.5% | 36.1% | 35.9% | 35.1% | 28.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| Valeant Pharmaceuticals International Inc ($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) | 7.9% | 7.9% | 8.3% | 10.5% | 8.6% |
|---|
| People Corp ($PEO) | 9.2% | 9.6% | 12.8% | 17.2% | 15.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($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% | 2.4% | 2.7% |
|---|
| People Corp ($PEO) | 1.3% | 0.6% | 1.2% | 2.6% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($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) | 8.0% | 6.7% | 6.7% | 6.9% | 7.5% |
|---|
| People Corp ($PEO) | 6.1% | 8.4% | 9.3% | 11.4% | 6.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($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 | 2.1x | 2.7x | 1.4x |
|---|
| People Corp ($PEO) | 0.7x | -0.4x | 4.0x | 0.9x | 2.4x |
