Buhler Industries Inc reports 140% EBITDA decline and 24.5% Revenue decline
29.12.2015 • About Buhler Industries Inc (
$BUI) • By InTwits
Buhler Industries Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Buhler Industries Inc doesn't have a profitable business model yet: FY2015 ROIC is -5.3%
- EBITDA Margin is quite volatile: -3.1% in FY2015, 5.9% in FY2014, 11.5% in FY2013, 8.0% in FY2012, 6.8% in FY2011
- Buhler Industries Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 92.7%.
- CAPEX is quite volatile: 2.7 in FY2015, 4.6 in FY2014, 5.9 in FY2013, 2.4 in FY2012, 5.8 in FY2011
- The company has unprofitable business model: ROIC is at -5.3%
- It operates with high leverage: Net Debt/EBITDA is 11.0x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Buhler Industries Inc ($BUI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 282.7 | 361.2 | 340.3 | 325.5 | 245.7 | -24.5% |
| Gross Profit | 43.2 | 55.8 | 57.3 | 47.7 | 22.3 | -53.4% |
| SG&A | 20.9 | 23.3 | 22.5 | 25.2 | 26.3 | 4.1% |
| EBITDA | 19.2 | 28.9 | 39.2 | 19.2 | -7.7 | -139.8% |
| Net Income | 11.9 | 16.4 | 19.9 | 12.5 | -5.3 | -142.7% |
Balance Sheet
|
|---|
| Cash | 0.0 | 19.3 | 24.2 | 0.0 | 0.0 | |
| Short Term Debt | 12.8 | 4.2 | 4.6 | 56.4 | 55.5 | -1.6% |
| Long Term Debt | 15.4 | 7.5 | 5.0 | 2.2 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 5.8 | 2.4 | 5.9 | 4.6 | 2.7 | -41.1% |
Ratios
|
|---|
| Revenue growth | 34.9% | 27.8% | -5.8% | -4.4% | -24.5% | |
| EBITDA growth | 79.3% | 50.4% | 35.6% | -50.9% | -139.8% | |
| Gross Margin | 15.3% | 15.4% | 16.8% | 14.7% | 9.1% | -5.6% |
| EBITDA Margin | 6.8% | 8.0% | 11.5% | 5.9% | -3.1% | -9.0% |
| Net Income Margin | 4.2% | 4.5% | 5.8% | 3.8% | -2.2% | -6.0% |
| SG&A, % of revenue | 7.4% | 6.4% | 6.6% | 7.8% | 10.7% | 2.9% |
| CAPEX, % of revenue | 2.0% | 0.7% | 1.7% | 1.4% | 1.1% | -0.3% |
| ROIC | 9.5% | 13.9% | 19.3% | 6.4% | -5.3% | -11.8% |
| ROE | 8.6% | 10.7% | 11.6% | 6.7% | -2.8% | -9.4% |
| Net Debt/EBITDA | 1.5x | -0.3x | -0.4x | 3.0x | | -3.0x |
Revenue and profitability
Buhler Industries Inc's Revenue dropped on 24.5% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 9.0 pp from 5.9% to -3.1% in FY2015.
Gross Margin decreased on 5.6 pp from 14.7% to 9.1% in FY2015. SG&A as a % of Revenue increased on 2.9 pp from 7.8% to 10.7% in FY2015.
Net Income marign decreased on 6.0 pp from 3.8% to -2.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Buhler Industries Inc's CAPEX/Revenue was 1.1% in FY2015. Buhler Industries Inc's CAPEX/Revenue showed almost no change from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at negative ROIC (-5.35%) and ROE (-2.79%). ROIC dropped on 11.8 pp from 6.4% to -5.3% in FY2015. ROE decreased on 9.4 pp from 6.7% to -2.8% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 11.0x and Debt / EBITDA is . Net Debt / EBITDA dropped on 3.0x from 3.0x to in FY2015. Debt decreased on 5.2% in FY2015 while cash didn't change in FY2015.
Appendix 1: Peers in Industrial
Below we provide Buhler Industries 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| Enterprise Group Inc ($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) | | 19.7% | 0.9% | 50.5% | 35.3% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 12.4% | 10.4% | 5.3% | 9.4% | 23.9% |
|---|
| Buhler Industries Inc ($BUI) | | 27.8% | -5.8% | -4.4% | -24.5% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 26.5% |
|---|
| Buhler Industries Inc ($BUI) | 15.3% | 15.4% | 16.8% | 14.7% | 9.1% |
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 ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (85 companies) | 8.3% | 9.4% | 8.3% | 7.7% | 11.9% |
|---|
| Buhler Industries Inc ($BUI) | 6.8% | 8.0% | 11.5% | 5.9% | -3.1% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (92 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 3.0% |
|---|
| Buhler Industries Inc ($BUI) | 2.0% | 0.7% | 1.7% | 1.4% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 9.1% | 10.3% |
|---|
| Buhler Industries Inc ($BUI) | 9.5% | 13.9% | 19.3% | 6.4% | -5.3% |
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 ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.5x | 1.2x | -0.2x |
|---|
| Buhler Industries Inc ($BUI) | 1.5x | -0.3x | -0.4x | 3.0x | |
