Alarmforce Industries Inc reports 43.4% Net Income decline while 5.0% Revenue growth
21.01.2016 • About Alarmforce Industries Inc (
$AF) • By InTwits
Alarmforce Industries Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alarmforce Industries Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.9%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: 2.3 in 2015, 0.83 in 2014, 0.49 in 2013, 1.2 in 2012, 4.1 in 2011
- The company has highly profitable business model: ROIC is at 19.0%
- It operates with high leverage: Net Debt/EBITDA is 3.7x while industry average is 1.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alarmforce Industries Inc ($AF) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 40.854 | 44.837 | 49.108 | 52.582 | 55.214 | 5.0% |
| Gross Profit | 31.215 | 33.643 | 37.565 | 37.941 | 38.183 | 0.6% |
| SG&A | | | 24.532 | 22.082 | 27.305 | 23.7% |
| EBITDA | 9.977 | 6.265 | | | | |
| Net Income | 3.335 | 1.163 | 5.447 | 7.812 | 4.420 | -43.4% |
Balance Sheet
|
|---|
| Cash | 4.355 | 2.949 | 2.296 | 4.741 | 6.133 | 29.4% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 3.682 | 6.537 | 6.592 | 5.140 | 4.278 | -16.8% |
Ratios
|
|---|
| Revenue growth | 9.9% | 9.7% | 9.5% | 7.1% | 5.0% | |
| EBITDA growth | -7.8% | -37.2% | | | | |
| Gross Margin | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% | -3.0% |
| EBITDA Margin | 24.4% | 14.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Net Income Margin | 8.2% | 2.6% | 11.1% | 14.9% | 8.0% | -6.9% |
| SG&A, % of revenue | | | 50.0% | 42.0% | 49.5% | 7.5% |
| CAPEX, % of revenue | 9.0% | 14.6% | 13.4% | 9.8% | 7.7% | -2.0% |
| ROIC | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% | -14.9% |
| ROE | 11.0% | 3.6% | 16.4% | 24.3% | 14.1% | -10.2% |
| Net Debt/EBITDA | -0.4x | -0.5x | | | | 0.0x |
Revenue and profitability
Alarmforce Industries Inc's Revenue increased on 5.0% in FY2015.
Gross Margin decreased on 3.0 pp from 72.2% to 69.2% in FY2015. SG&A as a % of Revenue increased on 7.5 pp from 42.0% to 49.5% in FY2015.
Net Income marign decreased on 6.9 pp from 14.9% to 8.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Alarmforce Industries Inc's CAPEX/Revenue was 7.7% in FY2015. Alarmforce Industries Inc showed decline in CAPEX/Revenue of 6.8 pp from 14.6% in FY2012 to 7.7% in FY2015. For the last three years the average CAPEX/Revenue was 10.3%.
Return on investment
The company operates at good ROIC (18.99%) and ROE (14.12%). ROIC dropped on 14.9 pp from 33.9% to 19.0% in FY2015. ROE dropped on 10.2 pp from 24.3% to 14.1% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 29.4% in FY2015.
Appendix 1: Peers in Industrial
Below you can find Alarmforce Industries Inc benchmarking vs. other companies in Industrial 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 |
|---|
| 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 12.5% | 11.5% | 4.9% | 9.4% | 21.3% |
|---|
| Alarmforce Industries Inc ($AF) | | 9.7% | 9.5% | 7.1% | 5.0% |
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% | |
| 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% | |
| Evertz Technologies Ltd ($ET) | 57.7% | 56.6% | 57.5% | 57.2% | 56.7% |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 26.2% |
|---|
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
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% | 48.9% |
| 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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (86 companies) | 8.1% | 9.2% | 8.3% | 7.4% | 11.9% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($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) | 2.4% | 3.0% | 3.5% | 3.1% | 3.0% |
|---|
| Alarmforce Industries Inc ($AF) | 9.0% | 14.6% | 13.4% | 9.8% | 7.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($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% | |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| STT Enviro Corp ($STT) | 88.7% | 55.1% | 44.3% | 30.4% | |
| |
|---|
| Median (93 companies) | 8.9% | 10.0% | 8.5% | 8.5% | 10.3% |
|---|
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($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 (73 companies) | 1.1x | 1.5x | 1.5x | 1.3x | -0.2x |
|---|
