AGF Management Ltd Net Income dropped on 21.6% in 2015 and Revenue decreased on 3.3%
27.01.2016 • About AGF Management Ltd (
$AGF.B) • By InTwits
AGF Management Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AGF Management Ltd is a company in decline: FY2015 revenue growth was -3.3%, 5 years revenue CAGR was -9.3%
- EBITDA Margin is declining: 26.3% in FY2015 vs. 31.5% in FY2014 vs. 37.7% in FY2011
- AGF Management Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AGF Management Ltd ($AGF.B) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 580.8 | 506.7 | 475.2 | 452.1 | 437.4 | -3.3% |
| EBITDA | 218.8 | 165.5 | 154.4 | 142.4 | 114.9 | -19.3% |
| Net Income | 103.6 | 52.3 | 22.4 | 61.3 | 48.0 | -21.6% |
Balance Sheet
|
|---|
| Cash | 246.6 | 371.3 | 369.9 | 261.5 | 48.7 | -81.4% |
| Short Term Debt | | | | | 0.0 | |
| Long Term Debt | 308.3 | 308.4 | 307.9 | 308.2 | 268.8 | -12.8% |
Cash flow
|
|---|
| Capex | 3.7 | 9.5 | 3.4 | 1.4 | 4.4 | 219.3% |
Ratios
|
|---|
| Revenue growth | -18.4% | -12.8% | -6.2% | -4.9% | -3.3% | |
| EBITDA growth | -38.2% | -24.3% | -6.7% | -7.7% | -19.3% | |
| EBITDA Margin | 37.7% | 32.7% | 32.5% | 31.5% | 26.3% | -5.2% |
| Net Income Margin | 17.8% | 10.3% | 4.7% | 13.5% | 11.0% | -2.6% |
| CAPEX, % of revenue | 0.6% | 1.9% | 0.7% | 0.3% | 1.0% | 0.7% |
| ROE | 8.9% | 4.7% | 2.2% | 6.5% | 5.2% | -1.2% |
| Net Debt/EBITDA | 0.3x | -0.4x | -0.4x | 0.3x | 1.9x | 1.6x |
Revenue and profitability
AGF Management Ltd's Revenue decreased on 3.3% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.2 pp from 31.5% to 26.3% in FY2015.
Net Income marign decreased on 2.6 pp from 13.5% to 11.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 AGF Management Ltd had CAPEX/Revenue of 1.0%. CAPEX/Revenue decreased slightly on 0.86 pp from 1.9% in FY2012 to 1.0% in FY2015. It's average CAPEX/Revenue for the last three years was 0.68%.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 2.3x. Net Debt / EBITDA surged on 1.6x from 0.3x to 1.9x in FY2015. Debt dropped on 12.8% in FY2015 while cash dropped on 81.4% in FY2015.
Management team
Blake Charles Goldring is a AGF Management Ltd's CEO. Blake Charles Goldring is a founder and has spent 18 years at the company.
Appendix 1: Peers in Financial
Below you can find AGF Management Ltd benchmarking vs. other companies in Financial 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 |
|---|
| 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 ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (72 companies) | 10.3% | 9.3% | 7.2% | 8.9% | 0.5% |
|---|
| AGF Management Ltd ($AGF.B) | | -12.8% | -6.2% | -4.9% | -3.3% |
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 ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 16.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($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 (48 companies) | 34.5% | 29.5% | 32.0% | 33.8% | 48.1% |
|---|
| AGF Management Ltd ($AGF.B) | 37.7% | 32.7% | 32.5% | 31.5% | 26.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($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% | 1.1% | 1.7% |
|---|
| AGF Management Ltd ($AGF.B) | 0.6% | 1.9% | 0.7% | 0.3% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($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) | 5.0% | 4.8% | 4.5% | 4.8% | 5.4% |
|---|
| AGF Management Ltd ($AGF.B) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($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 (40 companies) | 5.3x | 5.5x | 5.0x | 4.5x | 2.9x |
|---|
| AGF Management Ltd ($AGF.B) | 0.3x | -0.4x | -0.4x | 0.3x | 1.9x |
