Firan Technology Group Corp Net Income jumped on 335% in 2015 and EBITDA Margin showed almost no change
01.02.2016 • About Firan Technology Group Corp (
$FTG) • By InTwits
Firan Technology Group Corp reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Firan Technology Group Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's in pair with industry average of 26.9%.
- CAPEX is quite volatile: 9.6 in 2015, 8.4 in 2014, 13.5 in 2013, 26.7 in 2012, 23.5 in 2011
- The company has business model with average profitability: ROIC is at 11.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Firan Technology Group Corp ($FTG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 53.730 | 55.646 | 55.998 | 60.699 | 72.045 | 18.7% |
| Gross Profit | 14.110 | 14.233 | 13.084 | 15.186 | 18.034 | 18.8% |
| SG&A | | | 8.747 | 9.430 | 10.018 | 6.2% |
| EBITDA | 3.290 | 3.441 | 1.571 | 4.043 | 4.913 | 21.5% |
| Net Income | 1.474 | 0.928 | -0.998 | 2.193 | 9.537 | 334.9% |
Balance Sheet
|
|---|
| Cash | 1.944 | 1.446 | 0.996 | 0.641 | 3.160 | 393.0% |
| Short Term Debt | 1.458 | 1.038 | 1.879 | 0.251 | 1.058 | 321.5% |
| Long Term Debt | 0.000 | 0.361 | 5.149 | 5.451 | 4.234 | -22.3% |
Cash flow
|
|---|
| Capex | 2.433 | 2.889 | 1.711 | 1.678 | 2.137 | 27.4% |
Ratios
|
|---|
| Revenue growth | 9.1% | 3.6% | 0.6% | 8.4% | 18.7% | |
| EBITDA growth | 5.4% | 4.6% | -54.3% | 157.4% | 21.5% | |
| Gross Margin | 26.3% | 25.6% | 23.4% | 25.0% | 25.0% | 0.0% |
| EBITDA Margin | 6.1% | 6.2% | 2.8% | 6.7% | 6.8% | 0.2% |
| Net Income Margin | 2.7% | 1.7% | -1.8% | 3.6% | 13.2% | 9.6% |
| SG&A, % of revenue | | | 15.6% | 15.5% | 13.9% | -1.6% |
| CAPEX, % of revenue | 4.5% | 5.2% | 3.1% | 2.8% | 3.0% | 0.2% |
| ROIC | 8.7% | 12.2% | -1.7% | 12.3% | 11.7% | -0.6% |
| ROE | 14.5% | 8.2% | -8.9% | 18.6% | 53.4% | 34.8% |
| Net Debt/EBITDA | -0.1x | -0.0x | 3.8x | 1.3x | 0.4x | -0.8x |
Revenue and profitability
The company's Revenue surged on 18.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.7 pp from -4.3% to 0.47% in FY2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue decreased slightly on 1.6 pp from 15.5% to 13.9% in FY2015.
Net Income marign increased on 9.6 pp from 3.6% to 13.2% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Firan Technology Group Corp had CAPEX/Revenue of 3.0%. CAPEX/Revenue decreased on 2.2 pp from 5.2% in FY2012 to 3.0% in FY2015. For the last three years the average CAPEX/Revenue was 2.9%.
Return on investment
The company operates at good ROE (53.41%) while ROIC is low (11.73%). ROIC decreased slightly on 0.57 pp from 12.3% to 11.7% in FY2015. ROE surged on 34.8 pp from 18.6% to 53.4% in FY2015.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 1.3x to 0.4x in FY2015. Debt decreased on 7.2% in FY2015 while cash jumped on 393% in FY2015.
Appendix 1: Peers in Industrial
Below we provide Firan Technology Group Corp 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 13.6% | 11.5% | 5.3% | 9.4% | 13.3% |
|---|
| Firan Technology Group Corp ($FTG) | | 3.6% | 0.6% | 8.4% | 18.7% |
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 ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 26.0% |
|---|
| Firan Technology Group Corp ($FTG) | 26.3% | 25.6% | 23.4% | 25.0% | 25.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (85 companies) | 8.3% | 9.4% | 8.3% | 7.7% | 10.8% |
|---|
| Firan Technology Group Corp ($FTG) | 6.1% | 6.2% | 2.8% | 6.7% | 6.8% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.7% | 3.2% | 3.1% |
|---|
| Firan Technology Group Corp ($FTG) | 4.5% | 5.2% | 3.1% | 2.8% | 3.0% |
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% | 19.0% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 9.1% | 9.3% | 8.5% | 8.5% | 11.2% |
|---|
| Firan Technology Group Corp ($FTG) | 8.7% | 12.2% | -1.7% | 12.3% | 11.7% |
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 ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.4x | 1.2x | 0.7x |
|---|
| Firan Technology Group Corp ($FTG) | -0.1x | -0.0x | 3.8x | 1.3x | 0.4x |
