Equity Financial Holdings Inc revenue dropped on 16.1% in 2015 while EBITDA Margin increased on 4.8 pp from -14.1% to -9.3%
09.02.2016 • About Equity Financial Holdings Inc (
$EQI) • By InTwits
Equity Financial Holdings Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Equity Financial Holdings Inc is a company in decline: 2015 revenue growth was -16.1%, 5 years revenue CAGR was -5.4%
- The company operates at negative EBITDA Margin: -9.3%
- Equity Financial Holdings Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.7%. At the same time it's a lot of higher than industry average of 35.3%.
- CAPEX is quite volatile: 0.12 in 2015, 0.091 in 2014, 0.096 in 2013, 0.83 in 2012, 0.51 in 2011
- The company has unprofitable business model: ROIC is at -2.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Equity Financial Holdings Inc ($EQI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 35.676 | 8.081 | 16.889 | 21.267 | 17.849 | -16.1% |
| Gross Profit | 23.785 | | | | | |
| EBITDA | 12.687 | -1.585 | 0.505 | -3.007 | -1.667 | -44.6% |
| Net Income | 9.230 | 0.534 | 41.782 | -2.919 | -2.157 | -26.1% |
Balance Sheet
|
|---|
| Cash | 25.568 | 34.429 | 43.376 | 33.231 | 44.326 | 33.4% |
| 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 | 0.508 | 0.830 | 0.096 | 0.091 | 0.120 | 31.9% |
Ratios
|
|---|
| Revenue growth | 51.2% | -77.3% | 109.0% | 25.9% | -16.1% | |
| EBITDA growth | 127.8% | -112.5% | -131.9% | -695.4% | -44.6% | |
| Gross Margin | 66.7% | | | | | 0.0% |
| EBITDA Margin | 35.6% | -19.6% | 3.0% | -14.1% | -9.3% | 4.8% |
| Net Income Margin | 25.9% | 6.6% | 247.4% | -13.7% | -12.1% | 1.6% |
| CAPEX, % of revenue | 1.4% | 10.3% | 0.6% | 0.4% | 0.7% | 0.2% |
| ROIC | 29.1% | -4.9% | -0.4% | -3.8% | -2.6% | 1.1% |
| ROE | 24.1% | 1.0% | 56.3% | -3.1% | -2.3% | 0.8% |
| Net Debt/EBITDA | -2.0x | | -85.9x | | | 0.0x |
Revenue and profitability
The company's Revenue dropped on 16.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.8 pp from -14.1% to -9.3% in 2015.
Net Income marign increased slightly on 1.6 pp from -13.7% to -12.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Equity Financial Holdings Inc had CAPEX/Revenue of 0.67%. CAPEX/Revenue decreased on 9.6 pp from 10.3% in 2012 to 0.67% in 2015. For the last three years the average CAPEX/Revenue was 0.56%.
Return on investment
The company operates at negative ROIC (-2.63%) and ROE (-2.29%). ROIC increased slightly on 1.1 pp from -3.8% to -2.6% in 2015. ROE increased slightly on 0.77 pp from -3.1% to -2.3% in 2015.
Leverage (Debt)
The company has no debt. Cash surged on 33.4% in 2015.
Appendix 1: Peers in Financial
Below you can find Equity Financial Holdings Inc 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 ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 9.9% | 9.4% | 7.1% | 8.9% | 1.1% |
|---|
| Equity Financial Holdings Inc ($EQI) | | -77.3% | 109.0% | 25.9% | -16.1% |
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 ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (11 companies) | 22.6% | 22.6% | 25.7% | 20.5% | 16.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($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) | 36.1% | 32.7% | 32.1% | 34.8% | 48.1% |
|---|
| Equity Financial Holdings Inc ($EQI) | 35.6% | -19.6% | 3.0% | -14.1% | -9.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($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 (75 companies) | 1.2% | 1.2% | 0.8% | 1.0% | 1.5% |
|---|
| Equity Financial Holdings Inc ($EQI) | 1.4% | 10.3% | 0.6% | 0.4% | 0.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($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 (77 companies) | 4.9% | 4.8% | 4.6% | 4.8% | 5.4% |
|---|
| Equity Financial Holdings Inc ($EQI) | 29.1% | -4.9% | -0.4% | -3.8% | -2.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($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 (41 companies) | 5.3x | 5.2x | 5.0x | 4.3x | 2.9x |
|---|
