Toromont Industries Ltd reports 39.2% CAPEX growth and 8.5% Revenue growth
09.02.2016 • About Toromont Industries Ltd (
$TIH) • By InTwits
Toromont Industries Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 15.5% in 2015 vs. 15.1% in 2014 vs. 14.0% in 2011
- Toromont Industries Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's in pair with industry average of 6.9%.
- CAPEX is quite volatile: 77.0 in FY2015, 42.3 in FY2014, 23.1 in FY2013, 25.8 in FY2012, 36.7 in FY2011
- The company has highly profitable business model: ROIC is at 23.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Toromont Industries Ltd ($TIH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,382 | 1,507 | 1,593 | 1,660 | 1,802 | 8.5% |
| Gross Profit | 349 | 384 | 392 | 412 | 446 | 8.1% |
| SG&A | 201 | 216 | 218 | 228 | 241 | 5.9% |
| EBITDA | 194 | 222 | 233 | 250 | 279 | 11.3% |
| Net Income | 247 | 119 | 123 | 133 | 146 | 9.4% |
Balance Sheet
|
|---|
| Cash | 75 | 2 | 71 | 86 | 67 | -22.4% |
| Short Term Debt | 1 | 1 | 1 | 127 | 2 | -98.7% |
| Long Term Debt | 133 | 158 | 131 | 5 | 152 | 2,977.3% |
Cash flow
|
|---|
| Capex | 83 | 101 | 95 | 108 | 150 | 39.2% |
Ratios
|
|---|
| Revenue growth | 14.5% | 9.1% | 5.7% | 4.2% | 8.5% | |
| EBITDA growth | 17.2% | 14.2% | 5.2% | 7.3% | 11.3% | |
| Gross Margin | 25.3% | 25.5% | 24.6% | 24.8% | 24.7% | -0.1% |
| EBITDA Margin | 14.0% | 14.7% | 14.6% | 15.1% | 15.5% | 0.4% |
| Net Income Margin | 17.9% | 7.9% | 7.7% | 8.0% | 8.1% | 0.1% |
| SG&A, % of revenue | 14.6% | 14.3% | 13.7% | 13.7% | 13.4% | -0.3% |
| CAPEX, % of revenue | 6.0% | 6.7% | 5.9% | 6.5% | 8.3% | 1.8% |
| ROIC | 13.8% | 28.8% | 25.8% | 24.3% | 23.5% | -0.8% |
| ROE | 30.9% | 27.1% | 23.4% | 21.4% | 20.2% | -1.2% |
| Net Debt/EBITDA | 0.3x | 0.7x | 0.3x | 0.2x | 0.3x | 0.1x |
Revenue and profitability
Toromont Industries Ltd's Revenue increased on 8.5% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Toromont Industries Ltd's CAPEX/Revenue was 8.3% in 2015. Toromont Industries Ltd's CAPEX/Revenue increased slightly on 1.6 pp from 6.7% in 2012 to 8.3% in 2015. For the last three years the average CAPEX/Revenue was 6.9%.Toromont Industries Ltd invested a large share of EBITDA (53.9%) to CAPEX.
Return on investment
The company operates at high and attractive ROIC (23.52%) and ROE (20.18%). ROIC decreased slightly on 0.77 pp from 24.3% to 23.5% in 2015. ROE decreased slightly on 1.2 pp from 21.4% to 20.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 0.6x. Net Debt / EBITDA jumped on 0.1x from 0.2x to 0.3x in 2015. Debt jumped on 16.9% in 2015 while cash dropped on 22.4% in 2015.
Management team
Toromont Industries Ltd's CEO is Scott J Medhurst. Scott J Medhurst is a founder and has 6 years tenure at the company.
Appendix 1: Peers in Industrial
Below we provide Toromont Industries Ltd 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 13.3% | 11.5% | 4.9% | 9.4% | 13.3% |
|---|
| Toromont Industries Ltd ($TIH) | | 9.1% | 5.7% | 4.2% | 8.5% |
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 ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 26.0% |
|---|
| Toromont Industries Ltd ($TIH) | 25.3% | 25.5% | 24.6% | 24.8% | 24.7% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 9.9% |
|---|
| Toromont Industries Ltd ($TIH) | 14.0% | 14.7% | 14.6% | 15.1% | 15.5% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.1% | 3.1% |
|---|
| Toromont Industries Ltd ($TIH) | 6.0% | 6.7% | 5.9% | 6.5% | 8.3% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 11.2% |
|---|
| Toromont Industries Ltd ($TIH) | 13.8% | 28.8% | 25.8% | 24.3% | 23.5% |
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 ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.0x |
|---|
| Toromont Industries Ltd ($TIH) | 0.3x | 0.7x | 0.3x | 0.2x | 0.3x |
