Goodfellow Inc EBITDA surged on 17.8% in 2015 and Revenue increased on 7.7%
12.02.2016 • About Goodfellow Inc (
$GDL) • By InTwits
Goodfellow Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 3.2% in FY2015 vs. 3.0% in FY2014 vs. 1.9% in FY2011
- Goodfellow Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has business model with low profitability: ROIC is at 8.3%
- It operates with high leverage: Net Debt/EBITDA is 2.6x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Goodfellow Inc ($GDL) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 466.8 | 500.7 | 483.5 | 500.2 | 539.0 | 7.7% |
| Gross Profit | 87.0 | 87.2 | 89.9 | 93.4 | 101.2 | 8.3% |
| SG&A | | | 80.7 | 81.6 | 86.7 | 6.3% |
| EBITDA | 9.0 | 10.7 | 12.0 | 14.8 | 17.5 | 17.8% |
| Net Income | 3.0 | 4.4 | 5.3 | 7.0 | 8.6 | 23.9% |
Balance Sheet
|
|---|
| Cash | 0.2 | 0.7 | 0.2 | 0.9 | 1.0 | 12.2% |
| Short Term Debt | 28.6 | 37.2 | 34.2 | 43.3 | 46.9 | 8.2% |
| Long Term Debt | 0.0 | 0.0 | 0.1 | 0.7 | 0.0 | -100.0% |
Cash flow
|
|---|
| Capex | 2.4 | 1.3 | 2.6 | 4.9 | 2.1 | -56.9% |
Ratios
|
|---|
| Revenue growth | -7.5% | 7.3% | -3.4% | 3.5% | 7.7% | |
| EBITDA growth | -57.7% | 19.5% | 12.0% | 23.6% | 17.8% | |
| Gross Margin | 18.6% | 17.4% | 18.6% | 18.7% | 18.8% | 0.1% |
| EBITDA Margin | 1.9% | 2.1% | 2.5% | 3.0% | 3.2% | 0.3% |
| Net Income Margin | 0.6% | 0.9% | 1.1% | 1.4% | 1.6% | 0.2% |
| SG&A, % of revenue | | | 16.7% | 16.3% | 16.1% | -0.2% |
| CAPEX, % of revenue | 0.5% | 0.3% | 0.5% | 1.0% | 0.4% | -0.6% |
| ROIC | 4.0% | 5.2% | 5.9% | 7.3% | 8.3% | 1.0% |
| ROE | 2.6% | 3.8% | 4.5% | 5.9% | 7.0% | 1.1% |
| Net Debt/EBITDA | 3.2x | 3.4x | 2.8x | 2.9x | 2.6x | -0.3x |
Revenue and profitability
The company's Revenue increased on 7.7% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 47.5 pp from 19.1% to -28.4% in 2015.
Gross Margin showed almost no change in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Goodfellow Inc had CAPEX/Revenue of 0.39%. The company's CAPEX/Revenue showed almost no change from FY2012 to FY2015. For the last three years the average CAPEX/Revenue was 0.63%.
Return on investment
The company operates at low ROIC (8.30%) and ROE (6.96%). ROIC increased slightly on 0.96 pp from 7.3% to 8.3% in FY2015. ROE increased slightly on 1.1 pp from 5.9% to 7.0% in FY2015.
Leverage (Debt)
Debt level is 2.6x Net Debt / EBITDA and 2.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 2.9x to 2.6x in FY2015. Debt increased on 6.5% in FY2015 while cash jumped on 12.2% in FY2015.
Appendix 1: Peers in Industrial
Below you can find Goodfellow 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 13.3% | 11.5% | 5.3% | 9.4% | 13.3% |
|---|
| Goodfellow Inc ($GDL) | | 7.3% | -3.4% | 3.5% | 7.7% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 26.0% |
|---|
| Goodfellow Inc ($GDL) | 18.6% | 17.4% | 18.6% | 18.7% | 18.8% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.3% | 9.4% | 8.3% | 7.7% | 10.6% |
|---|
| Goodfellow Inc ($GDL) | 1.9% | 2.1% | 2.5% | 3.0% | 3.2% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (92 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 3.5% |
|---|
| Goodfellow Inc ($GDL) | 0.5% | 0.3% | 0.5% | 1.0% | 0.4% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 9.1% | 10.0% | 8.5% | 9.1% | 11.2% |
|---|
| Goodfellow Inc ($GDL) | 4.0% | 5.2% | 5.9% | 7.3% | 8.3% |
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 ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.4x | 1.2x | 1.0x |
|---|
| Goodfellow Inc ($GDL) | 3.2x | 3.4x | 2.8x | 2.9x | 2.6x |
