IGM Financial Inc revenue growth decelerated from 9.0% in 2014 to 3.0% in 2015
12.02.2016 • About IGM Financial Inc (
$IGM) • By InTwits
IGM Financial Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- IGM Financial Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has highly profitable business model: ROIC is at 13.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
IGM Financial Inc ($IGM) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,653 | 2,505 | 2,596 | 2,831 | 2,917 | 3.0% |
| EBITDA | 1,435 | 1,278 | 1,257 | 1,228 | 1,244 | 1.3% |
| Net Income | 909 | 768 | 771 | 762 | 781 | 2.4% |
Balance Sheet
|
|---|
| Cash | 1,052 | 1,059 | 1,082 | 1,216 | 983 | -19.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 1,325 | 1,325 | 1,325 | 1,325 | 1,325 | 0.0% |
Cash flow
|
|---|
| Capex | 20 | 31 | 14 | 18 | 37 | 104.4% |
Ratios
|
|---|
| Revenue growth | 4.2% | -5.6% | 3.6% | 9.0% | 3.0% | |
| EBITDA growth | 4.0% | -11.0% | -1.6% | -2.3% | 1.3% | |
| EBITDA Margin | 54.1% | 51.0% | 48.4% | 43.4% | 42.6% | -0.7% |
| Net Income Margin | 34.3% | 30.6% | 29.7% | 26.9% | 26.8% | -0.2% |
| CAPEX, % of revenue | 0.7% | 1.2% | 0.6% | 0.6% | 1.3% | 0.6% |
| ROIC | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% | 0.0% |
| ROE | 21.2% | 17.6% | 17.2% | 16.3% | 16.7% | 0.4% |
| Net Debt/EBITDA | 0.2x | 0.2x | 0.2x | 0.1x | 0.3x | 0.2x |
Revenue and profitability
The company's Revenue increased on 3.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.5 pp from -4.4% to 5.1% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 IGM Financial Inc had CAPEX/Revenue of 1.3%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.82%.
Return on investment
The company operates at good ROIC (13.72%) and ROE (16.65%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 0.3x Net Debt / EBITDA and 1.1x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 0.1x to 0.3x in 2015. Debt didn't change in 2015 while cash dropped on 19.2% in 2015.
Management team
Jeffrey R Carney "Jeff" is a IGM Financial Inc's CEO. Jeffrey R Carney "Jeff" is a founder and has spent 5 years at the company.
Appendix 1: Peers in Financial
Below we provide IGM Financial Inc benchmarking against other companies in Financial 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 |
|---|
| 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 ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 9.9% | 9.4% | 7.4% | 8.9% | 0.4% |
|---|
| IGM Financial Inc ($IGM) | | -5.6% | 3.6% | 9.0% | 3.0% |
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% | 27.5% |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 27.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($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) | 35.6% | 32.3% | 32.0% | 30.5% | 43.8% |
|---|
| IGM Financial Inc ($IGM) | 54.1% | 51.0% | 48.4% | 43.4% | 42.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($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) | 1.3% | 1.6% | 0.8% | 1.0% | 1.0% |
|---|
| IGM Financial Inc ($IGM) | 0.7% | 1.2% | 0.6% | 0.6% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($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% | |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| Wall Financial Corp ($WFC) | 8.4% | 17.3% | 3.0% | 12.7% | 2.1% |
| |
|---|
| Median (77 companies) | 4.9% | 4.8% | 4.5% | 4.8% | 5.1% |
|---|
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($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 | 5.3x | 5.0x | 4.5x | 2.9x |
|---|
| IGM Financial Inc ($IGM) | 0.2x | 0.2x | 0.2x | 0.1x | 0.3x |
