Accord Financial Corp Net Income jumped on 27.3% in 2015 and EBITDA Margin decreased slightly on 0.79 pp from 44.1% to 43.3%
17.02.2016 • About Accord Financial Corp (
$ACD) • By InTwits
Accord Financial Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts: Accord Financial Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%..
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Accord Financial Corp ($ACD) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 28.408 | 25.891 | 26.074 | 30.235 | 31.577 | 4.4% |
| EBITDA | 13.336 | 11.439 | 11.790 | 13.324 | 13.667 | 2.6% |
| Net Income | 7.585 | 6.377 | 6.538 | 6.879 | 8.759 | 27.3% |
Balance Sheet
|
|---|
| Cash | 2.854 | 9.899 | 3.442 | 7.103 | 12.440 | 75.1% |
| Short Term Debt | 27.222 | 54.572 | 43.368 | 63.995 | 54.094 | -15.5% |
| Long Term Debt | 14.611 | 14.492 | 14.809 | 16.808 | 13.201 | -21.5% |
Cash flow
|
|---|
| Capex | 0.147 | 0.047 | 0.046 | 0.193 | 0.098 | -49.0% |
Ratios
|
|---|
| Revenue growth | -9.5% | -8.9% | 0.7% | 16.0% | 4.4% | |
| EBITDA growth | -15.0% | -14.2% | 3.1% | 13.0% | 2.6% | |
| EBITDA Margin | 46.9% | 44.2% | 45.2% | 44.1% | 43.3% | -0.8% |
| Net Income Margin | 26.7% | 24.6% | 25.1% | 22.8% | 27.7% | 5.0% |
| CAPEX, % of revenue | 0.5% | 0.2% | 0.2% | 0.6% | 0.3% | -0.3% |
| ROE | 16.4% | 13.4% | 13.0% | 12.0% | 13.0% | 1.0% |
| Net Debt/EBITDA | 2.9x | 5.2x | 4.6x | 5.5x | 4.0x | -1.5x |
Revenue and profitability
Accord Financial Corp's Revenue increased on 4.4% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.9 pp from 9.3% to 11.2% in FY2015.
Net Income marign increased on 5.0 pp from 22.8% to 27.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.31%. Accord Financial Corp showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 0.37%.
Leverage (Debt)
Debt level is 4.0x Net Debt / EBITDA and 4.9x Debt / EBITDA. Net Debt / EBITDA dropped on 1.5x from 5.5x to 4.0x in 2015. Debt dropped on 16.7% in 2015 while cash surged on 75.1% in 2015.
Management team
Tom Henderson is a the company's CEO. Tom Henderson is a founder and has spent 9 years at the company.
Appendix 1: Peers in Financial
Below you can find Accord Financial Corp 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 ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 11.2% | 9.4% | 7.4% | 8.9% | 0.8% |
|---|
| Accord Financial Corp ($ACD) | | -8.9% | 0.7% | 16.0% | 4.4% |
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% | 45.1% |
|---|
| Accord Financial Corp ($ACD) | 46.9% | 44.2% | 45.2% | 44.1% | 43.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | 46.7% |
| 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% | 56.7% |
| |
|---|
| Median (75 companies) | 1.3% | 1.6% | 0.8% | 1.0% | 1.3% |
|---|
| Accord Financial Corp ($ACD) | 0.5% | 0.2% | 0.2% | 0.6% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($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% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (77 companies) | 5.0% | 4.8% | 4.5% | 4.8% | 4.9% |
|---|
| Accord Financial Corp ($ACD) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($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 | 4.2x | 2.9x |
|---|
| Accord Financial Corp ($ACD) | 2.9x | 5.2x | 4.6x | 5.5x | 4.0x |
