Bombardier Inc revenue decreased on 9.6% in 2015 and EBITDA Margin dropped on 23.5 pp from -0.74% to -24.2%
17.02.2016 • About Bombardier Inc (
$BBD.B) • By InTwits
Bombardier Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bombardier Inc doesn't have a profitable business model yet: 2015 ROIC is -87.2%
- The company operates at negative EBITDA Margin: -24.2%
- Bombardier Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 was 0.0%. On average EBITDA Margin was -0.7% for the sames years0
- Bombardier Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.9%. At the same time it's a lot of higher than industry average of 6.9%.
- CAPEX is quite volatile: 1,114 in 2015, 1,098 in 2014, 1,374 in 2013, 3,565 in 2012, 2,047 in 2011
- The company has unprofitable business model: ROIC is at -87.2%
- It operates with high leverage: Net Debt/EBITDA is 8.8x while industry average is 2.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bombardier Inc ($BBD.B) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 18,347 | 16,414 | 18,151 | 20,111 | 18,172 | -9.6% |
| Gross Profit | 2,903 | 2,361 | 2,493 | 2,577 | 1,973 | -23.4% |
| SG&A | 1,439 | 1,442 | 1,417 | 1,358 | 1,213 | -10.7% |
| EBITDA | 1,535 | 1,030 | 1,314 | -149 | -4,400 | 2,853.0% |
| Net Income | 837 | 460 | 564 | -1,260 | -5,347 | 324.4% |
Balance Sheet
|
|---|
| Cash | 3,372 | 2,557 | 3,397 | 2,489 | 2,720 | 9.3% |
| Short Term Debt | 0 | 0 | 0 | 56 | 71 | 26.8% |
| Long Term Debt | 4,748 | 5,360 | 6,988 | 7,627 | 8,908 | 16.8% |
Cash flow
|
|---|
| Capex | 1,500 | 2,125 | 2,357 | 1,982 | 1,879 | -5.2% |
Ratios
|
|---|
| Revenue growth | -5.3% | -10.5% | 10.6% | 10.8% | -9.6% | |
| EBITDA growth | -3.8% | -32.9% | 27.6% | -111.3% | 2,853.0% | |
| Gross Margin | 15.8% | 14.4% | 13.7% | 12.8% | 10.9% | -2.0% |
| EBITDA Margin | 8.4% | 6.3% | 7.2% | -0.7% | -24.2% | -23.5% |
| Net Income Margin | 4.6% | 2.8% | 3.1% | -6.3% | -29.4% | -23.2% |
| SG&A, % of revenue | 7.8% | 8.8% | 7.8% | 6.8% | 6.7% | -0.1% |
| CAPEX, % of revenue | 8.2% | 12.9% | 13.0% | 9.9% | 10.3% | 0.5% |
| ROIC | 22.2% | 14.5% | 13.7% | -7.5% | -87.2% | -79.7% |
| ROE | 44.5% | 74.6% | 36.2% | | | 0.0% |
| Net Debt/EBITDA | 0.9x | 2.7x | 2.7x | | | 0.0x |
Revenue and profitability
Bombardier Inc's Revenue decreased on 9.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 23.5 pp from -0.74% to -24.2% in 2015.
Gross Margin decreased slightly on 2.0 pp from 12.8% to 10.9% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign dropped on 23.2 pp from -6.3% to -29.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 10.3% in 2015. Bombardier Inc's CAPEX/Revenue decreased on 2.6 pp from 12.9% in 2012 to 10.3% in 2015. For the last three years the average CAPEX/Revenue was 11.1%.
Leverage (Debt)
Debt level is 8.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped on 16.9% in 2015 while cash increased on 9.3% in 2015.
Management team
Alain M Bellemare is a the company's CEO. Alain M Bellemare is a founder and has spent 3 years at the company. Bombardier Inc's CFO John Di Bert has spent 3 years at the company.
Appendix 1: Peers in Industrial
Below we provide Bombardier Inc 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 13.5% | 11.5% | 4.9% | 9.1% | 12.5% |
|---|
| Bombardier Inc ($BBD.B) | | -10.5% | 10.6% | 10.8% | -9.6% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 25.5% |
|---|
| Bombardier Inc ($BBD.B) | 15.8% | 14.4% | 13.7% | 12.8% | 10.9% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.1% | 9.4% | 8.3% | 7.7% | 10.0% |
|---|
| Bombardier Inc ($BBD.B) | 8.4% | 6.3% | 7.2% | -0.7% | -24.2% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.1% | 3.3% |
|---|
| Bombardier Inc ($BBD.B) | 8.2% | 12.9% | 13.0% | 9.9% | 10.3% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 9.1% | 10.3% |
|---|
| Bombardier Inc ($BBD.B) | 22.2% | 14.5% | 13.7% | -7.5% | -87.2% |
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 (73 companies) | 1.1x | 1.5x | 1.4x | 1.3x | 1.6x |
|---|
