Canam Group Inc reports 42.0% EBITDA growth and 0.57 pp EBITDA Margin growth from 6.4% to 7.0%
18.02.2016 • About Canam Group Inc (
$CAM) • By InTwits
Canam Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Canam Group Inc is a growth stock: 2015 revenue growth was 30.3%, 5 year revenue CAGR was 16.4% at 2015 ROIC 10.7%
- EBITDA Margin is quite volatile: 7.0% in 2015, 6.4% in 2014, 7.4% in 2013, 6.3% in 2012, -1.9% in 2011
- Canam Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 28.7%.
- CAPEX is quite volatile: 30.4 in 2015, 22.8 in 2014, 17.4 in 2013, 8.7 in 2012, 18.0 in 2011
- The company has business model with average profitability: ROIC is at 10.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Canam Group Inc ($CAM) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 881 | 905 | 1,028 | 1,233 | 1,607 | 30.3% |
| Gross Profit | 39 | 117 | 147 | 153 | 230 | 50.0% |
| SG&A | 87 | | 90 | 91 | 108 | 18.5% |
| EBITDA | -17 | 57 | 76 | 79 | 112 | 42.0% |
| Net Income | -33 | 17 | 31 | 29 | 47 | 59.5% |
Balance Sheet
|
|---|
| Cash | 7 | 7 | 5 | 8 | 7 | -14.7% |
| Short Term Debt | 70 | 10 | 13 | 85 | 43 | -49.2% |
| Long Term Debt | 226 | 239 | 189 | 176 | 164 | -6.4% |
Cash flow
|
|---|
| Capex | 18 | 9 | 17 | 23 | 30 | 33.3% |
Ratios
|
|---|
| Revenue growth | 17.3% | 2.8% | 13.6% | 19.9% | 30.3% | |
| EBITDA growth | -217.9% | -433.0% | 32.7% | 3.9% | 42.0% | |
| Gross Margin | 4.4% | 12.9% | 14.3% | 12.4% | 14.3% | 1.9% |
| EBITDA Margin | -1.9% | 6.3% | 7.4% | 6.4% | 7.0% | 0.6% |
| Net Income Margin | -3.7% | 1.9% | 3.0% | 2.4% | 2.9% | 0.5% |
| SG&A, % of revenue | 9.8% | | 8.7% | 7.4% | 6.7% | -0.7% |
| CAPEX, % of revenue | 2.0% | 1.0% | 1.7% | 1.8% | 1.9% | 0.0% |
| ROIC | -6.3% | 5.6% | 8.4% | 8.1% | 10.7% | 2.6% |
| ROE | -8.5% | 4.7% | 8.1% | 6.7% | 8.6% | 1.9% |
| Net Debt/EBITDA | | 4.2x | 2.6x | 3.2x | 1.8x | -1.4x |
Revenue and profitability
The company's Revenue jumped on 30.3% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.3 pp from 29.2% to 30.6% in 2015.
Gross Margin increased slightly on 1.9 pp from 12.4% to 14.3% in 2015. SG&A as a % of Revenue decreased slightly on 0.68 pp from 7.4% to 6.7% in 2015.
Net Income marign increased slightly on 0.53 pp from 2.4% to 2.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.9% in 2015. Canam Group Inc showed small growth in CAPEX/Revenue of 0.93 pp from 0.96% in 2012 to 1.9% in 2015. For the last three years the average CAPEX/Revenue was 1.8%.
Return on investment
The company operates at low ROIC (10.69%) and ROE (8.65%). ROIC increased on 2.6 pp from 8.1% to 10.7% in 2015. ROE increased slightly on 1.9 pp from 6.7% to 8.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 1.4x from 3.2x to 1.8x in 2015. Debt dropped on 20.3% in 2015 while cash dropped on 14.7% in 2015.
Appendix 1: Peers in Basic Materials
Below we provide Canam Group Inc benchmarking against other companies in Basic Materials 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 |
|---|
| Northern Sun Mining Corp ($NSC) | -93.3% | 315.4% | -99.4% | 8,924.9% | |
| Turquoise Hill Resources Ltd ($TRQ) | | | -34.0% | 3,268.9% | -5.8% |
| Asian Mineral Resources Ltd ($ASN) | | | | 859.1% | |
| Ur-Energy Inc ($URE) | | | | 285.4% | |
| Nevsun Resources Ltd ($NSU) | | 3.3% | -72.5% | 256.5% | |
| |
|---|
| Median (130 companies) | 30.9% | 8.5% | -5.1% | -1.1% | 0.6% |
|---|
| Canam Group Inc ($CAM) | | 2.8% | 13.6% | 19.9% | 30.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | |
| Franco-Nevada Corp ($FNV) | 84.6% | 86.1% | 85.0% | 83.5% | |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 31.2% | 32.0% | 21.8% | 17.6% | 16.1% |
|---|
| Canam Group Inc ($CAM) | 4.4% | 12.9% | 14.3% | 12.4% | 14.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | 65.0% |
| Franco-Nevada Corp ($FNV) | 38.6% | 62.1% | 44.6% | 72.3% | |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | |
| Sandstorm Gold Ltd ($SSL) | 63.8% | 74.3% | 49.9% | 62.1% | |
| Nevsun Resources Ltd ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | |
| |
|---|
| Median (137 companies) | 23.3% | 18.6% | 11.7% | 9.9% | 7.9% |
|---|
| Canam Group Inc ($CAM) | -1.9% | 6.3% | 7.4% | 6.4% | 7.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | 123.7% | 38.5% | 49.9% | 7,166.9% | 3.2% |
| Marlin Gold Mining Ltd ($MLN) | | | | 508.8% | |
| Imperial Metals Corp ($III) | 28.2% | 69.2% | 185.7% | 280.2% | |
| Golden Minerals Co ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | |
| |
|---|
| Median (139 companies) | 24.1% | 26.3% | 25.5% | 16.3% | 12.1% |
|---|
| Canam Group Inc ($CAM) | 2.0% | 1.0% | 1.7% | 1.8% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | |
| CanAf Group Inc ($CAF) | 74.9% | 37.0% | 65.2% | 37.6% | |
| Nevsun Resources Ltd ($NSU) | 89.8% | 52.2% | 8.8% | 35.0% | |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 7.0% | 4.9% | -0.1% | -0.1% | -3.5% |
|---|
| Canam Group Inc ($CAM) | -6.3% | 5.6% | 8.4% | 8.1% | 10.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | 4.7x |
| Ur-Energy Inc ($URE) | | | | 55.1x | |
| Katanga Mining Ltd ($KAT) | 0.4x | 19.4x | 3.3x | 18.8x | |
| HudBay Minerals Inc ($HBM) | -2.8x | -4.8x | 2.0x | 14.0x | |
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.1x | 0.3x | 0.7x | 0.9x | 1.5x |
|---|
| Canam Group Inc ($CAM) | | 4.2x | 2.6x | 3.2x | 1.8x |
