Winpak Ltd reports 26.7% Net Income growth and 1.3% Revenue growth
18.02.2016 • About Winpak Ltd (
$WPK) • By InTwits
Winpak Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Winpak Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.5%. At the same time it's in pair with industry average of 6.9%.
- CAPEX is quite volatile: 124 in 2015, 84.1 in 2014, 80.3 in 2013, 63.3 in 2012, 42.0 in 2011
- The company has highly profitable business model: ROIC is at 22.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Winpak Ltd ($WPK) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 652.1 | 670.1 | 714.9 | 786.8 | 797.2 | 1.3% |
| Gross Profit | 187.8 | 199.0 | 208.1 | 224.4 | 257.8 | 14.9% |
| SG&A | 79.4 | 83.0 | 86.6 | 89.9 | 92.1 | 2.4% |
| EBITDA | 123.8 | 130.6 | 132.8 | 147.3 | 180.8 | 22.7% |
| Net Income | 63.8 | 71.3 | 71.4 | 78.4 | 99.2 | 26.7% |
Balance Sheet
|
|---|
| Cash | 126.9 | 133.3 | 161.1 | 143.8 | 165.0 | 14.8% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 48.9 | 68.4 | 51.2 | 48.1 | 53.7 | 11.7% |
Ratios
|
|---|
| Revenue growth | 12.5% | 2.8% | 6.7% | 10.1% | 1.3% | |
| EBITDA growth | 16.7% | 5.5% | 1.6% | 10.9% | 22.7% | |
| Gross Margin | 28.8% | 29.7% | 29.1% | 28.5% | 32.3% | 3.8% |
| EBITDA Margin | 19.0% | 19.5% | 18.6% | 18.7% | 22.7% | 4.0% |
| Net Income Margin | 9.8% | 10.6% | 10.0% | 10.0% | 12.5% | 2.5% |
| SG&A, % of revenue | 12.2% | 12.4% | 12.1% | 11.4% | 11.5% | 0.1% |
| CAPEX, % of revenue | 7.5% | 10.2% | 7.2% | 6.1% | 6.7% | 0.6% |
| ROIC | 21.1% | 20.4% | 18.0% | 18.3% | 22.6% | 4.3% |
| ROE | 15.4% | 15.2% | 13.3% | 13.5% | 16.7% | 3.2% |
| Net Debt/EBITDA | -1.0x | -1.0x | -1.2x | -1.0x | -0.9x | 0.1x |
Revenue and profitability
The company's Revenue increased slightly on 1.3% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.0 pp from 18.7% to 22.7% in FY2015.
Gross Margin increased on 3.8 pp from 28.5% to 32.3% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased on 2.5 pp from 10.0% to 12.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Winpak Ltd had CAPEX/Revenue of 6.7%. The company showed decline in CAPEX/Revenue of 3.5 pp from 10.2% in FY2012 to 6.7% in FY2015. For the last three years the average CAPEX/Revenue was 6.7%.
Return on investment
The company operates at high and attractive ROIC (22.57%) while ROE is a bit lower (16.70%). ROIC increased on 4.3 pp from 18.3% to 22.6% in FY2015. ROE increased on 3.2 pp from 13.5% to 16.7% in FY2015.
Leverage (Debt)
The company has no debt. Cash jumped on 14.8% in FY2015.
Management team
Bruce J Berry is a the company's CEO. Bruce J Berry is a founder and has spent 14 years at the company.
Appendix 1: Peers in Industrial
Below you can find Winpak Ltd 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 13.6% | 11.5% | 4.9% | 9.1% | 11.7% |
|---|
| Winpak Ltd ($WPK) | | 2.8% | 6.7% | 10.1% | 1.3% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 25.0% |
|---|
| Winpak Ltd ($WPK) | 28.8% | 29.7% | 29.1% | 28.5% | 32.3% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 9.7% |
|---|
| Winpak Ltd ($WPK) | 19.0% | 19.5% | 18.6% | 18.7% | 22.7% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.1% | 3.1% |
|---|
| Winpak Ltd ($WPK) | 7.5% | 10.2% | 7.2% | 6.1% | 6.7% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 9.5% |
|---|
| Winpak Ltd ($WPK) | 21.1% | 20.4% | 18.0% | 18.3% | 22.6% |
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 ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.6x |
|---|
| Winpak Ltd ($WPK) | -1.0x | -1.0x | -1.2x | -1.0x | -0.9x |
