DH Corp revenue surged on 32.3% in 2015 while EBITDA Margin decreased slightly on 1.2 pp from 29.4% to 28.2%
23.02.2016 • About DH Corp (
$DH) • By InTwits
DH Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- DH Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 4.9%.
- CAPEX is quite volatile: 28.1 in 2015, 12.6 in 2014, 11.6 in 2013, 7.7 in 2012, 8.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.7x while industry average is 5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
DH Corp ($DH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 725 | 695 | 837 | 1,139 | 1,507 | 32.3% |
| EBITDA | 177 | 182 | 199 | 335 | 425 | 26.7% |
| Net Income | 90 | 69 | 44 | 106 | 84 | -21.1% |
Balance Sheet
|
|---|
| Cash | 2 | 6 | 32 | 35 | 66 | 91.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 346 | 341 | 1,134 | 985 | 2,059 | 109.0% |
Cash flow
|
|---|
| Capex | 8 | 8 | 12 | 13 | 28 | 122.9% |
Ratios
|
|---|
| Revenue growth | 11.5% | -4.0% | 20.4% | 36.1% | 32.3% | |
| EBITDA growth | 20.6% | 2.4% | 9.8% | 68.1% | 26.7% | |
| EBITDA Margin | 24.5% | 26.1% | 23.8% | 29.4% | 28.2% | -1.2% |
| Net Income Margin | 12.4% | 9.9% | 5.2% | 9.3% | 5.6% | -3.8% |
| CAPEX, % of revenue | 1.1% | 1.1% | 1.4% | 1.1% | 1.9% | 0.8% |
| ROIC | 11.9% | 9.9% | 5.3% | 6.6% | 4.4% | -2.2% |
| ROE | 14.2% | 9.8% | 4.7% | 8.4% | 4.4% | -3.9% |
| Net Debt/EBITDA | 1.9x | 1.8x | 5.5x | 2.8x | 4.7x | 1.9x |
Revenue and profitability
DH Corp's Revenue jumped on 32.3% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.57 pp from 7.2% to 7.8% in 2015.
Net Income marign decreased on 3.8 pp from 9.3% to 5.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.9%. CAPEX/Revenue increased slightly on 0.76 pp from 1.1% in 2012 to 1.9% in 2015. Average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low ROIC (4.40%) and ROE (4.44%). ROIC decreased on 2.2 pp from 6.6% to 4.4% in 2015. ROE decreased on 3.9 pp from 8.4% to 4.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.7x and Debt / EBITDA is 4.8x. Net Debt / EBITDA jumped on 1.9x from 2.8x to 4.7x in 2015. Debt jumped on 109% in 2015 while cash surged on 91.2% in 2015.
Management team
Gerrard B Schmid is a the company's CEO. Gerrard B Schmid is a founder and has spent 4 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide DH Corp benchmarking against other companies in Consumer, Non-cyclical 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 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | 43.8% | -38.8% | -72.9% | 218,969.1% | |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 15.5% | 9.3% | 5.3% | 12.7% | 11.4% |
|---|
| DH Corp ($DH) | | -4.0% | 20.4% | 36.1% | 32.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (75 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 33.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 7.7% | 7.4% | 8.7% | 10.6% | 8.6% |
|---|
| DH Corp ($DH) | 24.5% | 26.1% | 23.8% | 29.4% | 28.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.8% | 2.4% | 2.6% | 2.3% |
|---|
| DH Corp ($DH) | 1.1% | 1.1% | 1.4% | 1.1% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | -12.4% |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.3% | 6.9% | 7.3% | 7.5% |
|---|
| DH Corp ($DH) | 11.9% | 9.9% | 5.3% | 6.6% | 4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | 4.9x |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (70 companies) | 1.8x | 2.8x | 2.2x | 2.6x | 1.5x |
|---|
| DH Corp ($DH) | 1.9x | 1.8x | 5.5x | 2.8x | 4.7x |
