Looking for a profitable fast-growing stock? Look at easyhome Ltd
24.02.2016 • About easyhome Ltd (
$EH) • By InTwits
Pay attention to easyhome Ltd as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
easyhome Ltd showed fast growth in the last financial year. Easyhome Ltd's revenue surged on 17.4% in FY2015. In addition to revenue easyhome Ltd also keeps delivering EBITDA growth. It was 15.7% in FY2015
In the longer period easyhome Ltd showed fast revenue growth of 15.1% from 2012 to 2015 annually. EBITDA surged on 14.1% from 2012 to 2015 annually.
easyhome Ltd ($EH) financials for the last 5 years
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 188 | 200 | 219 | 259 | 304 |
|---|
| Revenue growth, % | | 6.0% | 9.6% | 18.4% | 17.4% |
|---|
| SG&A, % | | | | | 3.51% |
|---|
| EBITDA | 67 | 70 | 79 | 90 | 104 |
|---|
| EBITDA growth, % | | 5.0% | 12.2% | 14.4% | 15.7% |
|---|
| EBITDA margin, % | 35.4% | 35.1% | 36.0% | 34.7% | 34.2% |
|---|
| Net Income | 10 | 11 | 14 | 20 | 24 |
|---|
| Net Income margin, % | 5.10% | 5.54% | 6.48% | 7.62% | 7.80% |
|---|
| |
| CAPEX | 53 | 64 | 56 | 56 | 51 |
|---|
| CAPEX/Revenue, % | 28.0% | 32.2% | 25.6% | 21.6% | 16.9% |
|---|
| Debt | 33 | 40 | 61 | 122 | 210 |
|---|
| Cash | 1 | 5 | 2 | 1 | 11 |
|---|
| Net Debt/EBITDA | 0.5x | 0.5x | 0.8x | 1.3x | 1.9x |
|---|
| |
| ROIC, % | | | 14.6% | 14.4% | 14.7% |
|---|
| ROE, % | 10.2% | 10.9% | 11.8% | 13.6% | 14.4% |
|---|
Profitability and return on investment
Despite revenue growth EBITDA margin declined slightly from 34.7% in FY2014 to 34.2% in FY2015. In the longer period easyhome Ltd showed small EBITDA margin decline of 0.900 pp from 35.1% in 2012 to 34.2% in 2015.
We call easyhome Ltd an attractive growth stock as together with the growth it delivers high ROIC at 14.7%. Three years ago it was considerably lower at . For the last three years the average ROIC was 14.6%.
Net Income margin increased slightly on 0.200 pp from 7.60% to 7.80% in 2015. In the longer period Net Income margin surged on 2.30 pp from 5.50% in 2012 to 7.80% in 2015.
easyhome Ltd operates at ROE of 14.4%. It's average ROE for the last three years was 13.3%.
Capital expenditures (CAPEX)
To this fast growth easyhome Ltd had to invest in CAPEX.The company's CAPEX/Revenue was 16.9% in FY2015. CAPEX/Revenue dropped on 15.3 pp from 32.2% in 2012 to 16.9% in 2015. It's average level of CAPEX/Revenue for the last three years was 21.4%.
Leverage (Debt)
Having such a fast growth profile easyhome Ltd keeps medium debt level at 1.9x Net Debt/EBITDA. In the longer period easyhome Ltd showed fast leverage growth of 1.41x from 0.50x in 2012 to 1.91x in 2015.
Peers in Consumer, Non-cyclical
Below we provide easyhome Ltd 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 15.5% | 9.3% | 5.3% | 12.7% | 6.0% |
|---|
| easyhome Ltd ($EH) | | 6.0% | 9.6% | 18.4% | 17.4% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (75 companies) | 35.4% | 37.4% | 36.1% | 35.6% | 36.9% |
|---|
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Cipher Pharmaceuticals Inc ($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% | 7.0% |
|---|
| easyhome Ltd ($EH) | 35.4% | 35.1% | 36.0% | 34.7% | 34.2% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Neptune Technologies & Bioressources Inc ($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% | 2.6% | 2.4% | 2.5% | 2.1% |
|---|
| easyhome Ltd ($EH) | 28.0% | 32.2% | 25.6% | 21.6% | 16.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Biosyent Inc ($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) | 7.7% | 6.7% | 6.7% | 6.7% | 7.5% |
|---|
| easyhome Ltd ($EH) | | | 14.6% | 14.4% | 14.7% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Noble Iron Inc ($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 ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (70 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.3x |
|---|
| easyhome Ltd ($EH) | 0.5x | 0.5x | 0.8x | 1.3x | 1.9x |
