CRH Medical Corp EBITDA surged on 482% in 2015 and EBITDA Margin surged on 15.0 pp from 29.1% to 44.1%
25.02.2016 • About CRH Medical Corp (
$CRH) • By InTwits
CRH Medical Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CRH Medical Corp is a fast growth stock: 2015 revenue growth was 284%, 5 year revenue CAGR was 66.2% at 2015 ROIC 17.9%
- EBITDA Margin is expanding: 44.1% in 2015 vs. 29.1% in 2014 vs. 22.1% in 2011
- CRH Medical Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has highly profitable business model: ROIC is at 17.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CRH Medical Corp ($CRH) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5.518 | 6.829 | 7.683 | 11.984 | 46.048 | 284.2% |
| Gross Profit | 2.909 | 3.058 | 3.516 | 6.300 | 18.576 | 194.9% |
| EBITDA | 1.222 | 1.435 | 1.882 | 3.489 | 20.291 | 481.6% |
| Net Income | 1.198 | 1.332 | 2.493 | 1.498 | 3.076 | 105.3% |
Balance Sheet
|
|---|
| Cash | 2.867 | 4.512 | 6.603 | 4.134 | 3.572 | -13.6% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 6.613 | 3.818 | -42.3% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 39.509 | 26.920 | -31.9% |
Cash flow
|
|---|
| Capex | 0.034 | 0.018 | 0.020 | 0.095 | 0.185 | 94.5% |
Ratios
|
|---|
| Revenue growth | 52.0% | 23.7% | 12.5% | 56.0% | 284.2% | |
| EBITDA growth | -838.0% | 17.4% | 31.1% | 85.4% | 481.6% | |
| Gross Margin | 52.7% | 44.8% | 45.8% | 52.6% | 40.3% | -12.2% |
| EBITDA Margin | 22.1% | 21.0% | 24.5% | 29.1% | 44.1% | 15.0% |
| Net Income Margin | 21.7% | 19.5% | 32.4% | 12.5% | 6.7% | -5.8% |
| CAPEX, % of revenue | 0.6% | 0.3% | 0.3% | 0.8% | 0.4% | -0.4% |
| ROIC | 35.8% | 27.8% | 27.3% | 8.3% | 17.9% | 9.7% |
| ROE | 39.0% | 28.4% | 36.0% | 11.1% | 9.2% | -1.8% |
| Net Debt/EBITDA | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x | -10.7x |
Revenue and profitability
The company's Revenue surged on 284% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 15.0 pp from 29.1% to 44.1% in 2015.
Gross Margin dropped on 12.2 pp from 52.6% to 40.3% in 2015.
Net Income marign decreased on 5.8 pp from 12.5% to 6.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 CRH Medical Corp had CAPEX/Revenue of 0.40%. CRH Medical Corp's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 0.48%.
Return on investment
The company operates at good ROIC (17.92%) while ROE is low (9.25%). ROIC increased on 9.7 pp from 8.3% to 17.9% in 2015. ROE decreased slightly on 1.8 pp from 11.1% to 9.2% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.5x. Net Debt / EBITDA dropped on 10.7x from 12.0x to 1.3x in 2015. Debt dropped on 33.4% in 2015 while cash dropped on 13.6% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find CRH Medical Corp benchmarking vs. other companies in Consumer, Non-cyclical 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 |
|---|
| 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 ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.4% | 8.1% | 5.3% | 12.7% | 6.9% |
|---|
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
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% | 92.7% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 34.5% | 36.1% | 35.9% | 35.1% | 34.5% |
|---|
| CRH Medical Corp ($CRH) | 52.7% | 44.8% | 45.8% | 52.6% | 40.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | 12.8% |
| Merus Labs International Inc ($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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 7.7% | 7.4% | 8.7% | 10.6% | 10.9% |
|---|
| CRH Medical Corp ($CRH) | 22.1% | 21.0% | 24.5% | 29.1% | 44.1% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.8% | 2.4% | 2.6% | 2.1% |
|---|
| CRH Medical Corp ($CRH) | 0.6% | 0.3% | 0.3% | 0.8% | 0.4% |
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% | -0.1% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.3% | 6.7% | 6.7% | 7.2% |
|---|
| CRH Medical Corp ($CRH) | 35.8% | 27.8% | 27.3% | 8.3% | 17.9% |
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 |
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | |
| |
|---|
| Median (70 companies) | 1.9x | 2.8x | 2.2x | 2.6x | 1.6x |
|---|
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
