Olympia Financial Group Inc reports 24.6% EBITDA decline and 1.5 pp EBITDA Margin decline from 4.6% to 3.1%
25.02.2016 • About Olympia Financial Group Inc (
$OLY) • By InTwits
Olympia Financial Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Olympia Financial Group Inc doesn't have a profitable business model yet: 2015 ROIC is -0.0%
- EBITDA Margin is quite volatile: 3.1% in 2015, 4.6% in 2014, 10.4% in 2013, 9.7% in 2012, 11.0% in 2011
- Olympia Financial Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's in pair with industry average of 7.6%.
- CAPEX is quite volatile: 0.57 in 2015, 0.53 in 2014, 1.8 in 2013, 0.85 in 2012, 0.28 in 2011
- The company has unprofitable business model: ROIC is at -0.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Olympia Financial Group Inc ($OLY) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 34.116 | 26.876 | 30.613 | 31.325 | 34.996 | 11.7% |
| Gross Profit | 29.108 | 21.741 | 25.296 | 26.066 | 29.578 | 13.5% |
| SG&A | | | | | 28.500 | |
| EBITDA | 3.759 | 2.611 | 3.171 | 1.429 | 1.078 | -24.6% |
| Net Income | 5.314 | 5.812 | 36.577 | 3.988 | 4.417 | 10.8% |
Balance Sheet
|
|---|
| Cash | 7.217 | 6.033 | 20.455 | 11.044 | 8.830 | -20.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 4.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.277 | 0.849 | 1.812 | 0.528 | 0.568 | 7.7% |
Ratios
|
|---|
| Revenue growth | 4.6% | -21.2% | 13.9% | 2.3% | 11.7% | |
| EBITDA growth | -34.4% | -30.5% | 21.4% | -54.9% | -24.6% | |
| Gross Margin | 85.3% | 80.9% | 82.6% | 83.2% | 84.5% | 1.3% |
| EBITDA Margin | 11.0% | 9.7% | 10.4% | 4.6% | 3.1% | -1.5% |
| Net Income Margin | 15.6% | 21.6% | 119.5% | 12.7% | 12.6% | -0.1% |
| SG&A, % of revenue | | | | | 81.4% | 81.4% |
| CAPEX, % of revenue | 0.8% | 3.2% | 5.9% | 1.7% | 1.6% | -0.1% |
| ROIC | 22.5% | 15.4% | 14.5% | 2.5% | -0.0% | -2.6% |
| ROE | 38.9% | 46.2% | 253.0% | 25.4% | 38.2% | 12.8% |
| Net Debt/EBITDA | -1.9x | -2.3x | -6.5x | -7.7x | -4.5x | 3.2x |
Revenue and profitability
Olympia Financial Group Inc's Revenue surged on 11.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.0 pp from 11.7% to 15.7% in FY2015.
Gross Margin increased slightly on 1.3 pp from 83.2% to 84.5% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 1.6%. Olympia Financial Group Inc showed small CAPEX/Revenue decline of 1.5 pp from 3.2% in 2012 to 1.6% in 2015. For the last three years the average CAPEX/Revenue was 3.1%.To fuel this fast growth Olympia Financial Group Inc invested a large share of EBITDA (52.7%) to CAPEX.
Return on investment
The company operates at negative ROIC (-0.04%) and low but positive ROE (38.24%). ROIC decreased on 2.6 pp from 2.5% to -0.037% in 2015. ROE jumped on 12.8 pp from 25.4% to 38.2% in 2015.
Leverage (Debt)
Debt level is -4.5x Net Debt / EBITDA and 3.7x Debt / EBITDA. Net Debt / EBITDA surged on 3.2x from -7.7x to -4.5x in 2015. Debt jumped while cash dropped on 20.0% in 2015.
Appendix 1: Peers in Financial
Below you can find Olympia Financial Group Inc benchmarking vs. other companies in Financial 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 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Gluskin Sheff + Associates Inc ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 11.6% | 9.4% | 7.1% | 8.9% | 0.8% |
|---|
| Olympia Financial Group Inc ($OLY) | | -21.2% | 13.9% | 2.3% | 11.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | 27.5% |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| Tuckamore Capital Management Inc ($TX) | | 19.3% | 21.0% | 20.5% | |
| |
|---|
| Median (10 companies) | 22.6% | 20.1% | 25.2% | 19.7% | 27.7% |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | 84.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | |
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| |
|---|
| Median (48 companies) | 36.1% | 32.7% | 32.1% | 34.8% | 43.3% |
|---|
| Olympia Financial Group Inc ($OLY) | 11.0% | 9.7% | 10.4% | 4.6% | 3.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | 46.7% |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | 56.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% |
| |
|---|
| Median (75 companies) | 1.3% | 1.2% | 0.7% | 1.0% | 1.3% |
|---|
| Olympia Financial Group Inc ($OLY) | 0.8% | 3.2% | 5.9% | 1.7% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (77 companies) | 4.9% | 4.8% | 4.5% | 4.8% | 4.8% |
|---|
| Olympia Financial Group Inc ($OLY) | 22.5% | 15.4% | 14.5% | 2.5% | -0.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | 37.4x |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (40 companies) | 5.3x | 5.3x | 5.0x | 4.5x | 3.0x |
|---|
| Olympia Financial Group Inc ($OLY) | -1.9x | -2.3x | -6.5x | -7.7x | -4.5x |
