Onex Corp EBITDA surged on 39.0% in 2015 and EBITDA Margin increased slightly on 1.5 pp from 7.6% to 9.1%
26.02.2016 • About Onex Corp (
$OCX) • By InTwits
Onex Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Onex Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 10.4%.
- CAPEX is quite volatile: 1,114 in 2015, 1,098 in 2014, 1,374 in 2013, 3,565 in 2012, 2,047 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.9%
- It operates with high leverage: Net Debt/EBITDA is 8.8x while industry average is 6.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Onex Corp ($OCX) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24,642 | 24,917 | 19,824 | 16,880 | 19,681 | 16.6% |
| Gross Profit | 4,917 | 5,009 | 5,194 | 4,717 | 6,099 | 29.3% |
| EBITDA | 1,663 | 1,429 | 1,098 | 1,288 | 1,790 | 39.0% |
| Net Income | 1,326 | -128 | -354 | -115 | -573 | 398.3% |
Balance Sheet
|
|---|
| Cash | 2,448 | 2,656 | 3,191 | 3,764 | 2,313 | -38.5% |
| Short Term Debt | 482 | 286 | 651 | 408 | 411 | 0.7% |
| Long Term Debt | 6,479 | 10,184 | 11,319 | 12,874 | 17,643 | 37.0% |
Cash flow
|
|---|
| Capex | 646 | 607 | 568 | 467 | 704 | 50.7% |
Ratios
|
|---|
| Revenue growth | 24.9% | 1.1% | -20.4% | -14.9% | 16.6% | |
| EBITDA growth | -4.2% | -14.1% | -23.2% | 17.3% | 39.0% | |
| Gross Margin | 20.0% | 20.1% | 26.2% | 27.9% | 31.0% | 3.0% |
| EBITDA Margin | 6.7% | 5.7% | 5.5% | 7.6% | 9.1% | 1.5% |
| Net Income Margin | 5.4% | -0.5% | -1.8% | -0.7% | -2.9% | -2.2% |
| CAPEX, % of revenue | 2.6% | 2.4% | 2.9% | 2.8% | 3.6% | 0.8% |
| ROIC | 7.0% | 3.7% | 1.0% | 2.9% | 3.9% | 0.9% |
| ROE | 116.5% | -7.5% | -25.5% | -11.7% | | 11.7% |
| Net Debt/EBITDA | 2.7x | 5.5x | 8.0x | 7.4x | 8.8x | 1.4x |
Revenue and profitability
Onex Corp's Revenue jumped on 16.6% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.5 pp from 7.6% to 9.1% in 2015.
Gross Margin increased on 3.0 pp from 27.9% to 31.0% in 2015.
Net Income marign decreased on 2.2 pp from -0.68% to -2.9% in 2015.
Capital expenditures (CAPEX) and working capital investments
Onex Corp's CAPEX/Revenue was 3.6% in 2015. The company showed small growth in CAPEX/Revenue of 1.1 pp from 2.4% in 2012 to 3.6% in 2015. For the last three years the average CAPEX/Revenue was 3.1%.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.8x and Debt / EBITDA is 10.1x. Net Debt / EBITDA jumped on 1.4x from 7.4x to 8.8x in 2015. Debt jumped on 35.9% in 2015 while cash dropped on 38.5% in 2015.
Management team
Gerald W Schwartz is a the company's CEO. Gerald W Schwartz is a founder and has spent 35 years at the company. The company's CFO Christopher A Govan has spent 3 years at the company.
Appendix 1: Peers in Financial
Below you can find Onex Corp 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 ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 13.2% | 9.4% | 7.4% | 8.9% | 1.3% |
|---|
| Onex Corp ($OCX) | | 1.1% | -20.4% | -14.9% | 16.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | 84.5% |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | 76.5% |
| 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% |
| Tuckamore Capital Management Inc ($TX) | | 19.3% | 21.0% | 20.5% | |
| |
|---|
| Median (10 companies) | 29.8% | 25.0% | 25.2% | 19.7% | 30.1% |
|---|
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | 31.0% |
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 ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| |
|---|
| Median (48 companies) | 36.1% | 32.7% | 32.1% | 34.8% | 43.3% |
|---|
| Onex Corp ($OCX) | 6.7% | 5.7% | 5.5% | 7.6% | 9.1% |
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 ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% |
| |
|---|
| Median (75 companies) | 1.2% | 1.2% | 0.7% | 1.0% | 1.4% |
|---|
| Onex Corp ($OCX) | 2.6% | 2.4% | 2.9% | 2.8% | 3.6% |
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 ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (77 companies) | 4.9% | 4.8% | 4.6% | 4.8% | 4.8% |
|---|
| Onex Corp ($OCX) | 7.0% | 3.7% | 1.0% | 2.9% | 3.9% |
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 | 9.3x |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (40 companies) | 5.3x | 5.1x | 4.6x | 4.2x | 3.0x |
|---|
| Onex Corp ($OCX) | 2.7x | 5.5x | 8.0x | 7.4x | 8.8x |
