Equitable Group Inc Debt surged on 39.8% in 2015 and Net Debt / EBITDA jumped on 2.5x from 9.8x to 12.3x
29.02.2016 • About Equitable Group Inc (
$EQB) • By InTwits
Equitable Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: 84.7% in 2015 vs. 86.0% in 2014 vs. 89.7% in 2011
- Equitable Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 27.4%.
- CAPEX is quite volatile: 21.0 in 2015, 8.7 in 2014, 1.7 in 2013, 0.80 in 2012, 2.3 in 2011
- It operates with high leverage: Net Debt/EBITDA is 12.3x while industry average is 6.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Equitable Group Inc ($EQB) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 439.0 | 481.1 | 501.0 | 518.9 | 576.1 | 11.0% |
| EBITDA | 394.0 | 424.0 | 438.0 | 446.1 | 488.0 | 9.4% |
| Net Income | 62.2 | 81.2 | 93.5 | 106.7 | 125.9 | 17.9% |
Balance Sheet
|
|---|
| Cash | 170.8 | 379.4 | 243.6 | 230.1 | 423.4 | 84.0% |
| Short Term Debt | 0.0 | 9.9 | 8.1 | 144.6 | 235.8 | 63.0% |
| Long Term Debt | 5,166.1 | 5,391.8 | 4,683.9 | 4,440.3 | 6,174.4 | 39.1% |
Cash flow
|
|---|
| Capex | 2.3 | 0.8 | 1.7 | 8.7 | 21.0 | 142.3% |
Ratios
|
|---|
| Revenue growth | 11.6% | 9.6% | 4.1% | 3.6% | 11.0% | |
| EBITDA growth | 9.3% | 7.6% | 3.3% | 1.8% | 9.4% | |
| EBITDA Margin | 89.7% | 88.1% | 87.4% | 86.0% | 84.7% | -1.2% |
| Net Income Margin | 14.2% | 16.9% | 18.7% | 20.6% | 21.8% | 1.3% |
| CAPEX, % of revenue | 0.5% | 0.2% | 0.3% | 1.7% | 3.6% | 2.0% |
| ROE | 16.5% | 18.7% | 18.1% | 17.4% | 17.9% | 0.4% |
| Net Debt/EBITDA | 12.7x | 11.8x | 10.2x | 9.8x | 12.3x | 2.5x |
Revenue and profitability
The company's Revenue jumped on 11.0% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 8.3 pp from 32.6% to 40.9% in 2015.
Net Income marign increased slightly on 1.3 pp from 20.6% to 21.8% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Equitable Group Inc had CAPEX/Revenue of 3.6%. CAPEX/Revenue increased on 3.5 pp from 0.17% in 2012 to 3.6% in 2015. Average CAPEX/Revenue for the last three years was 1.9%.
Leverage (Debt)
Company's Net Debt / EBITDA is 12.3x and Debt / EBITDA is 13.1x. Net Debt / EBITDA surged on 2.5x from 9.8x to 12.3x in 2015. Debt surged on 39.8% in 2015 while cash jumped on 84.0% in 2015.
Appendix 1: Peers in Financial
Below you can find Equitable 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 ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 14.7% | 8.5% | 7.4% | 8.9% | 1.3% |
|---|
| Equitable Group Inc ($EQB) | | 9.6% | 4.1% | 3.6% | 11.0% |
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% |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | 31.0% |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 30.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| 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 ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| Madison Pacific Properties Inc ($MPC) | 59.2% | | 62.9% | 65.7% | 66.0% |
| |
|---|
| Median (48 companies) | 35.6% | 32.3% | 32.0% | 30.5% | 43.0% |
|---|
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | 84.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($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% | 1.6% | 0.8% | 1.0% | 1.5% |
|---|
| Equitable Group Inc ($EQB) | 0.5% | 0.2% | 0.3% | 1.7% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($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) | 5.0% | 4.8% | 4.5% | 4.8% | 4.8% |
|---|
| Equitable Group Inc ($EQB) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($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) | 2.9x | 5.1x | 4.6x | 4.2x | 3.0x |
|---|
| Equitable Group Inc ($EQB) | 12.7x | 11.8x | 10.2x | 9.8x | 12.3x |
