Maple Leaf Foods Inc reports 582% EBITDA growth and 4.3% Revenue growth
01.03.2016 • About Maple Leaf Foods Inc (
$MFI) • By InTwits
Maple Leaf Foods Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.6% in 2015, 1.0% in 2014, 0.7% in 2013, 6.5% in 2012, 7.9% in 2011
- Maple Leaf Foods Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.3%. At the same time it's in pair with industry average of 8.5%.
- CAPEX is quite volatile: 87 in FY2015, 283 in FY2014, 418 in FY2013, 902 in FY2012, 1,039 in FY2011
- The company has potentially unprofitable business model: ROIC is at 4.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Maple Leaf Foods Inc ($MFI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 4,894 | 4,552 | 2,955 | 3,157 | 3,293 | 4.3% |
| Gross Profit | 767 | 674 | 181 | 218 | 381 | 74.6% |
| SG&A | 504 | 508 | 303 | 298 | 288 | -3.3% |
| EBITDA | 389 | 298 | 19 | 32 | 217 | 581.6% |
| Net Income | 82 | 89 | 496 | 710 | 42 | -94.1% |
Balance Sheet
|
|---|
| Cash | 0 | 90 | 507 | 496 | 292 | -41.1% |
| Short Term Debt | 42 | 55 | 214 | 0 | 1 | 72.2% |
| Long Term Debt | 942 | 1,207 | 744 | 10 | 10 | -1.7% |
Cash flow
|
|---|
| Capex | 229 | 306 | 361 | 259 | 148 | -43.0% |
Ratios
|
|---|
| Revenue growth | -1.5% | -7.0% | -35.1% | 6.9% | 4.3% | |
| EBITDA growth | 5.5% | -23.4% | -93.6% | 65.4% | 581.6% | |
| Gross Margin | 15.7% | 14.8% | 6.1% | 6.9% | 11.6% | 4.7% |
| EBITDA Margin | 7.9% | 6.5% | 0.7% | 1.0% | 6.6% | 5.6% |
| Net Income Margin | 1.7% | 2.0% | 16.8% | 22.5% | 1.3% | -21.2% |
| SG&A, % of revenue | 10.3% | 11.2% | 10.3% | 9.4% | 8.7% | -0.7% |
| CAPEX, % of revenue | 4.7% | 6.7% | 12.2% | 8.2% | 4.5% | -3.7% |
| ROIC | 14.6% | 8.5% | -5.2% | -3.3% | 4.4% | 7.7% |
| ROE | 9.2% | 10.2% | 40.2% | 37.1% | 1.9% | -35.2% |
| Net Debt/EBITDA | 2.5x | 3.9x | 23.5x | -15.3x | -1.3x | 14.0x |
Revenue and profitability
Maple Leaf Foods Inc's Revenue increased on 4.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 94.6 pp from -86.5% to 8.1% in FY2015.
Gross Margin increased on 4.7 pp from 6.9% to 11.6% in 2015. SG&A as a % of Revenue decreased slightly on 0.69 pp from 9.4% to 8.7% in 2015.
Net Income marign dropped on 21.2 pp from 22.5% to 1.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 4.5%. The company showed decline in CAPEX/Revenue of 2.2 pp from 6.7% in 2012 to 4.5% in 2015. It's average level of CAPEX/Revenue for the last three years was 8.3%.The company invested a large share of EBITDA (68.2%) to CAPEX.
Return on investment
The company operates at low ROIC (4.42%) and ROE (1.94%). ROIC increased on 7.7 pp from -3.3% to 4.4% in 2015. ROE dropped on 35.2 pp from 37.1% to 1.9% in 2015.
Leverage (Debt)
Debt level is -1.3x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA surged on 14.0x from -15.3x to -1.3x in 2015. Debt increased slightly on 1.6% in 2015 while cash dropped on 41.1% in 2015.
Management team
The company's CEO is Michael H Mccain. Michael H Mccain is a founder and has 19 years tenure at the company. Maple Leaf Foods Inc's CFO Deborah Keenan Simpson "Debble" has spent 4 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Maple Leaf Foods Inc 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | | -38.8% | -72.9% | 218,969.1% | 18.7% |
| Cardiome Pharma Corp ($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 ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.6% | 9.3% | 6.7% | 13.2% | 11.4% |
|---|
| Maple Leaf Foods Inc ($MFI) | | -7.0% | -35.1% | 6.9% | 4.3% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.5% | 38.6% | 36.2% | 35.7% | 33.1% |
|---|
| Maple Leaf Foods Inc ($MFI) | 15.7% | 14.8% | 6.1% | 6.9% | 11.6% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 7.8% | 8.5% | 9.0% | 11.0% | 10.4% |
|---|
| Maple Leaf Foods Inc ($MFI) | 7.9% | 6.5% | 0.7% | 1.0% | 6.6% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.5% | 2.1% |
|---|
| Maple Leaf Foods Inc ($MFI) | 4.7% | 6.7% | 12.2% | 8.2% | 4.5% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.3% | 6.9% | 7.3% | 6.8% |
|---|
| Maple Leaf Foods Inc ($MFI) | 14.6% | 8.5% | -5.2% | -3.3% | 4.4% |
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 |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (70 companies) | 1.8x | 2.5x | 2.2x | 2.7x | 1.6x |
|---|
| Maple Leaf Foods Inc ($MFI) | 2.5x | 3.9x | 23.5x | -15.3x | -1.3x |
