SunOpta Inc Debt surged on 481% in 2015 and Revenue increased on 3.8%
01.03.2016 • About SunOpta Inc (
$SOY) • By InTwits
SunOpta Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SunOpta Inc doesn't have a profitable business model yet: FY2015 ROIC is 1.0%
- SunOpta Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's in pair with industry average of 1.8%.
- CAPEX is quite volatile: 3.6 in 2015, 8.3 in 2014, 9.6 in 2013, 15.5 in 2012, 32.9 in 2011
- The company has potentially unprofitable business model: ROIC is at 1.0%
- It operates with high leverage: Net Debt/EBITDA is 16.9x while industry average is 5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SunOpta Inc ($SOY) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,020 | 1,091 | 1,182 | 1,103 | 1,145 | 3.8% |
| Gross Profit | 121 | 134 | 131 | 122 | 110 | -9.6% |
| SG&A | 82 | 83 | 89 | 80 | 86 | 6.7% |
| EBITDA | 56 | 64 | 53 | 58 | 29 | -50.5% |
| Net Income | 5 | 24 | -9 | 13 | -22 | -271.5% |
Balance Sheet
|
|---|
| Cash | 2 | 7 | 9 | 8 | 2 | -70.7% |
| Short Term Debt | 145 | 138 | 148 | 79 | 162 | 103.2% |
| Long Term Debt | 17 | 51 | 43 | 4 | 321 | 8,976.6% |
Cash flow
|
|---|
| Capex | 17 | 24 | 34 | 18 | 31 | 76.5% |
Ratios
|
|---|
| Revenue growth | 13.5% | 7.0% | 8.3% | -6.7% | 3.8% | |
| EBITDA growth | 15.4% | 14.9% | -17.4% | 9.0% | -50.5% | |
| Gross Margin | 11.9% | 12.3% | 11.1% | 11.1% | 9.6% | -1.4% |
| EBITDA Margin | 5.5% | 5.9% | 4.5% | 5.2% | 2.5% | -2.7% |
| Net Income Margin | 0.5% | 2.2% | -0.7% | 1.2% | -2.0% | -3.2% |
| SG&A, % of revenue | 8.1% | 7.6% | 7.5% | 7.3% | 7.5% | 0.2% |
| CAPEX, % of revenue | 1.7% | 2.2% | 2.9% | 1.6% | 2.7% | 1.1% |
| ROIC | 8.0% | 8.4% | 5.5% | 8.4% | 1.0% | -7.3% |
| ROE | 1.8% | 7.7% | -2.6% | 3.9% | -5.9% | -9.8% |
| Net Debt/EBITDA | 2.9x | 2.9x | 3.5x | 1.3x | 16.9x | 15.5x |
Revenue and profitability
SunOpta Inc's Revenue increased on 3.8% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.87 pp from 3.3% to 4.1% in 2015.
Gross Margin decreased slightly on 1.4 pp from 11.1% to 9.6% in FY2015. SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign decreased on 3.2 pp from 1.2% to -2.0% in FY2015.
Capital expenditures (CAPEX) and working capital investments
SunOpta Inc's CAPEX/Revenue was 2.7% in FY2015. The company's CAPEX/Revenue increased slightly on 0.50 pp from 2.2% in FY2012 to 2.7% in FY2015. Average CAPEX/Revenue for the last three years was 2.4%.SunOpta Inc investments to CAPEX were large: 109% of EBITDA.
Return on investment
The company operates at low but positive ROIC (1.05%) and negative ROE (-5.90%). ROIC decreased on 7.3 pp from 8.4% to 1.0% in FY2015. ROE decreased on 9.8 pp from 3.9% to -5.9% in FY2015.
Leverage (Debt)
Debt level is 16.9x Net Debt / EBITDA and 16.9x Debt / EBITDA. Net Debt / EBITDA jumped on 15.5x from 1.3x to 16.9x in FY2015. Debt surged on 481% in FY2015 while cash dropped on 70.7% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide SunOpta 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 ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.6% | 9.3% | 5.3% | 13.2% | 11.4% |
|---|
| SunOpta Inc ($SOY) | | 7.0% | 8.3% | -6.7% | 3.8% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.5% | 38.6% | 36.2% | 35.7% | 33.1% |
|---|
| SunOpta Inc ($SOY) | 11.9% | 12.3% | 11.1% | 11.1% | 9.6% |
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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 8.1% | 8.5% | 9.0% | 11.0% | 10.4% |
|---|
| SunOpta Inc ($SOY) | 5.5% | 5.9% | 4.5% | 5.2% | 2.5% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.8% | 2.4% | 2.6% | 2.1% |
|---|
| SunOpta Inc ($SOY) | 1.7% | 2.2% | 2.9% | 1.6% | 2.7% |
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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.3% | 6.9% | 6.7% | 6.8% |
|---|
| SunOpta Inc ($SOY) | 8.0% | 8.4% | 5.5% | 8.4% | 1.0% |
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 ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (70 companies) | 1.8x | 2.5x | 2.2x | 2.7x | 1.6x |
|---|
| SunOpta Inc ($SOY) | 2.9x | 2.9x | 3.5x | 1.3x | 16.9x |
