TWC Enterprises Ltd EBITDA surged on 12.3% in 2015 and EBITDA Margin increased slightly on 1.4 pp from 26.5% to 27.9%
01.03.2016 • About TWC Enterprises Ltd (
$TWC) • By InTwits
TWC Enterprises Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- TWC Enterprises Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.3%. At the same time it's in pair with industry average of 9.9%.
- CAPEX is quite volatile: 33.6 in 2015, 109 in 2014, 95.2 in 2013, 127 in 2012, 88.9 in 2011
- The company has potentially unprofitable business model: ROIC is at 5.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
TWC Enterprises Ltd ($TWC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 216.3 | 215.2 | 213.7 | 213.1 | 227.3 | 6.7% |
| Gross Profit | 170.8 | 171.1 | 169.5 | 166.1 | 202.7 | 22.0% |
| EBITDA | 60.2 | 63.7 | 62.7 | 56.4 | 63.3 | 12.3% |
| Net Income | 16.4 | 14.6 | 13.2 | 3.5 | 4.3 | 22.9% |
Balance Sheet
|
|---|
| Cash | 1.6 | 0.7 | 1.0 | 1.8 | 2.3 | 26.2% |
| Short Term Debt | 27.8 | 19.9 | 19.6 | 71.2 | 57.9 | -18.7% |
| Long Term Debt | 317.8 | 330.1 | 328.8 | 285.0 | 290.7 | 2.0% |
Cash flow
|
|---|
| Capex | 15.1 | 23.7 | 15.6 | 12.0 | 12.1 | 0.6% |
Ratios
|
|---|
| Revenue growth | 5.2% | -0.5% | -0.7% | -0.3% | 6.7% | |
| EBITDA growth | 2.3% | 5.8% | -1.5% | -10.0% | 12.3% | |
| Gross Margin | 79.0% | 79.5% | 79.3% | 78.0% | 89.2% | 11.2% |
| EBITDA Margin | 27.8% | 29.6% | 29.3% | 26.5% | 27.9% | 1.4% |
| Net Income Margin | 7.6% | 6.8% | 6.2% | 1.6% | 1.9% | 0.2% |
| CAPEX, % of revenue | 7.0% | 11.0% | 7.3% | 5.6% | 5.3% | -0.3% |
| ROIC | 6.4% | 7.0% | 6.7% | 5.2% | 5.9% | 0.7% |
| ROE | 8.9% | 7.8% | 7.0% | 1.8% | 2.0% | 0.2% |
| Net Debt/EBITDA | 5.7x | 5.5x | 5.5x | 6.3x | 5.5x | -0.8x |
Revenue and profitability
TWC Enterprises Ltd's Revenue increased on 6.7% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 70.7 pp from 34.1% to -36.7% in 2015.
Gross Margin jumped on 11.2 pp from 78.0% to 89.2% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 TWC Enterprises Ltd had CAPEX/Revenue of 5.3%. The company showed decline in CAPEX/Revenue of 5.7 pp from 11.0% in 2012 to 5.3% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at low ROIC (5.91%) and ROE (2.00%). ROIC increased slightly on 0.68 pp from 5.2% to 5.9% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 5.5x Net Debt / EBITDA and 5.5x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 6.3x to 5.5x in 2015. Debt decreased on 2.2% in 2015 while cash jumped on 26.2% in 2015.
Appendix 1: Peers in Diversified
Below you can find TWC Enterprises Ltd benchmarking vs. other companies in Diversified 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tellza Communications Inc ($TEL) | -15.5% | -14.8% | 51.1% | 56.1% | |
| WesternOne Inc ($WEQ) | 127.2% | 99.0% | 34.3% | 27.9% | |
| Sherritt International Corp ($S) | | -76.0% | -5.6% | 1.6% | -26.3% |
| |
|---|
| Median (3 companies) | 55.8% | -14.8% | 34.3% | 27.9% | -26.3% |
|---|
| TWC Enterprises Ltd ($TWC) | | -0.5% | -0.7% | -0.3% | 6.7% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sherritt International Corp ($S) | 25.1% | 45.3% | 30.5% | 30.2% | 5.3% |
| WesternOne Inc ($WEQ) | 38.7% | 29.2% | 25.5% | 20.9% | |
| Tellza Communications Inc ($TEL) | 6.8% | | 5.5% | 3.8% | |
| |
|---|
| Median (3 companies) | 25.1% | 37.3% | 25.5% | 20.9% | 5.3% |
|---|
| TWC Enterprises Ltd ($TWC) | 79.0% | 79.5% | 79.3% | 78.0% | 89.2% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sherritt International Corp ($S) | 32.3% | 50.7% | 33.0% | 36.9% | 27.0% |
| WesternOne Inc ($WEQ) | 19.8% | 19.5% | 17.0% | 11.7% | |
| Tellza Communications Inc ($TEL) | 2.0% | | 2.5% | 1.2% | |
| |
|---|
| Median (3 companies) | 19.8% | 35.1% | 17.0% | 11.7% | 27.0% |
|---|
| TWC Enterprises Ltd ($TWC) | 27.8% | 29.6% | 29.3% | 26.5% | 27.9% |
Top companies by CAPEX/Revenue, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sherritt International Corp ($S) | 6.4% | 12.3% | 15.1% | 17.7% | 23.5% |
| WesternOne Inc ($WEQ) | 17.4% | 16.4% | 10.8% | 10.4% | |
| Tellza Communications Inc ($TEL) | 0.1% | | 0.6% | 0.3% | |
| |
|---|
| Median (3 companies) | 6.4% | 14.3% | 10.8% | 10.4% | 23.5% |
|---|
| TWC Enterprises Ltd ($TWC) | 7.0% | 11.0% | 7.3% | 5.6% | 5.3% |
Top companies by ROIC, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WesternOne Inc ($WEQ) | 5.7% | 12.1% | 12.1% | 7.8% | |
| Tellza Communications Inc ($TEL) | 7.3% | | | 7.6% | |
| Sherritt International Corp ($S) | 7.5% | 2.6% | 1.0% | 1.2% | -0.6% |
| |
|---|
| Median (3 companies) | 7.3% | 7.3% | 6.5% | 7.6% | -0.6% |
|---|
| TWC Enterprises Ltd ($TWC) | 6.4% | 7.0% | 6.7% | 5.2% | 5.9% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sherritt International Corp ($S) | 2.5x | 7.9x | 14.7x | 10.1x | 22.4x |
| WesternOne Inc ($WEQ) | 7.5x | 3.8x | 3.9x | 4.1x | |
| Tellza Communications Inc ($TEL) | 0.4x | | -0.8x | -2.2x | |
| |
|---|
| Median (3 companies) | 2.5x | 5.8x | 3.9x | 4.1x | 22.4x |
|---|
| TWC Enterprises Ltd ($TWC) | 5.7x | 5.5x | 5.5x | 6.3x | 5.5x |
