CanWel Building Materials Group Ltd Debt surged on 16.5% in 2015 and Net Debt / EBITDA jumped on 0.2x from 4.8x to 5.1x
02.03.2016 • About CanWel Building Materials Group Ltd (
$CWX) • By InTwits
CanWel Building Materials Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CanWel Building Materials Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has business model with low profitability: ROIC is at 8.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CanWel Building Materials Group Ltd ($CWX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 692.9 | 710.6 | 725.8 | 759.5 | 824.7 | 8.6% |
| Gross Profit | 76.5 | 76.6 | 80.2 | 89.9 | 101.1 | 12.4% |
| SG&A | | | 58.0 | 60.9 | 68.9 | 13.0% |
| EBITDA | 12.5 | 18.8 | 22.2 | 28.9 | 32.1 | 11.1% |
| Net Income | -0.7 | 7.6 | 9.1 | 12.3 | 12.3 | -0.2% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 7.4 | 11.3 | 7.9 | 8.2 | 8.5 | 3.6% |
| Long Term Debt | 43.3 | 43.6 | 119.5 | 131.2 | 153.8 | 17.3% |
Cash flow
|
|---|
| Capex | 1.8 | 7.6 | 1.3 | 3.4 | 4.9 | 43.1% |
Ratios
|
|---|
| Revenue growth | -32.9% | 2.5% | 2.1% | 4.6% | 8.6% | |
| EBITDA growth | -62.5% | 50.0% | 17.8% | 30.4% | 11.1% | |
| Gross Margin | 11.0% | 10.8% | 11.1% | 11.8% | 12.3% | 0.4% |
| EBITDA Margin | 1.8% | 2.6% | 3.1% | 3.8% | 3.9% | 0.1% |
| Net Income Margin | -0.1% | 1.1% | 1.3% | 1.6% | 1.5% | -0.1% |
| SG&A, % of revenue | | | 8.0% | 8.0% | 8.4% | 0.3% |
| CAPEX, % of revenue | 0.3% | 1.1% | 0.2% | 0.4% | 0.6% | 0.1% |
| ROIC | 5.3% | 9.8% | 9.5% | 10.1% | 8.5% | -1.6% |
| ROE | -0.5% | 6.5% | 8.5% | 11.9% | 9.1% | -2.8% |
| Net Debt/EBITDA | 4.0x | 2.9x | 5.7x | 4.8x | 5.1x | 0.2x |
Revenue and profitability
The company's Revenue increased on 8.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 8.3 pp from 36.0% to 27.7% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 CanWel Building Materials Group Ltd had CAPEX/Revenue of 0.59%. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.41%.
Return on investment
The company operates at low ROIC (8.51%) and ROE (9.10%). ROIC decreased slightly on 1.6 pp from 10.1% to 8.5% in 2015. ROE decreased on 2.8 pp from 11.9% to 9.1% in 2015.
Leverage (Debt)
Debt level is 5.1x Net Debt / EBITDA and 5.1x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from 4.8x to 5.1x in 2015. Debt surged on 16.5% in 2015 while cash didn't change in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below we provide CanWel Building Materials Group Ltd benchmarking against other companies in Consumer, 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 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 13.3% | 5.3% | 5.3% | 7.7% | 3.3% |
|---|
| CanWel Building Materials Group Ltd ($CWX) | | 2.5% | 2.1% | 4.6% | 8.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | 42.9% |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 37.9% | 36.5% | 32.1% | 34.6% | 36.8% |
|---|
| CanWel Building Materials Group Ltd ($CWX) | 11.0% | 10.8% | 11.1% | 11.8% | 12.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
| |
|---|
| Median (65 companies) | 8.7% | 8.1% | 9.8% | 10.0% | 10.0% |
|---|
| CanWel Building Materials Group Ltd ($CWX) | 1.8% | 2.6% | 3.1% | 3.8% | 3.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.9% | 2.7% | 2.9% | 2.4% | 3.0% |
|---|
| CanWel Building Materials Group Ltd ($CWX) | 0.3% | 1.1% | 0.2% | 0.4% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.7% | 9.8% | 10.8% | 9.7% | 11.1% |
|---|
| CanWel Building Materials Group Ltd ($CWX) | 5.3% | 9.8% | 9.5% | 10.1% | 8.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | 5.8x |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.2x | 1.6x | 1.9x | 1.4x |
|---|
| CanWel Building Materials Group Ltd ($CWX) | 4.0x | 2.9x | 5.7x | 4.8x | 5.1x |
