Points International Ltd EBITDA surged on 22.3% in 2015 and Revenue jumped on 16.2%
02.03.2016 • About Points International Ltd (
$PTS) • By InTwits
Points International Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Points International Ltd is a fast growth stock: 2015 revenue growth was 16.2%, 5 year revenue CAGR was 25.4% at 2015 ROIC 18.8%
- EBITDA Margin is relatively stable: 3.7% in 2015 vs. 3.5% in 2014 vs. 4.7% in 2011
- Points International Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has highly profitable business model: ROIC is at 18.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Points International Ltd ($PTS) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 122.9 | 139.5 | 202.3 | 254.9 | 296.3 | 16.2% |
| Gross Profit | 22.1 | 25.7 | 29.8 | 37.4 | 42.6 | 13.8% |
| SG&A | | | | | 1.7 | |
| EBITDA | 5.7 | 6.3 | 7.4 | 9.0 | 11.0 | 22.3% |
| Net Income | 4.0 | 8.3 | 3.6 | 4.7 | 5.2 | 10.3% |
Balance Sheet
|
|---|
| Cash | 34.9 | 45.1 | 64.2 | 36.9 | 51.4 | 39.3% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.6 | 1.1 | 1.0 | 0.8 | 0.6 | -14.2% |
Ratios
|
|---|
| Revenue growth | 28.5% | 13.5% | 45.1% | 26.0% | 16.2% | |
| EBITDA growth | 76.3% | 9.8% | 17.1% | 21.5% | 22.3% | |
| Gross Margin | 18.0% | 18.4% | 14.7% | 14.7% | 14.4% | -0.3% |
| EBITDA Margin | 4.7% | 4.5% | 3.6% | 3.5% | 3.7% | 0.2% |
| Net Income Margin | 3.3% | 5.9% | 1.8% | 1.8% | 1.7% | -0.1% |
| SG&A, % of revenue | | | | | 0.6% | 0.6% |
| CAPEX, % of revenue | 0.5% | 0.8% | 0.5% | 0.3% | 0.2% | -0.1% |
| ROIC | 20.7% | 14.9% | 15.0% | 21.2% | 18.8% | -2.3% |
| ROE | 24.3% | 35.3% | 11.9% | 12.7% | 12.4% | -0.3% |
| Net Debt/EBITDA | -6.1x | -7.2x | -8.7x | -4.1x | -4.7x | -0.6x |
Revenue and profitability
The company's Revenue surged on 16.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 205 pp from 89.6% to -116% in 2015.
Gross Margin showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Points International Ltd had CAPEX/Revenue of 0.22%. The company's CAPEX/Revenue decreased slightly on 0.55 pp from 0.77% in 2012 to 0.22% in 2015. For the last three years the average CAPEX/Revenue was 0.33%.
Return on investment
The company operates at good ROIC (18.84%) and ROE (12.38%). ROIC decreased on 2.3 pp from 21.2% to 18.8% in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
The company has no debt. Cash jumped on 39.3% in 2015.
Appendix 1: Peers in Communications
Below you can find Points International Ltd benchmarking vs. other companies in Communications 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 |
|---|
| Telehop Communications Inc ($HOP) | -11.7% | -13.1% | -7.8% | 105.7% | |
| Wi2Wi Corp ($YTY) | | | 11.5% | 100.3% | |
| BSM Technologies Inc ($GPS) | | | 39.1% | 55.5% | 2.7% |
| Plaintree Systems Inc ($NPT) | | 14.5% | 9.1% | 50.8% | -7.1% |
| Aimia Inc ($AIM) | | 6.3% | -25.6% | 47.5% | -0.3% |
| |
|---|
| Median (49 companies) | 10.4% | 2.5% | 1.8% | 1.9% | 2.7% |
|---|
| Points International Ltd ($PTS) | | 13.5% | 45.1% | 26.0% | 16.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wanted Technologies Corp ($WAN) | 86.6% | 90.5% | 93.2% | 94.3% | 95.6% |
| CounterPath Corp ($CCV) | 74.1% | 80.0% | 85.1% | 80.9% | 81.5% |
| Mediagrif Interactive Technologies Inc ($MDF) | 78.2% | 79.8% | 79.8% | 78.8% | 80.1% |
| NeuLion Inc ($NLN) | 45.2% | 53.6% | 63.8% | 70.2% | |
| Sangoma Technologies Corp ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (40 companies) | 43.3% | 43.3% | 42.7% | 42.5% | 46.6% |
|---|
| Points International Ltd ($PTS) | 18.0% | 18.4% | 14.7% | 14.7% | 14.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | 42.3% |
| Cogeco Cable Inc ($CCA) | 45.8% | 46.0% | 44.9% | 43.8% | 46.2% |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | 44.3% |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | 44.6% |
| BCE Inc ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | 37.7% |
| |
|---|
| Median (49 companies) | 16.4% | 15.6% | 14.8% | 13.4% | 14.5% |
|---|
| Points International Ltd ($PTS) | 4.7% | 4.5% | 3.6% | 3.5% | 3.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newfoundland Capital Corp Ltd ($NCC.B) | | 8.7% | 5.5% | 76.8% | |
| Axia NetMedia Corp ($AXX) | 10.7% | 30.8% | 27.2% | 27.0% | |
| UrtheCast Corp ($UR) | | | | 26.5% | |
| TeraGo Inc ($TGO) | 21.6% | 20.9% | 21.5% | 23.1% | |
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | 22.9% |
| |
|---|
| Median (52 companies) | 4.3% | 2.3% | 3.3% | 2.3% | 2.5% |
|---|
| Points International Ltd ($PTS) | 0.5% | 0.8% | 0.5% | 0.3% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi2Wi Corp ($YTY) | -28.5% | -166.9% | | 136.7% | |
| Tucows Inc ($TC) | 12.8% | 17.7% | 22.5% | 35.4% | 51.4% |
| Asian Television Network International Ltd ($SAT) | 102.7% | 34.6% | 23.6% | 23.4% | |
| NeuLion Inc ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | |
| Yellow Pages Ltd/Canada ($Y) | 8.9% | 18.0% | 28.4% | 17.9% | 11.1% |
| |
|---|
| Median (53 companies) | 6.3% | 8.0% | 8.2% | 8.0% | 3.7% |
|---|
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | 18.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaintree Systems Inc ($NPT) | 0.7x | | | 124.2x | 3.9x |
| Advantex Marketing International Inc ($ADX) | | 4.8x | 2.2x | 5.0x | |
| MDC Partners Inc ($MDZ.A) | 7.3x | 12.4x | 112.6x | 4.6x | 5.5x |
| Quebecor Inc ($QBR.B) | 2.0x | 3.7x | 3.9x | 4.2x | |
| Postmedia Network Canada Corp ($PNC.B) | 2.9x | 3.3x | 3.4x | 4.2x | |
| |
|---|
| Median (41 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 1.9x |
|---|
| Points International Ltd ($PTS) | -6.1x | -7.2x | -8.7x | -4.1x | -4.7x |
