SNC-Lavalin Group Inc Net Income dropped on 69.7% in 2015 while Revenue jumped on 16.4%
03.03.2016 • About SNC-Lavalin Group Inc (
$SNC) • By InTwits
SNC-Lavalin Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 7.1% in 2015, 24.8% in 2014, 5.4% in 2013, 8.2% in 2012, 10.2% in 2011
- SNC-Lavalin Group Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.2%. At the same time it's a lot of higher than industry average of 6.8%.
- CAPEX is quite volatile: 116 in 2015, 1,593 in 2014, 1,601 in 2013, 945 in 2012, 613 in 2011
- The company has business model with average profitability: ROIC is at 11.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SNC-Lavalin Group Inc ($SNC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,210 | 8,091 | 7,913 | 8,239 | 9,587 | 16.4% |
| Gross Profit | 1,252 | 1,355 | 1,116 | 1,341 | 1,433 | 6.9% |
| SG&A | 655 | 855 | 837 | 841 | 856 | 1.7% |
| EBITDA | 736 | 660 | 430 | 2,045 | 684 | -66.5% |
| Net Income | 379 | 306 | 36 | 1,333 | 404 | -69.7% |
Balance Sheet
|
|---|
| Cash | 1,231 | 1,175 | 1,109 | 1,702 | 1,582 | -7.1% |
| Short Term Debt | 327 | 485 | 277 | 8 | 8 | 5.8% |
| Long Term Debt | 1,910 | 2,349 | 3,886 | 880 | 875 | -0.5% |
Cash flow
|
|---|
| Capex | 613 | 945 | 1,601 | 1,593 | 116 | -92.7% |
Ratios
|
|---|
| Revenue growth | 20.3% | 12.2% | -2.2% | 4.1% | 16.4% | |
| EBITDA growth | -13.0% | -10.3% | -34.9% | 375.8% | -66.5% | |
| Gross Margin | 17.4% | 16.7% | 14.1% | 16.3% | 14.9% | -1.3% |
| EBITDA Margin | 10.2% | 8.2% | 5.4% | 24.8% | 7.1% | -17.7% |
| Net Income Margin | 5.3% | 3.8% | 0.5% | 16.2% | 4.2% | -12.0% |
| SG&A, % of revenue | 9.1% | 10.6% | 10.6% | 10.2% | 8.9% | -1.3% |
| CAPEX, % of revenue | 8.5% | 11.7% | 20.2% | 19.3% | 1.2% | -18.1% |
| ROIC | 14.6% | 10.7% | 4.0% | 35.2% | 11.4% | -23.9% |
| ROE | 20.5% | 15.5% | 1.7% | 49.8% | 11.3% | -38.6% |
| Net Debt/EBITDA | 1.4x | 2.5x | 7.1x | -0.4x | -1.0x | -0.6x |
Revenue and profitability
The company's Revenue surged on 16.4% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 2.0 pp from 16.1% to 18.0% in FY2015.
Gross Margin decreased slightly on 1.3 pp from 16.3% to 14.9% in 2015. SG&A as a % of Revenue decreased slightly on 1.3 pp from 10.2% to 8.9% in 2015.
Net Income marign dropped on 12.0 pp from 16.2% to 4.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.2% in 2015. CAPEX/Revenue dropped on 10.5 pp from 11.7% in 2012 to 1.2% in 2015. It's average level of CAPEX/Revenue for the last three years was 13.6%.
Return on investment
The company operates at low ROIC (11.38%) and ROE (11.26%). ROIC dropped on 23.9 pp from 35.2% to 11.4% in 2015. ROE dropped on 38.6 pp from 49.8% to 11.3% in 2015.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from -0.4x to -1.0x in 2015. Debt showed almost no change in 2015 while cash decreased on 7.1% in 2015.
Management team
The company's CEO is Neil A Bruce. Neil A Bruce is a founder and has 3 years tenure at the company.
Appendix 1: Peers in Industrial
Below you can find SNC-Lavalin Group Inc benchmarking vs. other companies in Industrial 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 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | | 19.7% | 0.9% | 50.5% | 35.3% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 9.2% | 10.4% | 5.3% | 9.4% | 7.9% |
|---|
| SNC-Lavalin Group Inc ($SNC) | | 12.2% | -2.2% | 4.1% | 16.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 24.8% |
|---|
| SNC-Lavalin Group Inc ($SNC) | 17.4% | 16.7% | 14.1% | 16.3% | 14.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.1% | 9.4% | 8.3% | 7.2% | 9.8% |
|---|
| SNC-Lavalin Group Inc ($SNC) | 10.2% | 8.2% | 5.4% | 24.8% | 7.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.1% | 4.0% |
|---|
| SNC-Lavalin Group Inc ($SNC) | 8.5% | 11.7% | 20.2% | 19.3% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| STT Enviro Corp ($STT) | 88.7% | 55.1% | 44.3% | 30.4% | |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 9.7% |
|---|
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | 11.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | 1.6x |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.4x | 1.3x | 1.6x |
|---|
| SNC-Lavalin Group Inc ($SNC) | 1.4x | 2.5x | 7.1x | -0.4x | -1.0x |
