Norsat International Inc Net Income jumped on 106% in 2015
04.03.2016 • About Norsat International Inc (
$NII) • By InTwits
Norsat International Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Norsat International Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 7.6%.
- CAPEX is quite volatile: 0.19 in 2015, 0.62 in 2014, 0.58 in 2013, 0.55 in 2012, 0.28 in 2011
- The company has highly profitable business model: ROIC is at 13.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Norsat International Inc ($NII) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 37.792 | 42.429 | 36.418 | 36.179 | 36.100 | -0.2% |
| Gross Profit | 16.357 | 18.160 | 13.823 | 14.379 | 14.646 | 1.9% |
| SG&A | 5.614 | 7.213 | 6.277 | 5.413 | 8.967 | 65.7% |
| EBITDA | | | | | 5.411 | |
| Net Income | 0.411 | 5.135 | 3.707 | 4.195 | 8.650 | 106.2% |
Balance Sheet
|
|---|
| Cash | 4.193 | 5.053 | 3.273 | 5.514 | 4.586 | -16.8% |
| Short Term Debt | 0.000 | 0.693 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.597 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.277 | 0.548 | 0.585 | 0.623 | 0.193 | -69.0% |
Ratios
|
|---|
| Revenue growth | 86.8% | 12.3% | -14.2% | -0.7% | -0.2% | |
| Gross Margin | 43.3% | 42.8% | 38.0% | 39.7% | 40.6% | 0.8% |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | 0.0% | 15.0% | 15.0% |
| Net Income Margin | 1.1% | 12.1% | 10.2% | 11.6% | 24.0% | 12.4% |
| SG&A, % of revenue | 14.9% | 17.0% | 17.2% | 15.0% | 24.8% | 9.9% |
| CAPEX, % of revenue | 0.7% | 1.3% | 1.6% | 1.7% | 0.5% | -1.2% |
| ROIC | 3.1% | 10.9% | 1.4% | 13.7% | 13.8% | 0.1% |
| ROE | 2.4% | 23.9% | 14.6% | 15.1% | 26.6% | 11.5% |
| Net Debt/EBITDA | | | | | -0.8x | -0.8x |
Revenue and profitability
The company's Revenue showed almost no change in 2015.
Gross Margin increased slightly on 0.83 pp from 39.7% to 40.6% in 2015. SG&A as a % of Revenue increased on 9.9 pp from 15.0% to 24.8% in 2015.
Net Income marign jumped on 12.4 pp from 11.6% to 24.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Norsat International Inc had CAPEX/Revenue of 0.54%. CAPEX/Revenue decreased slightly on 0.76 pp from 1.3% in 2012 to 0.54% in 2015. It's average CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at high and attractive ROE (26.64%) while ROIC is a bit lower (13.82%). ROIC showed almost no change in 2015. ROE jumped on 11.5 pp from 15.1% to 26.6% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 16.8% in 2015.
Appendix 1: Peers in Communications
Below you can find Norsat International Inc 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 ($AIM) | | 6.3% | -25.6% | 47.5% | -0.3% |
| |
|---|
| Median (49 companies) | 10.2% | 2.5% | 2.1% | 3.1% | 3.2% |
|---|
| Norsat International Inc ($NII) | | 12.3% | -14.2% | -0.7% | -0.2% |
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% | 81.1% |
| Sangoma Technologies Corp ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (40 companies) | 43.2% | 43.3% | 42.7% | 42.5% | 46.6% |
|---|
| Norsat International Inc ($NII) | 43.3% | 42.8% | 38.0% | 39.7% | 40.6% |
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 ($BCE) | 37.0% | 38.8% | 37.7% | 38.4% | 37.7% |
| |
|---|
| Median (50 companies) | 14.4% | 14.6% | 14.6% | 12.6% | 11.4% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newfoundland Capital Corp Ltd ($NCC.B) | | 8.7% | 5.5% | 76.8% | 5.9% |
| 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% | 2.4% |
|---|
| Norsat International Inc ($NII) | 0.7% | 1.3% | 1.6% | 1.7% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi2Wi Corp ($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% | |
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | 18.8% |
| NeuLion Inc ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | -3.7% |
| |
|---|
| Median (53 companies) | 7.2% | 8.0% | 8.3% | 8.0% | 3.8% |
|---|
| Norsat International Inc ($NII) | 3.1% | 10.9% | 1.4% | 13.7% | 13.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaintree Systems Inc ($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 (42 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 1.8x |
|---|
