Gamehost Inc EBITDA dropped on 13.8% in 2015 and EBITDA Margin decreased on 3.1 pp from 45.9% to 42.8%
08.03.2016 • About Gamehost Inc (
$GH) • By InTwits
Gamehost Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Gamehost Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 0.80 in 2015, 0.40 in 2014, 2.1 in 2013, 0.50 in 2012, 0.31 in 2011
- The company has highly profitable business model: ROIC is at 17.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Gamehost Inc ($GH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 71.989 | 76.600 | 77.600 | 83.700 | 77.400 | -7.5% |
| Gross Profit | 32.201 | 35.700 | 36.100 | 39.500 | 34.100 | -13.7% |
| SG&A | | | | | 3.200 | |
| EBITDA | 31.838 | 35.300 | 35.500 | 38.400 | 33.100 | -13.8% |
| Net Income | 14.861 | 20.100 | 20.100 | 22.400 | 19.800 | -11.6% |
Balance Sheet
|
|---|
| Cash | 17.734 | 19.700 | 15.000 | 16.300 | 15.800 | -3.1% |
| Short Term Debt | 26.947 | 20.600 | 20.000 | 23.700 | 9.200 | -61.2% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 13.000 | 20.000 | 53.8% |
Cash flow
|
|---|
| Capex | 0.314 | 0.500 | 2.100 | 0.400 | 0.800 | 100.0% |
Ratios
|
|---|
| Revenue growth | 15.3% | 6.4% | 1.3% | 7.9% | -7.5% | |
| EBITDA growth | 14.8% | 10.9% | 0.6% | 8.2% | -13.8% | |
| Gross Margin | 44.7% | 46.6% | 46.5% | 47.2% | 44.1% | -3.1% |
| EBITDA Margin | 44.2% | 46.1% | 45.7% | 45.9% | 42.8% | -3.1% |
| Net Income Margin | 20.6% | 26.2% | 25.9% | 26.8% | 25.6% | -1.2% |
| SG&A, % of revenue | | | | | 4.1% | 4.1% |
| CAPEX, % of revenue | 0.4% | 0.7% | 2.7% | 0.5% | 1.0% | 0.6% |
| ROIC | 20.8% | 22.5% | 21.1% | 21.5% | 17.7% | -3.9% |
| ROE | 16.9% | 21.5% | 19.1% | 20.5% | 17.4% | -3.2% |
| Net Debt/EBITDA | 0.3x | 0.0x | 0.1x | 0.5x | 0.4x | -0.1x |
Revenue and profitability
Gamehost Inc's Revenue decreased on 7.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.7 pp from -4.3% to 0.47% in FY2015.
Gross Margin decreased on 3.1 pp from 47.2% to 44.1% in 2015.
Net Income marign decreased slightly on 1.2 pp from 26.8% to 25.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.0% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. Average CAPEX/Revenue for the last three years was 1.4%.
Return on investment
The company operates at good ROIC (17.66%) and ROE (17.38%). ROIC decreased on 3.9 pp from 21.5% to 17.7% in 2015. ROE decreased on 3.2 pp from 20.5% to 17.4% in 2015.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 0.9x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 0.5x to 0.4x in 2015. Debt dropped on 20.4% in 2015 while cash decreased on 3.1% in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Gamehost Inc benchmarking vs. other companies in Consumer, Cyclical 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 |
|---|
| 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 ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (68 companies) | 13.3% | 5.3% | 5.3% | 7.0% | 4.0% |
|---|
| Gamehost Inc ($GH) | | 6.4% | 1.3% | 7.9% | -7.5% |
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 ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Cara Operations Ltd ($CAO) | | | 79.2% | 78.9% | 78.4% |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| |
|---|
| Median (60 companies) | 36.1% | 34.1% | 31.8% | 33.5% | 36.8% |
|---|
| Gamehost Inc ($GH) | 44.7% | 46.6% | 46.5% | 47.2% | 44.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Great Canadian Gaming Corp ($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% |
| Whistler Blackcomb Holdings Inc ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (66 companies) | 8.4% | 7.9% | 9.6% | 9.8% | 10.0% |
|---|
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | 42.8% |
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 ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (69 companies) | 2.9% | 2.7% | 2.9% | 2.5% | 2.9% |
|---|
| Gamehost Inc ($GH) | 0.4% | 0.7% | 2.7% | 0.5% | 1.0% |
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 ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (69 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 11.0% |
|---|
| Gamehost Inc ($GH) | 20.8% | 22.5% | 21.1% | 21.5% | 17.7% |
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 ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (58 companies) | 1.3x | 1.4x | 1.8x | 2.1x | 1.4x |
|---|
| Gamehost Inc ($GH) | 0.3x | 0.0x | 0.1x | 0.5x | 0.4x |
