Street Capital Group Inc reports 332% Net Income decline and 63.3 pp EBITDA Margin decline from 41.4% to -21.9%
09.03.2016 • About Street Capital Group Inc (
$SCB) • By InTwits
Street Capital Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Street Capital Group Inc doesn't have a profitable business model yet: 2015 ROIC is -10.7%
- EBITDA Margin is quite volatile: -21.9% in 2015, 41.4% in 2014, 15.8% in 2013, 17.0% in 2012, 4.9% in 2011
- The company has unprofitable business model: ROIC is at -10.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Street Capital Group Inc ($SCB) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 77.7 | 112.1 | 139.0 | 62.3 | 75.0 | 20.5% |
| SG&A | | 27.3 | 30.9 | 13.7 | 14.6 | 6.6% |
| EBITDA | 3.8 | 19.1 | 21.9 | 25.8 | -16.4 | -163.7% |
| Net Income | 25.5 | 10.0 | 9.5 | 12.9 | -30.0 | -332.3% |
Balance Sheet
|
|---|
| Cash | 15.2 | 12.2 | 17.6 | 23.0 | 8.8 | -61.6% |
| Short Term Debt | 8.7 | 24.7 | 14.0 | 18.9 | 24.8 | 31.1% |
| Long Term Debt | 31.9 | 28.1 | 6.7 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | | 0.0 | 0.0 | 1.5 | 1.4 | -5.4% |
Ratios
|
|---|
| Revenue growth | 466.1% | 44.4% | 24.0% | -55.2% | 20.5% | |
| EBITDA growth | -130.4% | 405.8% | 14.9% | 17.5% | -163.7% | |
| EBITDA Margin | 4.9% | 17.0% | 15.8% | 41.4% | -21.9% | -63.3% |
| Net Income Margin | 32.9% | 8.9% | 6.8% | 20.8% | -40.0% | -60.8% |
| SG&A, % of revenue | | 24.3% | 22.2% | 22.1% | 19.5% | -2.5% |
| CAPEX, % of revenue | | 0.0% | 0.0% | 2.4% | 1.9% | -0.5% |
| ROIC | 2.3% | 10.9% | 11.0% | 13.4% | -10.7% | -24.1% |
| ROE | 49.0% | 12.4% | 9.4% | 11.4% | -26.2% | -37.6% |
| Net Debt/EBITDA | 6.7x | 2.1x | 0.1x | -0.2x | | 0.2x |
Revenue and profitability
Street Capital Group Inc's Revenue surged on 20.5% 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.
SG&A as a % of Revenue decreased on 2.5 pp from 22.1% to 19.5% in 2015.
Net Income marign dropped on 60.8 pp from 20.8% to -40.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.9% in 2015. Street Capital Group Inc showed small growth in CAPEX/Revenue1.9 pp from 0% in 2012 to 1.9% in 2015.
Return on investment
The company operates at negative ROIC (-10.69%) and ROE (-26.22%). ROIC dropped on 24.1 pp from 13.4% to -10.7% in 2015. ROE dropped on 37.6 pp from 11.4% to -26.2% in 2015.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from -0.2x to in 2015. Debt surged on 31.1% in 2015 while cash dropped on 61.6% in 2015.
Appendix 1: Peers in Financial
Below you can find Street Capital Group Inc benchmarking vs. other companies in Financial 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 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | 47.2% |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Gluskin Sheff + Associates Inc ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 14.7% | 8.5% | 7.1% | 8.9% | 1.3% |
|---|
| Street Capital Group Inc ($SCB) | | 44.4% | 24.0% | -55.2% | 20.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | 84.5% |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | 76.5% |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | 27.5% |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | 31.0% |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 30.5% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | 84.7% |
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | 60.1% |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| |
|---|
| Median (48 companies) | 36.1% | 32.7% | 32.1% | 30.5% | 42.6% |
|---|
| Street Capital Group Inc ($SCB) | 4.9% | 17.0% | 15.8% | 41.4% | -21.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | 46.7% |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | 56.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% |
| |
|---|
| Median (75 companies) | 1.3% | 1.6% | 0.8% | 1.0% | 1.3% |
|---|
| Street Capital Group Inc ($SCB) | | 0.0% | 0.0% | 2.4% | 1.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| Wall Financial Corp ($WFC) | 8.4% | 17.3% | 3.0% | 12.7% | 2.1% |
| |
|---|
| Median (77 companies) | 5.3% | 4.8% | 4.5% | 4.8% | 4.8% |
|---|
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | -10.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | 37.4x |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | 79.9x |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | 9.3x |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (40 companies) | 2.9x | 5.3x | 5.0x | 4.5x | 4.0x |
|---|
| Street Capital Group Inc ($SCB) | 6.7x | 2.1x | 0.1x | -0.2x | |
