The numbers tell that Points International Ltd's growth is outstanding
09.03.2016 • About Points International Ltd (
$PTS) • By InTwits
Points International Ltd is a growth stock in Communications industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Points International Ltd showed fast growth in the last financial year. The company's revenue surged on 16.2% in FY2015. Together with revenue growth Points International Ltd also managed to keep EBITDA growth. EBITDA grew 22.3% for the same period.
In the last 3 years the company showed fast revenue growth of 28.5% from 2012 to 2015 annually. EBITDA surged on 20.3% from 2012 to 2015 annually.
Points International Ltd ($PTS) financials for the last 5 years
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 123 | 139 | 202 | 255 | 296 |
|---|
| Revenue growth, % | | 13.5% | 45.1% | 26.0% | 16.2% |
|---|
| Gross margin, % | 18.0% | 18.4% | 14.7% | 14.7% | 14.4% |
|---|
| SG&A, % | | | | | 0.575% |
|---|
| EBITDA | 6 | 6 | 7 | 9 | 11 |
|---|
| EBITDA growth, % | | 9.8% | 17.1% | 21.5% | 22.3% |
|---|
| EBITDA margin, % | 4.67% | 4.52% | 3.65% | 3.52% | 3.70% |
|---|
| Net Income | 4 | 8 | 4 | 5 | 5 |
|---|
| Net Income margin, % | 3.28% | 5.92% | 1.78% | 1.84% | 1.74% |
|---|
| |
| CAPEX | 1 | 1 | 1 | 1 | 1 |
|---|
| CAPEX/Revenue, % | 0.497% | 0.773% | 0.484% | 0.296% | 0.218% |
|---|
| Debt | 0 | 0 | 0 | 0 | 0 |
|---|
| Cash | 35 | 45 | 64 | 37 | 51 |
|---|
| Net Debt/EBITDA | -6.1x | -7.2x | -8.7x | -4.1x | -4.7x |
|---|
| |
| ROIC, % | 20.7% | 14.9% | 15.0% | 21.2% | 18.8% |
|---|
| ROE, % | 24.3% | 35.3% | 11.9% | 12.7% | 12.4% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. EBITDA margin increased on 0.200 pp from 3.50% to 3.70% in 2015. In the longer period the company's EBITDA margin dropped on 0.800 pp from 4.50% in 2012 to 3.70% in 2015.
We call Points International Ltd an attractive growth stock as together with the growth it delivers high ROIC at 18.8%. Three years ago it was a bit lower at 14.9%. It's average ROIC for the last three years was 18.3%.
The company's Net Income margin decreased on 0.1000 pp from 1.80% to 1.70% in 2015. In the last 3 years the company showed big decline in Net Income margin of 4.20 pp from 5.90% in 2012 to 1.70% in 2015.
Points International Ltd operates at ROE of 12.4%. Average ROE for the last three years was 12.3%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 0.218% in FY2015. The company showed big decline in CAPEX/Revenue of 0.555 pp from 0.773% in 2012 to 0.218% in 2015. It's average CAPEX/Revenue for the last three years was 0.333%.
Leverage (Debt)
Points International Ltd has negative net debt at -4.7x Net Debt/EBITDA - at the same time with high growth. In the longer period leverage surged on 2.47x from -7.16x in 2012 to -4.69x in 2015.
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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 |
