Brookfield Real Estate Services Inc EBITDA Margin dropped on 78.4 pp from 78.4% to in 2015
10.03.2016 • About Brookfield Real Estate Services Inc (
$BRE) • By InTwits
Brookfield Real Estate Services Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has highly profitable business model: ROIC is at 61.0%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Brookfield Real Estate Services Inc ($BRE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 36.720 | 36.519 | 36.268 | 37.392 | 39.859 | 6.6% |
| SG&A | | | | | 1.286 | |
| EBITDA | 28.306 | 28.386 | 28.249 | 29.297 | | -100.0% |
| Net Income | 8.016 | 2.972 | 0.888 | 3.871 | 1.324 | -65.8% |
Balance Sheet
|
|---|
| Cash | 5.593 | 5.103 | 3.633 | 3.052 | 5.645 | 85.0% |
| Short Term Debt | 0.663 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 52.598 | 52.602 | 52.782 | 52.760 | 64.662 | 22.6% |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | 0.2% | -0.5% | -0.7% | 3.1% | 6.6% | |
| EBITDA growth | 0.6% | 0.3% | -0.5% | 3.7% | | |
| EBITDA Margin | 77.1% | 77.7% | 77.9% | 78.4% | 0.0% | -78.4% |
| Net Income Margin | 21.8% | 8.1% | 2.4% | 10.4% | 3.3% | -7.0% |
| SG&A, % of revenue | | | | | 3.2% | 3.2% |
| ROIC | 17.1% | 26.0% | 31.0% | 47.0% | 61.0% | 14.0% |
| ROE | 36.0% | 50.8% | | | | 0.0% |
| Net Debt/EBITDA | 1.7x | 1.7x | 1.7x | 1.7x | | -1.7x |
Revenue and profitability
The company's Revenue increased on 6.6% in 2015.
Net Income marign decreased on 7.0 pp from 10.4% to 3.3% in 2015.
Leverage (Debt)
Debt surged on 22.6% in 2015 while cash jumped on 85.0% in 2015.
Appendix 1: Peers in Financial
Below you can find Brookfield Real Estate Services 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 ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 15.4% | 9.4% | 7.4% | 8.9% | 1.5% |
|---|
| Brookfield Real Estate Services Inc ($BRE) | | -0.5% | -0.7% | 3.1% | 6.6% |
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% |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| Madison Pacific Properties Inc ($MPC) | 59.2% | | 62.9% | 65.7% | 66.0% |
| |
|---|
| Median (48 companies) | 35.6% | 32.3% | 32.0% | 30.5% | 37.6% |
|---|
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($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% |
|---|
| Brookfield Real Estate Services Inc ($BRE) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| 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% |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | -10.7% |
| Wall Financial Corp ($WFC) | 8.4% | 17.3% | 3.0% | 12.7% | 2.1% |
| |
|---|
| Median (77 companies) | 4.9% | 4.8% | 4.5% | 4.8% | 4.8% |
|---|
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | 61.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($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) | 5.3x | 5.3x | 5.0x | 4.5x | 4.0x |
|---|
| Brookfield Real Estate Services Inc ($BRE) | 1.7x | 1.7x | 1.7x | 1.7x | |
