Intertape Polymer Group Inc Net Income surged on 58.2% in 2015 and EBITDA Margin increased slightly on 1.8 pp from 11.2% to 13.0%
10.03.2016 • About Intertape Polymer Group Inc (
$ITP) • By InTwits
Intertape Polymer Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 13.0% in 2015 vs. 11.2% in 2014 vs. 7.5% in 2011
- Intertape Polymer Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 6.9%.
- CAPEX is quite volatile: 34.3 in 2015, 40.6 in 2014, 46.8 in 2013, 21.6 in 2012, 14.0 in 2011
- The company has highly profitable business model: ROIC is at 23.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Intertape Polymer Group Inc ($ITP) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 786.7 | 784.4 | 781.5 | 812.7 | 781.9 | -3.8% |
| Gross Profit | 114.5 | 138.7 | 158.5 | 163.6 | 168.0 | 2.7% |
| SG&A | 77.0 | 79.1 | 82.7 | 86.0 | 84.1 | -2.2% |
| EBITDA | 59.3 | 65.5 | 66.0 | 91.0 | 101.7 | 11.7% |
| Net Income | 9.0 | 20.4 | 67.4 | 35.8 | 56.7 | 58.2% |
Balance Sheet
|
|---|
| Cash | 4.3 | 5.9 | 2.5 | 8.3 | 17.6 | 111.2% |
| Short Term Debt | 3.1 | 9.7 | 8.7 | 5.7 | 5.7 | 0.6% |
| Long Term Debt | 191.1 | 141.6 | 121.1 | 117.6 | 147.1 | 25.1% |
Cash flow
|
|---|
| Capex | 14.0 | 21.6 | 46.8 | 40.6 | 34.3 | -15.5% |
Ratios
|
|---|
| Revenue growth | 9.2% | -0.3% | -0.4% | 4.0% | -3.8% | |
| EBITDA growth | 70.8% | 10.5% | 0.6% | 38.1% | 11.7% | |
| Gross Margin | 14.6% | 17.7% | 20.3% | 20.1% | 21.5% | 1.4% |
| EBITDA Margin | 7.5% | 8.4% | 8.4% | 11.2% | 13.0% | 1.8% |
| Net Income Margin | 1.1% | 2.6% | 8.6% | 4.4% | 7.2% | 2.8% |
| SG&A, % of revenue | 9.8% | 10.1% | 10.6% | 10.6% | 10.8% | 0.2% |
| CAPEX, % of revenue | 1.8% | 2.7% | 6.0% | 5.0% | 4.4% | -0.6% |
| ROIC | 9.0% | 12.3% | 13.7% | 22.5% | 23.0% | 0.5% |
| ROE | 6.4% | 14.0% | 35.1% | 15.6% | 25.5% | 9.9% |
| Net Debt/EBITDA | 3.2x | 2.2x | 1.9x | 1.3x | 1.3x | 0.1x |
Revenue and profitability
Intertape Polymer Group Inc's Revenue decreased on 3.8% in 2015. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.8 pp from 11.2% to 13.0% in 2015.
Gross Margin increased slightly on 1.4 pp from 20.1% to 21.5% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 2.8 pp from 4.4% to 7.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 4.4%. The company's CAPEX/Revenue increased slightly on 1.6 pp from 2.7% in 2012 to 4.4% in 2015. Average CAPEX/Revenue for the last three years was 5.1%.
Return on investment
The company operates at high and attractive ROIC (23.01%) and ROE (25.51%). ROIC showed almost no change in 2015. ROE increased on 9.9 pp from 15.6% to 25.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.5x. Net Debt / EBITDA increased on 0.1x from 1.3x to 1.3x in 2015. Debt jumped on 24.0% in 2015 while cash jumped on 111% in 2015.
Management team
Gregory A C Yull is a the company's CEO. Gregory A C Yull is a founder and has spent 8 years at the company. The company's CFO Jeffrey Crystal has spent 4 years at the company.
Appendix 1: Peers in Industrial
Below we provide Intertape Polymer Group Inc benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | | 19.7% | 0.9% | 50.5% | 35.3% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 5.8% | 11.5% | 5.3% | 9.4% | 9.4% |
|---|
| Intertape Polymer Group Inc ($ITP) | | -0.3% | -0.4% | 4.0% | -3.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 24.4% |
|---|
| Intertape Polymer Group Inc ($ITP) | 14.6% | 17.7% | 20.3% | 20.1% | 21.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.3% | 9.4% | 8.3% | 7.2% | 9.5% |
|---|
| Intertape Polymer Group Inc ($ITP) | 7.5% | 8.4% | 8.4% | 11.2% | 13.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | 41.3% |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | 18.0% |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 3.0% | 3.1% | 3.5% | 3.1% | 4.0% |
|---|
| Intertape Polymer Group Inc ($ITP) | 1.8% | 2.7% | 6.0% | 5.0% | 4.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | 11.4% |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 9.0% | 9.3% | 8.5% | 8.5% | 9.4% |
|---|
| Intertape Polymer Group Inc ($ITP) | 9.0% | 12.3% | 13.7% | 22.5% | 23.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | 1.6x |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | 12.9x |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.4x | 1.2x | 1.6x |
|---|
| Intertape Polymer Group Inc ($ITP) | 3.2x | 2.2x | 1.9x | 1.3x | 1.3x |
