Savaria Corp CAPEX surged on 1,159% in 2015 and Revenue jumped on 14.9%
10.03.2016 • About Savaria Corp (
$SIS) • By InTwits
Savaria Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 13.9% in 2015 vs. 12.7% in 2014 vs. 7.5% in 2011
- Savaria Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's a lot of higher than industry average of 10.6%.
- CAPEX is quite volatile: 7.2 in 2015, 0.57 in 2014, 1.1 in 2013, 10.9 in 2012, 0.52 in 2011
- The company has highly profitable business model: ROIC is at 20.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Savaria Corp ($SIS) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 65.274 | 66.734 | 75.739 | 82.909 | 95.263 | 14.9% |
| Gross Profit | 18.233 | 18.055 | 22.255 | 25.320 | 29.577 | 16.8% |
| SG&A | | 5.331 | 5.588 | 6.486 | 15.538 | 139.6% |
| EBITDA | 4.875 | 4.471 | 9.105 | 10.534 | 13.214 | 25.4% |
| Net Income | 2.001 | 1.578 | 5.299 | 6.391 | 8.944 | 39.9% |
Balance Sheet
|
|---|
| Cash | 3.931 | 1.993 | 1.968 | 16.280 | 29.707 | 82.5% |
| Short Term Debt | 4.952 | 3.619 | 2.864 | 2.833 | 2.980 | 5.2% |
| Long Term Debt | 7.984 | 15.464 | 12.731 | 12.521 | 14.272 | 14.0% |
Cash flow
|
|---|
| Capex | 0.515 | 10.894 | 1.089 | 0.574 | 7.228 | 1,159.2% |
Ratios
|
|---|
| Revenue growth | 0.1% | 2.2% | 13.5% | 9.5% | 14.9% | |
| EBITDA growth | -14.8% | -8.3% | 103.6% | 15.7% | 25.4% | |
| Gross Margin | 27.9% | 27.1% | 29.4% | 30.5% | 31.0% | 0.5% |
| EBITDA Margin | 7.5% | 6.7% | 12.0% | 12.7% | 13.9% | 1.2% |
| Net Income Margin | 3.1% | 2.4% | 7.0% | 7.7% | 9.4% | 1.7% |
| SG&A, % of revenue | | 8.0% | 7.4% | 7.8% | 16.3% | 8.5% |
| CAPEX, % of revenue | 0.8% | 16.3% | 1.4% | 0.7% | 7.6% | 6.9% |
| ROIC | 9.8% | 8.4% | 20.9% | 20.6% | 20.2% | -0.4% |
| ROE | 9.5% | 8.0% | 26.9% | 22.5% | 20.9% | -1.7% |
| Net Debt/EBITDA | 1.8x | 3.8x | 1.5x | -0.1x | -0.9x | -0.9x |
Revenue and profitability
The company's Revenue jumped on 14.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.4 pp from 7.4% to -7.0% in 2015.
Gross Margin increased slightly on 0.51 pp from 30.5% to 31.0% in 2015. SG&A as a % of Revenue increased on 8.5 pp from 7.8% to 16.3% in 2015.
Net Income marign increased slightly on 1.7 pp from 7.7% to 9.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 7.6%. Savaria Corp's CAPEX/Revenue decreased on 8.7 pp from 16.3% in 2012 to 7.6% in 2015. For the last three years the average CAPEX/Revenue was 3.2%.Savaria Corp invested a big chunk of EBITDA (54.7%) to CAPEX to fuel its growth.
Return on investment
The company operates at high and attractive ROIC (20.22%) and ROE (20.88%). ROIC showed almost no change in 2015. ROE decreased slightly on 1.7 pp from 22.5% to 20.9% in 2015.
Leverage (Debt)
Debt level is -0.9x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 0.9x from -0.1x to -0.9x in 2015. Debt jumped on 12.4% in 2015 while cash surged on 82.5% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Savaria Corp benchmarking vs. other companies in Consumer, Non-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 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | | -38.8% | -72.9% | 218,969.1% | 18.7% |
| Cardiome Pharma Corp ($COM) | | -47.6% | 471.7% | 566.0% | -30.4% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.4% | 9.3% | 5.3% | 13.2% | 9.3% |
|---|
| Savaria Corp ($SIS) | | 2.2% | 13.5% | 9.5% | 14.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.5% | 38.6% | 36.2% | 35.7% | 35.7% |
|---|
| Savaria Corp ($SIS) | 27.9% | 27.1% | 29.4% | 30.5% | 31.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | 12.8% |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | 39.3% |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 8.1% | 8.5% | 8.7% | 10.6% | 10.3% |
|---|
| Savaria Corp ($SIS) | 7.5% | 6.7% | 12.0% | 12.7% | 13.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.6% | 2.2% |
|---|
| Savaria Corp ($SIS) | 0.8% | 16.3% | 1.4% | 0.7% | 7.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | -12.4% |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | -0.1% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 6.3% | 6.7% | 6.7% | 6.5% |
|---|
| Savaria Corp ($SIS) | 9.8% | 8.4% | 20.9% | 20.6% | 20.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | 4.9x |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (70 companies) | 1.8x | 2.5x | 2.2x | 2.7x | 1.8x |
|---|
| Savaria Corp ($SIS) | 1.8x | 3.8x | 1.5x | -0.1x | -0.9x |
