GMP Capital Inc reports 288% Net Income decline and 25.5 pp EBITDA Margin decline from 10.8% to -14.7%
11.03.2016 • About GMP Capital Inc (
$GMP) • By InTwits
GMP Capital Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- GMP Capital Inc is a company in decline: 2015 revenue growth was -16.2%, 5 years revenue CAGR was -13.3%
- EBITDA Margin is quite volatile: -14.7% in 2015, 10.8% in 2014, 8.6% in 2013, 5.1% in 2012, 18.9% in 2011
- GMP Capital Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
GMP Capital Inc ($GMP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 301.8 | 267.4 | 219.5 | 264.6 | 221.8 | -16.2% |
| EBITDA | 57.1 | 13.6 | 18.9 | 28.6 | -32.6 | -214.0% |
| Net Income | 25.9 | 3.6 | 4.8 | 14.9 | -28.1 | -288.4% |
Balance Sheet
|
|---|
| Cash | 384.2 | 374.9 | 401.7 | 430.0 | 501.5 | 16.6% |
| Short Term Debt | 78.6 | 106.1 | 111.6 | 151.8 | 104.6 | -31.1% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.7 | 1.5 | 0.2 | 4.2 | 1.8 | -57.4% |
Ratios
|
|---|
| Revenue growth | -33.5% | -11.4% | -17.9% | 20.5% | -16.2% | |
| EBITDA growth | -38.4% | -76.2% | 38.6% | 51.3% | -214.0% | |
| EBITDA Margin | 18.9% | 5.1% | 8.6% | 10.8% | -14.7% | -25.5% |
| Net Income Margin | 8.6% | 1.3% | 2.2% | 5.6% | -12.7% | -18.3% |
| CAPEX, % of revenue | 0.9% | 0.6% | 0.1% | 1.6% | 0.8% | -0.8% |
| ROE | 7.1% | -1.1% | -0.6% | 3.2% | -14.3% | -17.5% |
| Net Debt/EBITDA | -5.4x | -19.7x | -15.4x | -9.7x | | 9.7x |
Revenue and profitability
GMP Capital Inc's Revenue dropped on 16.2% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 25.5 pp from 10.8% to -14.7% in 2015.
Net Income marign dropped on 18.3 pp from 5.6% to -12.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.81% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 0.82%.
Leverage (Debt)
Debt level is -2.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA jumped on 9.7x from -9.7x to in 2015. Debt dropped on 31.1% in 2015 while cash jumped on 16.6% in 2015.
Management team
Harris A Fricker is a GMP Capital Inc's CEO. Harris A Fricker is a founder and has spent 8 years at the company. The company's CFO Deborah Starkman has spent 6 years at the company.
Appendix 1: Peers in Financial
Below we provide GMP Capital Inc benchmarking against other companies in Financial 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 |
|---|
| 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 ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (73 companies) | 25.8% | 9.4% | 7.4% | 8.9% | 1.5% |
|---|
| GMP Capital Inc ($GMP) | | -11.4% | -17.9% | 20.5% | -16.2% |
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% | 34.8% | 32.5% |
|---|
| GMP Capital Inc ($GMP) | 18.9% | 5.1% | 8.6% | 10.8% | -14.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($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% | 1.2% |
|---|
| GMP Capital Inc ($GMP) | 0.9% | 0.6% | 0.1% | 1.6% | 0.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | 61.0% |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | -10.7% |
| |
|---|
| Median (77 companies) | 5.0% | 4.8% | 4.5% | 4.8% | 4.8% |
|---|
| GMP Capital Inc ($GMP) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($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 |
|---|
| GMP Capital Inc ($GMP) | -5.4x | -19.7x | -15.4x | -9.7x | |
