C-com Satellite Systems Inc reports 43.1% Net Income decline and 21.4% Revenue decline
15.03.2016 • About C-com Satellite Systems Inc (
$CMI) • By InTwits
C-com Satellite Systems Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- C-com Satellite Systems Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has business model with low profitability: ROIC is at 7.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
C-com Satellite Systems Inc ($CMI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 19.136 | 13.385 | 15.574 | 13.206 | 10.375 | -21.4% |
| Gross Profit | 9.558 | 7.048 | 8.132 | 7.818 | 5.570 | -28.7% |
| SG&A | | | 2.891 | 3.048 | 3.067 | 0.6% |
| EBITDA | 5.391 | 3.628 | | | 1.560 | |
| Net Income | 3.776 | 2.665 | 3.473 | 2.805 | 1.597 | -43.1% |
Balance Sheet
|
|---|
| Cash | 8.129 | 10.689 | 9.969 | 10.829 | 12.330 | 13.9% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.034 | 0.014 | 0.023 | 0.062 | 0.041 | -33.9% |
Ratios
|
|---|
| Revenue growth | 82.7% | -30.1% | 16.3% | -15.2% | -21.4% | |
| EBITDA growth | 91.2% | -32.7% | | | | |
| Gross Margin | 49.9% | 52.7% | 52.2% | 59.2% | 53.7% | -5.5% |
| EBITDA Margin | 28.2% | 27.1% | 0.0% | 0.0% | 15.0% | 15.0% |
| Net Income Margin | 19.7% | 19.9% | 22.3% | 21.2% | 15.4% | -5.9% |
| SG&A, % of revenue | | | 18.6% | 23.1% | 29.6% | 6.5% |
| CAPEX, % of revenue | 0.2% | 0.1% | 0.1% | 0.5% | 0.4% | -0.1% |
| ROIC | 44.1% | 24.2% | 25.7% | 17.7% | 7.5% | -10.2% |
| ROE | 32.5% | 18.5% | 20.7% | 14.6% | 7.9% | -6.7% |
| Net Debt/EBITDA | -1.5x | -2.9x | | | -7.9x | -7.9x |
Revenue and profitability
C-com Satellite Systems Inc's Revenue dropped on 21.4% in FY2015.
Gross Margin decreased on 5.5 pp from 59.2% to 53.7% in FY2015. SG&A as a % of Revenue increased on 6.5 pp from 23.1% to 29.6% in FY2015.
Net Income marign decreased on 5.9 pp from 21.2% to 15.4% in FY2015.
Capital expenditures (CAPEX) and working capital investments
C-com Satellite Systems Inc's CAPEX/Revenue was 0.39% in FY2015. CAPEX/Revenue showed almost no change from FY2012 to FY2015. Average CAPEX/Revenue for the last three years was 0.34%.
Return on investment
The company operates at low ROIC (7.49%) and ROE (7.92%). ROIC dropped on 10.2 pp from 17.7% to 7.5% in FY2015. ROE decreased on 6.7 pp from 14.6% to 7.9% in FY2015.
Leverage (Debt)
The company has no debt. Cash surged on 13.9% in FY2015.
Appendix 1: Peers in Communications
Below you can find C-com Satellite Systems Inc 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Intertain Group Ltd/The ($IT) | | | | | 842.9% |
| DragonWave Inc ($DWI) | | -61.3% | 171.3% | -27.3% | 75.3% |
| Blackline Safety Corp ($BLN) | | 37.1% | 9.4% | 45.1% | 73.8% |
| NeuLion Inc ($NLN) | | -1.7% | 20.8% | 17.9% | 69.4% |
| TVA Group Inc ($TVA.B) | | 1.7% | -1.8% | -1.2% | 34.3% |
| |
|---|
| Median (41 companies) | 10.2% | 5.0% | 1.8% | 3.1% | 3.7% |
|---|
| C-com Satellite Systems Inc ($CMI) | | -30.1% | 16.3% | -15.2% | -21.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | 81.1% |
| Sangoma Technologies Corp ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (40 companies) | 43.2% | 42.8% | 42.5% | 41.8% | 46.9% |
|---|
| C-com Satellite Systems Inc ($CMI) | 49.9% | 52.7% | 52.2% | 59.2% | 53.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cogeco Cable Inc ($CCA) | 45.8% | 46.0% | 44.9% | 43.8% | 46.2% |
| Shaw Communications Inc ($SJR.B) | 43.3% | 42.7% | 43.3% | 42.1% | 44.6% |
| Cogeco Inc ($CGO) | 28.1% | 43.2% | 43.5% | 43.3% | 44.3% |
| Manitoba Telecom Services Inc ($MBT) | 33.7% | 34.3% | 33.7% | 47.4% | 42.3% |
| Mediagrif Interactive Technologies Inc ($MDF) | 32.0% | 32.5% | 41.3% | 37.2% | 39.0% |
| |
|---|
| Median (40 companies) | 14.1% | 13.5% | 14.6% | 12.6% | 16.3% |
|---|
| C-com Satellite Systems Inc ($CMI) | 28.2% | 27.1% | | | 15.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newfoundland Capital Corp Ltd ($NCC.B) | | 8.7% | 5.5% | 76.8% | 5.9% |
| Axia NetMedia Corp ($AXX) | 10.7% | 30.8% | 27.2% | 27.0% | 36.2% |
| UrtheCast Corp ($UR) | | | | 26.5% | |
| TeraGo Inc ($TGO) | 21.6% | 20.9% | 21.5% | 23.1% | |
| Manitoba Telecom Services Inc ($MBT) | 16.3% | 19.8% | 18.1% | 22.4% | 22.9% |
| |
|---|
| Median (52 companies) | 4.3% | 2.3% | 3.3% | 2.3% | 2.4% |
|---|
| C-com Satellite Systems Inc ($CMI) | 0.2% | 0.1% | 0.1% | 0.5% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 ($SAT) | 102.7% | 34.6% | 23.6% | 23.4% | |
| Points International Ltd ($PTS) | 20.7% | 14.9% | 15.0% | 21.2% | 18.8% |
| NeuLion Inc ($NLN) | -62.1% | -55.8% | -10.3% | 18.5% | -3.7% |
| |
|---|
| Median (53 companies) | 6.3% | 8.0% | 8.2% | 8.0% | 5.1% |
|---|
| C-com Satellite Systems Inc ($CMI) | 44.1% | 24.2% | 25.7% | 17.7% | 7.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 | 4.8x |
| Postmedia Network Canada Corp ($PNC.B) | 2.9x | 3.3x | 3.4x | 4.2x | |
| |
|---|
| Median (42 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 1.5x |
|---|
