Pure Technologies Ltd revenue growth accelerated to 34.2% in 2015 vs. 27.8% a year earliner
15.03.2016 • About Pure Technologies Ltd (
$PUR) • By InTwits
Pure Technologies Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pure Technologies Ltd doesn't have a profitable business model yet: 2015 ROIC is -0.2%
- EBITDA Margin is quite volatile: 9.7% in 2015, -0.7% in 2014, 14.8% in 2013, 18.9% in 2012, -2.9% in 2011
- Pure Technologies Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's in pair with industry average of 6.5%.
- CAPEX is quite volatile: 7.1 in 2015, 5.3 in 2014, 3.1 in 2013, 3.5 in 2012, 2.0 in 2011
- The company has unprofitable business model: ROIC is at -0.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pure Technologies Ltd ($PUR) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 43.1 | 58.0 | 60.9 | 77.8 | 104.4 | 34.2% |
| Gross Profit | 32.7 | 45.2 | 47.5 | 60.3 | 78.9 | 30.8% |
| SG&A | 23.6 | 22.4 | 23.9 | 28.8 | 40.1 | 39.3% |
| EBITDA | -1.2 | 10.9 | 9.0 | -0.6 | 10.1 | -1,936.2% |
| Net Income | -6.9 | 5.5 | 2.1 | -3.9 | -0.1 | -96.6% |
Balance Sheet
|
|---|
| Cash | 17.3 | 33.2 | 41.4 | 33.6 | 11.1 | -67.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.0 | 3.5 | 3.1 | 5.3 | 7.1 | 33.3% |
Ratios
|
|---|
| Revenue growth | -10.8% | 34.5% | 4.9% | 27.8% | 34.2% | |
| EBITDA growth | -134.2% | -982.3% | -17.4% | -106.1% | -1,936.2% | |
| Gross Margin | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% | -1.9% |
| EBITDA Margin | -2.9% | 18.9% | 14.8% | -0.7% | 9.7% | 10.4% |
| Net Income Margin | -15.9% | 9.4% | 3.4% | -5.0% | -0.1% | 4.9% |
| SG&A, % of revenue | 54.8% | 38.7% | 39.3% | 37.0% | 38.4% | 1.4% |
| CAPEX, % of revenue | 4.7% | 6.1% | 5.2% | 6.8% | 6.8% | -0.0% |
| ROIC | -8.8% | 4.4% | 2.6% | -6.8% | -0.2% | 6.7% |
| ROE | -7.2% | 5.0% | 1.8% | -3.3% | -0.1% | 3.2% |
| Net Debt/EBITDA | | -3.0x | -4.6x | | -1.1x | -1.1x |
Revenue and profitability
The company's Revenue jumped on 34.2% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 10.4 pp from -0.71% to 9.7% in 2015.
Gross Margin decreased slightly on 1.9 pp from 77.5% to 75.6% in 2015. SG&A as a % of Revenue increased slightly on 1.4 pp from 37.0% to 38.4% in 2015.
Net Income marign increased on 4.9 pp from -5.0% to -0.13% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Pure Technologies Ltd had CAPEX/Revenue of 6.8%. Pure Technologies Ltd's CAPEX/Revenue increased slightly on 0.72 pp from 6.1% in 2012 to 6.8% in 2015. It's average level of CAPEX/Revenue for the last three years was 6.3%.The company invested a big chunk of EBITDA (70.0%) to CAPEX to fuel its growth.
Return on investment
The company operates at negative ROIC (-0.19%) and ROE (-0.11%). ROIC increased on 6.7 pp from -6.8% to -0.19% in 2015. ROE increased on 3.2 pp from -3.3% to -0.11% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 67.0% in 2015.
Appendix 1: Peers in Industrial
Below you can find Pure Technologies Ltd benchmarking vs. other companies in Industrial 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 |
|---|
| 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 5.3% | 10.4% | 5.3% | 9.1% | 8.3% |
|---|
| Pure Technologies Ltd ($PUR) | | 34.5% | 4.9% | 27.8% | 34.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% |
| Alarmforce Industries Inc ($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% | |
| Evertz Technologies Ltd ($ET) | 57.7% | 56.6% | 57.5% | 57.2% | 56.7% |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 24.3% |
|---|
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.3% | 9.2% | 8.3% | 7.7% | 7.8% |
|---|
| Pure Technologies Ltd ($PUR) | -2.9% | 18.9% | 14.8% | -0.7% | 9.7% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.1% | 3.9% |
|---|
| Pure Technologies Ltd ($PUR) | 4.7% | 6.1% | 5.2% | 6.8% | 6.8% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 9.1% | 10.0% | 8.5% | 9.1% | 9.7% |
|---|
| Pure Technologies Ltd ($PUR) | -8.8% | 4.4% | 2.6% | -6.8% | -0.2% |
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 (73 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.5x |
|---|
