Solium Capital Inc revenue growth continued to 17.0% in 2015 vs. 16.3% a year earliner
15.03.2016 • About Solium Capital Inc (
$SUM) • By InTwits
Solium Capital Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Solium Capital Inc is a growth stock: 2015 revenue growth was 17.0%, 5 year revenue CAGR was 28.0% at 2015 ROIC 11.7%
- Solium Capital Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 1.9%.
- CAPEX is quite volatile: 1.1 in 2015, 1.4 in 2014, 1.2 in 2013, 0.42 in 2012, 1.8 in 2011
- The company has business model with average profitability: ROIC is at 11.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Solium Capital Inc ($SUM) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 46.004 | 50.341 | 68.079 | 79.146 | 92.571 | 17.0% |
| EBITDA | 10.892 | 11.857 | 16.834 | 19.218 | 17.459 | -9.2% |
| Net Income | 2.701 | 10.467 | 8.703 | 9.631 | 10.686 | 11.0% |
Balance Sheet
|
|---|
| Cash | 16.934 | 14.719 | 24.486 | 51.048 | 73.043 | 43.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 1.987 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.831 | 0.418 | 1.231 | 1.395 | 1.067 | -23.5% |
Ratios
|
|---|
| Revenue growth | 70.9% | 9.4% | 35.2% | 16.3% | 17.0% | |
| EBITDA growth | 121.6% | 8.9% | 42.0% | 14.2% | -9.2% | |
| EBITDA Margin | 23.7% | 23.6% | 24.7% | 24.3% | 18.9% | -5.4% |
| Net Income Margin | 5.9% | 20.8% | 12.8% | 12.2% | 11.5% | -0.6% |
| CAPEX, % of revenue | 4.0% | 0.8% | 1.8% | 1.8% | 1.2% | -0.6% |
| ROIC | 21.0% | 19.4% | 19.0% | 16.6% | 11.7% | -4.8% |
| ROE | 8.9% | 27.1% | 13.8% | 10.6% | 9.5% | -1.1% |
| Net Debt/EBITDA | -1.6x | -1.1x | -1.5x | -2.7x | -4.2x | -1.5x |
Revenue and profitability
The company's Revenue surged on 17.0% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 5.4 pp from 24.3% to 18.9% in 2015.
Net Income marign decreased slightly on 0.63 pp from 12.2% to 11.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Solium Capital Inc had CAPEX/Revenue of 1.2%. Solium Capital Inc showed almost no change in CAPEX/Revenue from 2012 to 2015. For the last three years the average CAPEX/Revenue was 1.6%.
Return on investment
The company operates at low ROIC (11.74%) and ROE (9.53%). ROIC decreased on 4.8 pp from 16.6% to 11.7% in 2015. ROE decreased slightly on 1.1 pp from 10.6% to 9.5% in 2015.
Leverage (Debt)
The company has no debt. Cash surged on 43.1% in 2015.
Appendix 1: Peers in Communications
Below you can find Solium Capital 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 ($TVA.B) | | 1.7% | -1.8% | -1.2% | 34.3% |
| |
|---|
| Median (41 companies) | 10.2% | 2.5% | 1.8% | 1.9% | 2.7% |
|---|
| Solium Capital Inc ($SUM) | | 9.4% | 35.2% | 16.3% | 17.0% |
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 ($STC) | 74.5% | 68.8% | | 66.9% | 67.2% |
| |
|---|
| Median (41 companies) | 43.2% | 43.0% | 42.6% | 41.9% | 48.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cogeco Cable Inc ($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% | 14.1% | 11.7% | 15.0% |
|---|
| Solium Capital Inc ($SUM) | 23.7% | 23.6% | 24.7% | 24.3% | 18.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newfoundland Capital Corp Ltd ($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% |
|---|
| Solium Capital Inc ($SUM) | 4.0% | 0.8% | 1.8% | 1.8% | 1.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi2Wi Corp ($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% |
|---|
| Solium Capital Inc ($SUM) | 21.0% | 19.4% | 19.0% | 16.6% | 11.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Plaintree Systems Inc ($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 (41 companies) | 1.0x | 1.4x | 1.3x | 1.5x | 1.5x |
|---|
| Solium Capital Inc ($SUM) | -1.6x | -1.1x | -1.5x | -2.7x | -4.2x |
