Stella-Jones Inc reports 38.1% EBITDA growth and 24.8% Revenue growth
16.03.2016 • About Stella-Jones Inc (
$SJ) • By InTwits
Stella-Jones Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Stella-Jones Inc is a fast growth stock: 2015 revenue growth was 24.8%, 5 year revenue CAGR was 22.7% at 2015 ROIC 15.4%
- Stella-Jones Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 28.7%.
- CAPEX is quite volatile: 37.4 in 2015, 24.2 in 2014, 26.2 in 2013, 14.8 in 2012, 7.8 in 2011
- The company has highly profitable business model: ROIC is at 15.4%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.7x while industry average is 2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Stella-Jones Inc ($SJ) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 640 | 717 | 1,011 | 1,249 | 1,559 | 24.8% |
| Gross Profit | 125 | 152 | 197 | 224 | 307 | 37.1% |
| SG&A | 36 | 43 | 57 | 69 | 86 | 23.8% |
| EBITDA | 97 | 120 | 155 | 176 | 243 | 38.1% |
| Net Income | 56 | 73 | 93 | 104 | 141 | 36.1% |
Balance Sheet
|
|---|
| Cash | 0 | 14 | 3 | 0 | 3 | |
| Short Term Debt | 4 | 20 | 3 | 6 | 61 | 957.9% |
| Long Term Debt | 179 | 343 | 370 | 439 | 609 | 38.8% |
Cash flow
|
|---|
| Capex | 8 | 15 | 26 | 24 | 37 | 54.3% |
Ratios
|
|---|
| Revenue growth | 14.1% | 12.1% | 40.9% | 23.6% | 24.8% | |
| EBITDA growth | 36.1% | 24.4% | 28.9% | 13.7% | 38.1% | |
| Gross Margin | 19.5% | 21.2% | 19.5% | 17.9% | 19.7% | 1.8% |
| EBITDA Margin | 15.1% | 16.8% | 15.3% | 14.1% | 15.6% | 1.5% |
| Net Income Margin | 8.7% | 10.2% | 9.2% | 8.3% | 9.1% | 0.8% |
| SG&A, % of revenue | 5.6% | 5.9% | 5.7% | 5.5% | 5.5% | -0.0% |
| CAPEX, % of revenue | 1.2% | 2.1% | 2.6% | 1.9% | 2.4% | 0.5% |
| ROIC | 17.1% | 15.3% | 14.9% | 14.3% | 15.4% | 1.2% |
| ROE | 18.2% | 18.3% | 17.8% | 16.4% | 17.6% | 1.2% |
| Net Debt/EBITDA | 1.9x | 2.9x | 2.4x | 2.5x | 2.7x | 0.2x |
Revenue and profitability
Stella-Jones Inc's Revenue jumped on 24.8% in 2015. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 1.3 pp from 29.2% to 30.6% in 2015.
Gross Margin increased slightly on 1.8 pp from 17.9% to 19.7% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.76 pp from 8.3% to 9.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.4%. CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 2.3%.
Return on investment
The company operates at good ROIC (15.43%) and ROE (17.61%). ROIC increased slightly on 1.2 pp from 14.3% to 15.4% in 2015. ROE increased slightly on 1.2 pp from 16.4% to 17.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.7x and Debt / EBITDA is 2.8x. Net Debt / EBITDA surged on 0.2x from 2.5x to 2.7x in 2015. Debt jumped on 50.7% in 2015 while cash surged.
Management team
Stella-Jones Inc's CEO Brian Mcmanus is a founder and has spent 15 years at the company. Stella-Jones Inc's CFO is Eric Vachon. Eric Vachon has 6 years tenure at the company.
Appendix 1: Peers in Industrial
Below we provide Stella-Jones Inc benchmarking against other companies in Industrial 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 |
|---|
| 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 3.1% | 10.4% | 4.9% | 9.1% | 9.4% |
|---|
| Stella-Jones Inc ($SJ) | | 12.1% | 40.9% | 23.6% | 24.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% |
| 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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 24.4% |
|---|
| Stella-Jones Inc ($SJ) | 19.5% | 21.2% | 19.5% | 17.9% | 19.7% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 9.5% |
|---|
| Stella-Jones Inc ($SJ) | 15.1% | 16.8% | 15.3% | 14.1% | 15.6% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 4.0% |
|---|
| Stella-Jones Inc ($SJ) | 1.2% | 2.1% | 2.6% | 1.9% | 2.4% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 9.7% |
|---|
| Stella-Jones Inc ($SJ) | 17.1% | 15.3% | 14.9% | 14.3% | 15.4% |
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 ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.4x | 1.2x | 1.2x |
|---|
| Stella-Jones Inc ($SJ) | 1.9x | 2.9x | 2.4x | 2.5x | 2.7x |
