AutoCanada Inc revenue jumped on 31.1% in 2015 while EBITDA Margin decreased slightly on 1.4 pp from 4.8% to 3.4%
17.03.2016 • About AutoCanada Inc (
$ACQ) • By InTwits
AutoCanada Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AutoCanada Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 88.7%.
- CAPEX is quite volatile: 74.6 in 2015, 23.4 in 2014, 67.1 in 2013, 16.1 in 2012, 3.0 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.0%
- It operates with medium-size leverage: Net Debt/EBITDA is 8.0x while industry average is 7.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AutoCanada Inc ($ACQ) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,009 | 1,102 | 1,409 | 2,215 | 2,904 | 31.1% |
| Gross Profit | 169 | 190 | 246 | 373 | 488 | 30.7% |
| EBITDA | 63 | 47 | 67 | 107 | 98 | -8.1% |
| Net Income | 37 | 24 | 38 | 53 | 23 | -57.0% |
Balance Sheet
|
|---|
| Cash | 54 | 34 | 35 | 72 | 62 | -14.1% |
| Short Term Debt | 155 | 208 | 268 | 535 | 561 | 4.9% |
| Long Term Debt | 20 | 24 | 84 | 223 | 286 | 28.1% |
Cash flow
|
|---|
| Capex | 3 | 16 | 67 | 23 | 75 | 218.3% |
Ratios
|
|---|
| Revenue growth | 16.1% | 9.2% | 27.9% | 57.2% | 31.1% | |
| EBITDA growth | 92.5% | -25.4% | 43.8% | 59.4% | -8.1% | |
| Gross Margin | 16.8% | 17.3% | 17.5% | 16.8% | 16.8% | -0.1% |
| EBITDA Margin | 6.2% | 4.2% | 4.8% | 4.8% | 3.4% | -1.4% |
| Net Income Margin | 3.6% | 2.2% | 2.7% | 2.4% | 0.8% | -1.6% |
| CAPEX, % of revenue | 0.3% | 1.5% | 4.8% | 1.1% | 2.6% | 1.5% |
| ROIC | 21.5% | 12.4% | 12.8% | 10.3% | 6.0% | -4.3% |
| ROE | 37.7% | 20.4% | 24.3% | 18.6% | 5.5% | -13.1% |
| Net Debt/EBITDA | 1.9x | 4.2x | 4.7x | 6.4x | 8.0x | 1.6x |
Revenue and profitability
The company's Revenue surged on 31.1% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.5 pp from -4.4% to 5.1% in 2015.
Gross Margin showed almost no change in 2015.
Net Income marign decreased slightly on 1.6 pp from 2.4% to 0.79% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 2.6%. CAPEX/Revenue increased slightly on 1.1 pp from 1.5% in 2012 to 2.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 2.8%.To secure this fast growth AutoCanada Inc invested a large share of EBITDA (75.9%) to CAPEX.
Return on investment
The company operates at low ROIC (6.03%) and ROE (5.48%). ROIC decreased on 4.3 pp from 10.3% to 6.0% in 2015. ROE dropped on 13.1 pp from 18.6% to 5.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 8.0x and Debt / EBITDA is 8.6x. Net Debt / EBITDA jumped on 1.6x from 6.4x to 8.0x in 2015. Debt surged on 11.7% in 2015 while cash dropped on 14.1% in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below you can find AutoCanada Inc benchmarking vs. other companies in Consumer, Cyclical 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 |
|---|
| Restaurant Brands International Inc ($QSR) | | | | 4.6% | 238.0% |
| DHX Media Ltd ($DHX.A) | | 31.1% | 33.9% | 19.4% | 127.4% |
| Amaya Inc ($AYA) | | 311.5% | 85.2% | 254.0% | 113.8% |
| Hudson's Bay Co ($HBC) | | 3.5% | 5.9% | 28.1% | 56.4% |
| Exchange Income Corp ($EIF) | | 56.9% | -36.4% | 6.6% | 48.8% |
| |
|---|
| Median (59 companies) | -3.3% | 5.3% | 4.9% | 7.0% | 4.9% |
|---|
| AutoCanada Inc ($ACQ) | | 9.2% | 27.9% | 57.2% | 31.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | 78.7% |
| Cara Operations Ltd ($CAO) | | | 79.2% | 78.9% | 78.4% |
| Air Canada ($AC) | 62.3% | 62.4% | 63.5% | 64.0% | 71.9% |
| |
|---|
| Median (51 companies) | 37.9% | 36.5% | 34.1% | 35.4% | 33.7% |
|---|
| AutoCanada Inc ($ACQ) | 16.8% | 17.3% | 17.5% | 16.8% | 16.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | 42.8% |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | 36.6% |
| Imvescor Restaurant Group Inc ($IRG) | 26.5% | 27.9% | 27.3% | 25.5% | 35.9% |
| Whistler Blackcomb Holdings Inc ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (55 companies) | 8.7% | 8.1% | 9.8% | 10.1% | 10.1% |
|---|
| AutoCanada Inc ($ACQ) | 6.2% | 4.2% | 4.8% | 4.8% | 3.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | 26.7% |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Westshore Terminals Investment Corp ($WTE) | | 25.7% | 11.5% | 6.2% | 21.2% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Chorus Aviation Inc ($CHR.A) | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% |
| |
|---|
| Median (59 companies) | 2.9% | 2.7% | 2.8% | 2.5% | 2.9% |
|---|
| AutoCanada Inc ($ACQ) | 0.3% | 1.5% | 4.8% | 1.1% | 2.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| BRP Inc/CA ($DOO) | | 29.8% | 26.8% | 32.3% | 35.3% |
| Cara Operations Ltd ($CAO) | | | | 24.7% | 35.1% |
| Jean Coutu Group PJC Inc/The ($PJC.A) | 33.5% | 34.4% | 29.8% | 29.2% | 30.2% |
| Dollarama Inc ($DOL) | 17.7% | 21.6% | 24.7% | 26.5% | 29.9% |
| |
|---|
| Median (59 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 11.0% |
|---|
| AutoCanada Inc ($ACQ) | 21.5% | 12.4% | 12.8% | 10.3% | 6.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Holloway Lodging Corp ($HLC) | | | 5.8x | 8.4x | 17.1x |
| Discovery Air Inc ($DA.A) | 3.2x | 2.8x | 3.8x | 7.5x | 11.4x |
| Second Cup Ltd/The ($SCU) | 0.6x | 1.0x | 0.6x | 0.0x | 7.5x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | 6.6x |
| Performance Sports Group Ltd ($PSG) | | 2.6x | 3.5x | 12.2x | 6.5x |
| |
|---|
| Median (50 companies) | 1.3x | 1.2x | 1.8x | 2.0x | 1.7x |
|---|
| AutoCanada Inc ($ACQ) | 1.9x | 4.2x | 4.7x | 6.4x | 8.0x |
