Chesswood Group Ltd Net Income jumped on 78.5% in 2015 and Revenue surged on 53.7%
17.03.2016 • About Chesswood Group Ltd (
$CHW) • By InTwits
Chesswood Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 45.5% in 2015, 49.6% in 2014, 25.6% in 2013, 23.0% in 2012, 21.0% in 2011
- Chesswood Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has business model with low profitability: ROIC is at 9.8%
- It operates with medium-size leverage: Net Debt/EBITDA is 7.5x while industry average is 8.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chesswood Group Ltd ($CHW) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 77.164 | 86.596 | 94.739 | 49.816 | 76.577 | 53.7% |
| Gross Profit | 37.274 | 41.929 | 49.591 | | | |
| EBITDA | 16.171 | 19.931 | 24.259 | 24.722 | 34.845 | 40.9% |
| Net Income | 5.657 | 7.815 | 9.497 | 10.105 | 18.038 | 78.5% |
Balance Sheet
|
|---|
| Cash | 7.338 | 5.591 | 22.659 | 10.220 | 15.229 | 49.0% |
| Short Term Debt | 0.000 | 0.000 | 77.305 | 105.848 | 255.173 | 141.1% |
| Long Term Debt | 41.690 | 47.577 | 20.680 | 20.598 | 19.900 | -3.4% |
Cash flow
|
|---|
| Capex | 0.223 | 0.261 | 0.510 | 0.342 | 0.254 | -25.7% |
Ratios
|
|---|
| Revenue growth | -3.2% | 12.2% | 9.4% | -47.4% | 53.7% | |
| EBITDA growth | 17.3% | 23.3% | 21.7% | 1.9% | 40.9% | |
| Gross Margin | 48.3% | 48.4% | 52.3% | | | 0.0% |
| EBITDA Margin | 21.0% | 23.0% | 25.6% | 49.6% | 45.5% | -4.1% |
| Net Income Margin | 7.3% | 9.0% | 10.0% | 20.3% | 23.6% | 3.3% |
| CAPEX, % of revenue | 0.3% | 0.3% | 0.5% | 0.7% | 0.3% | -0.4% |
| ROIC | 13.5% | 15.0% | 14.8% | 11.8% | 9.8% | -2.0% |
| ROE | 12.0% | 15.5% | 17.4% | 15.9% | 17.0% | 1.1% |
| Net Debt/EBITDA | 2.1x | 2.1x | 3.1x | 4.7x | 7.5x | 2.8x |
Revenue and profitability
Chesswood Group Ltd's Revenue surged on 53.7% in 2015. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 4.1 pp from 49.6% to 45.5% in 2015.
Net Income marign increased on 3.3 pp from 20.3% to 23.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 0.33%. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.52%.
Return on investment
The company operates at good ROE (17.01%) while ROIC is low (9.79%). ROIC decreased on 2.0 pp from 11.8% to 9.8% in 2015. ROE increased slightly on 1.1 pp from 15.9% to 17.0% in 2015.
Leverage (Debt)
Debt level is 7.5x Net Debt / EBITDA and 7.9x Debt / EBITDA. Net Debt / EBITDA jumped on 2.8x from 4.7x to 7.5x in 2015. Debt jumped on 118% in 2015 while cash surged on 49.0% in 2015.
Appendix 1: Peers in Financial
Below we provide Chesswood Group Ltd benchmarking against other companies in Financial 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 |
|---|
| Mogo Finance Technology Inc ($GO) | | | 13.7% | 34.6% | 86.0% |
| Morguard Corp ($MRC) | | 5.3% | 27.2% | 9.2% | 58.8% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | 47.2% |
| Clairvest Group Inc ($CVG) | | 16.4% | 37.9% | 25.9% | 36.7% |
| Rifco Inc ($RFC) | | 0.5% | 44.0% | 26.1% | 28.9% |
| |
|---|
| Median (60 companies) | 35.7% | 8.5% | 7.2% | 9.0% | 1.5% |
|---|
| Chesswood Group Ltd ($CHW) | | 12.2% | 9.4% | -47.4% | 53.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | 84.5% |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | 76.5% |
| Mogo Finance Technology Inc ($GO) | | 70.4% | 64.5% | 63.4% | 62.3% |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | 27.5% |
| |
|---|
| Median (12 companies) | 22.6% | 22.6% | 25.7% | 24.2% | 31.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | 84.7% |
| Atrium Mortgage Investment Corp ($AI) | 84.5% | 79.8% | | | 81.9% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | | 76.2% |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| Madison Pacific Properties Inc ($MPC) | 59.2% | | 62.9% | 65.7% | 66.0% |
| |
|---|
| Median (41 companies) | 36.1% | 32.5% | 32.1% | 29.4% | 27.0% |
|---|
| Chesswood Group Ltd ($CHW) | 21.0% | 23.0% | 25.6% | 49.6% | 45.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imperial Equities Inc ($IEI) | 23.1% | 22.8% | 16.0% | 27.7% | 147.5% |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| Wall Financial Corp ($WFC) | 1.8% | 13.5% | 9.8% | 6.1% | 65.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | 56.3% |
| |
|---|
| Median (62 companies) | 1.3% | 1.4% | 0.8% | 1.1% | 1.2% |
|---|
| Chesswood Group Ltd ($CHW) | 0.3% | 0.3% | 0.5% | 0.7% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | 61.0% |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | -10.7% |
| |
|---|
| Median (78 companies) | 4.9% | 4.8% | 4.5% | 4.7% | 4.8% |
|---|
| Chesswood Group Ltd ($CHW) | 13.5% | 15.0% | 14.8% | 11.8% | 9.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | 79.9x |
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | 37.4x |
| Wall Financial Corp ($WFC) | 6.2x | 3.4x | 19.9x | 4.6x | 20.1x |
| Equitable Group Inc ($EQB) | 12.7x | 11.8x | 10.2x | 9.8x | 12.3x |
| Rifco Inc ($RFC) | | 9.8x | 9.4x | 10.7x | 11.9x |
| |
|---|
| Median (33 companies) | 5.3x | 5.5x | 5.3x | 4.2x | 4.0x |
|---|
| Chesswood Group Ltd ($CHW) | 2.1x | 2.1x | 3.1x | 4.7x | 7.5x |
