HNZ Group Inc Net Income dropped on 212% in 2015 and EBITDA Margin dropped on 14.4 pp from 17.2% to 2.8%
17.03.2016 • About HNZ Group Inc (
$HNZ.B) • By InTwits
HNZ Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- HNZ Group Inc doesn't have a profitable business model yet: 2015 ROIC is -4.8%
- EBITDA Margin is quite volatile: 2.8% in 2015, 17.2% in 2014, 30.5% in 2013, 30.1% in 2012, 32.2% in 2011
- HNZ Group Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.8%. At the same time it's a lot of higher than industry average of 6.5%.
- CAPEX is quite volatile: 9.0 in 2015, 7.6 in 2014, 36.1 in 2013, 41.2 in 2012, 14.3 in 2011
- The company has unprofitable business model: ROIC is at -4.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
HNZ Group Inc ($HNZ.B) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 264.3 | 256.0 | 255.1 | 207.5 | 188.7 | -9.1% |
| Gross Profit | 73.1 | 63.2 | 62.7 | 19.1 | 22.1 | 15.5% |
| EBITDA | 85.1 | 77.1 | 77.8 | 35.7 | 5.3 | -85.1% |
| Net Income | 50.2 | 43.1 | 19.9 | 12.3 | -13.8 | -212.1% |
Balance Sheet
|
|---|
| Cash | 8.4 | 4.0 | 4.2 | 14.1 | 13.5 | -4.8% |
| Short Term Debt | 1.7 | 1.8 | 0.0 | 0.0 | 2.4 | |
| Long Term Debt | 40.7 | 38.0 | 23.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 14.3 | 41.2 | 36.1 | 7.6 | 9.0 | 18.0% |
Ratios
|
|---|
| Revenue growth | 54.8% | -3.1% | -0.3% | -18.7% | -9.1% | |
| EBITDA growth | 98.3% | -9.4% | 0.9% | -54.1% | -85.1% | |
| Gross Margin | 27.6% | 24.7% | 24.6% | 9.2% | 11.7% | 2.5% |
| EBITDA Margin | 32.2% | 30.1% | 30.5% | 17.2% | 2.8% | -14.4% |
| Net Income Margin | 19.0% | 16.8% | 7.8% | 5.9% | -7.3% | -13.2% |
| CAPEX, % of revenue | 5.4% | 16.1% | 14.2% | 3.7% | 4.8% | 1.1% |
| ROIC | 29.0% | 20.3% | 19.7% | 6.3% | -4.8% | -11.1% |
| ROE | 26.1% | 19.2% | 8.1% | 4.8% | -5.6% | -10.4% |
| Net Debt/EBITDA | 0.4x | 0.5x | 0.2x | -0.4x | -2.1x | -1.7x |
Revenue and profitability
HNZ Group Inc's Revenue decreased on 9.1% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 14.4 pp from 17.2% to 2.8% in 2015.
Gross Margin increased on 2.5 pp from 9.2% to 11.7% in 2015.
Net Income marign dropped on 13.2 pp from 5.9% to -7.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 HNZ Group Inc had CAPEX/Revenue of 4.8%. HNZ Group Inc showed big decline in CAPEX/Revenue of 11.3 pp from 16.1% in 2012 to 4.8% in 2015. It's average level of CAPEX/Revenue for the last three years was 7.5%.The company has spent a lot to CAPEX (169% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-4.79%) and ROE (-5.60%). ROIC dropped on 11.1 pp from 6.3% to -4.8% in 2015. ROE dropped on 10.4 pp from 4.8% to -5.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.1x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped on 1.7x from -0.4x to -2.1x in 2015. Debt surged while cash decreased on 4.8% in 2015.
Appendix 1: Peers in Industrial
Below we provide HNZ Group 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 1.0% | 11.5% | 5.3% | 9.4% | 9.7% |
|---|
| HNZ Group Inc ($HNZ.B) | | -3.1% | -0.3% | -18.7% | -9.1% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 23.1% | 24.3% |
|---|
| HNZ Group Inc ($HNZ.B) | 27.6% | 24.7% | 24.6% | 9.2% | 11.7% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 9.5% |
|---|
| HNZ Group Inc ($HNZ.B) | 32.2% | 30.1% | 30.5% | 17.2% | 2.8% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.1% | 3.9% |
|---|
| HNZ Group Inc ($HNZ.B) | 5.4% | 16.1% | 14.2% | 3.7% | 4.8% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 9.1% | 11.2% |
|---|
| HNZ Group Inc ($HNZ.B) | 29.0% | 20.3% | 19.7% | 6.3% | -4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Conifex Timber Inc ($CFF) | | | 2.7x | 6.1x | 35.9x |
| Ag Growth International Inc ($AFN) | 2.4x | 2.9x | -0.1x | 2.1x | 14.1x |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | 12.9x |
| Progressive Waste Solutions Ltd ($BIN) | 2.5x | 4.5x | 3.3x | 2.9x | 10.6x |
| Finning International Inc ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (59 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.3x |
|---|
| HNZ Group Inc ($HNZ.B) | 0.4x | 0.5x | 0.2x | -0.4x | -2.1x |
