IBI Group Inc EBITDA surged on 72.0% in 2015 and Revenue increased on 9.7%
17.03.2016 • About IBI Group Inc (
$IBG) • By InTwits
IBI Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 10.7% in 2015, 6.8% in 2014, -5.5% in 2013, 9.6% in 2012, 15.3% in 2011
- IBI Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 5.6 in 2015, 13.6 in 2014, 1.9 in 2013, 2.9 in 2012, 3.0 in 2011
- The company has highly profitable business model: ROIC is at 21.9%
- It operates with high leverage: Net Debt/EBITDA is 4.5x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
IBI Group Inc ($IBG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 332.3 | 337.7 | 288.0 | 298.3 | 327.1 | 9.7% |
| EBITDA | 51.0 | 32.3 | -15.8 | 20.4 | 35.1 | 72.0% |
| Net Income | 9.1 | -10.9 | -172.8 | -2.5 | 7.4 | -400.3% |
Balance Sheet
|
|---|
| Cash | 2.4 | 0.0 | 8.1 | 10.3 | 8.0 | -23.0% |
| Short Term Debt | 16.1 | 14.6 | 50.2 | 15.7 | 7.5 | -52.5% |
| Long Term Debt | 199.3 | 196.1 | 163.3 | 164.7 | 157.1 | -4.6% |
Cash flow
|
|---|
| Capex | 3.0 | 2.9 | 1.9 | 13.6 | 5.6 | -58.6% |
Ratios
|
|---|
| Revenue growth | 14.9% | 1.6% | -14.7% | 3.6% | 9.7% | |
| EBITDA growth | 18.5% | -36.6% | -149.0% | -229.0% | 72.0% | |
| EBITDA Margin | 15.3% | 9.6% | -5.5% | 6.8% | 10.7% | 3.9% |
| Net Income Margin | 2.7% | -3.2% | -60.0% | -0.8% | 2.3% | 3.1% |
| CAPEX, % of revenue | 0.9% | 0.9% | 0.7% | 4.5% | 1.7% | -2.8% |
| ROIC | 16.6% | 4.8% | -9.0% | 11.6% | 21.9% | 10.4% |
| ROE | | -9.8% | | | | 0.0% |
| Net Debt/EBITDA | 4.2x | 6.5x | | 8.3x | 4.5x | -3.9x |
Revenue and profitability
IBI Group Inc's Revenue increased on 9.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 34.3 pp from -78.0% to -43.7% in 2015.
Net Income marign increased on 3.1 pp from -0.82% to 2.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 IBI Group Inc had CAPEX/Revenue of 1.7%. IBI Group Inc showed small growth in CAPEX/Revenue of 0.86 pp from 0.85% in 2012 to 1.7% in 2015. Average CAPEX/Revenue for the last three years was 2.3%.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.5x and Debt / EBITDA is 4.7x. Net Debt / EBITDA dropped on 3.9x from 8.3x to 4.5x in 2015. Debt decreased on 8.8% in 2015 while cash dropped on 23.0% in 2015.
Appendix 1: Peers in Industrial
Below we provide IBI 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 1.0% | 11.5% | 5.3% | 9.4% | 8.5% |
|---|
| IBI Group Inc ($IBG) | | 1.6% | -14.7% | 3.6% | 9.7% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (89 companies) | 23.3% | 23.2% | 23.4% | 22.9% | 24.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($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% | 7.7% | 8.6% |
|---|
| IBI Group Inc ($IBG) | 15.3% | 9.6% | -5.5% | 6.8% | 10.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($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% | 3.1% | 3.9% |
|---|
| IBI Group Inc ($IBG) | 0.9% | 0.9% | 0.7% | 4.5% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($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% | 10.0% | 8.5% | 8.5% | 10.0% |
|---|
| IBI Group Inc ($IBG) | 16.6% | 4.8% | -9.0% | 11.6% | 21.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Conifex Timber Inc ($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 | 1.2x | 1.0x |
|---|
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | 4.5x |
