Badger Daylighting Ltd reports 60.7% CAPEX decline and 4.2% Revenue decline
18.03.2016 • About Badger Daylighting Ltd (
$BAD) • By InTwits
Badger Daylighting Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Badger Daylighting Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.3%. At the same time it's a lot of higher than industry average of 6.4%.
- CAPEX is quite volatile: 39.0 in 2015, 99.1 in 2014, 70.5 in 2013, 54.1 in 2012, 37.2 in 2011
- The company has highly profitable business model: ROIC is at 13.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Badger Daylighting Ltd ($BAD) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 194.2 | 239.2 | 324.6 | 422.2 | 404.6 | -4.2% |
| Gross Profit | 64.8 | 75.6 | 109.9 | 131.7 | 121.5 | -7.7% |
| SG&A | 12.0 | 14.1 | 25.7 | 11.6 | 13.8 | 19.1% |
| EBITDA | 52.8 | 61.5 | 84.2 | 117.7 | 99.5 | -15.4% |
| Net Income | 25.8 | 28.0 | 40.4 | 53.1 | 38.5 | -27.5% |
Balance Sheet
|
|---|
| Cash | 2.6 | 2.5 | 8.6 | 19.2 | 25.0 | 30.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 46.6 | 29.8 | 82.3 | 124.4 | 103.9 | -16.5% |
Cash flow
|
|---|
| Capex | 37.2 | 54.1 | 70.5 | 99.1 | 39.0 | -60.7% |
Ratios
|
|---|
| Revenue growth | 39.1% | 23.2% | 35.7% | 30.1% | -4.2% | |
| EBITDA growth | 52.5% | 16.5% | 36.9% | 39.9% | -15.4% | |
| Gross Margin | 33.4% | 31.6% | 33.9% | 31.2% | 30.0% | -1.2% |
| EBITDA Margin | 27.2% | 25.7% | 25.9% | 27.9% | 24.6% | -3.3% |
| Net Income Margin | 13.3% | 11.7% | 12.4% | 12.6% | 9.5% | -3.1% |
| SG&A, % of revenue | 6.2% | 5.9% | 7.9% | 2.7% | 3.4% | 0.7% |
| CAPEX, % of revenue | 19.2% | 22.6% | 21.7% | 23.5% | 9.6% | -13.8% |
| ROIC | 25.1% | 23.3% | 24.0% | 23.8% | 13.9% | -10.0% |
| ROE | 31.3% | 24.5% | 26.0% | 26.9% | 15.6% | -11.2% |
| Net Debt/EBITDA | 0.8x | 0.4x | 0.9x | 0.9x | 0.8x | -0.1x |
Revenue and profitability
The company's Revenue decreased on 4.2% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.3 pp from 27.9% to 24.6% in 2015.
Gross Margin decreased slightly on 1.2 pp from 31.2% to 30.0% in 2015. SG&A as a % of Revenue increased slightly on 0.66 pp from 2.7% to 3.4% in 2015.
Net Income marign decreased on 3.1 pp from 12.6% to 9.5% in 2015.
Capital expenditures (CAPEX) and working capital investments
Badger Daylighting Ltd's CAPEX/Revenue was 9.6% in 2015. CAPEX/Revenue dropped on 13.0 pp from 22.6% in 2012 to 9.6% in 2015. Average CAPEX/Revenue for the last three years was 18.3%.
Return on investment
The company operates at good ROIC (13.87%) and ROE (15.65%). ROIC decreased on 10.0 pp from 23.8% to 13.9% in 2015. ROE dropped on 11.2 pp from 26.9% to 15.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is 1.0x. Net Debt / EBITDA dropped on 0.1x from 0.9x to 0.8x in 2015. Debt dropped on 16.5% in 2015 while cash jumped on 30.5% in 2015.
Appendix 1: Peers in Industrial
Below you can find Badger Daylighting Ltd benchmarking vs. other companies in Industrial 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 |
|---|
| 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 0.8% | 10.4% | 4.9% | 9.1% | 9.1% |
|---|
| Badger Daylighting Ltd ($BAD) | | 23.2% | 35.7% | 30.1% | -4.2% |
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 ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 24.2% |
|---|
| Badger Daylighting Ltd ($BAD) | 33.4% | 31.6% | 33.9% | 31.2% | 30.0% |
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 ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 9.5% |
|---|
| Badger Daylighting Ltd ($BAD) | 27.2% | 25.7% | 25.9% | 27.9% | 24.6% |
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 ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.1% | 3.9% |
|---|
| Badger Daylighting Ltd ($BAD) | 19.2% | 22.6% | 21.7% | 23.5% | 9.6% |
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 ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 10.6% |
|---|
| Badger Daylighting Ltd ($BAD) | 25.1% | 23.3% | 24.0% | 23.8% | 13.9% |
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 ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (60 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.2x |
|---|
| Badger Daylighting Ltd ($BAD) | 0.8x | 0.4x | 0.9x | 0.9x | 0.8x |
