AGT Food & Ingredients Inc Debt jumped on 44.8% in 2015 and Revenue jumped on 25.6%
21.03.2016 • About AGT Food & Ingredients Inc (
$AGT) • By InTwits
AGT Food & Ingredients Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 5.5% in 2015 vs. 5.9% in 2014 vs. 5.9% in 2011
- AGT Food & Ingredients Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's a lot of higher than industry average of 28.1%.
- CAPEX is quite volatile: 354 in 2015, 662 in 2014, 960 in 2013, 1,538 in 2012, 822 in 2011
- The company has business model with low profitability: ROIC is at 9.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 5.1x while industry average is 5.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AGT Food & Ingredients Inc ($AGT) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 760 | 855 | 1,139 | 1,357 | 1,704 | 25.6% |
| Gross Profit | 77 | 68 | 96 | 130 | 153 | 17.3% |
| SG&A | 45 | 46 | 55 | 68 | 79 | 16.5% |
| EBITDA | 45 | 34 | 56 | 80 | 94 | 16.5% |
| Net Income | -8 | 7 | -10 | 20 | 16 | -18.8% |
Balance Sheet
|
|---|
| Cash | 56 | 33 | 23 | 29 | 22 | -23.9% |
| Short Term Debt | 246 | 224 | 117 | 97 | 151 | 55.9% |
| Long Term Debt | 75 | 77 | 225 | 245 | 344 | 40.4% |
Cash flow
|
|---|
| Capex | 42 | 34 | 40 | 19 | 52 | 170.6% |
Ratios
|
|---|
| Revenue growth | 18.4% | 12.5% | 33.1% | 19.1% | 25.6% | |
| EBITDA growth | 21.7% | -23.1% | 64.6% | 42.5% | 16.5% | |
| Gross Margin | 10.2% | 7.9% | 8.4% | 9.6% | 9.0% | -0.6% |
| EBITDA Margin | 5.9% | 4.0% | 5.0% | 5.9% | 5.5% | -0.4% |
| Net Income Margin | -1.1% | 0.8% | -0.9% | 1.5% | 0.9% | -0.5% |
| SG&A, % of revenue | 5.9% | 5.4% | 4.8% | 5.0% | 4.6% | -0.4% |
| CAPEX, % of revenue | 5.5% | 4.0% | 3.5% | 1.4% | 3.1% | 1.6% |
| ROIC | 6.1% | 3.6% | 7.1% | 10.0% | 9.6% | -0.4% |
| ROE | -2.9% | 2.5% | -3.9% | 7.1% | 4.7% | -2.4% |
| Net Debt/EBITDA | 5.9x | 7.8x | 5.6x | 3.9x | 5.1x | 1.2x |
Revenue and profitability
AGT Food & Ingredients Inc's Revenue jumped on 25.6% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.59 pp from 11.6% to 12.2% in 2015.
Gross Margin decreased slightly on 0.64 pp from 9.6% to 9.0% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 0.51 pp from 1.5% to 0.94% in 2015.
Capital expenditures (CAPEX) and working capital investments
AGT Food & Ingredients Inc's CAPEX/Revenue was 3.1% in 2015. The company's CAPEX/Revenue decreased slightly on 0.92 pp from 4.0% in 2012 to 3.1% in 2015. It's average CAPEX/Revenue for the last three years was 2.7%.To fuel this fast growth the company invested a large share of EBITDA (55.8%) to CAPEX.
Return on investment
The company operates at low ROIC (9.65%) and ROE (4.73%). ROIC showed almost no change in 2015. ROE decreased on 2.4 pp from 7.1% to 4.7% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.1x and Debt / EBITDA is 5.3x. Net Debt / EBITDA jumped on 1.2x from 3.9x to 5.1x in 2015. Debt surged on 44.8% in 2015 while cash dropped on 23.9% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find AGT Food & Ingredients Inc benchmarking vs. other companies in Consumer, Non-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 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | | -38.8% | -72.9% | 218,969.1% | 18.7% |
| Cardiome Pharma Corp ($COM) | | -47.6% | 471.7% | 566.0% | -30.4% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | | 45.3% | 49.0% | 169.9% | 172.8% |
| |
|---|
| Median (86 companies) | 13.6% | 8.7% | 5.3% | 12.7% | 11.9% |
|---|
| AGT Food & Ingredients Inc ($AGT) | | 12.5% | 33.1% | 19.1% | 25.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | 62.5% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.6% | 38.6% | 36.2% | 35.7% | 36.5% |
|---|
| AGT Food & Ingredients Inc ($AGT) | 10.2% | 7.9% | 8.4% | 9.6% | 9.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | 12.8% |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | 39.3% |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | 36.1% |
| |
|---|
| Median (85 companies) | 7.9% | 8.5% | 9.0% | 11.0% | 10.6% |
|---|
| AGT Food & Ingredients Inc ($AGT) | 5.9% | 4.0% | 5.0% | 5.9% | 5.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.3% | 2.6% | 2.4% | 2.6% | 2.3% |
|---|
| AGT Food & Ingredients Inc ($AGT) | 5.5% | 4.0% | 3.5% | 1.4% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | 38.1% |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | -12.4% |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | -0.1% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.7% | 7.1% | 6.7% | 6.7% | 7.1% |
|---|
| AGT Food & Ingredients Inc ($AGT) | 6.1% | 3.6% | 7.1% | 10.0% | 9.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CIBT Education Group Inc ($MBA) | | -7.0x | -0.3x | | 18.4x |
| SunOpta Inc ($SOY) | 2.9x | 2.9x | 3.5x | 1.3x | 16.9x |
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | 15.6x |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Sienna Senior Living Inc ($SIA) | 10.6x | 9.5x | 11.8x | 9.2x | 9.1x |
| |
|---|
| Median (56 companies) | 1.8x | 2.5x | 2.2x | 2.6x | 1.6x |
|---|
| AGT Food & Ingredients Inc ($AGT) | 5.9x | 7.8x | 5.6x | 3.9x | 5.1x |
