Clearwater Seafoods Inc reports 60.8% EBITDA growth and 6.0 pp EBITDA Margin growth from 15.5% to 21.5%
22.03.2016 • About Clearwater Seafoods Inc (
$CLR) • By InTwits
Clearwater Seafoods Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Clearwater Seafoods Inc is a growth stock: 2015 revenue growth was 15.8%, 5 year revenue CAGR was 11.6% at 2015 ROIC 15.4%
- Clearwater Seafoods Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.8%. At the same time it's in pair with industry average of 8.4%.
- CAPEX is quite volatile: 63.4 in 2015, 83.3 in 2014, 23.8 in 2013, 16.6 in 2012, 21.2 in 2011
- The company has highly profitable business model: ROIC is at 15.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Clearwater Seafoods Inc ($CLR) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 332.8 | 350.3 | 388.7 | 435.9 | 504.9 | 15.8% |
| Gross Profit | 69.6 | 72.5 | 87.4 | 94.0 | 132.2 | 40.6% |
| SG&A | | 32.5 | 39.0 | 48.3 | 51.4 | 6.4% |
| EBITDA | 62.0 | 60.7 | 70.9 | 67.5 | 108.6 | 60.8% |
| Net Income | 16.3 | 15.0 | 6.3 | -2.9 | -37.6 | 1,194.6% |
Balance Sheet
|
|---|
| Cash | 9.7 | 41.5 | 46.8 | 47.6 | 51.1 | 7.4% |
| Short Term Debt | 42.8 | 15.5 | 14.3 | 22.8 | 65.7 | 187.5% |
| Long Term Debt | 204.3 | 238.3 | 243.0 | 250.2 | 415.1 | 65.9% |
Cash flow
|
|---|
| Capex | 21.2 | 16.6 | 23.8 | 83.3 | 63.4 | -23.9% |
Ratios
|
|---|
| Revenue growth | 14.3% | 5.3% | 10.9% | 12.2% | 15.8% | |
| EBITDA growth | 53.5% | -2.1% | 16.7% | -4.7% | 60.8% | |
| Gross Margin | 20.9% | 20.7% | 22.5% | 21.6% | 26.2% | 4.6% |
| EBITDA Margin | 18.6% | 17.3% | 18.2% | 15.5% | 21.5% | 6.0% |
| Net Income Margin | 4.9% | 4.3% | 1.6% | -0.7% | -7.4% | -6.8% |
| SG&A, % of revenue | | 9.3% | 10.0% | 11.1% | 10.2% | -0.9% |
| CAPEX, % of revenue | 6.4% | 4.7% | 6.1% | 19.1% | 12.6% | -6.6% |
| ROIC | 13.7% | 11.0% | 13.3% | 11.9% | 15.4% | 3.5% |
| ROE | 30.1% | 21.9% | 8.2% | -3.2% | -33.8% | -30.6% |
| Net Debt/EBITDA | 3.8x | 3.5x | 3.0x | 3.3x | 4.0x | 0.6x |
Revenue and profitability
The company's Revenue jumped on 15.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 64.8 pp from -38.2% to 26.5% in 2015.
Gross Margin increased on 4.6 pp from 21.6% to 26.2% in 2015. SG&A as a % of Revenue decreased slightly on 0.90 pp from 11.1% to 10.2% in 2015.
Net Income marign decreased on 6.8 pp from -0.67% to -7.4% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 12.6%. Clearwater Seafoods Inc's CAPEX/Revenue increased on 7.8 pp from 4.7% in 2012 to 12.6% in 2015. It's average level of CAPEX/Revenue for the last three years was 12.6%.The company invested a big chunk of EBITDA (58.4%) to CAPEX to secure its growth.
Return on investment
The company operates at low but positive ROIC (15.39%) and negative ROE (-33.76%). ROIC increased on 3.5 pp from 11.9% to 15.4% in 2015. ROE dropped on 30.6 pp from -3.2% to -33.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.0x and Debt / EBITDA is 4.4x. Net Debt / EBITDA jumped on 0.6x from 3.3x to 4.0x in 2015. Debt surged on 76.1% in 2015 while cash increased on 7.4% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Clearwater Seafoods Inc benchmarking against other companies in Consumer, Non-cyclical 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 |
|---|
| Theratechnologies Inc ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Nobilis Health Corp ($NHC) | | 45.3% | 49.0% | 169.9% | 172.8% |
| Merus Labs International Inc ($MSL) | | | 172.4% | -7.9% | 87.2% |
| |
|---|
| Median (70 companies) | 20.5% | 9.7% | 5.3% | 13.2% | 11.3% |
|---|
| Clearwater Seafoods Inc ($CLR) | | 5.3% | 10.9% | 12.2% | 15.8% |
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 ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 35.6% | 38.6% | 36.2% | 35.7% | 36.1% |
|---|
| Clearwater Seafoods Inc ($CLR) | 20.9% | 20.7% | 22.5% | 21.6% | 26.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| CRH Medical Corp ($CRH) | 22.1% | 21.0% | 24.5% | 29.1% | 44.1% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.9% | 36.8% | 36.3% | 36.4% | 39.7% |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | 39.3% |
| |
|---|
| Median (69 companies) | 7.5% | 7.4% | 8.7% | 10.6% | 10.6% |
|---|
| Clearwater Seafoods Inc ($CLR) | 18.6% | 17.3% | 18.2% | 15.5% | 21.5% |
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% |
| Westbond Enterprises Corp ($WBE) | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| ProMetic Life Sciences Inc ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (69 companies) | 2.3% | 2.6% | 2.4% | 2.5% | 2.4% |
|---|
| Clearwater Seafoods Inc ($CLR) | 6.4% | 4.7% | 6.1% | 19.1% | 12.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Response Biomedical Corp ($RBM) | -75.0% | -158.5% | | | 52.0% |
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Immunotec Inc ($IMM) | -11.5% | 1.8% | 8.8% | -10.5% | 40.8% |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | 38.1% |
| Medical Facilities Corp ($DR) | 41.0% | 36.1% | 39.5% | 26.5% | 28.5% |
| |
|---|
| Median (70 companies) | 7.0% | 6.3% | 6.7% | 6.7% | 7.1% |
|---|
| Clearwater Seafoods Inc ($CLR) | 13.7% | 11.0% | 13.3% | 11.9% | 15.4% |
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 ($SIA) | 10.6x | 9.5x | 11.8x | 9.2x | 9.1x |
| |
|---|
| Median (60 companies) | 1.8x | 2.5x | 2.2x | 2.6x | 1.6x |
|---|
| Clearwater Seafoods Inc ($CLR) | 3.8x | 3.5x | 3.0x | 3.3x | 4.0x |
