Genesis Land Development Corp Net Income dropped on 36.7% in 2015
22.03.2016 • About Genesis Land Development Corp (
$GDC) • By InTwits
Genesis Land Development Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Genesis Land Development Corp is a company in decline: 2015 revenue growth was -11.3%, 5 years revenue CAGR was -2.8%
- Genesis Land Development Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has potentially unprofitable business model: ROIC is at 1.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Genesis Land Development Corp ($GDC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 95.8 | 129.5 | 96.1 | 134.2 | 119.1 | -11.3% |
| Net Income | 11.1 | 8.9 | 5.7 | 17.4 | 11.0 | -36.7% |
Balance Sheet
|
|---|
| Cash | 10.9 | 10.0 | 17.7 | 33.0 | 11.4 | -65.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 88.2 | 97.2 | 50.4 | 23.9 | 63.8 | 167.1% |
Cash flow
|
|---|
| Capex | 0.1 | 0.4 | 0.3 | 0.9 | 1.2 | 37.4% |
Ratios
|
|---|
| Revenue growth | -30.3% | 35.2% | -25.8% | 39.7% | -11.3% | |
| Net Income Margin | 11.5% | 6.8% | 5.9% | 13.0% | 9.2% | -3.7% |
| CAPEX, % of revenue | 0.1% | 0.3% | 0.3% | 0.6% | 1.0% | 0.4% |
| ROIC | 4.3% | 8.6% | 3.2% | 6.2% | 1.3% | -4.8% |
| ROE | 6.4% | 4.8% | 3.0% | 8.6% | 5.2% | -3.4% |
Revenue and profitability
The company's Revenue dropped on 11.3% in 2015.
Net Income marign decreased on 3.7 pp from 13.0% to 9.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.00% in 2015. Genesis Land Development Corp's CAPEX/Revenue increased slightly on 0.65 pp from 0.35% in 2012 to 1.00% in 2015. It's average CAPEX/Revenue for the last three years was 0.66%.
Return on investment
The company operates at low ROIC (1.33%) and ROE (5.24%). ROIC decreased on 4.8 pp from 6.2% to 1.3% in 2015. ROE decreased on 3.4 pp from 8.6% to 5.2% in 2015.
Leverage (Debt)
Debt jumped on 167% in 2015 while cash dropped on 65.5% in 2015.
Appendix 1: Peers in Financial
Below you can find Genesis Land Development Corp benchmarking vs. other companies in Financial 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 |
|---|
| Mogo Finance Technology Inc ($GO) | | | 13.7% | 34.6% | 86.0% |
| Morguard Corp ($MRC) | | 5.3% | 27.2% | 9.2% | 58.8% |
| Chesswood Group Ltd ($CHW) | | 12.2% | 9.4% | -47.4% | 53.7% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | 47.2% |
| Clairvest Group Inc ($CVG) | | 16.4% | 37.9% | 25.9% | 36.7% |
| |
|---|
| Median (62 companies) | 35.7% | 8.5% | 7.7% | 8.9% | 1.5% |
|---|
| Genesis Land Development Corp ($GDC) | | 35.2% | -25.8% | 39.7% | -11.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | 84.5% |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | 76.5% |
| Mogo Finance Technology Inc ($GO) | | 70.4% | 64.5% | 63.4% | 62.3% |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | 27.5% |
| |
|---|
| Median (12 companies) | 25.2% | 25.0% | 26.2% | 24.2% | 31.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | 84.7% |
| Atrium Mortgage Investment Corp ($AI) | 84.5% | 79.8% | | | 81.9% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | | 76.2% |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| Madison Pacific Properties Inc ($MPC) | 59.2% | | 62.9% | 65.7% | 66.0% |
| |
|---|
| Median (43 companies) | 35.8% | 32.3% | 32.0% | 30.5% | 27.0% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imperial Equities Inc ($IEI) | 23.1% | 22.8% | 16.0% | 27.7% | 147.5% |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| Wall Financial Corp ($WFC) | 1.8% | 13.5% | 9.8% | 6.1% | 65.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | 56.3% |
| |
|---|
| Median (64 companies) | 1.3% | 1.4% | 0.8% | 1.1% | 1.1% |
|---|
| Genesis Land Development Corp ($GDC) | 0.1% | 0.3% | 0.3% | 0.6% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | 61.0% |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| Clairvest Group Inc ($CVG) | 7.6% | 8.6% | 12.3% | 11.5% | 12.8% |
| Canadian Western Bank ($CWB) | 13.0% | 12.4% | 12.1% | 12.4% | 11.6% |
| |
|---|
| Median (64 companies) | 5.3% | 4.8% | 4.6% | 4.7% | 4.8% |
|---|
| Genesis Land Development Corp ($GDC) | 4.3% | 8.6% | 3.2% | 6.2% | 1.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | 79.9x |
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | 37.4x |
| Wall Financial Corp ($WFC) | 6.2x | 3.4x | 19.9x | 4.6x | 20.1x |
| Equitable Group Inc ($EQB) | 12.7x | 11.8x | 10.2x | 9.8x | 12.3x |
| Rifco Inc ($RFC) | | 9.8x | 9.4x | 10.7x | 11.9x |
| |
|---|
| Median (34 companies) | 4.1x | 5.3x | 5.0x | 4.3x | 4.8x |
|---|
