Nobilis Health Corp is a growth stock to keep your eyes on
22.03.2016 • About Nobilis Health Corp (
$NHC) • By InTwits
Nobilis Health Corp is a growth stock in Consumer, Non-cyclical industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Nobilis Health Corp showed growth in the last financial year. Nobilis Health Corp's revenue surged on 173% in FY2015. EBITDA also increased considerably: 61.7% for the same period.
If we look for the longer period the company showed fast revenue growth of 122% from 2012 to 2015 annually. EBITDA surged on 80.2% from 2012 to 2015 annually.
Nobilis Health Corp ($NHC) financials for the last 5 years
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 14 | 21 | 31 | 84 | 229 |
|---|
| Revenue growth, % | | 45.3% | 49.0% | 169.9% | 172.8% |
|---|
| Gross margin, % | | | | 99.8% | |
|---|
| SG&A, % | 41.9% | 29.5% | 41.4% | 42.7% | 44.5% |
|---|
| EBITDA | -1 | 6 | 5 | 22 | 36 |
|---|
| EBITDA growth, % | | -802.9% | -12.9% | 315.7% | 61.7% |
|---|
| EBITDA margin, % | -6.14% | 29.7% | 17.4% | 26.7% | 15.9% |
|---|
| Net Income | -2 | 1 | 1 | 7 | 51 |
|---|
| Net Income margin, % | -15.1% | 5.74% | 4.55% | 8.00% | 22.2% |
|---|
| |
| CAPEX | 0 | 0 | 1 | 2 | 4 |
|---|
| CAPEX/Revenue, % | 2.87% | 1.35% | 3.79% | 2.41% | 1.91% |
|---|
| Debt | 2 | 2 | 2 | 21 | 45 |
|---|
| Cash | 3 | 4 | 6 | 8 | 16 |
|---|
| Net Debt/EBITDA | 0.5x | -0.4x | -0.7x | 0.6x | 0.8x |
|---|
| |
| ROIC, % | -20.2% | 49.4% | 29.7% | 39.0% | 24.5% |
|---|
| ROE, % | -50.6% | 33.7% | 17.8% | 23.4% | 58.9% |
|---|
Profitability and return on investment
EBITDA margin declined fast from 26.7% in FY2014 to 15.9% in FY2015. If we look for the longer period Nobilis Health Corp showed big decline in EBITDA margin of 13.8 pp from 29.7% in 2012 to 15.9% in 2015.
We call Nobilis Health Corp an attractive growth stock as together with the growth it delivers high ROIC at 24.5%. Three years ago it was considerably higher at 49.4%. Average ROIC for the last three years was 31.1%.
Net Income margin surged on 14.2 pp from 8% to 22.2% in 2015. In the last 3 years the company's Net Income margin surged on 16.5 pp from 5.70% in 2012 to 22.2% in 2015.
Nobilis Health Corp operates at ROE of 58.9%. It's average ROE for the last three years was 33.4%.
Capital expenditures (CAPEX)
In FY2015 the company had CAPEX/Revenue of 1.91%. The company's CAPEX/Revenue surged on 0.557 pp from 1.35% in 2012 to 1.91% in 2015. Average CAPEX/Revenue for the last three years was 2.70%.
Leverage (Debt)
Nobilis Health Corp has low debt level at 0.8x Net Debt/EBITDA - at the same time with high growth. In the longer period the company showed fast leverage growth of 1.20x from -0.41x in 2012 to 0.80x in 2015.
Management team
Nobilis Health Corp is headed by Harry Joseph Fleming as a CEO.
Peers in Consumer, Non-cyclical
Below we provide Nobilis Health Corp 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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% | |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | |
| |
|---|
| Median (86 companies) | 16.3% | 8.7% | 5.3% | 12.7% | 11.4% |
|---|
| Nobilis Health Corp ($NHC) | | 45.3% | 49.0% | 169.9% | 172.8% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| Merus Labs International Inc ($MSL) | | 88.6% | 91.4% | 82.8% | 84.6% |
| |
|---|
| Median (74 companies) | 35.5% | 37.4% | 36.1% | 35.1% | 36.1% |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | 36.1% |
| |
|---|
| Median (85 companies) | 7.9% | 7.4% | 8.7% | 10.6% | 10.8% |
|---|
| Nobilis Health Corp ($NHC) | -6.1% | 29.7% | 17.4% | 26.7% | 15.9% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.3% | 2.8% | 2.4% | 2.6% | 2.3% |
|---|
| Nobilis Health Corp ($NHC) | 2.9% | 1.4% | 3.8% | 2.4% | 1.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.7% | 6.3% | 6.7% | 6.7% | 6.6% |
|---|
| Nobilis Health Corp ($NHC) | -20.2% | 49.4% | 29.7% | 39.0% | 24.5% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | 4.9x |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (70 companies) | 1.9x | 2.8x | 2.2x | 2.7x | 1.7x |
|---|
| Nobilis Health Corp ($NHC) | | -0.4x | -0.7x | 0.6x | 0.8x |
