New Flyer Industries Inc Debt surged on 196% in 2015 and Net Debt / EBITDA jumped on 2.8x from 2.6x to 5.4x
23.03.2016 • About New Flyer Industries Inc (
$NFI) • By InTwits
New Flyer Industries Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- New Flyer Industries Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has business model with low profitability: ROIC is at 8.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
New Flyer Industries Inc ($NFI) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 926 | 865 | 1,199 | 1,451 | 1,539 | 6.1% |
| Gross Profit | 115 | 74 | 121 | 138 | 197 | 42.8% |
| EBITDA | 98 | 55 | 79 | 88 | 130 | 47.9% |
| Net Income | 16 | 9 | 27 | 27 | 54 | 101.7% |
Balance Sheet
|
|---|
| Cash | 10 | 11 | 12 | 17 | 25 | 42.5% |
| Short Term Debt | 11 | 42 | 36 | 42 | 183 | 341.1% |
| Long Term Debt | 169 | 180 | 200 | 204 | 544 | 166.9% |
Cash flow
|
|---|
| Capex | 8 | 11 | 15 | 11 | 9 | -18.9% |
Ratios
|
|---|
| Revenue growth | -5.8% | -6.6% | 38.6% | 21.0% | 6.1% | |
| EBITDA growth | 2.2% | -43.7% | 44.0% | 11.1% | 47.9% | |
| Gross Margin | 12.4% | 8.5% | 10.1% | 9.5% | 12.8% | 3.3% |
| EBITDA Margin | 10.5% | 6.4% | 6.6% | 6.1% | 8.5% | 2.4% |
| Net Income Margin | 1.7% | 1.1% | 2.2% | 1.8% | 3.5% | 1.7% |
| CAPEX, % of revenue | 0.8% | 1.2% | 1.3% | 0.7% | 0.6% | -0.2% |
| ROIC | 11.5% | 4.8% | 7.3% | 7.0% | 8.9% | 1.9% |
| ROE | 6.5% | 2.6% | 6.7% | 5.9% | 11.5% | 5.6% |
| Net Debt/EBITDA | 1.7x | 3.8x | 2.8x | 2.6x | 5.4x | 2.8x |
Revenue and profitability
New Flyer Industries Inc's Revenue increased on 6.1% in FY2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.4 pp from 6.1% to 8.5% in FY2015.
Gross Margin increased on 3.3 pp from 9.5% to 12.8% in FY2015.
Net Income marign increased slightly on 1.7 pp from 1.8% to 3.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.56% in FY2015. The company's CAPEX/Revenue decreased slightly on 0.69 pp from 1.2% in FY2012 to 0.56% in FY2015. It's average CAPEX/Revenue for the last three years was 0.86%.
Return on investment
The company operates at low ROIC (8.89%) and ROE (11.51%). ROIC increased slightly on 1.9 pp from 7.0% to 8.9% in FY2015. ROE increased on 5.6 pp from 5.9% to 11.5% in FY2015.
Leverage (Debt)
Debt level is 5.4x Net Debt / EBITDA and 5.6x Debt / EBITDA. Net Debt / EBITDA jumped on 2.8x from 2.6x to 5.4x in FY2015. Debt surged on 196% in FY2015 while cash jumped on 42.5% in FY2015.
Management team
New Flyer Industries Inc's CEO Paul Soubry is a founder and has spent 9 years at the company. New Flyer Industries Inc's CFO is Glenn Asham. Glenn Asham has 10 years tenure at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find New Flyer Industries Inc benchmarking vs. other companies in Consumer, 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 |
|---|
| Restaurant Brands International Inc ($QSR) | | | | 4.6% | 238.0% |
| DHX Media Ltd ($DHX.A) | | 31.1% | 33.9% | 19.4% | 127.4% |
| Amaya Inc ($AYA) | | 311.5% | 85.2% | 254.0% | 113.8% |
| Hudson's Bay Co ($HBC) | | 3.5% | 5.9% | 28.1% | 56.4% |
| Exchange Income Corp ($EIF) | | 56.9% | -36.4% | 6.6% | 48.8% |
| |
|---|
| Median (60 companies) | 6.4% | 5.3% | 4.9% | 7.0% | 5.2% |
|---|
| New Flyer Industries Inc ($NFI) | | -6.6% | 38.6% | 21.0% | 6.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | 78.7% |
| Cara Operations Ltd ($CAO) | | | 79.2% | 78.9% | 78.4% |
| Air Canada ($AC) | 62.3% | 62.4% | 63.5% | 64.0% | 71.9% |
| |
|---|
| Median (52 companies) | 37.9% | 36.5% | 34.1% | 35.4% | 33.7% |
|---|
| New Flyer Industries Inc ($NFI) | 12.4% | 8.5% | 10.1% | 9.5% | 12.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | 42.8% |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | 36.6% |
| Imvescor Restaurant Group Inc ($IRG) | 26.5% | 27.9% | 27.3% | 25.5% | 35.9% |
| Whistler Blackcomb Holdings Inc ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (56 companies) | 8.7% | 8.1% | 9.8% | 10.1% | 10.0% |
|---|
| New Flyer Industries Inc ($NFI) | 10.5% | 6.4% | 6.6% | 6.1% | 8.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | 26.7% |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Westshore Terminals Investment Corp ($WTE) | | 25.7% | 11.5% | 6.2% | 21.2% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Chorus Aviation Inc ($CHR.A) | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% |
| |
|---|
| Median (60 companies) | 2.9% | 2.7% | 2.9% | 2.5% | 2.9% |
|---|
| New Flyer Industries Inc ($NFI) | 0.8% | 1.2% | 1.3% | 0.7% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| BRP Inc/CA ($DOO) | | 29.8% | 26.8% | 32.3% | 35.3% |
| Cara Operations Ltd ($CAO) | | | | 24.7% | 35.1% |
| Jean Coutu Group PJC Inc/The ($PJC.A) | 33.5% | 34.4% | 29.8% | 29.2% | 30.2% |
| Dollarama Inc ($DOL) | 17.7% | 21.6% | 24.7% | 26.5% | 29.9% |
| |
|---|
| Median (60 companies) | 10.6% | 9.8% | 10.8% | 9.9% | 10.9% |
|---|
| New Flyer Industries Inc ($NFI) | 11.5% | 4.8% | 7.3% | 7.0% | 8.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Holloway Lodging Corp ($HLC) | | | 5.8x | 8.4x | 17.1x |
| Discovery Air Inc ($DA.A) | 3.2x | 2.8x | 3.8x | 7.5x | 11.4x |
| AutoCanada Inc ($ACQ) | 1.9x | 4.2x | 4.7x | 6.4x | 8.0x |
| Second Cup Ltd/The ($SCU) | 0.6x | 1.0x | 0.6x | 0.0x | 7.5x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | 6.6x |
| |
|---|
| Median (51 companies) | 1.3x | 1.2x | 1.8x | 2.0x | 1.8x |
|---|
| New Flyer Industries Inc ($NFI) | 1.7x | 3.8x | 2.8x | 2.6x | 5.4x |
