NAPEC Inc/Canada reports 65.9% EBITDA growth and 1.5 pp EBITDA Margin growth from 3.6% to 5.1%
24.03.2016 • About NAPEC Inc/Canada (
$NPC) • By InTwits
NAPEC Inc/Canada reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 5.1% in 2015, 3.6% in 2014, 2.9% in 2013, 9.3% in 2012, 8.4% in 2011
- NAPEC Inc/Canada has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 7.0%.
- CAPEX is quite volatile: 12.1 in 2015, 4.9 in 2014, 14.5 in 2013, 9.9 in 2012, 7.7 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.2%
- It operates with high leverage: Net Debt/EBITDA is 4.1x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
NAPEC Inc/Canada ($NPC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 233.2 | 249.2 | 239.8 | 292.7 | 344.0 | 17.5% |
| Gross Profit | 9.6 | 14.5 | -2.7 | 23.4 | 29.9 | 27.9% |
| SG&A | | | | 23.0 | 25.8 | 12.5% |
| EBITDA | 19.7 | 23.1 | 7.0 | 10.6 | 17.5 | 65.9% |
| Net Income | 3.1 | 10.2 | -1.8 | -2.3 | 2.4 | -201.4% |
Balance Sheet
|
|---|
| Cash | 5.4 | 14.3 | 3.1 | 11.3 | 4.3 | -62.5% |
| Short Term Debt | 17.2 | 26.0 | 43.6 | 30.1 | 24.7 | -18.0% |
| Long Term Debt | 25.8 | 17.1 | 7.2 | 27.5 | 51.3 | 86.6% |
Cash flow
|
|---|
| Capex | 7.7 | 9.9 | 14.5 | 4.9 | 12.1 | 150.1% |
Ratios
|
|---|
| Revenue growth | -10.2% | 6.8% | -3.8% | 22.0% | 17.5% | |
| EBITDA growth | -25.5% | 17.7% | -69.8% | 51.0% | 65.9% | |
| Gross Margin | 4.1% | 5.8% | -1.1% | 8.0% | 8.7% | 0.7% |
| EBITDA Margin | 8.4% | 9.3% | 2.9% | 3.6% | 5.1% | 1.5% |
| Net Income Margin | 1.3% | 4.1% | -0.7% | -0.8% | 0.7% | 1.5% |
| SG&A, % of revenue | | | | 7.8% | 7.5% | -0.3% |
| CAPEX, % of revenue | 3.3% | 4.0% | 6.1% | 1.7% | 3.5% | 1.9% |
| ROIC | 7.8% | 11.5% | -2.1% | 0.3% | 2.2% | 1.9% |
| ROE | 4.4% | 13.2% | -2.1% | -2.8% | 2.5% | 5.3% |
| Net Debt/EBITDA | 1.9x | 1.2x | 6.8x | 4.4x | 4.1x | -0.3x |
Revenue and profitability
The company's Revenue jumped on 17.5% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.5 pp from 3.6% to 5.1% in 2015.
Gross Margin increased slightly on 0.70 pp from 8.0% to 8.7% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.5 pp from -0.80% to 0.69% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.5% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 3.7%.To secure this fast growth NAPEC Inc/Canada invested a large share of EBITDA (69.3%) to CAPEX.
Return on investment
The company operates at low ROIC (2.23%) and ROE (2.48%). ROIC increased slightly on 1.9 pp from 0.29% to 2.2% in 2015. ROE increased on 5.3 pp from -2.8% to 2.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.1x and Debt / EBITDA is 4.3x. Net Debt / EBITDA dropped on 0.3x from 4.4x to 4.1x in 2015. Debt jumped on 31.9% in 2015 while cash dropped on 62.5% in 2015.
Appendix 1: Peers in Industrial
Below you can find NAPEC Inc/Canada benchmarking vs. other companies in Industrial 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 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| WSP Global Inc ($WSP) | | 92.9% | 60.3% | 44.0% | 108.9% |
| CEMATRIX Corp ($CVX) | | 9.2% | -5.6% | 7.9% | 76.5% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| Cargojet Inc ($CJT.A) | | 2.0% | 3.9% | 9.7% | 50.2% |
| |
|---|
| Median (74 companies) | 0.8% | 11.5% | 5.3% | 9.1% | 9.1% |
|---|
| NAPEC Inc/Canada ($NPC) | | 6.8% | -3.8% | 22.0% | 17.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 24.0% |
|---|
| NAPEC Inc/Canada ($NPC) | 4.1% | 5.8% | -1.1% | 8.0% | 8.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Evertz Technologies Ltd ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| Badger Daylighting Ltd ($BAD) | 27.2% | 25.7% | 25.9% | 27.9% | 24.6% |
| |
|---|
| Median (70 companies) | 8.1% | 9.3% | 8.3% | 7.7% | 9.6% |
|---|
| NAPEC Inc/Canada ($NPC) | 8.4% | 9.3% | 2.9% | 3.6% | 5.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | 41.3% |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | 18.0% |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.2% | 3.9% |
|---|
| NAPEC Inc/Canada ($NPC) | 3.3% | 4.0% | 6.1% | 1.7% | 3.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | 11.4% |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 9.1% | 9.3% | 8.5% | 9.1% | 11.2% |
|---|
| NAPEC Inc/Canada ($NPC) | 7.8% | 11.5% | -2.1% | 0.3% | 2.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Conifex Timber Inc ($CFF) | | | 2.7x | 6.1x | 35.9x |
| Ag Growth International Inc ($AFN) | 2.4x | 2.9x | -0.1x | 2.1x | 14.1x |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | 12.9x |
| Progressive Waste Solutions Ltd ($BIN) | 2.5x | 4.5x | 3.3x | 2.9x | 10.6x |
| Finning International Inc ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (63 companies) | 1.1x | 1.5x | 1.4x | 1.2x | 1.0x |
|---|
| NAPEC Inc/Canada ($NPC) | 1.9x | 1.2x | 6.8x | 4.4x | 4.1x |
