The numbers tell that Clearwater Seafoods Inc is a solid growth stock
29.03.2016 • About Clearwater Seafoods Inc (
$CLR) • By InTwits
Clearwater Seafoods Inc is a growth stock in Consumer, Non-cyclical industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Clearwater Seafoods Inc showed fast growth in the last financial year. Clearwater Seafoods Inc's revenue surged on 15.8% in FY2015. Together with revenue growth Clearwater Seafoods Inc also managed to keep EBITDA growth. EBITDA grew 60.8% for the same period.
In the last 3 years Clearwater Seafoods Inc showed fast revenue growth of 13.0% from 2012 to 2015 annually. EBITDA surged on 21.4% from 2012 to 2015 annually.
Clearwater Seafoods Inc ($CLR) financials for the last 5 years
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 333 | 350 | 389 | 436 | 505 |
|---|
| Revenue growth, % | | 5.3% | 10.9% | 12.2% | 15.8% |
|---|
| Gross margin, % | 20.9% | 20.7% | 22.5% | 21.6% | 26.2% |
|---|
| SG&A, % | | 9.29% | 10.0% | 11.1% | 10.2% |
|---|
| EBITDA | 62 | 61 | 71 | 68 | 109 |
|---|
| EBITDA growth, % | | -2.1% | 16.7% | -4.7% | 60.8% |
|---|
| EBITDA margin, % | 18.6% | 17.3% | 18.2% | 15.5% | 21.5% |
|---|
| Net Income | 16 | 15 | 6 | -3 | -38 |
|---|
| Net Income margin, % | 4.91% | 4.28% | 1.63% | -0.666% | -7.45% |
|---|
| |
| CAPEX | 21 | 17 | 24 | 83 | 63 |
|---|
| CAPEX/Revenue, % | 6.38% | 4.73% | 6.13% | 19.1% | 12.6% |
|---|
| Debt | 247 | 254 | 257 | 273 | 481 |
|---|
| Cash | 10 | 42 | 47 | 48 | 51 |
|---|
| Net Debt/EBITDA | 3.8x | 3.5x | 3.0x | 3.3x | 4.0x |
|---|
| |
| ROIC, % | 13.7% | 11.0% | 13.3% | 11.9% | 15.4% |
|---|
| ROE, % | 30.1% | 21.9% | 8.2% | -3.2% | -33.8% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Clearwater Seafoods Inc showed fast EBITDA margin growth of 6 pp from 15.5% to 21.5% in 2015. In the longer period EBITDA margin surged on 4.20 pp from 17.3% in 2012 to 21.5% in 2015.
Clearwater Seafoods Inc shows attractive ROIC at 15.4% for the last 12 months which assumes stable development model. During the last three years it surged - it was 11.0% in FY2012. For the last three years the average ROIC was 13.5%.
The company showed fast Net Income margin growth of 6.70 pp from -0.700% to -7.40% in 2015. In the last 3 years Clearwater Seafoods Inc's Net Income margin dropped on 11.7 pp from 4.30% in 2012 to -7.40% in 2015.
Clearwater Seafoods Inc operates at ROE of -33.8%. It's average level of ROE for the last three years was -9.59%.
Capital expenditures (CAPEX)
To this fast growth Clearwater Seafoods Inc had to invest in CAPEX.In FY2015 Clearwater Seafoods Inc had CAPEX/Revenue of 12.6%. The company showed fast CAPEX/Revenue growth of 7.82 pp from 4.73% in 2012 to 12.6% in 2015. Average CAPEX/Revenue for the last three years was 12.6%.
Leverage (Debt)
Having such a fast growth profile the company keeps medium debt level at 4.0x Net Debt/EBITDA. In the longer period leverage surged on 0.46x from 3.50x in 2012 to 3.96x in 2015.
Valuation vs. comparable companies
At the end of trading day today Clearwater Seafoods Inc traded at 10.9x EV/EBITDA which is 60.4% lower than 27.6x Consumer, Non-cyclical peer group avearge calculated on the basis of 289 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The market closed today at 26.3x EV/(EBITDA-CAPEX) for Clearwater Seafoods Inc which is 167% higher than 9.8x Consumer, Non-cyclical peer group avearge calculated on the basis of 43 companies.
Peers in Consumer, Non-cyclical
Below you can find Clearwater Seafoods Inc benchmarking vs. other companies in Consumer, Non-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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| 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% |
| 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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 |
