Westshore Terminals Investment Corp demonstrated fast growth in recent years. Will the growth continue?
29.03.2016 • About Westshore Terminals Investment Corp (
$WTE) • By InTwits
Pay attention to Westshore Terminals Investment Corp as a growth stock. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Westshore Terminals Investment Corp showed fast growth in the last financial year. Westshore Terminals Investment Corp's revenue surged on 17.2% in FY2015. At the same time the company well managed its profitability and also showed EBITDA growth of 14.7% for the same period.
In the longer period Westshore Terminals Investment Corp showed fast revenue growth of 15.0% from 2012 to 2015 annually. EBITDA surged on 22.1% from 2012 to 2015 annually.
Westshore Terminals Investment Corp ($WTE) financials for the last 5 years
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 213 | 241 | 296 | 312 | 366 |
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| Revenue growth, % | | 13.1% | 22.9% | 5.5% | 17.2% |
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| Gross margin, % | 50.3% | 49.9% | 55.3% | 57.2% | 60.8% |
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| SG&A, % | 4.55% | 4.13% | 4.47% | 4.68% | 4.03% |
|---|
| EBITDA | 108 | 120 | 195 | 190 | 218 |
|---|
| EBITDA growth, % | | 10.9% | 63.0% | -2.5% | 14.7% |
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| EBITDA margin, % | 50.7% | 49.7% | 65.9% | 60.9% | 59.6% |
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| Net Income | 43 | 65 | 133 | 130 | 153 |
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| Net Income margin, % | 20.2% | 26.9% | 45.1% | 41.8% | 41.8% |
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| |
| CAPEX | 15 | 62 | 34 | 19 | 78 |
|---|
| CAPEX/Revenue, % | 7.07% | 25.7% | 11.5% | 6.21% | 21.2% |
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| Debt | 371 | 30 | 0 | 0 | 0 |
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| Cash | 66 | 44 | 61 | 86 | 98 |
|---|
| Net Debt/EBITDA | 2.8x | -0.1x | -0.3x | -0.5x | -0.4x |
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| |
| ROIC, % | 20.7% | 24.0% | 37.8% | 35.0% | 38.3% |
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| ROE, % | 15.4% | 25.5% | 29.3% | 26.8% | 29.4% |
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Profitability and return on investment
EBITDA margin declined slightly from 60.9% in FY2014 to 59.6% in FY2015. In the longer period the company's EBITDA margin surged on 9.90 pp from 49.7% in 2012 to 59.6% in 2015.
Westshore Terminals Investment Corp shows attractive ROIC at 38.3% for the last 12 months which assumes stable development model. During the last three years it surged - it was 24.0% in FY2012. Average ROIC for the last three years was 37.0%.
The company showed no change in Net Income margin of 0 pp from 41.8% to 41.8% in 2015. In the longer period Westshore Terminals Investment Corp's Net Income margin surged on 14.9 pp from 26.9% in 2012 to 41.8% in 2015.
Westshore Terminals Investment Corp operates at ROE of 29.4%. Average ROE for the last three years was 28.5%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.Westshore Terminals Investment Corp's CAPEX/Revenue was 21.2% in FY2015. CAPEX/Revenue dropped on 4.49 pp from 25.7% in 2012 to 21.2% in 2015. It's average CAPEX/Revenue for the last three years was 13.0%.
Leverage (Debt)
Having such a fast growth profile Westshore Terminals Investment Corp keeps negative net debt at -0.4x Net Debt/EBITDA. If we look for the longer period leverage surged on 0.33x from -0.12x in 2012 to -0.45x in 2015.
Valuation vs. comparable companies
The market closed today at 5.2x EV/EBITDA for Westshore Terminals Investment Corp which is 81.7% lower than 28.3x Consumer, Cyclical peer group avearge calculated on the basis of 111 companies. At the end of trading day today Westshore Terminals Investment Corp traded at 8.0x P/E which is 58.2% lower than 19.2x Consumer, Cyclical peer group avearge calculated on the basis of 26 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Westshore Terminals Investment Corp traded at 8.0x EV/(EBITDA-CAPEX) which is 142% higher than 3.3x Consumer, Cyclical peer group avearge calculated on the basis of 26 companies.
Management team
William Wade Stinson runs Westshore Terminals Investment Corp as a CEO.
Peers in Consumer, Cyclical
Below we provide Westshore Terminals Investment Corp benchmarking against other companies in Consumer, 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 |
|---|
| 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 ($EIF) | | 56.9% | -36.4% | 6.6% | 48.8% |
| |
|---|
| Median (59 companies) | -3.3% | 5.3% | 4.9% | 7.4% | 4.9% |
|---|
| Westshore Terminals Investment Corp ($WTE) | | | 22.9% | 5.5% | 17.2% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 ($AC) | 62.3% | 62.4% | 63.5% | 64.0% | 71.9% |
| |
|---|
| Median (51 companies) | 37.0% | 34.1% | 31.8% | 33.5% | 33.7% |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.9% | 55.3% | 57.2% | 60.8% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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% |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
| |
|---|
| Median (55 companies) | 8.8% | 7.9% | 9.6% | 9.8% | 10.0% |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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% |
| 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% |
| Discovery Air Inc ($DA.A) | 11.8% | 17.1% | 16.8% | 10.1% | 13.7% |
| |
|---|
| Median (59 companies) | 2.8% | 2.7% | 2.8% | 2.3% | 2.8% |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 25.7% | 11.5% | 6.2% | 21.2% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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% |
| Air Canada ($AC) | 12.9% | | 37.0% | 23.2% | 28.4% |
| |
|---|
| Median (59 companies) | 10.7% | 9.7% | 10.1% | 9.7% | 10.9% |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 ($AYA) | | 17.9x | 1.8x | 13.5x | 6.6x |
| |
|---|
| Median (50 companies) | 1.3x | 1.4x | 1.8x | 2.1x | 1.9x |
|---|
| Westshore Terminals Investment Corp ($WTE) | | -0.1x | -0.3x | -0.5x | -0.4x |
