XPEL Technologies Corp reports 49.8% Net Income decline while 40.0% Revenue growth
29.03.2016 • About XPEL Technologies Corp (
$DAP.U) • By InTwits
XPEL Technologies Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- XPEL Technologies Corp is a fast growth stock: 2015 revenue growth was 40.0%, 5 year revenue CAGR was 58.6% at 2015 ROIC 22.4%
- XPEL Technologies Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 29.5%.
- CAPEX is quite volatile: 0.45 in 2015, 0.37 in 2014, 0.32 in 2013, 0.12 in 2012, 0.075 in 2011
- The company has highly profitable business model: ROIC is at 22.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
XPEL Technologies Corp ($DAP.U) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6.042 | 10.671 | 17.899 | 29.630 | 41.470 | 40.0% |
| Gross Profit | 2.515 | 3.635 | 5.746 | 9.257 | 12.316 | 33.1% |
| SG&A | | | 3.703 | 6.465 | 9.708 | 50.2% |
| EBITDA | 0.952 | 1.428 | 2.427 | 3.269 | 3.500 | 7.0% |
| Net Income | 0.816 | 1.162 | 1.320 | 3.097 | 1.555 | -49.8% |
Balance Sheet
|
|---|
| Cash | 0.425 | 1.396 | 1.415 | 1.474 | 2.841 | 92.7% |
| Short Term Debt | 0.000 | 0.000 | 0.069 | 0.990 | 4.216 | 325.7% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 1.827 | |
Cash flow
|
|---|
| Capex | 0.075 | 0.118 | 0.324 | 0.369 | 0.450 | 22.0% |
Ratios
|
|---|
| Revenue growth | 46.3% | 76.6% | 67.7% | 65.5% | 40.0% | |
| EBITDA growth | 44.5% | 50.0% | 69.9% | 34.7% | 7.0% | |
| Gross Margin | 41.6% | 34.1% | 32.1% | 31.2% | 29.7% | -1.5% |
| EBITDA Margin | 15.8% | 13.4% | 13.6% | 11.0% | 8.4% | -2.6% |
| Net Income Margin | 13.5% | 10.9% | 7.4% | 10.5% | 3.7% | -6.7% |
| SG&A, % of revenue | | | 20.7% | 21.8% | 23.4% | 1.6% |
| CAPEX, % of revenue | 1.2% | 1.1% | 1.8% | 1.2% | 1.1% | -0.2% |
| ROIC | 52.9% | 54.7% | 57.5% | 43.2% | 22.4% | -20.8% |
| ROE | 57.6% | 48.1% | 36.1% | 52.9% | 19.8% | -33.1% |
| Net Debt/EBITDA | -0.4x | -1.0x | -0.6x | -0.1x | 0.9x | 1.1x |
Revenue and profitability
XPEL Technologies Corp's Revenue surged on 40.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.4 pp from 25.5% to 35.9% in FY2015.
Gross Margin decreased slightly on 1.5 pp from 31.2% to 29.7% in 2015. SG&A as a % of Revenue increased slightly on 1.6 pp from 21.8% to 23.4% in 2015.
Net Income marign decreased on 6.7 pp from 10.5% to 3.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.1% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 1.4%.
Return on investment
The company operates at high and attractive ROIC (22.42%) while ROE is a bit lower (19.75%). ROIC dropped on 20.8 pp from 43.2% to 22.4% in 2015. ROE dropped on 33.1 pp from 52.9% to 19.8% in 2015.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA jumped on 1.1x from -0.1x to 0.9x in 2015. Debt surged on 510% in 2015 while cash surged on 92.7% in 2015.
Appendix 1: Peers in Consumer, Cyclical
Below you can find XPEL Technologies Corp 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 ($EIF) | | 56.9% | -36.4% | 6.6% | 48.8% |
| |
|---|
| Median (65 companies) | 6.4% | 5.2% | 4.7% | 6.8% | 4.9% |
|---|
| XPEL Technologies Corp ($DAP.U) | | 76.6% | 67.7% | 65.5% | 40.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | 82.7% |
| 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 ($CAO) | | | 79.2% | 78.9% | 78.4% |
| |
|---|
| Median (57 companies) | 37.0% | 37.0% | 36.1% | 36.2% | 33.7% |
|---|
| XPEL Technologies Corp ($DAP.U) | 41.6% | 34.1% | 32.1% | 31.2% | 29.7% |
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 ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (60 companies) | 8.8% | 8.0% | 9.7% | 10.0% | 9.7% |
|---|
| XPEL Technologies Corp ($DAP.U) | 15.8% | 13.4% | 13.6% | 11.0% | 8.4% |
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 ($CHR.A) | 12.5% | 9.9% | 9.6% | 3.9% | 15.0% |
| |
|---|
| Median (65 companies) | 3.0% | 2.7% | 2.9% | 2.5% | 2.8% |
|---|
| XPEL Technologies Corp ($DAP.U) | 1.2% | 1.1% | 1.8% | 1.2% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | 51.1% |
| Westshore Terminals Investment Corp ($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 ($PJC.A) | 33.5% | 34.4% | 29.8% | 29.2% | 30.2% |
| |
|---|
| Median (65 companies) | 10.6% | 9.7% | 9.9% | 9.7% | 10.9% |
|---|
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | 22.4% |
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 ($AYA) | | 17.9x | 1.8x | 13.5x | 6.6x |
| |
|---|
| Median (53 companies) | 1.3x | 1.5x | 1.9x | 2.1x | 1.9x |
|---|
| XPEL Technologies Corp ($DAP.U) | -0.4x | -1.0x | -0.6x | -0.1x | 0.9x |
