Ceapro Inc reports 209% Net Income growth and 18.6 pp EBITDA Margin growth from 23.4% to 41.9%
14.04.2016 • About Ceapro Inc (
$CZO) • By InTwits
Ceapro Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ceapro Inc is a growth stock: 2015 revenue growth was 20.0%, 5 year revenue CAGR was 13.9% at 2015 ROIC 50.4%
- EBITDA Margin is expanding: 41.9% in 2015 vs. 23.4% in 2014 vs. 18.2% in 2011
- EBITDA Margin is quite volatile: 41.9% in 2015, 23.4% in 2014, 9.1% in 2013, -2.6% in 2012, 18.2% in 2011
- Ceapro Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 26.5%. At the same time it's a lot of higher than industry average of 8.3%.
- CAPEX is quite volatile: 4.2 in 2015, 4.6 in 2014, 2.3 in 2013, 0.20 in 2012, 0.13 in 2011
- The company has highly profitable business model: ROIC is at 50.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ceapro Inc ($CZO) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 5.786 | 5.165 | 6.524 | 8.890 | 10.667 | 20.0% |
| Gross Profit | 3.248 | 2.449 | 3.099 | 4.764 | 7.029 | 47.5% |
| SG&A | | | 1.794 | 1.998 | 2.527 | 26.5% |
| EBITDA | 1.056 | -0.133 | 0.595 | 2.078 | 4.473 | 115.2% |
| Net Income | 0.578 | -0.538 | 0.176 | 1.594 | 4.922 | 208.8% |
Balance Sheet
|
|---|
| Cash | 0.592 | 0.273 | 1.953 | 0.273 | 1.681 | 516.1% |
| Short Term Debt | 0.154 | 0.169 | 0.500 | 0.768 | 1.857 | 141.6% |
| Long Term Debt | 0.927 | 0.758 | 2.222 | 2.361 | 2.277 | -3.6% |
Cash flow
|
|---|
| Capex | 0.126 | 0.199 | 2.303 | 4.620 | 4.206 | -9.0% |
Ratios
|
|---|
| Revenue growth | 3.8% | -10.7% | 26.3% | 36.3% | 20.0% | |
| EBITDA growth | 61.3% | -112.6% | -547.7% | 249.2% | 115.2% | |
| Gross Margin | 56.1% | 47.4% | 47.5% | 53.6% | 65.9% | 12.3% |
| EBITDA Margin | 18.2% | -2.6% | 9.1% | 23.4% | 41.9% | 18.6% |
| Net Income Margin | 10.0% | -10.4% | 2.7% | 17.9% | 46.1% | 28.2% |
| SG&A, % of revenue | | | 27.5% | 22.5% | 23.7% | 1.2% |
| CAPEX, % of revenue | 2.2% | 3.9% | 35.3% | 52.0% | 39.4% | -12.5% |
| ROIC | 69.9% | -33.5% | 15.5% | 43.5% | 50.4% | 6.9% |
| ROE | | -202.6% | 136.3% | 136.4% | 98.8% | -37.7% |
| Net Debt/EBITDA | 0.5x | | 1.3x | 1.4x | 0.5x | -0.8x |
Revenue and profitability
Ceapro Inc's Revenue surged on 20.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 26.1 pp from 9.3% to 35.4% in 2015.
Gross Margin surged on 12.3 pp from 53.6% to 65.9% in 2015. SG&A as a % of Revenue increased slightly on 1.2 pp from 22.5% to 23.7% in 2015.
Net Income marign jumped on 28.2 pp from 17.9% to 46.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Ceapro Inc had CAPEX/Revenue of 39.4%. Ceapro Inc's CAPEX/Revenue jumped on 35.6 pp from 3.9% in 2012 to 39.4% in 2015. Average CAPEX/Revenue for the last three years was 42.2%.The company invested a big chunk of EBITDA (94.0%) to CAPEX to secure its growth.
Return on investment
The company operates at high and attractive ROIC (50.44%) and ROE (98.75%). ROIC increased on 6.9 pp from 43.5% to 50.4% in 2015. ROE dropped on 37.7 pp from 136% to 98.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 0.9x. Net Debt / EBITDA dropped on 0.8x from 1.4x to 0.5x in 2015. Debt surged on 32.1% in 2015 while cash surged on 516% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Ceapro Inc benchmarking against other companies in Consumer, Non-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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Theratechnologies Inc ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| Medicure Inc ($MPH) | | 32.2% | -45.7% | 94.1% | 337.2% |
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | 275.7% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| |
|---|
| Median (78 companies) | 72.5% | 9.7% | 5.3% | 12.7% | 14.3% |
|---|
| Ceapro Inc ($CZO) | | -10.7% | 26.3% | 36.3% | 20.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Medicure Inc ($MPH) | 58.3% | 77.7% | 74.4% | 82.8% | 89.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Information Services Corp ($ISV) | 77.4% | 77.5% | 80.4% | 80.9% | 87.6% |
| Theratechnologies Inc ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| |
|---|
| Median (65 companies) | 35.6% | 37.4% | 35.9% | 35.6% | 35.7% |
|---|
| Ceapro Inc ($CZO) | 56.1% | 47.4% | 47.5% | 53.6% | 65.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Concordia Healthcare Corp ($CXR) | | | 43.7% | 37.0% | 39.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.9% | 36.8% | 36.3% | 36.4% | 39.7% |
| |
|---|
| Median (77 companies) | 7.3% | 7.9% | 8.7% | 10.5% | 10.6% |
|---|
| Ceapro Inc ($CZO) | 18.2% | -2.6% | 9.1% | 23.4% | 41.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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 ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (77 companies) | 2.3% | 2.6% | 2.4% | 2.6% | 2.3% |
|---|
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | 39.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Medicure Inc ($MPH) | | | -127.1% | | 129.4% |
| Response Biomedical Corp ($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 ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | 38.1% |
| |
|---|
| Median (78 companies) | 7.4% | 7.1% | 6.7% | 6.7% | 6.7% |
|---|
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | 50.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Concordia Healthcare Corp ($CXR) | | | -1.3x | 5.6x | 20.2x |
| CIBT Education Group Inc ($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 ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| |
|---|
| Median (66 companies) | 2.0x | 2.6x | 2.2x | 2.7x | 1.9x |
|---|
| Ceapro Inc ($CZO) | 0.5x | | 1.3x | 1.4x | 0.5x |
