Ceapro Inc demonstrated healthy growth in recent years
21.04.2016 • About Ceapro Inc (
$CZO) • By InTwits
Have you thought about Ceapro Inc as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Ceapro Inc showed fast growth in the last financial year. The company's revenue surged on 20.0% in FY2015. In addition to revenue Ceapro Inc also keeps delivering EBITDA growth. It was 115% in FY2015
If we look for the longer period Ceapro Inc showed fast revenue growth of 27.3% from 2012 to 2015 annually. EBITDA surged on nan% from 2012 to 2015 annually.
Ceapro Inc ($CZO) financials for the last 5 years
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 6 | 5 | 7 | 9 | 11 |
|---|
| Revenue growth, % | | -10.7% | 26.3% | 36.3% | 20.0% |
|---|
| Gross margin, % | 56.1% | 47.4% | 47.5% | 53.6% | 65.9% |
|---|
| SG&A, % | | | 27.5% | 22.5% | 23.7% |
|---|
| EBITDA | 1 | -0 | 1 | 2 | 4 |
|---|
| EBITDA growth, % | | -112.6% | -547.7% | 249.2% | 115.2% |
|---|
| EBITDA margin, % | 18.2% | -2.57% | 9.12% | 23.4% | 41.9% |
|---|
| Net Income | 1 | -1 | 0 | 2 | 5 |
|---|
| Net Income margin, % | 9.98% | -10.4% | 2.69% | 17.9% | 46.1% |
|---|
| |
| CAPEX | 0 | 0 | 2 | 5 | 4 |
|---|
| CAPEX/Revenue, % | 2.18% | 3.86% | 35.3% | 52.0% | 39.4% |
|---|
| Debt | 1 | 1 | 3 | 3 | 4 |
|---|
| Cash | 1 | 0 | 2 | 0 | 2 |
|---|
| Net Debt/EBITDA | 0.5x | -4.9x | 1.3x | 1.4x | 0.5x |
|---|
| |
| ROIC, % | 69.9% | -33.5% | 15.5% | 43.5% | 50.4% |
|---|
| ROE, % | | -202.6% | 136.3% | 136.4% | 98.8% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. EBITDA margin surged on 18.5 pp from 23.4% to 41.9% in 2015. In the last 3 years the company showed fast EBITDA margin growth of 44.5 pp from -2.60% in 2012 to 41.9% in 2015.
Ceapro Inc shows attractive ROIC at 50.4% for the last 12 months which assumes stable development model. Three years ago it was considerably lower at -33.5%. Average ROIC for the last three years was 36.5%.
Ceapro Inc showed fast Net Income margin growth of 28.2 pp from 17.9% to 46.1% in 2015. In the last 3 years the company's Net Income margin surged on 56.5 pp from -10.4% in 2012 to 46.1% in 2015.
Ceapro Inc operates at ROE of 98.8%. It's average level of ROE for the last three years was 124%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.Ceapro Inc's CAPEX/Revenue was 39.4% in FY2015. The company showed fast CAPEX/Revenue growth of 35.6 pp from 3.86% in 2012 to 39.4% in 2015. For the last three years the average CAPEX/Revenue was 42.2%.
Leverage (Debt)
The company has low debt level at 0.5x Net Debt/EBITDA - at the same time with high growth. In the longer period the company's leverage surged on 5.46x from -4.92x in 2012 to 0.55x in 2015.
Valuation vs. comparable companies
At the end of trading day today Ceapro Inc traded at 10.5x EV/EBITDA which is 61.9% lower than 27.6x Consumer, Non-cyclical peer group avearge calculated on the basis of 289 companies. The company trades at 9.1x P/E which is 91.4% lower than 105.7x Consumer, Non-cyclical industry avearge calculated based on 38 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The company trades at 176.3x EV/(EBITDA-CAPEX) which is not surprisingly 1,690% higher than 9.8x Consumer, Non-cyclical industry avearge calculated based on 43 companies.
Peers in Consumer, Non-cyclical
Below you can find Ceapro 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 ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| Medicure Inc ($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, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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, %
| 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 ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Concordia Healthcare Corp ($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, %
| 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 ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (77 companies) | 2.3% | 2.6% | 2.4% | 2.6% | 2.3% |
|---|
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | 39.4% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| 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 |
