Imaflex Inc reports 42.2% EBITDA growth and 13.6% Revenue growth
21.04.2016 • About Imaflex Inc (
$IFX) • By InTwits
Imaflex Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 3.7% in 2015 vs. 3.0% in 2014 vs. 4.4% in 2011
- Imaflex Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's in pair with industry average of 4.5%.
- CAPEX is quite volatile: 1.6 in 2015, 1.2 in 2014, 1.1 in 2013, 0.56 in 2012, 0.069 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.7%
- It operates with high leverage: Net Debt/EBITDA is 5.0x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Imaflex Inc ($IFX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 46.959 | 47.269 | 56.052 | 60.861 | 69.151 | 13.6% |
| Gross Profit | 5.101 | 4.804 | 5.763 | 5.564 | 7.108 | 27.8% |
| SG&A | | 1.208 | 1.384 | 1.370 | 6.211 | 353.5% |
| EBITDA | 2.088 | 1.800 | 1.950 | 1.814 | 2.580 | 42.2% |
| Net Income | 0.074 | -0.568 | 0.207 | -0.007 | 0.813 | -11,027.4% |
Balance Sheet
|
|---|
| Cash | 0.244 | 0.127 | 1.130 | 0.946 | 0.161 | -83.0% |
| Short Term Debt | 8.801 | 7.242 | 10.029 | 6.210 | 8.438 | 35.9% |
| Long Term Debt | 0.165 | 2.372 | 0.000 | 5.046 | 4.634 | -8.2% |
Cash flow
|
|---|
| Capex | 0.069 | 0.558 | 1.113 | 1.234 | 1.599 | 29.5% |
Ratios
|
|---|
| Revenue growth | 1.0% | 0.7% | 18.6% | 8.6% | 13.6% | |
| EBITDA growth | 186.0% | -13.8% | 8.3% | -7.0% | 42.2% | |
| Gross Margin | 10.9% | 10.2% | 10.3% | 9.1% | 10.3% | 1.1% |
| EBITDA Margin | 4.4% | 3.8% | 3.5% | 3.0% | 3.7% | 0.7% |
| Net Income Margin | 0.2% | -1.2% | 0.4% | -0.0% | 1.2% | 1.2% |
| SG&A, % of revenue | | 2.6% | 2.5% | 2.3% | 9.0% | 6.7% |
| CAPEX, % of revenue | 0.1% | 1.2% | 2.0% | 2.0% | 2.3% | 0.3% |
| ROIC | 2.9% | 2.1% | 2.7% | 1.3% | 2.7% | 1.3% |
| ROE | 0.5% | -3.8% | 1.3% | -0.0% | 4.3% | 4.3% |
| Net Debt/EBITDA | 4.2x | 5.3x | 4.6x | 5.7x | 5.0x | -0.7x |
Revenue and profitability
Imaflex Inc's Revenue surged on 13.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 16.7 pp from 29.2% to 12.5% in 2015.
Gross Margin increased slightly on 1.1 pp from 9.1% to 10.3% in 2015. SG&A as a % of Revenue increased on 6.7 pp from 2.3% to 9.0% in 2015.
Net Income marign increased slightly on 1.2 pp from -0.012% to 1.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Imaflex Inc had CAPEX/Revenue of 2.3%. The company's CAPEX/Revenue increased slightly on 1.1 pp from 1.2% in 2012 to 2.3% in 2015. Average CAPEX/Revenue for the last three years was 2.1%.To maintain this fast growth the company invested a large share of EBITDA (62.0%) to CAPEX.
Return on investment
The company operates at low ROIC (2.65%) and ROE (4.27%). ROIC increased slightly on 1.3 pp from 1.3% to 2.7% in 2015. ROE increased on 4.3 pp from -0.044% to 4.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.0x and Debt / EBITDA is 5.1x. Net Debt / EBITDA dropped on 0.7x from 5.7x to 5.0x in 2015. Debt jumped on 16.1% in 2015 while cash dropped on 83.0% in 2015.
Appendix 1: Peers in Industrial
Below we provide Imaflex Inc benchmarking against other companies in Industrial 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 |
|---|
| Diversified Royalty Corp ($DIV) | | | | | 503.3% |
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| WSP Global Inc ($WSP) | | 92.9% | 60.3% | 44.0% | 108.9% |
| CEMATRIX Corp ($CVX) | | 9.2% | -5.6% | 7.9% | 76.5% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (85 companies) | -7.0% | 11.5% | 4.9% | 9.4% | 10.3% |
|---|
| Imaflex Inc ($IFX) | | 0.7% | 18.6% | 8.6% | 13.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% |
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | 69.3% |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| |
|---|
| Median (79 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 24.0% |
|---|
| Imaflex Inc ($IFX) | 10.9% | 10.2% | 10.3% | 9.1% | 10.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Photon Control Inc ($PHO) | 8.1% | 17.6% | 24.8% | 29.3% | 38.3% |
| Evertz Technologies Ltd ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| |
|---|
| Median (80 companies) | 8.3% | 9.4% | 8.3% | 7.7% | 9.5% |
|---|
| Imaflex Inc ($IFX) | 4.4% | 3.8% | 3.5% | 3.0% | 3.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | 41.3% |
| Algoma Central Corp ($ALC) | 6.6% | 15.9% | 7.3% | 5.0% | 27.4% |
| Canadian Pacific Railway Ltd ($CP) | 21.3% | 20.2% | 20.2% | 21.9% | 22.7% |
| Canadian National Railway Co ($CNR) | 18.0% | 17.4% | 18.7% | 18.9% | 21.5% |
| |
|---|
| Median (84 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 3.5% |
|---|
| Imaflex Inc ($IFX) | 0.1% | 1.2% | 2.0% | 2.0% | 2.3% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biorem Inc ($BRM) | -141.4% | -15.1% | 32.3% | -29.7% | 54.4% |
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | 40.6% |
| Pacific Safety Products Inc ($PSP) | -19.0% | -1.5% | -11.5% | 3.7% | 38.2% |
| CEMATRIX Corp ($CVX) | 15.7% | 6.4% | -2.4% | -6.7% | 30.4% |
| |
|---|
| Median (85 companies) | 9.1% | 10.0% | 8.5% | 9.1% | 9.7% |
|---|
| Imaflex Inc ($IFX) | 2.9% | 2.1% | 2.7% | 1.3% | 2.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Conifex Timber Inc ($CFF) | | | 2.7x | 6.1x | 35.9x |
| Ag Growth International Inc ($AFN) | 2.4x | 2.9x | -0.1x | 2.1x | 14.1x |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | 12.9x |
| Progressive Waste Solutions Ltd ($BIN) | 2.5x | 4.5x | 3.3x | 2.9x | 10.6x |
| Finning International Inc ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (70 companies) | 1.1x | 1.5x | 1.4x | 1.2x | 1.2x |
|---|
| Imaflex Inc ($IFX) | 4.2x | 5.3x | 4.6x | 5.7x | 5.0x |
