Jean Coutu Group PJC Inc/The ROIC decreased on 2.9 pp from 30.2% to 27.3% in 2016 and EBITDA showed almost no change
27.04.2016 • About Jean Coutu Group PJC Inc/The (
$PJC.A) • By InTwits
Jean Coutu Group PJC Inc/The reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 11.6% in FY2016 vs. 11.8% in FY2015 vs. 11.4% in FY2012
- Jean Coutu Group PJC Inc/The has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 107 in FY2016, 79.1 in FY2015, 31.8 in FY2014, 20.9 in FY2013, 24.9 in FY2012
- The company has highly profitable business model: ROIC is at 27.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Jean Coutu Group PJC Inc/The ($PJC.A) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,733 | 2,740 | 2,733 | 2,814 | 2,855 | 1.5% |
| Gross Profit | 549 | 571 | 596 | 617 | 620 | 0.5% |
| SG&A | 238 | 248 | 261 | 285 | 288 | 1.3% |
| EBITDA | 311 | 323 | 335 | 332 | 331 | -0.2% |
| Net Income | 230 | 558 | 437 | 219 | 214 | -2.4% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 122 | 100 | -17.7% |
| Short Term Debt | 155 | 22 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 25 | 21 | 32 | 79 | 107 | 34.9% |
Ratios
|
|---|
| Revenue growth | 4.6% | 0.2% | -0.2% | 2.9% | 1.5% | |
| EBITDA growth | 7.1% | 3.8% | 3.6% | -0.8% | -0.2% | |
| Gross Margin | 20.1% | 20.8% | 21.8% | 21.9% | 21.7% | -0.2% |
| EBITDA Margin | 11.4% | 11.8% | 12.2% | 11.8% | 11.6% | -0.2% |
| Net Income Margin | 8.4% | 20.4% | 16.0% | 7.8% | 7.5% | -0.3% |
| SG&A, % of revenue | 8.7% | 9.0% | 9.6% | 10.1% | 10.1% | -0.0% |
| CAPEX, % of revenue | 0.9% | 0.8% | 1.2% | 2.8% | 3.7% | 0.9% |
| ROIC | 34.4% | 29.8% | 29.2% | 30.2% | 27.3% | -2.9% |
| ROE | 36.9% | 63.5% | 42.8% | 22.3% | 19.9% | -2.4% |
| Net Debt/EBITDA | 0.5x | 0.1x | 0.0x | -0.4x | -0.3x | 0.1x |
Jean Coutu Group PJC Inc/The ($PJC.A) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 712 | 687 | 749 | 707 | 3.5% | 1.8% | 1.7% | -1.0% |
| EBITDA | 83 | 82 | 87 | 80 | 1.2% | 0.9% | 2.6% | -5.4% |
| Net Income | 51 | 54 | 58 | 52 | -6.5% | 0.4% | 3.2% | -6.7% |
Balance Sheet
|
|---|
| Cash | 98 | 93 | 122 | 100 | -15.6% | 18.4% | 30.6% | -17.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 21.7% | 21.8% | 21.6% | 21.8% | -0.6% | 0.1% | -0.1% | -0.2% |
| EBITDA Margin | 11.7% | 11.9% | 11.6% | 11.3% | -0.3% | -0.1% | 0.1% | -0.5% |
| Net Income Margin | 7.1% | 7.8% | 7.7% | 7.3% | -0.8% | -0.1% | 0.1% | -0.4% |
Revenue and profitability
The company's Revenue increased slightly on 1.5%. Revenue growth showed slow down in FY16Q4 - it was -1.0% YoY. EBITDA Margin showed almost no change in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
Jean Coutu Group PJC Inc/The's CAPEX/Revenue was 3.7% in FY2016. Jean Coutu Group PJC Inc/The's CAPEX/Revenue increased on 3.0 pp from 0.76% in FY2013 to 3.7% in FY2016. It's average CAPEX/Revenue for the last three years was 2.6%.
Return on investment
The company operates at high and attractive ROIC (27.28%) while ROE is a bit lower (19.90%). ROIC decreased on 2.9 pp from 30.2% to 27.3% in FY2016. ROE decreased on 2.4 pp from 22.3% to 19.9% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 17.7%.
Management team
Francois Jean Coutu is a the company's CEO. Francois Jean Coutu is a founder and has spent 16 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Jean Coutu Group PJC Inc/The 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 539.9% | |
| Restaurant Brands International Inc ($QSR) | | | 4.6% | 238.0% | |
| Amaya Inc ($AYA) | 311.5% | 85.2% | 254.0% | 113.8% | |
| NYX Gaming Group Ltd ($NYX) | 65.2% | 52.8% | 45.8% | 91.8% | |
| Rainmaker Entertainment Inc ($RNK) | -24.6% | -45.0% | 30.1% | 56.4% | |
| |
|---|
| Median (49 companies) | 5.4% | 4.9% | 7.8% | 8.6% | -8.5% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| NYX Gaming Group Ltd ($NYX) | 91.3% | 86.7% | 88.3% | 85.6% | |
| DEQ Systems Corp ($DEQ) | 77.5% | 78.4% | 84.7% | 82.7% | |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| |
|---|
| Median (42 companies) | 34.1% | 31.8% | 31.9% | 30.6% | 24.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (46 companies) | 7.5% | 9.7% | 10.2% | 9.0% | 10.5% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | |
| WestJet Airlines Ltd ($WJA) | 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) | 7.9% | 15.8% | 15.5% | 15.4% | |
| Chorus Aviation Inc ($CHR.A) | 9.9% | 9.6% | 3.9% | 15.0% | |
| |
|---|
| Median (49 companies) | 2.7% | 3.1% | 3.4% | 2.8% | 3.2% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Partner Jet Corp ($PJT) | -51.6% | -50.8% | 85.1% | 51.1% | |
| Westshore Terminals Investment Corp ($WTE) | 24.0% | 37.8% | 35.0% | 38.3% | |
| Cara Operations Ltd ($CAO) | | | 24.7% | 35.1% | |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | |
| BMTC Group Inc ($GBT) | 33.0% | 32.5% | 25.2% | 25.2% | |
| |
|---|
| Median (49 companies) | 9.2% | 9.7% | 9.9% | 7.7% | 12.6% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 39.7x | |
| Mountain China Resorts Holding Ltd ($MCG) | | | 317.1x | 29.0x | |
| Rainmaker Entertainment Inc ($RNK) | | | | 18.6x | |
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | |
| |
|---|
| Median (38 companies) | 1.6x | 2.0x | 2.4x | 2.7x | 2.3x |
|---|
