CERF Inc Net Income dropped on 692% in 2015 and Revenue dropped on 19.8%
28.04.2016 • About CERF Inc (
$CFL) • By InTwits
CERF Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CERF Inc doesn't have a profitable business model yet: 2015 ROIC is -26.0%
- EBITDA Margin is quite volatile: -35.7% in 2015, 32.1% in 2014, 27.8% in 2013, 23.6% in 2012, 29.2% in 2011
- CERF Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 23.3%. At the same time it's a lot of higher than industry average of 7.9%.
- CAPEX is quite volatile: 6.9 in 2015, 16.1 in 2014, 9.8 in 2013, 7.5 in 2012, 8.3 in 2011
- The company has unprofitable business model: ROIC is at -26.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CERF Inc ($CFL) key annual financial indicators
| mln. | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 26.610 | 33.770 | 46.757 | 57.967 | 46.467 | -19.8% |
| Gross Profit | 6.808 | 6.888 | 12.070 | 17.395 | 6.248 | -64.1% |
| SG&A | | | | | 7.415 | |
| EBITDA | 7.761 | 7.955 | 12.986 | 18.608 | -16.589 | -189.1% |
| Net Income | 1.497 | 0.262 | 3.129 | 5.073 | -30.052 | -692.4% |
Balance Sheet
|
|---|
| Cash | 3.206 | 0.000 | 0.557 | 1.603 | 3.327 | 107.5% |
| Short Term Debt | 4.745 | 6.450 | 1.816 | 1.302 | 1.273 | -2.2% |
| Long Term Debt | 12.026 | 24.082 | 18.907 | 33.351 | 34.077 | 2.2% |
Cash flow
|
|---|
| Capex | 8.260 | 7.475 | 9.756 | 16.057 | 6.884 | -57.1% |
Ratios
|
|---|
| Revenue growth | 78.5% | 26.9% | 38.5% | 24.0% | -19.8% | |
| EBITDA growth | 68.8% | 2.5% | 63.2% | 43.3% | -189.1% | |
| Gross Margin | 25.6% | 20.4% | 25.8% | 30.0% | 13.4% | -16.6% |
| EBITDA Margin | 29.2% | 23.6% | 27.8% | 32.1% | -35.7% | -67.8% |
| Net Income Margin | 5.6% | 0.8% | 6.7% | 8.8% | -64.7% | -73.4% |
| SG&A, % of revenue | | | | | 16.0% | 16.0% |
| CAPEX, % of revenue | 31.0% | 22.1% | 20.9% | 27.7% | 14.8% | -12.9% |
| ROIC | 11.6% | 5.2% | 11.5% | 10.0% | -26.0% | -35.9% |
| ROE | 10.8% | 1.6% | 13.3% | 8.1% | -38.1% | -46.1% |
| Net Debt/EBITDA | 1.7x | 3.8x | 1.6x | 1.8x | | -1.8x |
Revenue and profitability
CERF Inc's Revenue dropped on 19.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 59.8% to 69.2% in 2015.
Gross Margin dropped on 16.6 pp from 30.0% to 13.4% in 2015.
Net Income marign dropped on 73.4 pp from 8.8% to -64.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 14.8% in 2015. The company showed decline in CAPEX/Revenue of 7.3 pp from 22.1% in 2012 to 14.8% in 2015. For the last three years the average CAPEX/Revenue was 21.1%.
Return on investment
The company operates at negative ROIC (-25.96%) and ROE (-38.06%). ROIC dropped on 35.9 pp from 10.0% to -26.0% in 2015. ROE dropped on 46.1 pp from 8.1% to -38.1% in 2015.
Leverage (Debt)
Debt level is 3.8x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 1.8x from 1.8x to in 2015. Debt increased on 2.0% in 2015 while cash surged on 108% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find CERF 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, %
| 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 ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| |
|---|
| Median (81 companies) | 51.9% | 8.7% | 5.3% | 12.7% | 14.5% |
|---|
| CERF Inc ($CFL) | | 26.9% | 38.5% | 24.0% | -19.8% |
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 ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| |
|---|
| Median (68 companies) | 36.6% | 38.7% | 36.2% | 35.8% | 36.1% |
|---|
| CERF Inc ($CFL) | 25.6% | 20.4% | 25.8% | 30.0% | 13.4% |
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% |
| Ceapro Inc ($CZO) | 18.2% | -2.6% | 9.1% | 23.4% | 41.9% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Concordia Healthcare Corp ($CXR) | | | 43.7% | 37.0% | 39.8% |
| |
|---|
| Median (80 companies) | 7.3% | 7.3% | 8.7% | 10.5% | 10.6% |
|---|
| CERF Inc ($CFL) | 29.2% | 23.6% | 27.8% | 32.1% | -35.7% |
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 ($WBE) | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | 39.4% |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (80 companies) | 2.2% | 2.6% | 2.4% | 2.6% | 2.3% |
|---|
| CERF Inc ($CFL) | 31.0% | 22.1% | 20.9% | 27.7% | 14.8% |
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% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | 50.4% |
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Immunotec Inc ($IMM) | -11.5% | 1.8% | 8.8% | -10.5% | 40.8% |
| |
|---|
| Median (81 companies) | 7.4% | 7.1% | 6.7% | 6.7% | 6.6% |
|---|
| CERF Inc ($CFL) | 11.6% | 5.2% | 11.5% | 10.0% | -26.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | 244.1x |
| Concordia Healthcare Corp ($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 |
| |
|---|
| Median (69 companies) | 2.0x | 2.5x | 2.2x | 2.7x | 1.9x |
|---|
