Questor Technology Inc reports 101% Net Income decline and 22.2 pp EBITDA Margin decline from 34.1% to 12.0%
28.04.2016 • About Questor Technology Inc (
$QST) • By InTwits
Questor Technology Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 12.0% in 2015, 34.1% in 2014, 34.9% in 2013, 25.7% in 2012, 25.1% in 2011
- Questor Technology Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's a lot of higher than industry average of 6.1%.
- CAPEX is quite volatile: 0.22 in 2015, 0.22 in 2014, 0.21 in 2013, 0.77 in 2012, 1.4 in 2011
- The company has potentially unprofitable business model: ROIC is at 3.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Questor Technology Inc ($QST) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6.093 | 6.684 | 9.575 | 12.415 | 8.113 | -34.7% |
| Gross Profit | 2.851 | 3.078 | 4.726 | 6.326 | 3.352 | -47.0% |
| SG&A | | | | | 2.835 | |
| EBITDA | 1.530 | 1.717 | 3.339 | 4.238 | 0.972 | -77.1% |
| Net Income | 1.190 | 1.040 | 2.544 | 2.918 | -0.018 | -100.6% |
Balance Sheet
|
|---|
| Cash | 2.166 | 4.406 | 7.323 | 5.641 | 5.127 | -9.1% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.411 | 0.771 | 0.206 | 0.217 | 0.223 | 2.5% |
Ratios
|
|---|
| Revenue growth | 5.3% | 9.7% | 43.2% | 29.7% | -34.7% | |
| EBITDA growth | 79.0% | 12.2% | 94.5% | 26.9% | -77.1% | |
| Gross Margin | 46.8% | 46.0% | 49.4% | 51.0% | 41.3% | -9.6% |
| EBITDA Margin | 25.1% | 25.7% | 34.9% | 34.1% | 12.0% | -22.2% |
| Net Income Margin | 19.5% | 15.6% | 26.6% | 23.5% | -0.2% | -23.7% |
| SG&A, % of revenue | | | | | 34.9% | 34.9% |
| CAPEX, % of revenue | 23.2% | 11.5% | 2.2% | 1.8% | 2.7% | 1.0% |
| ROIC | 18.7% | 17.1% | 29.2% | 28.8% | 3.1% | -25.7% |
| ROE | 17.8% | 13.2% | 25.9% | 22.7% | -0.1% | -22.8% |
| Net Debt/EBITDA | -1.4x | -2.6x | -2.2x | -1.3x | -5.3x | -3.9x |
Revenue and profitability
Questor Technology Inc's Revenue dropped on 34.7% in 2015. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin dropped on 22.2 pp from 34.1% to 12.0% in 2015.
Gross Margin decreased on 9.6 pp from 51.0% to 41.3% in 2015.
Net Income marign dropped on 23.7 pp from 23.5% to -0.22% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.7% in 2015. CAPEX/Revenue decreased on 8.8 pp from 11.5% in 2012 to 2.7% in 2015. For the last three years the average CAPEX/Revenue was 2.2%.
Return on investment
The company operates at low but positive ROIC (3.10%) and negative ROE (-0.12%). ROIC dropped on 25.7 pp from 28.8% to 3.1% in 2015. ROE dropped on 22.8 pp from 22.7% to -0.12% in 2015.
Leverage (Debt)
The company has no debt. Cash decreased on 9.1% in 2015.
Appendix 1: Peers in Industrial
Below you can find Questor Technology Inc benchmarking vs. other companies in Industrial 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 |
|---|
| 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (87 companies) | -7.9% | 11.5% | 4.9% | 9.1% | 10.9% |
|---|
| Questor Technology Inc ($QST) | | 9.7% | 43.2% | 29.7% | -34.7% |
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 ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| |
|---|
| Median (81 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 23.9% |
|---|
| Questor Technology Inc ($QST) | 46.8% | 46.0% | 49.4% | 51.0% | 41.3% |
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 ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| |
|---|
| Median (82 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 8.6% |
|---|
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | 12.0% |
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 ($CNR) | 18.0% | 17.4% | 18.7% | 18.9% | 21.5% |
| |
|---|
| Median (86 companies) | 2.4% | 3.0% | 3.7% | 3.2% | 3.3% |
|---|
| Questor Technology Inc ($QST) | 23.2% | 11.5% | 2.2% | 1.8% | 2.7% |
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 ($CVX) | 15.7% | 6.4% | -2.4% | -6.7% | 30.4% |
| |
|---|
| Median (87 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 9.4% |
|---|
| Questor Technology Inc ($QST) | 18.7% | 17.1% | 29.2% | 28.8% | 3.1% |
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 ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.2x |
|---|
| Questor Technology Inc ($QST) | -1.4x | -2.6x | -2.2x | -1.3x | -5.3x |
