Grand Power Logistics Group Inc reports 397% EBITDA decline and 0.98 pp EBITDA Margin decline from 0.19% to -0.80%
29.04.2016 • About Grand Power Logistics Group Inc (
$GPW) • By InTwits
Grand Power Logistics Group Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Grand Power Logistics Group Inc is a company in decline: 2015 revenue growth was -29.8%, 5 years revenue CAGR was -5.7%
- The company operates at negative EBITDA Margin: -0.8%
- Grand Power Logistics Group Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -1.0%0
- Grand Power Logistics Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 26.4%.
- CAPEX is quite volatile: 0.90 in 2015, 0.11 in 2014, 0.034 in 2013, 0 in 2012, 2.0 in 2011
- The company has unprofitable business model: ROIC is at -3.5%
- It operates with high leverage: Net Debt/EBITDA is 2.6x while industry average is 1.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Grand Power Logistics Group Inc ($GPW) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 50.980 | 61.336 | 62.534 | 72.737 | 51.063 | -29.8% |
| Gross Profit | 3.670 | 4.667 | 4.665 | 6.046 | 4.459 | -26.3% |
| SG&A | | | | | 4.850 | |
| EBITDA | -2.238 | 0.139 | -0.751 | 0.137 | -0.406 | -396.8% |
| Net Income | -1.604 | 0.799 | 1.491 | 0.616 | -1.051 | -270.6% |
Balance Sheet
|
|---|
| Cash | 1.974 | 2.263 | 1.295 | 2.786 | 5.597 | 100.9% |
| Short Term Debt | 5.757 | 7.759 | 11.117 | 10.051 | 7.957 | -20.8% |
| Long Term Debt | 1.575 | 1.137 | 0.827 | 0.000 | 3.323 | |
Cash flow
|
|---|
| Capex | 2.003 | 0.000 | 0.034 | 0.114 | 0.905 | 691.9% |
Ratios
|
|---|
| Revenue growth | -25.4% | 20.3% | 2.0% | 16.3% | -29.8% | |
| EBITDA growth | -2,328.9% | -106.2% | -641.0% | -118.2% | -396.8% | |
| Gross Margin | 7.2% | 7.6% | 7.5% | 8.3% | 8.7% | 0.4% |
| EBITDA Margin | -4.4% | 0.2% | -1.2% | 0.2% | -0.8% | -1.0% |
| Net Income Margin | -3.1% | 1.3% | 2.4% | 0.8% | -2.1% | -2.9% |
| SG&A, % of revenue | | | | | 9.5% | 9.5% |
| CAPEX, % of revenue | 3.9% | 0.0% | 0.1% | 0.2% | 1.8% | 1.6% |
| ROIC | -13.1% | -0.3% | -4.1% | 0.2% | -3.5% | -3.6% |
| ROE | -16.1% | 7.9% | 13.1% | 5.0% | -9.0% | -14.0% |
| Net Debt/EBITDA | | 47.8x | | 53.1x | | -53.1x |
Revenue and profitability
Grand Power Logistics Group Inc's Revenue dropped on 29.8% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.98 pp from 0.19% to -0.80% in 2015.
Gross Margin showed almost no change in 2015.
Net Income marign decreased on 2.9 pp from 0.85% to -2.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Grand Power Logistics Group Inc had CAPEX/Revenue of 1.8%. CAPEX/Revenue increased slightly1.8 pp from 0% in 2012 to 1.8% in 2015. It's average level of CAPEX/Revenue for the last three years was 0.66%.
Return on investment
The company operates at negative ROIC (-3.48%) and ROE (-8.97%). ROIC decreased on 3.6 pp from 0.16% to -3.5% in 2015. ROE dropped on 14.0 pp from 5.0% to -9.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.6x and Debt / EBITDA is . Net Debt / EBITDA dropped on 53.1x from 53.1x to in 2015. Debt jumped on 12.2% in 2015 while cash jumped on 101% in 2015.
Appendix 1: Peers in Industrial
Below you can find Grand Power Logistics Group 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | -0.2% | 10.4% | 5.3% | 9.1% | 10.6% |
|---|
| Grand Power Logistics Group Inc ($GPW) | | 20.3% | 2.0% | 16.3% | -29.8% |
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 ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| |
|---|
| Median (86 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 23.9% |
|---|
| Grand Power Logistics Group Inc ($GPW) | 7.2% | 7.6% | 7.5% | 8.3% | 8.7% |
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 ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| |
|---|
| Median (87 companies) | 8.3% | 9.4% | 8.3% | 7.7% | 7.8% |
|---|
| Grand Power Logistics Group Inc ($GPW) | -4.4% | 0.2% | -1.2% | 0.2% | -0.8% |
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 ($CNR) | 18.0% | 17.4% | 18.7% | 18.9% | 21.5% |
| |
|---|
| Median (91 companies) | 2.4% | 3.1% | 3.7% | 3.2% | 3.3% |
|---|
| Grand Power Logistics Group Inc ($GPW) | 3.9% | 0.0% | 0.1% | 0.2% | 1.8% |
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 ($CVX) | 15.7% | 6.4% | -2.4% | -6.7% | 30.4% |
| |
|---|
| Median (92 companies) | 9.1% | 10.0% | 8.5% | 9.1% | 8.5% |
|---|
| Grand Power Logistics Group Inc ($GPW) | -13.1% | -0.3% | -4.1% | 0.2% | -3.5% |
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 (75 companies) | 1.1x | 1.5x | 1.5x | 1.2x | 1.0x |
|---|
