Pearl River Holdings Ltd EBITDA jumped on 54.8% in 2015 and EBITDA Margin increased slightly on 1.8 pp from 4.4% to 6.2%
29.04.2016 • About Pearl River Holdings Ltd (
$PRH) • By InTwits
Pearl River Holdings Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.2% in 2015, 4.4% in 2014, 5.7% in 2013, 5.7% in 2012, 0.1% in 2011
- Pearl River Holdings Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's a lot of higher than industry average of 84.8%.
- CAPEX is quite volatile: 1.7 in 2015, 1.9 in 2014, 0.51 in 2013, 0.41 in 2012, 1.6 in 2011
- The company has business model with low profitability: ROIC is at 9.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pearl River Holdings Ltd ($PRH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 24.317 | 35.808 | 42.060 | 45.187 | 49.442 | 9.4% |
| Gross Profit | 3.527 | 7.089 | 8.765 | 9.046 | 11.385 | 25.9% |
| SG&A | | | 6.656 | 7.621 | 9.141 | 19.9% |
| EBITDA | 0.018 | 2.039 | 2.409 | 1.967 | 3.045 | 54.8% |
| Net Income | -0.291 | 0.160 | 0.711 | 0.536 | 0.970 | 81.1% |
Balance Sheet
|
|---|
| Cash | 2.129 | 2.686 | 2.611 | 2.564 | 4.411 | 72.0% |
| Short Term Debt | 1.255 | 1.516 | 2.292 | 1.928 | 2.000 | 3.7% |
| Long Term Debt | 1.026 | 0.790 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.601 | 0.409 | 0.506 | 1.915 | 1.652 | -13.8% |
Ratios
|
|---|
| Revenue growth | -6.8% | 47.3% | 17.5% | 7.4% | 9.4% | |
| EBITDA growth | -98.4% | 11,279.5% | 18.1% | -18.3% | 54.8% | |
| Gross Margin | 14.5% | 19.8% | 20.8% | 20.0% | 23.0% | 3.0% |
| EBITDA Margin | 0.1% | 5.7% | 5.7% | 4.4% | 6.2% | 1.8% |
| Net Income Margin | -1.2% | 0.4% | 1.7% | 1.2% | 2.0% | 0.8% |
| SG&A, % of revenue | | | 15.8% | 16.9% | 18.5% | 1.6% |
| CAPEX, % of revenue | 6.6% | 1.1% | 1.2% | 4.2% | 3.3% | -0.9% |
| ROIC | -4.0% | 10.0% | 12.6% | 7.0% | 9.3% | 2.3% |
| ROE | -4.5% | 2.4% | 9.4% | 6.1% | 9.0% | 2.9% |
| Net Debt/EBITDA | 8.5x | -0.2x | -0.1x | -0.3x | -0.8x | -0.5x |
Revenue and profitability
Pearl River Holdings Ltd's Revenue increased on 9.4% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.8 pp from 4.4% to 6.2% in 2015.
Gross Margin increased on 3.0 pp from 20.0% to 23.0% in 2015. SG&A as a % of Revenue increased slightly on 1.6 pp from 16.9% to 18.5% in 2015.
Net Income marign increased slightly on 0.78 pp from 1.2% to 2.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
Pearl River Holdings Ltd's CAPEX/Revenue was 3.3% in 2015. CAPEX/Revenue increased on 2.2 pp from 1.1% in 2012 to 3.3% in 2015. Average CAPEX/Revenue for the last three years was 2.9%.The company maintained rich investment policy and has spent a big chunk of EBITDA (54.3%) to CAPEX.
Return on investment
The company operates at low ROIC (9.34%) and ROE (8.98%). ROIC increased on 2.3 pp from 7.0% to 9.3% in 2015. ROE increased on 2.9 pp from 6.1% to 9.0% in 2015.
Leverage (Debt)
Debt level is -0.8x Net Debt / EBITDA and 0.7x Debt / EBITDA. Net Debt / EBITDA dropped on 0.5x from -0.3x to -0.8x in 2015. Debt increased on 3.7% in 2015 while cash surged on 72.0% in 2015.
Appendix 1: Peers in Industrial
Below we provide Pearl River Holdings Ltd 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 ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | -0.2% | 10.4% | 4.9% | 9.4% | 10.6% |
|---|
| Pearl River Holdings Ltd ($PRH) | | 47.3% | 17.5% | 7.4% | 9.4% |
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 ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| |
|---|
| Median (86 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 23.9% |
|---|
| Pearl River Holdings Ltd ($PRH) | 14.5% | 19.8% | 20.8% | 20.0% | 23.0% |
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 ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| |
|---|
| Median (87 companies) | 8.3% | 9.4% | 8.3% | 7.7% | 7.8% |
|---|
| Pearl River Holdings Ltd ($PRH) | 0.1% | 5.7% | 5.7% | 4.4% | 6.2% |
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 ($CNR) | 18.0% | 17.4% | 18.7% | 18.9% | 21.5% |
| |
|---|
| Median (91 companies) | 2.4% | 3.1% | 3.7% | 3.1% | 3.2% |
|---|
| Pearl River Holdings Ltd ($PRH) | 6.6% | 1.1% | 1.2% | 4.2% | 3.3% |
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 ($CVX) | 15.7% | 6.4% | -2.4% | -6.7% | 30.4% |
| |
|---|
| Median (92 companies) | 9.1% | 9.3% | 8.5% | 9.1% | 8.3% |
|---|
| Pearl River Holdings Ltd ($PRH) | -4.0% | 10.0% | 12.6% | 7.0% | 9.3% |
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 ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (74 companies) | 1.1x | 1.5x | 1.5x | 1.3x | 1.0x |
|---|
| Pearl River Holdings Ltd ($PRH) | 8.5x | -0.2x | -0.1x | -0.3x | -0.8x |
