StorageVault Canada Inc Net Debt / EBITDA jumped on 22.1x from 13.6x to 35.7x in 2015 and Debt surged on 444%
29.04.2016 • About StorageVault Canada Inc (
$SVI) • By InTwits
StorageVault Canada Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- StorageVault Canada Inc doesn't have a profitable business model yet: 2015 ROIC is -2.4%
- StorageVault Canada Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 70.8%. At the same time it's a lot of higher than industry average of 7.4%.
- CAPEX is quite volatile: 2.4 in 2015, 4.2 in 2014, 3.6 in 2013, 6.0 in 2012, 1.1 in 2011
- The company has unprofitable business model: ROIC is at -2.4%
- It operates with high leverage: Net Debt/EBITDA is 35.7x while industry average is 9.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
StorageVault Canada Inc ($SVI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.885 | 4.008 | 4.896 | 5.261 | 11.141 | 111.8% |
| Gross Profit | 0.769 | 0.729 | 1.104 | 0.960 | 5.838 | 508.0% |
| SG&A | | 0.690 | 0.720 | 0.925 | 1.052 | 13.8% |
| EBITDA | 1.279 | 1.294 | 1.781 | 1.477 | 3.058 | 107.0% |
| Net Income | -0.223 | -0.798 | -0.789 | -1.232 | -4.575 | 271.4% |
Balance Sheet
|
|---|
| Cash | 0.695 | 0.234 | 0.218 | 0.454 | 2.381 | 424.0% |
| Short Term Debt | 0.431 | 0.795 | 1.044 | 1.655 | 3.943 | 138.2% |
| Long Term Debt | 8.000 | 13.927 | 16.459 | 18.880 | 107.676 | 470.3% |
Cash flow
|
|---|
| Capex | 1.149 | 6.031 | 3.591 | 4.159 | 2.382 | -42.7% |
Ratios
|
|---|
| Revenue growth | 52.7% | 3.2% | 22.2% | 7.5% | 111.8% | |
| EBITDA growth | 28.4% | 1.2% | 37.7% | -17.1% | 107.0% | |
| Gross Margin | 19.8% | 18.2% | 22.6% | 18.3% | 52.4% | 34.2% |
| EBITDA Margin | 32.9% | 32.3% | 36.4% | 28.1% | 27.4% | -0.6% |
| Net Income Margin | -5.8% | -19.9% | -16.1% | -23.4% | -41.1% | -17.7% |
| SG&A, % of revenue | | 17.2% | 14.7% | 17.6% | 9.4% | -8.1% |
| CAPEX, % of revenue | 29.6% | 150.5% | 73.3% | 79.1% | 21.4% | -57.7% |
| ROIC | 1.3% | 0.2% | 1.6% | -0.3% | -2.4% | -2.2% |
| ROE | -4.3% | -17.3% | -20.9% | -37.2% | -14.8% | 22.4% |
| Net Debt/EBITDA | 6.0x | 11.2x | 9.7x | 13.6x | 35.7x | 22.1x |
Revenue and profitability
StorageVault Canada Inc's Revenue surged on 112% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 26.1 pp from 9.3% to 35.4% in 2015.
Gross Margin surged on 34.2 pp from 18.3% to 52.4% in 2015. SG&A as a % of Revenue decreased on 8.1 pp from 17.6% to 9.4% in 2015.
Net Income marign dropped on 17.7 pp from -23.4% to -41.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 StorageVault Canada Inc had CAPEX/Revenue of 21.4%. The company showed big decline in CAPEX/Revenue of 129 pp from 150% in 2012 to 21.4% in 2015. It's average CAPEX/Revenue for the last three years was 57.9%.To maintain this fast growth StorageVault Canada Inc invested a large share of EBITDA (77.9%) to CAPEX.
Return on investment
The company operates at negative ROIC (-2.45%) and ROE (-14.81%). ROIC decreased on 2.2 pp from -0.25% to -2.4% in 2015. ROE jumped on 22.4 pp from -37.2% to -14.8% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 35.7x and Debt / EBITDA is 36.5x. Net Debt / EBITDA surged on 22.1x from 13.6x to 35.7x in 2015. Debt surged on 444% in 2015 while cash jumped on 424% in 2015.
Appendix 1: Peers in Financial
Below you can find StorageVault Canada Inc benchmarking vs. other companies in Financial 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 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | | 317.2% |
| Starrex International Ltd ($STX) | | | | | 204.1% |
| IOU Financial Inc ($IOU) | | 562.1% | 331.7% | 52.2% | 94.3% |
| Mogo Finance Technology Inc ($GO) | | | 13.7% | 34.6% | 86.0% |
| Morguard Corp ($MRC) | | 5.3% | 27.2% | 9.2% | 58.8% |
| |
|---|
| Median (78 companies) | | 9.6% | 7.7% | 9.1% | 1.7% |
|---|
| StorageVault Canada Inc ($SVI) | | 3.2% | 22.2% | 7.5% | 111.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | 84.5% |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | 76.5% |
| Mogo Finance Technology Inc ($GO) | | 70.4% | 64.5% | 63.4% | 62.3% |
| Clarke Inc ($CKI) | 9.9% | 28.1% | 20.0% | 18.9% | 43.4% |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | 41.0% |
| |
|---|
| Median (12 companies) | 25.2% | 25.0% | 26.2% | 24.2% | 30.5% |
|---|
| StorageVault Canada Inc ($SVI) | 19.8% | 18.2% | 22.6% | 18.3% | 52.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | 86.6% |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | 84.7% |
| Atrium Mortgage Investment Corp ($AI) | 84.5% | 79.8% | | | 81.9% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | | 76.2% |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | 74.6% |
| |
|---|
| Median (53 companies) | 36.1% | 26.7% | 30.9% | 30.5% | 27.0% |
|---|
| StorageVault Canada Inc ($SVI) | 32.9% | 32.3% | 36.4% | 28.1% | 27.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Imperial Equities Inc ($IEI) | 23.1% | 22.8% | 16.0% | 27.7% | 147.5% |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| Gazit-Globe Ltd ($GZT) | 111.1% | 80.2% | 43.3% | 52.1% | 69.3% |
| Wall Financial Corp ($WFC) | | 13.5% | 9.8% | 6.1% | 65.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | 56.7% |
| |
|---|
| Median (80 companies) | 1.0% | 1.1% | 0.8% | 1.0% | 1.1% |
|---|
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | 21.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | 61.0% |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | 19.7% |
| Grenville Strategic Royalty Corp ($GRC) | -1.9% | -10.8% | -10.1% | -11.6% | 18.1% |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | 13.7% |
| |
|---|
| Median (80 companies) | 5.0% | 4.9% | 4.6% | 4.8% | 4.2% |
|---|
| StorageVault Canada Inc ($SVI) | 1.3% | 0.2% | 1.6% | -0.3% | -2.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | 79.9x |
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | 37.4x |
| IOU Financial Inc ($IOU) | | | 7.3x | | 31.7x |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | 22.1x |
| Wall Financial Corp ($WFC) | | 3.4x | 19.9x | 4.6x | 20.1x |
| |
|---|
| Median (41 companies) | 2.7x | 5.1x | 4.6x | 4.2x | 5.6x |
|---|
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | 35.7x |
