Canaccord Genuity Group Inc EBITDA dropped on 1,007% in 2016 and EBITDA Margin dropped on 45.8 pp from 4.1% to -41.7%
01.06.2016 • About Canaccord Genuity Group Inc (
$CF) • By InTwits
Canaccord Genuity Group Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Canaccord Genuity Group Inc doesn't have a profitable business model yet: FY2016 ROIC is -23.1%
- Canaccord Genuity Group Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -7.4% for the sames years0
- Canaccord Genuity Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 1.3%.
- CAPEX is quite volatile: 10.6 in FY2016, 5.2 in FY2015, 15.5 in FY2014, 7.0 in FY2013, 10.6 in FY2012
- The company has unprofitable business model: ROIC is at -23.1%
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Canaccord Genuity Group Inc ($CF) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 604.9 | 797.1 | 855.2 | 880.8 | 787.8 | -10.6% |
| SG&A | 69.5 | 89.5 | 83.8 | 94.7 | 87.0 | -8.1% |
| EBITDA | | | | 36.2 | -328.4 | -1,007.3% |
| Net Income | -20.3 | -16.8 | 51.4 | -13.2 | -358.5 | 2,619.0% |
Balance Sheet
|
|---|
| Cash | 814.2 | 491.0 | 364.3 | 322.3 | 428.3 | 32.9% |
| Short Term Debt | 1,154.8 | 770.2 | 928.9 | 689.9 | 457.3 | -33.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 10.6 | 7.0 | 15.5 | 5.2 | 10.6 | 101.9% |
Ratios
|
|---|
| Revenue growth | -24.7% | 31.8% | 7.3% | 3.0% | -10.6% | |
| EBITDA growth | | | | | -1,007.3% | |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | 4.1% | -41.7% | -45.8% |
| Net Income Margin | -3.4% | -2.1% | 6.0% | -1.5% | -45.5% | -44.0% |
| SG&A, % of revenue | 11.5% | 11.2% | 9.8% | 10.8% | 11.0% | 0.3% |
| CAPEX, % of revenue | 1.8% | 0.9% | 1.8% | 0.6% | 1.3% | 0.7% |
| ROIC | -0.3% | -0.4% | 4.0% | 0.4% | -23.1% | -23.5% |
| ROE | -3.1% | -3.3% | 4.4% | -2.7% | -50.9% | -48.2% |
| Net Debt/EBITDA | | | | 10.2x | | -10.2x |
Revenue and profitability
The company's Revenue dropped on 10.6% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 45.8 pp from 4.1% to -41.7% in FY2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign dropped on 44.0 pp from -1.5% to -45.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Canaccord Genuity Group Inc had CAPEX/Revenue of 1.3%. Canaccord Genuity Group Inc showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 1.2%.
Return on investment
The company operates at negative ROIC (-23.09%) and ROE (-50.88%). ROIC dropped on 23.5 pp from 0.39% to -23.1% in FY2016. ROE dropped on 48.2 pp from -2.7% to -50.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.3x and Debt / EBITDA is . Net Debt / EBITDA dropped on 10.2x from 10.2x to in FY2016. Debt dropped on 33.7% in FY2016 while cash jumped on 32.9% in FY2016.
Management team
Canaccord Genuity Group Inc's CEO is Daniel Daviau "Dan". Daniel Daviau "Dan" is a founder and has 3 years tenure at the company.
Appendix 1: Peers in Financial Services
Below you can find Canaccord Genuity Group Inc benchmarking vs. other companies in Financial Services 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.
