Ovivo Inc reports 7.2 pp EBITDA Margin growth from -2.0% to 5.2% in 2016 and 3.6% Revenue growth
01.06.2016 • About Ovivo Inc (
$OVI.A) • By InTwits
Ovivo Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ovivo Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has potentially unprofitable business model: ROIC is at 6.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ovivo Inc ($OVI.A) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 643.4 | 585.2 | 635.1 | 318.7 | 330.0 | 3.6% |
| Gross Profit | 125.1 | 134.2 | 145.6 | 71.8 | 79.3 | 10.4% |
| SG&A | 118.5 | 110.0 | 120.4 | 59.8 | 62.2 | 4.1% |
| EBITDA | 21.3 | | 25.2 | -6.5 | 17.1 | |
| Net Income | -54.1 | -12.9 | -22.3 | -43.7 | 3.4 | |
Balance Sheet
|
|---|
| Cash | 35.6 | 13.3 | 22.3 | 13.3 | 24.9 | 87.3% |
| Short Term Debt | 0.0 | 16.3 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 80.9 | 53.7 | 48.0 | 37.4 | 25.0 | -33.1% |
Cash flow
|
|---|
| Capex | 4.4 | 4.3 | 6.2 | 1.4 | 2.1 | 51.0% |
Ratios
|
|---|
| Revenue growth | -3.1% | -9.0% | 8.5% | -49.8% | 3.6% | |
| EBITDA growth | 4.1% | | | -125.6% | -364.4% | |
| Gross Margin | 19.5% | 22.9% | 22.9% | 22.5% | 24.0% | 1.5% |
| EBITDA Margin | 3.3% | 0.0% | 4.0% | -2.0% | 5.2% | 7.2% |
| Net Income Margin | -8.4% | -2.2% | -3.5% | -13.7% | 1.0% | 14.7% |
| SG&A, % of revenue | 18.4% | 18.8% | 19.0% | 18.8% | 18.9% | 0.1% |
| CAPEX, % of revenue | 0.7% | 0.7% | 1.0% | 0.4% | 0.6% | 0.2% |
| ROIC | 2.2% | 4.5% | 5.5% | -7.7% | 6.8% | 14.5% |
| ROE | -24.9% | -7.2% | -13.0% | -29.7% | 2.7% | 32.4% |
| Net Debt/EBITDA | 2.1x | | 1.0x | | 0.0x | 0.0x |
Ovivo Inc ($OVI.A) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 76 | 83 | 79 | 92 | -8.9% | -44.8% | 3.9% | 14.3% |
| EBITDA | 3 | 4 | 4 | 6 | 169.6% | -9.7% | | 44.7% |
| Net Income | -2 | 1 | 3 | 1 | | | | |
Balance Sheet
|
|---|
| Cash | 15 | 16 | 14 | 25 | -14.6% | -5.6% | 29.5% | 87.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 38 | 33 | 29 | 25 | -40.1% | -57.2% | -13.8% | -33.1% |
Ratios
|
|---|
| Gross Margin | 24.0% | 24.0% | 24.4% | 23.8% | 3.9% | 1.0% | 1.9% | -0.4% |
| EBITDA Margin | 4.2% | 4.4% | 5.2% | 6.7% | 2.8% | 1.7% | 25.5% | 1.4% |
| Net Income Margin | -2.0% | 1.4% | 3.2% | 1.4% | 1.7% | 3.3% | 51.8% | 2.3% |
Revenue and profitability
Ovivo Inc's Revenue increased on 3.6%. Revenue growth showed acceleration in FY16Q4 - it increased 14.3% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.6 pp from 10.6% to 9.0% in FY2016.
Gross Margin increased slightly on 1.5 pp from 22.5% to 24.0% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign surged on 14.7 pp from -13.7% to 1.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.64%. Ovivo Inc's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 0.69%.
Return on investment
The company operates at low ROIC (6.83%) and ROE (2.74%). ROIC surged on 14.5 pp from -7.7% to 6.8% in FY2016. ROE surged on 32.4 pp from -29.7% to 2.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.0x and Debt / EBITDA is 1.5x. Net Debt / EBITDA increased slightly0.0098x from to 0.0098x in FY2016. Debt dropped on 33.1% while cash surged on 87.3%.
Appendix 1: Peers in Industrial
Below you can find Ovivo 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progressive Waste Solutions Ltd ($BIN) | | 16.1% | 7.8% | 1.8% | 59.4% |
| Baylin Technologies Inc ($BYL) | | 16.5% | -44.0% | -4.1% | 47.5% |
| CCL Industries Inc ($CCL.B) | | 44.4% | 36.8% | 17.5% | 30.8% |
| Stantec Inc ($STN) | | 17.9% | 13.3% | 14.4% | 30.5% |
| Avigilon Corp ($AVO) | | 72.6% | 41.9% | 17.7% | 22.2% |
| |
|---|
| Median (52 companies) | | 5.1% | 10.1% | 8.1% | 2.9% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
| WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | 76.7% |
| Avigilon Corp ($AVO) | 49.3% | 54.2% | 56.6% | 57.4% | 52.0% |
| Stantec Inc ($STN) | 55.0% | 54.7% | 54.9% | 54.5% | 54.1% |
| IWG Technologies Inc ($IWG) | 53.3% | 54.0% | 49.0% | 47.8% | 54.9% |
| |
|---|
| Median (50 companies) | 23.6% | 23.4% | 21.7% | 21.7% | 22.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | 54.3% |
| Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | 51.6% |
| Badger Daylighting Ltd ($BAD) | 25.7% | 25.9% | 27.9% | 24.6% | 24.2% |
| IWG Technologies Inc ($IWG) | 12.7% | 25.5% | 20.0% | 24.0% | 26.9% |
| Winpak Ltd ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
| |
|---|
| Median (54 companies) | 10.4% | 8.4% | 8.4% | 8.6% | 11.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($NAL) | 21.7% | 34.5% | 35.1% | 42.0% | 9.6% |
| Cargojet Inc ($CJT.A) | 7.0% | 6.3% | 54.1% | 41.3% | |
| Algoma Central Corp ($ALC) | 15.9% | 7.3% | 5.0% | 27.4% | 58.2% |
| Canadian Pacific Railway Ltd ($CP) | 20.2% | 20.2% | 21.9% | 22.7% | 19.0% |
| Canadian National Railway Co ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (55 companies) | 3.2% | 3.7% | 4.3% | 3.9% | 4.3% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($IBG) | 4.8% | -9.0% | 11.6% | 21.9% | 26.2% |
| IWG Technologies Inc ($IWG) | 17.0% | 36.3% | 23.4% | 27.2% | 25.7% |
| Winpak Ltd ($WPK) | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% |
| Toromont Industries Ltd ($TIH) | 28.8% | 25.8% | 24.3% | 23.5% | 21.7% |
| Intertape Polymer Group Inc ($ITP) | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% |
| |
|---|
| Median (56 companies) | 12.2% | 9.6% | 11.5% | 8.3% | 9.0% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($CFF) | | 2.7x | 6.1x | 35.9x | 3.6x |
| Ag Growth International Inc ($AFN) | 2.9x | -0.1x | 2.1x | 14.1x | |
| Cargojet Inc ($CJT.A) | 1.5x | 1.5x | 31.5x | 12.9x | |
| Progressive Waste Solutions Ltd ($BIN) | 4.5x | 3.3x | 2.9x | 10.6x | 3.8x |
| Finning International Inc ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| |
|---|
| Median (50 companies) | 1.5x | 1.6x | 1.3x | 1.0x | 1.9x |
|---|
