Saputo Inc EBITDA increased on 4.2% in 2016 and EBITDA Margin showed almost no change
02.06.2016 • About Saputo Inc (
$SAP) • By InTwits
Saputo Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 10.4% in FY2016 vs. 10.3% in FY2015 vs. 12.0% in FY2012
- Saputo Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 6.8%.
- CAPEX is quite volatile: 3,797 in 2016, 4,468 in 2015, 11,398 in 2014, 7,211 in 2013, 6,104 in 2012
- The company has highly profitable business model: ROIC is at 15.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Saputo Inc ($SAP) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,930 | 7,298 | 9,233 | 10,658 | 10,992 | 3.1% |
| Gross Profit | 831 | 861 | 1,020 | 1,062 | 1,174 | 10.6% |
| EBITDA | 831 | 818 | 975 | 1,094 | 1,140 | 4.2% |
| Net Income | 381 | 482 | 533 | 608 | 601 | -1.1% |
Balance Sheet
|
|---|
| Cash | 144 | 43 | 39 | 73 | 164 | 126.4% |
| Short Term Debt | 167 | 334 | 704 | 223 | 423 | 89.8% |
| Long Term Debt | 380 | 1,396 | 1,396 | 1,517 | 1,208 | -20.3% |
Cash flow
|
|---|
| Capex | 119 | 178 | 224 | 187 | 184 | -1.8% |
Ratios
|
|---|
| Revenue growth | 15.4% | 5.3% | 26.5% | 15.4% | 3.1% | |
| EBITDA growth | 5.4% | -1.5% | 19.1% | 12.3% | 4.2% | |
| Gross Margin | 12.0% | 11.8% | 11.1% | 10.0% | 10.7% | 0.7% |
| EBITDA Margin | 12.0% | 11.2% | 10.6% | 10.3% | 10.4% | 0.1% |
| Net Income Margin | 5.5% | 6.6% | 5.8% | 5.7% | 5.5% | -0.2% |
| CAPEX, % of revenue | 1.7% | 2.4% | 2.4% | 1.8% | 1.7% | -0.1% |
| ROIC | 24.6% | 19.2% | 17.0% | 16.5% | 15.7% | -0.8% |
| ROE | 18.2% | 21.8% | 21.0% | 19.2% | 15.9% | -3.3% |
| Net Debt/EBITDA | 0.5x | 2.1x | 2.1x | 1.5x | 1.3x | -0.2x |
Saputo Inc ($SAP) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 2,564 | 2,792 | 2,901 | 2,734 | -2.2% | 3.4% | 2.8% | 8.8% |
| EBITDA | 258 | 280 | 320 | 282 | -4.0% | -0.7% | 14.8% | 6.5% |
| Net Income | 137 | 148 | 174 | 141 | -4.9% | -4.2% | 14.3% | -9.5% |
Balance Sheet
|
|---|
| Cash | 177 | 219 | 306 | 164 | 268.0% | 338.1% | 547.8% | 126.4% |
| Short Term Debt | 515 | 434 | 476 | 423 | -15.3% | -30.7% | 13.1% | 89.8% |
| Long Term Debt | 1,354 | 1,452 | 1,453 | 1,208 | -6.7% | 3.9% | -7.4% | -20.3% |
Ratios
|
|---|
| Gross Margin | 10.1% | 10.1% | 11.0% | 11.5% | -0.2% | -0.4% | 1.2% | 2.2% |
| EBITDA Margin | 10.1% | 10.0% | 11.0% | 10.3% | -0.2% | -0.4% | 1.2% | -0.2% |
| Net Income Margin | 5.4% | 5.3% | 6.0% | 5.2% | -0.2% | -0.4% | 0.6% | -1.0% |
Revenue and profitability
The company's Revenue increased on 3.1%. Revenue growth showed acceleration in FY16Q4 - it increased 8.8% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.4 pp from 50.9% to 54.3% in 2016.
Gross Margin increased slightly on 0.72 pp from 10.0% to 10.7% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.7% in FY2016. Saputo Inc's CAPEX/Revenue decreased slightly on 0.77 pp from 2.4% in FY2013 to 1.7% in FY2016. Average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at good ROIC (15.68%) and ROE (15.90%). ROIC decreased slightly on 0.79 pp from 16.5% to 15.7% in FY2016. ROE decreased on 3.3 pp from 19.2% to 15.9% in FY2016.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and 1.4x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 1.5x to 1.3x in FY2016. Debt decreased on 6.2% while cash jumped on 126%.
Management team
Saputo Inc's CEO is Lino A Saputo Jr. Lino A Saputo Jr is a founder and has 14 years tenure at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Saputo Inc benchmarking vs. other companies in Consumer, Non-cyclical 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 |
|---|
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | 107.0% |
| Heritage Global Inc ($HGP) | | -37.0% | 76.2% | 11.2% | 80.8% |
| EnerCare Inc ($ECI) | | 8.6% | 21.1% | 55.7% | 76.6% |
| CRH Medical Corp ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| |
|---|
| Median (40 companies) | 41.3% | 8.6% | 13.8% | 15.2% | 12.8% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | 88.3% |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | 85.1% |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| Concordia Healthcare Corp ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (35 companies) | 32.5% | 37.1% | 35.7% | 35.7% | 28.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | -92.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | 31.4% |
| EnerCare Inc ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (44 companies) | 9.2% | 12.4% | 13.4% | 11.8% | 10.0% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | 15.5% |
| Black Diamond Group Ltd ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (43 companies) | 3.1% | 2.7% | 2.3% | 2.4% | 2.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Colliers International Group Inc ($CIG) | 10.5% | 11.2% | 15.2% | 10.9% | 26.1% |
| Nuvo Research Inc ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (43 companies) | 8.8% | 8.4% | 8.4% | 6.9% | 8.4% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| Sienna Senior Living Inc ($SIA) | 9.5x | 11.8x | 9.2x | 9.1x | 9.1x |
| Valeant Pharmaceuticals International Inc ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | |
| |
|---|
| Median (38 companies) | 2.8x | 2.3x | 3.4x | 2.5x | 2.7x |
|---|
