Evertz Technologies Ltd Net Income increased on 7.2% in 2016 and Revenue increased on 4.9%
08.06.2016 • About Evertz Technologies Ltd (
$ET) • By InTwits
Evertz Technologies Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Evertz Technologies Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 6.5%.
- CAPEX is quite volatile: 4.0 in FY2016, 8.3 in FY2015, 10.8 in FY2014, 11.0 in FY2013, 16.6 in FY2012
- The company has highly profitable business model: ROIC is at 25.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Evertz Technologies Ltd ($ET) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 293.4 | 316.3 | 325.5 | 363.6 | 381.6 | 4.9% |
| Gross Profit | 166.2 | 181.9 | 186.2 | 206.1 | 217.4 | 5.5% |
| SG&A | | | 62.0 | 65.0 | 67.2 | 3.4% |
| EBITDA | 86.9 | 92.0 | 74.9 | 98.3 | 104.4 | 6.3% |
| Net Income | 59.5 | 64.6 | 63.1 | 65.5 | 70.2 | 7.2% |
Balance Sheet
|
|---|
| Cash | 173.7 | 208.7 | 102.0 | 100.7 | 123.1 | 22.3% |
| Short Term Debt | 0.4 | 0.4 | 0.4 | 0.3 | 0.2 | -6.3% |
| Long Term Debt | 1.9 | 1.5 | 1.4 | 1.0 | 0.9 | -10.8% |
Cash flow
|
|---|
| Capex | 16.6 | 11.0 | 10.8 | 8.3 | 4.0 | -51.7% |
Ratios
|
|---|
| Revenue growth | -5.1% | 7.8% | 2.9% | 11.7% | 4.9% | |
| EBITDA growth | -24.4% | 5.9% | -18.6% | 31.3% | 6.3% | |
| Gross Margin | 56.6% | 57.5% | 57.2% | 56.7% | 57.0% | 0.3% |
| EBITDA Margin | 29.6% | 29.1% | 23.0% | 27.0% | 27.4% | 0.3% |
| Net Income Margin | 20.3% | 20.4% | 19.4% | 18.0% | 18.4% | 0.4% |
| SG&A, % of revenue | | | 19.1% | 17.9% | 17.6% | -0.3% |
| CAPEX, % of revenue | 5.7% | 3.5% | 3.3% | 2.3% | 1.1% | -1.2% |
| ROIC | 19.9% | 20.5% | 16.5% | 24.3% | 25.0% | 0.7% |
| ROE | 15.9% | 16.5% | 17.1% | 19.1% | 19.5% | 0.4% |
| Net Debt/EBITDA | -2.0x | -2.2x | -1.3x | -1.0x | -1.2x | -0.2x |
Evertz Technologies Ltd ($ET) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 85 | 101 | 100 | 96 | -13.4% | 21.3% | 10.0% | 4.8% |
| EBITDA | 20 | 30 | 29 | 25 | -31.9% | 49.0% | 20.9% | 3.7% |
| Net Income | 18 | 19 | 24 | 8 | -5.2% | 37.7% | 15.3% | -25.9% |
Balance Sheet
|
|---|
| Cash | 97 | 97 | 130 | 123 | -6.0% | 7.9% | 25.8% | 22.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | -48.0% | -46.8% | -20.1% | -6.3% |
| Long Term Debt | 1 | 1 | 1 | 1 | -18.5% | -12.7% | -11.8% | -10.8% |
Ratios
|
|---|
| Gross Margin | 56.4% | 57.2% | 57.1% | 57.1% | -0.6% | 1.0% | 0.9% | -0.2% |
| EBITDA Margin | 24.1% | 29.8% | 28.9% | 26.2% | -6.6% | 5.5% | 2.6% | -0.3% |
| Net Income Margin | 21.7% | 19.4% | 24.3% | 8.4% | 1.9% | 2.3% | 1.1% | -3.5% |
Revenue and profitability
Evertz Technologies Ltd's Revenue increased on 4.9%. Revenue growth showed slow down in FY16Q4 - it was 4.8% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 42.3 pp from 1.2% to 43.5% in 2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Evertz Technologies Ltd had CAPEX/Revenue of 1.1%. The company's CAPEX/Revenue decreased on 2.4 pp from 3.5% in FY2013 to 1.1% in FY2016. Average CAPEX/Revenue for the last three years was 2.2%.
Return on investment
The company operates at high and attractive ROIC (25.03%) while ROE is a bit lower (19.51%). ROIC increased slightly on 0.71 pp from 24.3% to 25.0% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is -1.2x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from -1.0x to -1.2x in FY2016. Debt decreased on 9.9% while cash jumped on 22.3%.
Appendix 1: Peers in Industrial
Below you can find Evertz Technologies Ltd 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 |
|---|
