Taiga Building Products Ltd Debt dropped on 16.8% in 2016
17.06.2016 • About Taiga Building Products Ltd (
$TBL) • By InTwits
Taiga Building Products Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Taiga Building Products Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has highly profitable business model: ROIC is at 17.0%
- It operates with high leverage: Net Debt/EBITDA is 5.4x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Taiga Building Products Ltd ($TBL) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 972 | 1,133 | 1,194 | 1,349 | 1,364 | 1.2% |
| Gross Profit | 96 | 103 | 97 | 115 | 117 | 1.8% |
| SG&A | | | 49 | 55 | 55 | 1.1% |
| EBITDA | 35 | 43 | 34 | | 45 | |
| Net Income | 4 | 10 | 5 | 11 | 12 | 5.8% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | 0 | |
| Short Term Debt | 112 | 153 | 131 | 130 | 84 | -35.5% |
| Long Term Debt | 155 | 152 | 159 | 157 | 155 | -1.2% |
Cash flow
|
|---|
| Capex | 2 | 9 | 5 | 1 | 2 | 18.4% |
Ratios
|
|---|
| Revenue growth | -1.0% | 16.6% | 5.4% | 12.9% | 1.2% | |
| EBITDA growth | 6.0% | 22.4% | -20.6% | | | |
| Gross Margin | 9.9% | 9.1% | 8.1% | 8.5% | 8.6% | 0.1% |
| EBITDA Margin | 3.6% | 3.8% | 2.8% | 0.0% | 3.3% | 3.3% |
| Net Income Margin | 0.4% | 0.9% | 0.4% | 0.8% | 0.9% | 0.0% |
| SG&A, % of revenue | | | 4.1% | 4.1% | 4.1% | -0.0% |
| CAPEX, % of revenue | 0.2% | 0.8% | 0.4% | 0.1% | 0.1% | 0.0% |
| ROIC | 16.3% | 17.1% | 12.0% | 16.1% | 17.0% | 0.9% |
| Net Debt/EBITDA | 7.7x | 7.2x | 8.6x | | 5.4x | 5.4x |
Taiga Building Products Ltd ($TBL) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 404 | 388 | 292 | 280 | 7.8% | 1.2% | -1.2% | -4.9% |
| Net Income | 6 | 5 | -0 | 1 | 15.5% | -18.4% | -113.0% | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | | | |
| Short Term Debt | 125 | 54 | 33 | 84 | -1.3% | -35.1% | -53.6% | -35.5% |
| Long Term Debt | 157 | 156 | 156 | 155 | -1.1% | -1.3% | -1.4% | -1.2% |
Ratios
|
|---|
| Gross Margin | 8.5% | 8.7% | 8.5% | 8.6% | -0.3% | -0.3% | 0.4% | 0.7% |
| Net Income Margin | 1.6% | 1.2% | -0.0% | 0.3% | 0.1% | -0.3% | -0.2% | 0.4% |
Revenue and profitability
Taiga Building Products Ltd's Revenue increased slightly on 1.2%. Revenue growth showed slow down in FY16Q4 - it was -4.9% YoY.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.12%. Taiga Building Products Ltd's CAPEX/Revenue decreased slightly on 0.70 pp from 0.81% in FY2013 to 0.12% in FY2016. It's average CAPEX/Revenue for the last three years was 0.20%.
Leverage (Debt)
Debt level is 5.4x Net Debt / EBITDA and 5.4x Debt / EBITDA. Net Debt / EBITDA jumped5.4x from to 5.4x in FY2016. Debt dropped on 16.8% while cash didn't change in FY2016.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Taiga Building Products Ltd benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
| Spin Master Corp ($TOY) | | 21.5% | 41.0% | 22.9% | 31.3% |
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| |
|---|
| Median (36 companies) | | 4.9% | 6.9% | 6.8% | 5.0% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| Canlan Ice Sports Corp ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (37 companies) | 36.1% | 31.6% | 32.5% | 31.5% | 34.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (39 companies) | 8.1% | 9.8% | 12.3% | 10.1% | 15.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | 9.3% |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | 22.4% |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Innova Gaming Group Inc ($IGG) | 20.6% | 26.7% | 15.9% | 15.6% | 15.1% |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (42 companies) | 2.7% | 3.1% | 3.4% | 3.4% | 4.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($TOY) | | 19.2% | 56.9% | 48.2% | 44.5% |
| Magna International Inc ($MG) | 16.3% | 18.6% | 25.2% | 21.9% | 21.2% |
| Linamar Corp ($LNR) | 12.9% | 17.0% | 21.7% | 23.7% | 19.8% |
| Sleep Country Canada Holdings Inc ($ZZZ) | | | 9.7% | 12.7% | 19.0% |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (42 companies) | 10.5% | 12.5% | 10.8% | 10.6% | 11.2% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (35 companies) | 1.9x | 2.8x | 2.4x | 2.5x | 2.1x |
|---|
