CanaDream Corp reports 53.4% Net Income growth and 28.8% Revenue growth
07.07.2016 • About CanaDream Corp (
$CDN) • By InTwits
CanaDream Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CanaDream Corp is a growth stock: FY2016 revenue growth was 28.8%, 5 year revenue CAGR was 12.0% at FY2016 ROIC 10.0%
- CanaDream Corp has high CAPEX intensity: 5 year average CAPEX/Revenue was 55.9%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 28.2 in FY2016, 21.6 in FY2015, 20.6 in FY2014, 10.6 in FY2013, 11.5 in FY2012
- The company has business model with average profitability: ROIC is at 10.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CanaDream Corp ($CDN) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 26.492 | 27.836 | 29.276 | 34.111 | 43.923 | 28.8% |
| Gross Profit | 8.919 | 8.760 | 9.384 | 10.800 | 14.350 | 32.9% |
| EBITDA | 6.470 | 6.392 | 7.306 | 7.425 | 10.063 | 35.5% |
| Net Income | 1.093 | 0.608 | 1.133 | 2.128 | 3.264 | 53.4% |
Balance Sheet
|
|---|
| Cash | 3.029 | 2.883 | 3.743 | 6.938 | 6.868 | -1.0% |
| Short Term Debt | 16.490 | 14.929 | 13.142 | 15.224 | 13.674 | -10.2% |
| Long Term Debt | 7.012 | 6.708 | 13.409 | 15.781 | 17.939 | 13.7% |
Cash flow
|
|---|
| Capex | 11.463 | 10.594 | 20.600 | 21.636 | 28.190 | 30.3% |
Ratios
|
|---|
| Revenue growth | 6.1% | 5.1% | 5.2% | 16.5% | 28.8% | |
| EBITDA growth | 7.1% | -1.2% | 14.3% | 1.6% | 35.5% | |
| Gross Margin | 33.7% | 31.5% | 32.1% | 31.7% | 32.7% | 1.0% |
| EBITDA Margin | 24.4% | 23.0% | 25.0% | 21.8% | 22.9% | 1.1% |
| Net Income Margin | 4.1% | 2.2% | 3.9% | 6.2% | 7.4% | 1.2% |
| CAPEX, % of revenue | 43.3% | 38.1% | 70.4% | 63.4% | 64.2% | 0.8% |
| ROIC | 7.2% | 5.8% | 7.8% | 7.5% | 10.0% | 2.5% |
| ROE | 11.5% | 5.9% | 10.2% | 16.6% | 20.9% | 4.3% |
| Net Debt/EBITDA | 3.2x | 2.9x | 3.1x | 3.2x | 2.5x | -0.8x |
CanaDream Corp ($CDN) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 14 | 16 | 5 | 9 | 13.6% | 30.3% | 27.0% | 60.4% |
| EBITDA | 6 | 7 | -2 | -1 | 20.5% | 28.5% | | |
| Net Income | 3 | 5 | -3 | -2 | 18.7% | 61.7% | | |
Balance Sheet
|
|---|
| Cash | 16 | 9 | 6 | 7 | 38.3% | 21.0% | 94.8% | -1.0% |
| Short Term Debt | 23 | 20 | 18 | 14 | 8.5% | -3.4% | 5.4% | -10.2% |
| Long Term Debt | 26 | 22 | 20 | 18 | 66.9% | 69.9% | 69.3% | 13.7% |
Ratios
|
|---|
| Gross Margin | 52.3% | 51.2% | -18.3% | -29.7% | 1.4% | -1.2% | 4.5% | -12.9% |
| EBITDA Margin | 44.4% | 43.2% | -30.5% | -15.7% | 2.6% | -0.6% | 5.5% | 13.1% |
| Net Income Margin | 23.4% | 28.9% | -51.4% | -22.2% | 1.0% | 5.6% | -11.1% | 11.1% |
Revenue and profitability
CanaDream Corp's Revenue surged on 28.8%. Revenue growth showed acceleration in FY16Q4 - it increased 60.4% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.83 pp from 1.0% to 1.9% in FY2016.
Gross Margin increased slightly on 1.0 pp from 31.7% to 32.7% in FY2016.
Net Income marign increased slightly on 1.2 pp from 6.2% to 7.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 CanaDream Corp had CAPEX/Revenue of 64.2%. CAPEX/Revenue surged on 26.1 pp from 38.1% in FY2013 to 64.2% in FY2016. For the last three years the average CAPEX/Revenue was 66.0%.To secure this fast growth CanaDream Corp made large investments to CAPEX (280% of EBITDA).
Return on investment
The company operates at good ROE (20.89%) while ROIC is low (10.03%). ROIC increased on 2.5 pp from 7.5% to 10.0% in FY2016. ROE increased on 4.3 pp from 16.6% to 20.9% in FY2016.
Leverage (Debt)
Debt level is 2.5x Net Debt / EBITDA and 3.1x Debt / EBITDA. Net Debt / EBITDA dropped on 0.8x from 3.2x to 2.5x in FY2016. Debt increased slightly on 2.0% while cash decreased slightly on 1.0%.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find CanaDream Corp 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 (41 companies) | | 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 ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (35 companies) | 32.5% | 37.1% | 35.7% | 35.7% | 31.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | 23.8% |
| Concordia Healthcare Corp ($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% | 10.1% |
|---|
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 ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (43 companies) | 3.1% | 2.7% | 2.3% | 2.4% | 2.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($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 (44 companies) | 8.8% | 8.4% | 8.4% | 6.9% | 8.0% |
|---|
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 | 12.7x |
| |
|---|
| Median (38 companies) | 2.8x | 2.3x | 3.4x | 2.5x | 2.8x |
|---|
