Pacific Insight Electronics Corp reports 301% Net Income growth and 54.1% Revenue growth
13.09.2016 • About Pacific Insight Electronics Corp (
$PIH) • By InTwits
Pacific Insight Electronics Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pacific Insight Electronics Corp is a fast growth stock: FY2016 revenue growth was 54.1%, 5 year revenue CAGR was 31.1% at FY2016 ROIC 35.7%
- EBITDA Margin is quite volatile: 14.4% in FY2016, 9.5% in FY2015, 10.6% in FY2014, 5.0% in FY2013, 3.8% in FY2012
- Pacific Insight Electronics Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 4.9 in FY2016, 2.6 in FY2015, 1.3 in FY2014, 2.2 in FY2013, 4.5 in FY2012
- The company has highly profitable business model: ROIC is at 35.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pacific Insight Electronics Corp ($PIH) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 38.6 | 53.6 | 59.2 | 82.5 | 127.2 | 54.1% |
| Gross Profit | 7.7 | 10.6 | 14.1 | 15.6 | 29.7 | 90.6% |
| SG&A | | 7.9 | 7.9 | 9.8 | 13.6 | 39.3% |
| EBITDA | 1.5 | 2.7 | 6.2 | 7.9 | 18.3 | 132.2% |
| Net Income | -0.5 | -0.3 | 1.9 | 2.4 | 9.8 | 300.9% |
Balance Sheet
|
|---|
| Cash | 1.5 | 0.0 | 0.0 | 0.5 | 0.0 | -100.0% |
| Short Term Debt | 3.5 | 3.6 | 7.8 | 11.7 | 3.2 | -72.8% |
| Long Term Debt | 0.7 | 4.0 | 2.7 | 6.3 | 5.7 | -10.3% |
Cash flow
|
|---|
| Capex | 4.5 | 2.2 | 1.3 | 2.6 | 4.9 | 90.5% |
Ratios
|
|---|
| Revenue growth | 17.6% | 39.0% | 10.4% | 39.4% | 54.1% | |
| EBITDA growth | -18.4% | 84.1% | 131.8% | 26.0% | 132.2% | |
| Gross Margin | 20.1% | 19.7% | 23.8% | 18.9% | 23.3% | 4.5% |
| EBITDA Margin | 3.8% | 5.0% | 10.6% | 9.5% | 14.4% | 4.8% |
| Net Income Margin | -1.3% | -0.5% | 3.1% | 3.0% | 7.7% | 4.7% |
| SG&A, % of revenue | | 14.7% | 13.3% | 11.8% | 10.7% | -1.1% |
| CAPEX, % of revenue | 11.8% | 4.2% | 2.2% | 3.1% | 3.8% | 0.7% |
| ROIC | -2.9% | -0.8% | 11.7% | 13.0% | 35.7% | 22.7% |
| ROE | -3.0% | -1.8% | 11.2% | 13.0% | 36.8% | 23.8% |
| Net Debt/EBITDA | 1.8x | 2.8x | 1.7x | 2.2x | 0.5x | -1.7x |
Pacific Insight Electronics Corp ($PIH) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 30 | 30 | 35 | 31 | 91.0% | 86.9% | 52.6% | 14.4% |
| EBITDA | 4 | 4 | 5 | 4 | 299.5% | 620.5% | 112.7% | 19.9% |
| Net Income | 2 | 2 | 3 | 2 | 2,161.3% | | 241.7% | 28.2% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | -100.0% | -100.0% | -100.0% | -100.0% |
| Short Term Debt | 9 | 4 | 5 | 3 | 27.4% | -60.4% | -61.3% | -72.8% |
| Long Term Debt | 6 | 7 | 6 | 6 | -2.4% | 8.4% | -10.5% | -10.3% |
Ratios
|
|---|
| Gross Margin | 24.5% | 25.9% | 25.8% | 17.0% | 3.3% | 6.3% | 4.4% | 2.0% |
| EBITDA Margin | 13.7% | 14.1% | 15.3% | 14.2% | 7.2% | 10.4% | 4.3% | 0.7% |
| Net Income Margin | 6.5% | 7.9% | 9.1% | 7.1% | 6.0% | 9.8% | 5.0% | 0.8% |
Revenue and profitability
The company's Revenue jumped on 54.1%. Revenue growth showed slow down in FY16Q4 - it was 14.4% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.8 pp from 9.5% to 14.4% in FY2016.
Gross Margin increased on 4.5 pp from 18.9% to 23.3% in FY2016. SG&A as a % of Revenue decreased slightly on 1.1 pp from 11.8% to 10.7% in FY2016.
Net Income marign increased on 4.7 pp from 3.0% to 7.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Pacific Insight Electronics Corp had CAPEX/Revenue of 3.8%. Pacific Insight Electronics Corp showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 3.0%.
Return on investment
The company operates at high and attractive ROIC (35.67%) and ROE (36.76%). ROIC surged on 22.7 pp from 13.0% to 35.7% in FY2016. ROE surged on 23.8 pp from 13.0% to 36.8% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 0.5x. Net Debt / EBITDA dropped on 1.7x from 2.2x to 0.5x in FY2016. Debt dropped on 51.0% while cash dropped on 100%.
Appendix 1: Peers in Industrial
Below we provide Pacific Insight Electronics Corp benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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 |
|---|
