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The numbers tell that Pacific Insight Electronics Corp's growth is outstanding

20.09.2016 • About Pacific Insight Electronics Corp ($PIH) • By InTwits

Have you thought about Pacific Insight Electronics Corp as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story


Pacific Insight Electronics Corp showed growth in the last financial year. Pacific Insight Electronics Corp's revenue surged on 54.1% in FY2016. The growth also happened in EBITDA of 132% for the same period.

In the last 3 years Pacific Insight Electronics Corp showed fast revenue growth of 33.4% from FY2013 to FY2016 annually. EBITDA surged on 89.3% from FY2013 to FY2016 annually.

Pacific Insight Electronics Corp ($PIH) financials for the last 5 years

mln. CAD FY2012 FY2013 FY2014 FY2015 FY2016
Revenue39545982127
Revenue growth, %39.0%10.4%39.4%54.1%
Gross margin, %20.1%19.7%23.8%18.9%23.3%
SG&A, %14.7%13.3%11.8%10.7%
EBITDA136818
EBITDA growth, %84.1%131.8%26.0%132.2%
EBITDA margin, %3.79%5.03%10.6%9.54%14.4%
Net Income-0-02210
Net Income margin, % -1.25%-0.524%3.14%2.96%7.71%
 
CAPEX52135
CAPEX/Revenue, %11.8%4.17%2.16%3.11%3.85%
Debt4810189
Cash20010
Net Debt/EBITDA1.8x2.8x1.7x2.2x0.5x
 
ROIC, %-2.9%-0.8%11.7%13.0%35.7%
ROE, %-3.0%-1.8%11.2%13.0%36.8%

Profitability and return on investment


EBITDA growth was supported by margin expansion. Pacific Insight Electronics Corp showed fast EBITDA margin growth of 4.90 pp from 9.50% to 14.4% in FY2016. If we look for the longer period the company's EBITDA margin surged on 9.40 pp from 5% in FY2013 to 14.4% in FY2016.

Pacific Insight Electronics Corp shows attractive ROIC at 35.7% for the last 12 months which assumes stable development model. Three years ago it was considerably lower at -0.845%. For the last three years the average ROIC was 20.1%.

Pacific Insight Electronics Corp's Net Income margin surged on 4.70 pp from 3% to 7.70% in FY2016. In the longer period the company showed fast Net Income margin growth of 8.20 pp from -0.500% in FY2013 to 7.70% in FY2016.

Pacific Insight Electronics Corp operates at ROE of 36.8%. It's average level of ROE for the last three years was 20.3%.

Capital expenditures (CAPEX)


Pacific Insight Electronics Corp's CAPEX/Revenue was 3.85% in FY2016. Pacific Insight Electronics Corp showed decline of 0.319 pp from 4.17% in FY2013 to 3.85% in FY2016. For the last three years the average CAPEX/Revenue was 3.04%.

Leverage (Debt)


Having such a fast growth profile Pacific Insight Electronics Corp keeps low debt level at 0.5x Net Debt/EBITDA. In the longer period the company's leverage dropped on 2.34x from 2.82x in FY2013 to 0.48x in FY2016.

Valuation vs. comparable companies


At the end of trading day today Pacific Insight Electronics Corp traded at 3.6x EV/EBITDA which is 83.7% lower than 22.1x Industrial peer group avearge calculated on the basis of 168 companies. The company trades at 5.8x P/E which is 87.1% lower than 45.0x Industrial industry avearge calculated based on 39 companies.

For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Pacific Insight Electronics Corp traded at 4.9x EV/(EBITDA-CAPEX) which is 130% higher than 2.1x Industrial peer group avearge calculated on the basis of 28 companies.

Peers in Industrial


Below you can find Pacific Insight Electronics Corp 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, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Diversified Royalty Corp ($DIV)503.3%
Electrovaya Inc ($EFL)-4.0%-71.2%160.5%123.8%
WSP Global Inc ($WSP)92.9%60.3%44.0%108.9%
CEMATRIX Corp ($CVX)9.2%-5.6%7.9%76.5%
Lumenpulse Inc ($LMP)33.9%47.0%61.8%44.1%
 
Median (93 companies)10.3%4.9%9.1%10.3%9.9%
Pacific Insight Electronics Corp ($PIH)39.0%10.4%39.4%54.1%


Top companies by Gross margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Pure Technologies Ltd ($PUR)77.9%78.0%77.5%75.6%
WSP Global Inc ($WSP)81.1%83.2%81.0%74.0%
FLYHT Aerospace Solutions Ltd ($FLY)57.2%59.2%62.9%69.3%
Alarmforce Industries Inc ($AF)75.0%76.5%72.2%69.2%
Epicore BioNetworks Inc ($EBN)60.8%63.2%64.1%58.1%
 
Median (87 companies)23.4%23.4%22.6%23.8%24.7%
Pacific Insight Electronics Corp ($PIH)20.1%19.7%23.8%18.9%23.3%


Top companies by EBITDA margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Canadian National Railway Co ($CNR)46.5%45.9%46.8%50.9%
Canadian Pacific Railway Ltd ($CP)26.1%32.4%43.7%48.9%
Vitreous Glass Inc ($VCI)31.4%32.2%37.8%39.0%
Photon Control Inc ($PHO)17.6%24.8%29.3%38.3%
Evertz Technologies Ltd ($ET)29.6%29.1%23.0%27.0%27.4%
 
Median (88 companies)9.4%8.3%7.2%7.7%9.4%
Pacific Insight Electronics Corp ($PIH)3.8%5.0%10.6%9.5%14.4%


Top companies by CAPEX/Revenue, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Newalta Corp ($NAL)21.7%34.5%35.1%42.0%
Cargojet Inc ($CJT.A)7.0%6.3%54.1%41.3%
Algoma Central Corp ($ALC)15.9%7.3%5.0%27.4%
Canadian Pacific Railway Ltd ($CP)20.2%20.2%21.9%22.7%
Canadian National Railway Co ($CNR)17.4%18.7%18.9%21.5%
 
Median (92 companies)3.0%3.5%3.2%3.4%2.7%
Pacific Insight Electronics Corp ($PIH)11.8%4.2%2.2%3.1%3.8%


Top companies by ROIC, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Biorem Inc ($BRM)-15.1%32.3%-29.7%54.4%
Vitreous Glass Inc ($VCI)30.5%32.3%48.3%51.0%
Photon Control Inc ($PHO)21.0%44.4%38.0%40.6%
Pacific Safety Products Inc ($PSP)-1.5%-11.5%3.7%38.2%
CEMATRIX Corp ($CVX)6.4%-2.4%-6.7%30.4%
 
Median (93 companies)10.0%8.5%8.5%8.3%8.3%
Pacific Insight Electronics Corp ($PIH)-2.9%-0.8%11.7%13.0%35.7%


Top companies by Net Debt / EBITDA

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Conifex Timber Inc ($CFF)2.7x6.1x35.9x
Ag Growth International Inc ($AFN)2.9x-0.1x2.1x14.1x
Cargojet Inc ($CJT.A)1.5x1.5x31.5x12.9x
Progressive Waste Solutions Ltd ($BIN)4.5x3.3x2.9x10.6x
Finning International Inc ($FTT)2.3x1.8x1.4x9.4x
 
Median (75 companies)1.5x1.4x1.2x1.0x0.7x
Pacific Insight Electronics Corp ($PIH)1.8x2.8x1.7x2.2x0.5x