International Barrier Technology Inc Net Income dropped on 54.8% in 2016 while Revenue jumped on 13.5%
29.09.2016 • About International Barrier Technology Inc (
$IBH) • By InTwits
International Barrier Technology Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 7.1% in FY2016, 13.1% in FY2015, 12.4% in FY2014, 5.1% in FY2013, -7.7% in FY2012
- International Barrier Technology Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.7%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 0.55 in FY2016, 0.47 in FY2015, 0.13 in FY2014, 0.16 in FY2013, 0.12 in FY2012
- The company has business model with low profitability: ROIC is at 7.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
International Barrier Technology Inc ($IBH) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4.145 | 5.995 | 8.154 | 8.472 | 9.615 | 13.5% |
| Gross Profit | 0.258 | 0.710 | 1.566 | 1.791 | 1.428 | -20.3% |
| SG&A | 0.097 | 0.093 | 0.096 | 0.114 | 0.104 | -8.7% |
| EBITDA | -0.319 | 0.303 | 1.012 | 1.112 | 0.687 | -38.2% |
| Net Income | -0.140 | -0.059 | 0.586 | 0.702 | 0.317 | -54.8% |
Balance Sheet
|
|---|
| Cash | 0.102 | 0.180 | 0.709 | 0.804 | 0.929 | 15.5% |
| Short Term Debt | 0.158 | 0.124 | 0.139 | 0.049 | 0.253 | 419.4% |
| Long Term Debt | 0.742 | 0.694 | 0.548 | 0.280 | 0.027 | -90.4% |
Cash flow
|
|---|
| Capex | 0.116 | 0.155 | 0.134 | 0.475 | 0.547 | 15.2% |
Ratios
|
|---|
| Revenue growth | 27.3% | 44.6% | 36.0% | 3.9% | 13.5% | |
| EBITDA growth | 110.6% | -195.1% | 233.7% | 9.9% | -38.2% | |
| Gross Margin | 6.2% | 11.8% | 19.2% | 21.1% | 14.8% | -6.3% |
| EBITDA Margin | -7.7% | 5.1% | 12.4% | 13.1% | 7.1% | -6.0% |
| Net Income Margin | -3.4% | -1.0% | 7.2% | 8.3% | 3.3% | -5.0% |
| SG&A, % of revenue | 2.3% | 1.5% | 1.2% | 1.3% | 1.1% | -0.3% |
| CAPEX, % of revenue | 2.8% | 2.6% | 1.6% | 5.6% | 5.7% | 0.1% |
| ROIC | -20.9% | -0.0% | 20.8% | 19.7% | 7.8% | -11.9% |
| ROE | -6.3% | -2.6% | 22.7% | 20.5% | 7.7% | -12.7% |
| Net Debt/EBITDA | | 2.1x | -0.0x | -0.4x | -0.9x | -0.5x |
International Barrier Technology Inc ($IBH) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 3 | 3 | -13.7% | 25.0% | 33.8% | 16.3% |
| EBITDA | 0 | 0 | 0 | 0 | -83.0% | 13.6% | -19.8% | -25.0% |
| Net Income | -0 | 0 | 0 | 0 | -108.5% | 26.9% | -32.3% | -16.4% |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 1 | 1 | 5.7% | 34.5% | 74.4% | 15.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | -77.7% | -88.8% | -22.9% | 419.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | -48.9% | -46.3% | -90.6% | -90.4% |
Ratios
|
|---|
| Gross Margin | 13.7% | 16.8% | 13.9% | 15.1% | -9.2% | -2.0% | -4.5% | -8.6% |
| EBITDA Margin | 3.3% | 10.1% | 7.6% | 7.3% | -13.3% | -1.0% | -5.1% | -4.0% |
| Net Income Margin | -1.3% | 5.8% | 4.0% | 4.2% | -14.0% | 0.1% | -3.9% | -1.6% |
Revenue and profitability
International Barrier Technology Inc's Revenue jumped on 13.5%. Revenue growth showed acceleration in FY16Q4 - it increased 16.3% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased on 6.0 pp from 13.1% to 7.1% in FY2016.
Gross Margin decreased on 6.3 pp from 21.1% to 14.8% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased on 5.0 pp from 8.3% to 3.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
International Barrier Technology Inc's CAPEX/Revenue was 5.7% in FY2016. The company showed CAPEX/Revenue growth of 3.1 pp from 2.6% in FY2013 to 5.7% in FY2016. It's average level of CAPEX/Revenue for the last three years was 4.3%.The company invested a big chunk of EBITDA (79.6%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (7.81%) and ROE (7.73%). ROIC dropped on 11.9 pp from 19.7% to 7.8% in FY2016. ROE dropped on 12.7 pp from 20.5% to 7.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.9x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped on 0.5x from -0.4x to -0.9x in FY2016. Debt dropped on 14.8% while cash jumped on 15.5%.
Appendix 1: Peers in Industrial
Below we provide International Barrier Technology Inc 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 |
|---|
