Epicore BioNetworks Inc CAPEX dropped on 52.7% in 2016 and Revenue decreased on 2.8%
07.10.2016 • About Epicore BioNetworks Inc (
$EBN) • By InTwits
Epicore BioNetworks Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Epicore BioNetworks Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.4%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 0.73 in FY2016, 1.5 in FY2015, 0.20 in FY2014, 0.45 in FY2013, 1.6 in FY2012
- The company has highly profitable business model: ROIC is at 19.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Epicore BioNetworks Inc ($EBN) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5.636 | 5.613 | 7.617 | 9.707 | 9.437 | -2.8% |
| Gross Profit | 3.429 | 3.545 | 4.879 | 5.638 | 5.483 | -2.7% |
| SG&A | 1.016 | 1.128 | 1.259 | 2.820 | 3.141 | 11.4% |
| EBITDA | 1.261 | 0.919 | 2.112 | 2.100 | 1.950 | -7.1% |
| Net Income | 0.660 | 0.482 | 1.174 | 1.242 | 1.116 | -10.1% |
Balance Sheet
|
|---|
| Cash | 1.628 | 1.939 | 2.976 | 2.262 | 3.479 | 53.8% |
| Short Term Debt | 0.016 | 0.017 | 0.019 | 0.018 | 0.015 | -16.7% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.569 | 0.449 | 0.197 | 1.544 | 0.730 | -52.7% |
Ratios
|
|---|
| Revenue growth | 12.4% | -0.4% | 35.7% | 27.4% | -2.8% | |
| EBITDA growth | 41.9% | -27.1% | 129.8% | -0.5% | -7.1% | |
| Gross Margin | 60.8% | 63.2% | 64.1% | 58.1% | 58.1% | 0.0% |
| EBITDA Margin | 22.4% | 16.4% | 27.7% | 21.6% | 20.7% | -1.0% |
| Net Income Margin | 11.7% | 8.6% | 15.4% | 12.8% | 11.8% | -1.0% |
| SG&A, % of revenue | 18.0% | 20.1% | 16.5% | 29.1% | 33.3% | 4.2% |
| CAPEX, % of revenue | 27.8% | 8.0% | 2.6% | 15.9% | 7.7% | -8.2% |
| ROIC | 28.1% | 16.1% | 32.5% | 26.3% | 19.2% | -7.1% |
| ROE | 14.7% | 9.4% | 19.3% | 16.7% | 12.7% | -3.9% |
| Net Debt/EBITDA | -1.3x | -2.1x | -1.4x | -1.1x | -1.8x | -0.7x |
Epicore BioNetworks Inc ($EBN) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 3 | 2 | -11.5% | -9.2% | 14.1% | -6.0% |
| EBITDA | 0 | 0 | 1 | 0 | -31.6% | -62.5% | 67.1% | 2.2% |
| Net Income | 0 | 0 | 1 | 0 | -41.8% | -65.1% | 107.1% | -46.8% |
Balance Sheet
|
|---|
| Cash | 3 | 2 | 3 | 3 | -15.8% | -36.9% | 58.3% | 53.8% |
| Short Term Debt | 0 | 0 | 0 | 0 | -7.2% | -22.7% | -17.6% | -16.7% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 59.5% | 54.4% | 62.4% | 54.8% | 0.8% | -8.4% | 6.3% | -0.1% |
| EBITDA Margin | 19.2% | 9.5% | 31.4% | 18.9% | -5.6% | -13.5% | 9.9% | 1.5% |
| Net Income Margin | 11.1% | 4.5% | 22.4% | 5.8% | -5.8% | -7.3% | 10.0% | -4.4% |
Revenue and profitability
Epicore BioNetworks Inc's Revenue decreased on 2.8%. Revenue decline showed acceleration in FY16Q4 - it was 6.0% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.97 pp from 21.6% to 20.7% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue increased on 4.2 pp from 29.1% to 33.3% in FY2016.
Net Income marign decreased slightly on 0.97 pp from 12.8% to 11.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 7.7%. Epicore BioNetworks Inc showed almost no change in CAPEX/Revenue from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 8.7%.
Return on investment
The company operates at good ROIC (19.21%) and ROE (12.72%). ROIC decreased on 7.1 pp from 26.3% to 19.2% in FY2016. ROE decreased on 3.9 pp from 16.7% to 12.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.8x and Debt / EBITDA is 0.0x. Net Debt / EBITDA dropped on 0.7x from -1.1x to -1.8x in FY2016. Debt dropped on 16.7% while cash surged on 53.8%.
Appendix 1: Peers in Industrial
Below you can find Epicore BioNetworks Inc 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, %
| 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 |
|---|
