Bevo Agro Inc Net Income surged on 136% in 2016 and Revenue jumped on 18.9%
13.10.2016 • About Bevo Agro Inc (
$BVO) • By InTwits
Bevo Agro Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 18.6% in FY2016 vs. 15.3% in FY2015 vs. 13.8% in FY2012
- Bevo Agro Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.7%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 4.6 in FY2016, 4.6 in FY2015, 1.7 in FY2014, 0.52 in FY2013, 3.0 in FY2012
- The company has business model with low profitability: ROIC is at 9.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Bevo Agro Inc ($BVO) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 18.898 | 20.587 | 23.309 | 26.222 | 31.167 | 18.9% |
| Gross Profit | 4.758 | 5.083 | 5.919 | 6.801 | 8.610 | 26.6% |
| SG&A | | 4.053 | 4.154 | 4.504 | 4.615 | 2.5% |
| EBITDA | 2.606 | 2.610 | 3.340 | 4.011 | 5.807 | 44.8% |
| Net Income | 0.572 | 0.185 | 0.739 | 1.198 | 2.826 | 135.9% |
Balance Sheet
|
|---|
| Cash | 0.630 | 0.331 | 1.072 | 1.197 | 2.038 | 70.2% |
| Short Term Debt | 1.229 | 1.213 | 1.407 | 2.748 | 3.109 | 13.1% |
| Long Term Debt | 19.678 | 18.466 | 17.209 | 17.459 | 18.051 | 3.4% |
Cash flow
|
|---|
| Capex | 3.001 | 0.518 | 1.692 | 4.646 | 4.649 | 0.1% |
Ratios
|
|---|
| Revenue growth | 3.5% | 8.9% | 13.2% | 12.5% | 18.9% | |
| EBITDA growth | 17.9% | 0.2% | 28.0% | 20.1% | 44.8% | |
| Gross Margin | 25.2% | 24.7% | 25.4% | 25.9% | 27.6% | 1.7% |
| EBITDA Margin | 13.8% | 12.7% | 14.3% | 15.3% | 18.6% | 3.3% |
| Net Income Margin | 3.0% | 0.9% | 3.2% | 4.6% | 9.1% | 4.5% |
| SG&A, % of revenue | | 19.7% | 17.8% | 17.2% | 14.8% | -2.4% |
| CAPEX, % of revenue | 15.9% | 2.5% | 7.3% | 17.7% | 14.9% | -2.8% |
| ROIC | 2.9% | 2.9% | 5.1% | 6.2% | 9.7% | 3.4% |
| ROE | 4.1% | 1.3% | 4.9% | 7.2% | 15.2% | 7.9% |
| Net Debt/EBITDA | 7.8x | 7.4x | 5.3x | 4.7x | 3.3x | -1.4x |
Bevo Agro Inc ($BVO) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 5 | 7 | 7 | 13 | 14.3% | 5.5% | 39.5% | 19.2% |
| EBITDA | 0 | 1 | 2 | 2 | 46.0% | 76.8% | 37.0% | 33.3% |
| Net Income | -0 | 0 | 1 | 2 | | 2,736.5% | 75.4% | 92.8% |
Balance Sheet
|
|---|
| Cash | 0 | 1 | 0 | 2 | -91.8% | 79.2% | -95.2% | 70.2% |
| Short Term Debt | 3 | 3 | 4 | 3 | -13.4% | 1.5% | -11.0% | 13.1% |
| Long Term Debt | 17 | 17 | 20 | 18 | -9.0% | -9.3% | -4.7% | 3.4% |
Ratios
|
|---|
| Gross Margin | 24.6% | 25.2% | 36.9% | 25.1% | 2.9% | 5.1% | -4.2% | 1.0% |
| EBITDA Margin | 10.4% | 16.8% | 27.3% | 17.9% | 2.3% | 6.8% | -0.5% | 1.9% |
| Net Income Margin | -2.7% | 5.4% | 13.1% | 13.0% | 2.4% | 5.2% | 2.7% | 5.0% |
Revenue and profitability
The company's Revenue surged on 18.9%. Revenue growth showed acceleration in FY16Q4 - it increased 19.2% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 13.5 pp from -2.7% to -16.2% in FY2016.
Gross Margin increased slightly on 1.7 pp from 25.9% to 27.6% in FY2016. SG&A as a % of Revenue decreased on 2.4 pp from 17.2% to 14.8% in FY2016.
Net Income marign increased on 4.5 pp from 4.6% to 9.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Bevo Agro Inc's CAPEX/Revenue was 14.9% in FY2016. Bevo Agro Inc's CAPEX/Revenue surged on 12.4 pp from 2.5% in FY2013 to 14.9% in FY2016. Average CAPEX/Revenue for the last three years was 13.3%.To fuel this fast growth Bevo Agro Inc invested a large share of EBITDA (80.1%) to CAPEX.
Return on investment
The company operates at good ROE (15.19%) while ROIC is low (9.67%). ROIC increased on 3.4 pp from 6.2% to 9.7% in FY2016. ROE increased on 7.9 pp from 7.2% to 15.2% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.3x and Debt / EBITDA is 3.6x. Net Debt / EBITDA dropped on 1.4x from 4.7x to 3.3x in FY2016. Debt increased on 4.7% while cash jumped on 70.2%.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Bevo Agro Inc 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 |
|---|
