Metro Inc reports 8.6% EBITDA growth and 4.6% Revenue growth
16.11.2016 • About Metro Inc (
$MRU) • By InTwits
Metro Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 7.3% in FY2016 vs. 7.0% in FY2015 vs. 7.0% in FY2012
- Metro Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 6.8%.
- CAPEX is quite volatile: 3,797 in 2016, 4,468 in 2015, 11,398 in 2014, 7,211 in 2013, 6,104 in 2012
- The company has highly profitable business model: ROIC is at 18.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Metro Inc ($MRU) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,675 | 11,400 | 11,590 | 12,224 | 12,788 | 4.6% |
| Gross Profit | 823 | 805 | 788 | 858 | 931 | 8.6% |
| EBITDA | 823 | 765 | 782 | 858 | 931 | 8.6% |
| Net Income | 482 | 695 | 447 | 506 | 572 | 12.9% |
Balance Sheet
|
|---|
| Cash | 73 | 81 | 36 | 22 | 28 | 27.9% |
| Short Term Debt | 12 | 14 | 14 | 17 | 17 | -2.9% |
| Long Term Debt | 974 | 650 | 1,045 | 1,145 | 1,231 | 7.5% |
Cash flow
|
|---|
| Capex | 211 | 208 | 191 | 220 | 278 | 26.4% |
Ratios
|
|---|
| Revenue growth | 2.4% | -2.4% | 1.7% | 5.5% | 4.6% | |
| EBITDA growth | 7.4% | -7.0% | 2.1% | 9.8% | 8.6% | |
| Gross Margin | 7.0% | 7.1% | 6.8% | 7.0% | 7.3% | 0.3% |
| EBITDA Margin | 7.0% | 6.7% | 6.7% | 7.0% | 7.3% | 0.3% |
| Net Income Margin | 4.1% | 6.1% | 3.9% | 4.1% | 4.5% | 0.3% |
| CAPEX, % of revenue | 1.8% | 1.8% | 1.6% | 1.8% | 2.2% | 0.4% |
| ROIC | 17.7% | 15.9% | 15.9% | 17.2% | 18.3% | 1.1% |
| ROE | 19.5% | 26.0% | 16.4% | 19.1% | 21.5% | 2.4% |
| Net Debt/EBITDA | 1.1x | 0.8x | 1.3x | 1.3x | 1.3x | -0.0x |
Metro Inc ($MRU) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 2,962 | 2,882 | 4,015 | 2,929 | 4.3% | 6.5% | 4.5% | 3.4% |
| EBITDA | 210 | 202 | 297 | 222 | 10.7% | 10.5% | 7.1% | 6.8% |
| Net Income | 137 | 122 | 172 | 141 | 24.4% | 11.3% | 8.0% | 10.6% |
Balance Sheet
|
|---|
| Cash | 0 | 51 | 0 | 28 | -100.0% | -23.8% | -100.0% | 27.9% |
| Short Term Debt | 66 | 16 | 16 | 17 | -68.9% | 59.0% | 80.2% | -2.9% |
| Long Term Debt | 1,356 | 1,298 | 1,227 | 1,231 | 21.7% | 23.8% | 12.4% | 7.5% |
Ratios
|
|---|
| Gross Margin | 7.1% | 7.0% | 7.4% | 7.6% | 0.4% | 0.3% | 0.2% | 0.2% |
| EBITDA Margin | 7.1% | 7.0% | 7.4% | 7.6% | 0.4% | 0.3% | 0.2% | 0.2% |
| Net Income Margin | 4.6% | 4.2% | 4.3% | 4.8% | 0.7% | 0.2% | 0.1% | 0.3% |
Revenue and profitability
Metro Inc's Revenue increased on 4.6%. Revenue growth showed slow down in FY16Q4 - it was 3.4% YoY. EBITDA Margin showed almost no change in FY2016.
Gross Margin showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Metro Inc had CAPEX/Revenue of 2.2%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at high and attractive ROE (21.47%) while ROIC is a bit lower (18.30%). ROIC increased slightly on 1.1 pp from 17.2% to 18.3% in FY2016. ROE increased on 2.4 pp from 19.1% to 21.5% in FY2016.
Leverage (Debt)
Debt level is 1.3x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA decreased slightly on 0.020x from 1.3x to 1.3x in FY2016. Debt increased on 7.3% while cash surged on 27.9%.
Management team
The company's CEO Eric Richer La Fleche is a founder and has spent 10 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Metro 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 |
|---|
