Opsens Inc reports 428% CAPEX growth and 10.8% Revenue growth
16.11.2016 • About Opsens Inc (
$OPS) • By InTwits
Opsens Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Opsens Inc doesn't have a profitable business model yet: FY2016 ROIC is -73.9%
- The company operates at negative EBITDA Margin: -82.0%
- Opsens Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -39.4% for the sames years0
- Opsens Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.9%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 3.1 in FY2016, 0.58 in FY2015, 0.39 in FY2014, 0.47 in FY2013, 0.30 in FY2012
- The company has unprofitable business model: ROIC is at -73.9%
- It operates with high leverage: Net Debt/EBITDA is 5.4x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Opsens Inc ($OPS) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8.462 | 7.526 | 6.788 | 8.665 | 9.601 | 10.8% |
| Gross Profit | 2.740 | 2.747 | 2.389 | 4.744 | 1.631 | -65.6% |
| SG&A | 3.233 | 3.267 | 3.528 | 4.117 | 7.379 | 79.2% |
| EBITDA | -1.761 | -1.964 | -2.489 | -2.098 | -7.870 | |
| Net Income | -1.930 | -2.366 | -3.099 | -2.884 | -9.282 | |
Balance Sheet
|
|---|
| Cash | 2.577 | 3.662 | 10.621 | 7.204 | 5.903 | -18.1% |
| Short Term Debt | 0.166 | 0.177 | 0.174 | 0.232 | 0.481 | 107.2% |
| Long Term Debt | 0.507 | 2.718 | 3.013 | 3.461 | 5.096 | 47.2% |
Cash flow
|
|---|
| Capex | 0.302 | 0.473 | 0.390 | 0.585 | 3.088 | 427.9% |
Ratios
|
|---|
| Revenue growth | 40.9% | -11.1% | -9.8% | 27.7% | 10.8% | |
| EBITDA growth | -25.1% | 11.5% | 26.7% | -15.7% | 275.2% | |
| Gross Margin | 32.4% | 36.5% | 35.2% | 54.8% | 17.0% | -37.8% |
| EBITDA Margin | -20.8% | -26.1% | -36.7% | -24.2% | -82.0% | -57.8% |
| Net Income Margin | -22.8% | -31.4% | -45.7% | -33.3% | -96.7% | -63.4% |
| SG&A, % of revenue | 38.2% | 43.4% | 52.0% | 47.5% | 76.9% | 29.3% |
| CAPEX, % of revenue | 3.6% | 6.3% | 5.7% | 6.8% | 32.2% | 25.4% |
| ROIC | -29.2% | -36.2% | -32.6% | -24.2% | -73.9% | -49.7% |
| ROE | -29.6% | -52.4% | -53.4% | -40.9% | -140.6% | -99.7% |
Opsens Inc ($OPS) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 3 | 2 | 3 | -61.4% | 19.9% | 155.6% | 172.5% |
| EBITDA | -1 | -1 | -3 | -3 | -204.6% | | | |
| Net Income | -2 | -2 | -3 | -3 | -242.6% | | | |
Balance Sheet
|
|---|
| Cash | 5 | 6 | 10 | 6 | -55.9% | -36.3% | 13.6% | -18.1% |
| Short Term Debt | 0 | 0 | 0 | 0 | 15.8% | -4.1% | 227.3% | 107.2% |
| Long Term Debt | 4 | 4 | 5 | 5 | 19.7% | 10.3% | 52.1% | 47.2% |
Ratios
|
|---|
| Gross Margin | 28.2% | 28.0% | 24.2% | -4.4% | -50.8% | -20.5% | -3.7% | 5.1% |
| EBITDA Margin | -75.8% | -48.3% | -118.2% | -90.6% | -103.7% | -30.9% | 32.2% | 61.8% |
| Net Income Margin | -96.9% | -55.6% | -144.8% | -100.0% | -123.1% | -17.1% | 18.2% | 63.2% |
Revenue and profitability
Opsens Inc's Revenue jumped on 10.8%. Revenue growth showed acceleration in FY16Q4 - it increased 172.5% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 40.4 pp from -113% to -72.8% in FY2016.
Gross Margin dropped on 37.8 pp from 54.8% to 17.0% in FY2016. SG&A as a % of Revenue surged on 29.3 pp from 47.5% to 76.9% in FY2016.
Net Income marign dropped on 63.4 pp from -33.3% to -96.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Opsens Inc's CAPEX/Revenue was 32.2% in FY2016. CAPEX/Revenue jumped on 25.9 pp from 6.3% in FY2013 to 32.2% in FY2016. For the last three years the average CAPEX/Revenue was 14.9%.
Return on investment
The company operates at negative ROIC (-73.94%) and ROE (-140.57%). ROIC dropped on 49.7 pp from -24.2% to -73.9% in FY2016. ROE dropped on 99.7 pp from -40.9% to -141% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 5.4x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt jumped on 51.0% while cash dropped on 18.1%.
Appendix 1: Peers in Industrial
Below you can find Opsens 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 |
|---|
