Rogers Sugar Inc reports 173% Net Income growth and 4.2% Revenue growth
23.11.2016 • About Rogers Sugar Inc (
$RSI) • By InTwits
Rogers Sugar Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Rogers Sugar Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 44.3 in 2016, 140 in 2015, 277 in 2014, 90.3 in 2013, 186 in 2012
- The company has highly profitable business model: ROIC is at 22.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Rogers Sugar Inc ($RSI) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 618.1 | 558.4 | 532.3 | 541.5 | 564.4 | 4.2% |
| Gross Profit | 77.9 | 84.8 | 82.9 | 76.3 | 128.2 | 68.1% |
| SG&A | | 18.2 | 24.3 | 22.4 | 19.6 | -12.5% |
| EBITDA | 62.5 | 71.1 | 62.1 | 57.4 | 110.9 | 93.3% |
| Net Income | 30.3 | 36.5 | 29.2 | 24.0 | 65.6 | 172.9% |
Balance Sheet
|
|---|
| Cash | 27.9 | 3.2 | 0.1 | 1.4 | 1.2 | -8.3% |
| Short Term Debt | 60.1 | 25.0 | 35.8 | 7.0 | 49.9 | 607.5% |
| Long Term Debt | 106.2 | 155.9 | 156.7 | 177.8 | 118.9 | -33.2% |
Cash flow
|
|---|
| Capex | 8.5 | 9.1 | 11.6 | 11.4 | 14.8 | 29.3% |
Ratios
|
|---|
| Revenue growth | 0.9% | -9.7% | -4.7% | 1.7% | 4.2% | |
| EBITDA growth | -22.2% | 13.8% | -12.7% | -7.5% | 93.3% | |
| Gross Margin | 12.6% | 15.2% | 15.6% | 14.1% | 22.7% | 8.6% |
| EBITDA Margin | 10.1% | 12.7% | 11.7% | 10.6% | 19.7% | 9.1% |
| Net Income Margin | 4.9% | 6.5% | 5.5% | 4.4% | 11.6% | 7.2% |
| SG&A, % of revenue | | 3.3% | 4.6% | 4.1% | 3.5% | -0.7% |
| CAPEX, % of revenue | 1.4% | 1.6% | 2.2% | 2.1% | 2.6% | 0.5% |
| ROIC | 11.0% | 13.0% | 11.0% | 10.0% | 22.2% | 12.2% |
| ROE | 11.3% | 13.7% | 11.6% | 9.8% | 25.9% | 16.1% |
| Net Debt/EBITDA | 2.2x | 2.5x | 3.1x | 3.2x | 1.5x | -1.7x |
Rogers Sugar Inc ($RSI) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 130 | 134 | 139 | 162 | 1.1% | 5.4% | 6.1% | 4.3% |
| EBITDA | 36 | 16 | 32 | 28 | 90.2% | 11.9% | 334.9% | 61.4% |
| Net Income | 22 | 8 | 19 | 16 | 134.4% | 33.0% | 1,746.0% | 110.9% |
Balance Sheet
|
|---|
| Cash | 1 | 0 | 6 | 1 | 1,404.9% | -93.6% | -39.6% | -8.3% |
| Short Term Debt | 3 | 10 | 50 | 50 | -94.3% | -78.7% | 10.6% | 607.5% |
| Long Term Debt | 178 | 178 | 129 | 119 | 13.4% | 13.4% | -27.4% | -33.2% |
Ratios
|
|---|
| Gross Margin | 29.6% | 15.3% | 26.5% | 20.0% | 11.5% | 0.8% | 18.2% | 4.8% |
| EBITDA Margin | 27.5% | 11.9% | 22.9% | 17.0% | 12.9% | 0.7% | 17.3% | 6.0% |
| Net Income Margin | 17.0% | 5.7% | 14.0% | 10.2% | 9.7% | 1.2% | 13.2% | 5.1% |
Revenue and profitability
Rogers Sugar Inc's Revenue increased on 4.2%. Revenue growth showed acceleration in FY16Q4 - it increased 4.3% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 59.9 pp from -28.4% to 31.5% in 2016.
Gross Margin increased on 8.6 pp from 14.1% to 22.7% in FY2016. SG&A as a % of Revenue decreased slightly on 0.66 pp from 4.1% to 3.5% in FY2016.
Net Income marign increased on 7.2 pp from 4.4% to 11.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Rogers Sugar Inc's CAPEX/Revenue was 2.6% in FY2016. CAPEX/Revenue increased slightly on 0.99 pp from 1.6% in FY2013 to 2.6% in FY2016. It's average level of CAPEX/Revenue for the last three years was 2.3%.
Return on investment
The company operates at high and attractive ROIC (22.20%) and ROE (25.94%). ROIC surged on 12.2 pp from 10.0% to 22.2% in FY2016. ROE surged on 16.1 pp from 9.8% to 25.9% in FY2016.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 1.5x Debt / EBITDA. Net Debt / EBITDA dropped on 1.7x from 3.2x to 1.5x in FY2016. Debt decreased on 8.7% while cash decreased on 8.3%.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Rogers Sugar Inc benchmarking against other companies in Consumer, Non-cyclical 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 |
|---|
| 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 |
|---|
