Exco Technologies Ltd revenue surged on 18.2% in 2016 while EBITDA Margin decreased slightly on 1.3 pp from 15.4% to 14.2%
30.11.2016 • About Exco Technologies Ltd (
$XTC) • By InTwits
Exco Technologies Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Exco Technologies Ltd is a fast growth stock: FY2016 revenue growth was 18.2%, 5 year revenue CAGR was 23.8% at FY2016 ROIC 20.7%
- Exco Technologies Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 22.7 in FY2016, 20.0 in FY2015, 24.7 in FY2014, 21.6 in FY2013, 7.7 in FY2012
- The company has highly profitable business model: ROIC is at 20.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Exco Technologies Ltd ($XTC) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 242.5 | 244.6 | 368.3 | 498.3 | 589.0 | 18.2% |
| Gross Profit | 69.9 | 71.1 | 89.3 | 118.8 | 128.9 | 8.5% |
| SG&A | 27.2 | 28.0 | 35.4 | 41.6 | 45.9 | 10.1% |
| EBITDA | 42.6 | 43.0 | 53.9 | 77.0 | 83.4 | 8.4% |
| Net Income | 24.4 | 23.6 | 30.7 | 40.8 | 47.6 | 16.7% |
Balance Sheet
|
|---|
| Cash | 31.2 | 26.1 | 31.2 | 35.0 | 27.5 | -21.4% |
| Short Term Debt | 0.0 | 0.0 | 21.9 | 10.1 | 17.6 | 74.8% |
| Long Term Debt | 0.0 | 0.0 | 1.5 | 0.4 | 54.5 | 13,228.6% |
Cash flow
|
|---|
| Capex | 7.7 | 21.6 | 24.7 | 20.0 | 22.7 | 13.3% |
Ratios
|
|---|
| Revenue growth | 19.7% | 0.9% | 50.5% | 35.3% | 18.2% | |
| EBITDA growth | 49.2% | 0.8% | 25.6% | 42.7% | 8.4% | |
| Gross Margin | 28.8% | 29.1% | 24.3% | 23.8% | 21.9% | -2.0% |
| EBITDA Margin | 17.6% | 17.6% | 14.6% | 15.4% | 14.2% | -1.3% |
| Net Income Margin | 10.1% | 9.7% | 8.3% | 8.2% | 8.1% | -0.1% |
| SG&A, % of revenue | 11.2% | 11.5% | 9.6% | 8.4% | 7.8% | -0.6% |
| CAPEX, % of revenue | 3.2% | 8.8% | 6.7% | 4.0% | 3.8% | -0.2% |
| ROIC | 23.2% | 21.1% | 20.4% | 24.2% | 20.7% | -3.5% |
| ROE | 17.8% | 15.4% | 16.7% | 18.2% | 18.1% | -0.1% |
| Net Debt/EBITDA | -0.7x | -0.6x | -0.1x | -0.3x | 0.5x | 0.9x |
Exco Technologies Ltd ($XTC) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 131 | 133 | 162 | 163 | 9.2% | 6.3% | 32.6% | 24.5% |
| EBITDA | 21 | 17 | 23 | 22 | 24.1% | -15.1% | 27.5% | 1.5% |
| Net Income | 12 | 9 | 16 | 11 | 22.7% | -17.3% | 63.0% | 2.1% |
Balance Sheet
|
|---|
| Cash | 38 | 109 | 30 | 28 | 50.8% | 331.3% | 15.8% | -21.4% |
| Short Term Debt | 6 | 7 | 16 | 18 | -72.4% | -62.7% | 5.7% | 74.8% |
| Long Term Debt | 0 | 69 | 73 | 55 | -65.6% | 6,769.6% | 166,697.7% | 13,228.6% |
Ratios
|
|---|
| Gross Margin | 24.0% | 21.7% | 21.4% | 20.8% | 1.8% | -1.7% | -2.9% | -4.5% |
| EBITDA Margin | 16.1% | 12.7% | 14.4% | 13.6% | 1.9% | -3.2% | -0.6% | -3.1% |
| Net Income Margin | 9.0% | 6.7% | 10.0% | 6.4% | 1.0% | -1.9% | 1.9% | -1.4% |
Revenue and profitability
The company's Revenue surged on 18.2%. Revenue growth showed acceleration in FY16Q4 - it increased 24.5% 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 decreased slightly on 2.0 pp from 23.8% to 21.9% in FY2016. SG&A as a % of Revenue decreased slightly on 0.57 pp from 8.4% to 7.8% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
Exco Technologies Ltd's CAPEX/Revenue was 3.8% in FY2016. CAPEX/Revenue decreased on 5.0 pp from 8.8% in FY2013 to 3.8% in FY2016. For the last three years the average CAPEX/Revenue was 4.9%.
Return on investment
The company operates at high and attractive ROIC (20.69%) while ROE is a bit lower (18.14%). ROIC decreased on 3.5 pp from 24.2% to 20.7% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 0.9x. Net Debt / EBITDA jumped on 0.9x from -0.3x to 0.5x in FY2016. Debt jumped on 587% while cash dropped on 21.4%.
Appendix 1: Peers in Industrial
Below we provide Exco Technologies Ltd benchmarking against other companies in Industrial 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 |
|---|
| 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 |
|---|
