Franchise Bancorp Inc EBITDA surged on 61.9% in 2016 and EBITDA Margin increased on 2.8 pp from 7.3% to 10.1%
06.12.2016 • About Franchise Bancorp Inc (
$FBI) • By InTwits
Franchise Bancorp Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Franchise Bancorp Inc is a growth stock: FY2016 revenue growth was 17.7%, 5 year revenue CAGR was 14.1% at FY2016 ROIC 23.9%
- EBITDA Margin is quite volatile: 10.1% in FY2016, 7.3% in FY2015, 8.3% in FY2014, 6.8% in FY2013, 1.2% in FY2012
- Franchise Bancorp Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: 0.15 in FY2016, 1.3 in FY2015, 0.12 in FY2014, 0.41 in FY2013, 0.12 in FY2012
- The company has highly profitable business model: ROIC is at 23.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Franchise Bancorp Inc ($FBI) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9.529 | 15.528 | 13.972 | 16.718 | 19.685 | 17.7% |
| Gross Profit | 3.684 | 4.720 | 5.240 | 5.638 | 6.310 | 11.9% |
| SG&A | | | | 1.350 | 1.307 | -3.1% |
| EBITDA | 0.117 | 1.062 | 1.153 | 1.226 | 1.985 | 61.9% |
| Net Income | 0.244 | 0.263 | 0.558 | 0.348 | 0.487 | 39.8% |
Balance Sheet
|
|---|
| Cash | 1.817 | 1.141 | 1.736 | 1.466 | 2.902 | 98.0% |
| Short Term Debt | 0.022 | 0.039 | 0.042 | 0.821 | 0.796 | -3.0% |
| Long Term Debt | 0.062 | 0.122 | 0.080 | 0.038 | 0.022 | -41.2% |
Cash flow
|
|---|
| Capex | 0.123 | 0.412 | 0.121 | 1.273 | 0.152 | -88.1% |
Ratios
|
|---|
| Revenue growth | -6.5% | 63.0% | -10.0% | 19.7% | 17.7% | |
| EBITDA growth | -5.6% | 807.4% | 8.6% | 6.3% | 61.9% | |
| Gross Margin | 38.7% | 30.4% | 37.5% | 33.7% | 32.1% | -1.7% |
| EBITDA Margin | 1.2% | 6.8% | 8.3% | 7.3% | 10.1% | 2.8% |
| Net Income Margin | 2.6% | 1.7% | 4.0% | 2.1% | 2.5% | 0.4% |
| SG&A, % of revenue | | | | 8.1% | 6.6% | -1.4% |
| CAPEX, % of revenue | 1.3% | 2.7% | 0.9% | 7.6% | 0.8% | -6.8% |
| ROIC | -3.9% | 22.1% | 21.4% | 18.0% | 23.9% | 5.9% |
| ROE | 11.4% | 11.0% | 19.9% | 10.7% | 12.9% | 2.2% |
| Net Debt/EBITDA | -14.8x | -0.9x | -1.4x | -0.5x | -1.0x | -0.6x |
Franchise Bancorp Inc ($FBI) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 5 | 5 | 5 | 5 | 29.2% | 23.2% | 18.7% | 3.1% |
| EBITDA | 0 | 0 | 1 | 1 | -18.8% | 66.9% | 183.9% | 67.8% |
| Net Income | 0 | 0 | 0 | 0 | -76.5% | 535.4% | 227.8% | -20.8% |
Balance Sheet
|
|---|
| Cash | 1 | 2 | 3 | 3 | -21.0% | 49.4% | 70.2% | 98.0% |
| Short Term Debt | 1 | 1 | 1 | 1 | 2,157.4% | 1,966.2% | 1,696.7% | -3.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | -52.2% | -54.2% | -55.5% | -41.2% |
Ratios
|
|---|
| Gross Margin | 27.1% | 30.9% | 35.4% | 35.0% | -10.4% | -3.2% | 5.1% | 1.8% |
| EBITDA Margin | 5.7% | 8.3% | 12.1% | 14.4% | -3.4% | 2.2% | 7.0% | 5.5% |
| Net Income Margin | 0.7% | 2.9% | 4.5% | 1.9% | -3.0% | 2.4% | 2.8% | -0.6% |
Revenue and profitability
Franchise Bancorp Inc's Revenue jumped on 17.7%. Revenue growth showed slow down in FY16Q4 - it was 3.1% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 2.8 pp from 7.3% to 10.1% in FY2016.
Gross Margin decreased slightly on 1.7 pp from 33.7% to 32.1% in FY2016. SG&A as a % of Revenue decreased slightly on 1.4 pp from 8.1% to 6.6% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.77%. CAPEX/Revenue decreased slightly on 1.9 pp from 2.7% in FY2013 to 0.77% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.1%.
Return on investment
The company operates at high and attractive ROIC (23.88%) while ROE is a bit lower (12.87%). ROIC increased on 5.9 pp from 18.0% to 23.9% in FY2016. ROE increased on 2.2 pp from 10.7% to 12.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is 0.4x. Net Debt / EBITDA dropped on 0.6x from -0.5x to -1.0x in FY2016. Debt decreased on 4.7% while cash surged on 98.0%.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Franchise Bancorp Inc benchmarking against other companies in Consumer, 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 |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
| Spin Master Corp ($TOY) | | 21.5% | 41.0% | 22.9% | 31.3% |
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| |
|---|
| Median (36 companies) | | 4.9% | 6.9% | 6.8% | 5.0% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| Canlan Ice Sports Corp ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (37 companies) | 36.1% | 31.6% | 32.5% | 31.5% | 34.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (39 companies) | 8.1% | 9.8% | 12.3% | 10.1% | 15.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | 9.3% |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | 22.4% |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Innova Gaming Group Inc ($IGG) | 20.6% | 26.7% | 15.9% | 15.6% | 15.1% |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (42 companies) | 2.7% | 3.1% | 3.4% | 3.4% | 4.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($TOY) | | 19.2% | 56.9% | 48.2% | 44.5% |
| Magna International Inc ($MG) | 16.3% | 18.6% | 25.2% | 21.9% | 21.2% |
| Linamar Corp ($LNR) | 12.9% | 17.0% | 21.7% | 23.7% | 19.8% |
| Sleep Country Canada Holdings Inc ($ZZZ) | | | 9.7% | 12.7% | 19.0% |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (42 companies) | 10.5% | 12.5% | 10.8% | 10.6% | 11.2% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (35 companies) | 1.9x | 2.8x | 2.4x | 2.5x | 2.1x |
|---|
