Exco Technologies Ltd's revenue growth was 34.0% and EBITDA growth 24.8% annually over the last three years
07.12.2016 • About Exco Technologies Ltd (
$XTC) • By InTwits
Exco Technologies Ltd is a growth stock in Industrial industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Exco Technologies Ltd showed fast growth in the last financial year. The company's revenue surged on 18.2% in FY2016. EBITDA also increased: 8.36% for the same period.
In the last 3 years Exco Technologies Ltd showed fast revenue growth of 34.0% from FY2013 to FY2016 annually. EBITDA surged on 24.8% from FY2013 to FY2016 annually.
Exco Technologies Ltd ($XTC) financials for the last 5 years
| mln. CAD | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 243 | 245 | 368 | 498 | 589 |
|---|
| Revenue growth, % | | 0.9% | 50.5% | 35.3% | 18.2% |
|---|
| Gross margin, % | 28.8% | 29.1% | 24.3% | 23.8% | 21.9% |
|---|
| SG&A, % | 11.2% | 11.5% | 9.63% | 8.36% | 7.79% |
|---|
| EBITDA | 43 | 43 | 54 | 77 | 83 |
|---|
| EBITDA growth, % | | 0.8% | 25.6% | 42.7% | 8.4% |
|---|
| EBITDA margin, % | 17.6% | 17.6% | 14.6% | 15.4% | 14.2% |
|---|
| Net Income | 24 | 24 | 31 | 41 | 48 |
|---|
| Net Income margin, % | 10.1% | 9.66% | 8.32% | 8.18% | 8.07% |
|---|
| |
| CAPEX | 8 | 22 | 25 | 20 | 23 |
|---|
| CAPEX/Revenue, % | 3.19% | 8.81% | 6.72% | 4.01% | 3.85% |
|---|
| Debt | 0 | 0 | 23 | 11 | 72 |
|---|
| Cash | 31 | 26 | 31 | 35 | 28 |
|---|
| Net Debt/EBITDA | -0.7x | -0.6x | -0.1x | -0.3x | 0.5x |
|---|
| |
| ROIC, % | 23.2% | 21.1% | 20.4% | 24.2% | 20.7% |
|---|
| ROE, % | 17.8% | 15.4% | 16.7% | 18.2% | 18.1% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. In the longer period the company's EBITDA margin dropped on 3.40 pp from 17.6% in FY2013 to 14.2% in FY2016.
Exco Technologies Ltd shows attractive ROIC at 20.7% for the last 12 months which assumes stable development model. During the last three years it decreased slightly - it was 21.1% in FY2013. For the last three years the average ROIC was 21.7%.
Exco Technologies Ltd showed small Net Income margin decline of 0.100 pp from 8.20% to 8.10% in FY2016. In the longer period Exco Technologies Ltd showed big decline in Net Income margin of 1.60 pp from 9.70% in FY2013 to 8.10% in FY2016.
Exco Technologies Ltd operates at ROE of 18.1%. It's average ROE for the last three years was 17.7%.
Capital expenditures (CAPEX)
In FY2016 Exco Technologies Ltd had CAPEX/Revenue of 3.85%. CAPEX/Revenue dropped on 4.97 pp from 8.81% in FY2013 to 3.85% in FY2016. Average CAPEX/Revenue for the last three years was 4.86%.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.5x Net Debt/EBITDA. If we look for the longer period leverage surged on 1.14x from -0.61x in FY2013 to 0.54x in FY2016.
Valuation vs. comparable companies
The company trades at 5.6x EV/EBITDA which is 74.4% lower than 22.1x Industrial industry avearge calculated based on 168 companies. The company trades at 9.0x P/E which is 80.1% lower than 45.0x Industrial industry avearge calculated based on 39 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The company trades at 7.7x EV/(EBITDA-CAPEX) which is not surprisingly 262% higher than 2.1x Industrial industry avearge calculated based on 28 companies.
Peers in Industrial
Below you can find Exco Technologies Ltd 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Diversified Royalty Corp ($DIV) | | | | 503.3% | |
| Electrovaya Inc ($EFL) | -4.0% | -71.2% | 160.5% | 123.8% | |
| WSP Global Inc ($WSP) | 92.9% | 60.3% | 44.0% | 108.9% | |
| CEMATRIX Corp ($CVX) | 9.2% | -5.6% | 7.9% | 76.5% | |
| Lumenpulse Inc ($LMP) | | 33.9% | 47.0% | 61.8% | 44.1% |
| |
|---|
| Median (93 companies) | 9.8% | 5.3% | 9.1% | 10.3% | 8.7% |
|---|
| Exco Technologies Ltd ($XTC) | | 0.9% | 50.5% | 35.3% | 18.2% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
| WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | |
| FLYHT Aerospace Solutions Ltd ($FLY) | 57.2% | 59.2% | 62.9% | 69.3% | |
| Alarmforce Industries Inc ($AF) | 75.0% | 76.5% | 72.2% | 69.2% | |
| Epicore BioNetworks Inc ($EBN) | 60.8% | 63.2% | 64.1% | 58.1% | 58.1% |
| |
|---|
| Median (87 companies) | 23.0% | 23.3% | 22.6% | 23.6% | 24.6% |
|---|
| Exco Technologies Ltd ($XTC) | 28.8% | 29.1% | 24.3% | 23.8% | 21.9% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | |
| Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | |
| Vitreous Glass Inc ($VCI) | 31.4% | 32.2% | 37.8% | 39.0% | |
| Photon Control Inc ($PHO) | 17.6% | 24.8% | 29.3% | 38.3% | |
| Evertz Technologies Ltd ($ET) | 29.6% | 29.1% | 23.0% | 27.0% | 27.4% |
| |
|---|
| Median (88 companies) | 9.2% | 8.3% | 7.2% | 7.7% | 9.5% |
|---|
| Exco Technologies Ltd ($XTC) | 17.6% | 17.6% | 14.6% | 15.4% | 14.2% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Newalta Corp ($NAL) | 21.7% | 34.5% | 35.1% | 42.0% | |
| Cargojet Inc ($CJT.A) | 7.0% | 6.3% | 54.1% | 41.3% | |
| Algoma Central Corp ($ALC) | 15.9% | 7.3% | 5.0% | 27.4% | |
| Canadian Pacific Railway Ltd ($CP) | 20.2% | 20.2% | 21.9% | 22.7% | |
| Canadian National Railway Co ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | |
| |
|---|
| Median (92 companies) | 3.0% | 3.5% | 3.1% | 3.2% | 4.0% |
|---|
| Exco Technologies Ltd ($XTC) | 3.2% | 8.8% | 6.7% | 4.0% | 3.8% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Biorem Inc ($BRM) | -15.1% | 32.3% | -29.7% | 54.4% | |
| Vitreous Glass Inc ($VCI) | 30.5% | 32.3% | 48.3% | 51.0% | |
| Photon Control Inc ($PHO) | 21.0% | 44.4% | 38.0% | 40.6% | |
| Pacific Safety Products Inc ($PSP) | -1.5% | -11.5% | 3.7% | 38.2% | 12.3% |
| CEMATRIX Corp ($CVX) | 6.4% | -2.4% | -6.7% | 30.4% | |
| |
|---|
| Median (93 companies) | 9.3% | 8.5% | 8.5% | 8.3% | 8.0% |
|---|
| Exco Technologies Ltd ($XTC) | 23.2% | 21.1% | 20.4% | 24.2% | 20.7% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Conifex Timber Inc ($CFF) | | 2.7x | 6.1x | 35.9x | |
| Ag Growth International Inc ($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 | |
| Finning International Inc ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | |
| |
|---|
| Median (75 companies) | 1.5x | 1.5x | 1.3x | 1.0x | 0.2x |
|---|
| Exco Technologies Ltd ($XTC) | -0.7x | -0.6x | -0.1x | -0.3x | 0.5x |
