Imperial Equities Inc reports 16.9% CAPEX decline and almost no change in Revenue of 10.7
15.12.2016 • About Imperial Equities Inc (
$IEI) • By InTwits
Imperial Equities Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Imperial Equities Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 67.4%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: 0.028 in FY2016, 0.21 in FY2015, 0.24 in FY2014, 0.25 in FY2013, 0.15 in FY2012
- The company has potentially unprofitable business model: ROIC is at 5.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Imperial Equities Inc ($IEI) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 55.011 | 64.561 | 67.413 | 10.769 | 10.750 | -0.2% |
| Gross Profit | 7.953 | 9.022 | 9.548 | | | |
| SG&A | | | 3.192 | | | |
| EBITDA | 4.517 | 4.625 | | | | |
| Net Income | 8.863 | 4.834 | 7.629 | 6.646 | 5.537 | -16.7% |
Balance Sheet
|
|---|
| Cash | 0.098 | 0.337 | 0.743 | 1.010 | 2.115 | 109.5% |
| Short Term Debt | 15.402 | 22.727 | 19.524 | 30.633 | 22.316 | -27.1% |
| Long Term Debt | 28.005 | 24.843 | 49.251 | 43.225 | 55.564 | 28.5% |
Cash flow
|
|---|
| Capex | 12.523 | 10.353 | 18.653 | 15.888 | 13.200 | -16.9% |
Ratios
|
|---|
| Revenue growth | 13.8% | 17.4% | 4.4% | -84.0% | -0.2% | |
| EBITDA growth | 36.0% | 2.4% | | | | |
| Gross Margin | 14.5% | 14.0% | 14.2% | | | 0.0% |
| EBITDA Margin | 8.2% | 7.2% | 0.0% | 0.0% | 0.0% | 0.0% |
| Net Income Margin | 16.1% | 7.5% | 11.3% | 61.7% | 51.5% | -10.2% |
| SG&A, % of revenue | | | 4.7% | | | 0.0% |
| CAPEX, % of revenue | 22.8% | 16.0% | 27.7% | 147.5% | 122.8% | -24.7% |
| ROIC | 4.4% | 3.8% | 3.2% | 5.4% | 5.0% | -0.4% |
| ROE | 17.6% | 8.5% | 12.1% | 9.5% | 7.3% | -2.2% |
| Net Debt/EBITDA | 9.6x | 10.2x | | | | 0.0x |
Imperial Equities Inc ($IEI) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 3 | 3 | 3 | 4.7% | 3.1% | -4.9% | -3.1% |
| Net Income | 2 | 1 | 1 | 2 | -34.0% | -38.1% | -21.6% | 105.1% |
Balance Sheet
|
|---|
| Cash | 0 | 2 | 1 | 2 | -28.6% | 746.5% | 876.2% | 109.5% |
| Short Term Debt | 20 | 11 | 15 | 22 | -10.2% | -59.1% | -54.0% | -27.1% |
| Long Term Debt | 53 | 58 | 54 | 56 | -10.9% | 17.0% | 23.5% | 28.5% |
Ratios
|
|---|
| Net Income Margin | 64.7% | 52.2% | 26.4% | 62.0% | -38.0% | -34.8% | -5.6% | 32.7% |
Revenue and profitability
Imperial Equities Inc's Revenue showed almost no change in FY2016. Revenue decline showed acceleration in FY16Q4 - it was 3.1% YoY.
Net Income marign dropped on 10.2 pp from 61.7% to 51.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Imperial Equities Inc's CAPEX/Revenue was 123% in FY2016. CAPEX/Revenue surged on 107 pp from 16.0% in FY2013 to 123% in FY2016. For the last three years the average CAPEX/Revenue was 99.3%.
Return on investment
The company operates at low ROIC (5.03%) and ROE (7.28%). ROIC showed almost no change in FY2016. ROE decreased on 2.2 pp from 9.5% to 7.3% in FY2016.
Leverage (Debt)
Debt increased on 5.4% while cash jumped on 109%.
Appendix 1: Peers in Financial
Below you can find Imperial Equities Inc benchmarking vs. other companies in Financial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (54 companies) | | 7.1% | 9.0% | 3.3% | 5.2% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (9 companies) | 28.1% | 30.7% | 28.3% | 43.4% | 30.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (37 companies) | 43.7% | 33.5% | 39.8% | 32.5% | 43.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (56 companies) | 0.6% | 0.6% | 0.7% | 0.7% | 0.7% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| |
|---|
| Median (56 companies) | 4.6% | 3.8% | 3.9% | 3.0% | 3.1% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (28 companies) | 5.3x | 4.6x | 4.7x | 6.0x | 7.8x |
|---|
