Vitreous Glass Inc Net Income increased on 6.1% in 2016 while Revenue decreased on 5.0%
22.12.2016 • About Vitreous Glass Inc (
$VCI) • By InTwits
Vitreous Glass Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Vitreous Glass Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 0.10 in FY2016, 0.66 in FY2015, 0.060 in FY2014, 0.12 in FY2013, 0.045 in FY2012
- The company has highly profitable business model: ROIC is at 52.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Vitreous Glass Inc ($VCI) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7.143 | 6.934 | 8.214 | 8.443 | 8.022 | -5.0% |
| Gross Profit | 3.127 | 3.096 | 4.182 | 4.422 | 4.325 | -2.2% |
| SG&A | | | | 1.129 | 1.132 | 0.3% |
| EBITDA | 2.243 | 2.234 | 3.107 | 3.293 | 3.193 | -3.0% |
| Net Income | 1.359 | 1.368 | 2.019 | 1.972 | 2.093 | 6.1% |
Balance Sheet
|
|---|
| Cash | 0.385 | 0.165 | 0.523 | 0.592 | 1.529 | 158.4% |
| Short Term Debt | 0.000 | 0.070 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.045 | 0.124 | 0.060 | 0.662 | 0.103 | -84.4% |
Ratios
|
|---|
| Revenue growth | 1.6% | -2.9% | 18.5% | 2.8% | -5.0% | |
| EBITDA growth | 9.8% | -0.4% | 39.0% | 6.0% | -3.0% | |
| Gross Margin | 43.8% | 44.6% | 50.9% | 52.4% | 53.9% | 1.5% |
| EBITDA Margin | 31.4% | 32.2% | 37.8% | 39.0% | 39.8% | 0.8% |
| Net Income Margin | 19.0% | 19.7% | 24.6% | 23.4% | 26.1% | 2.7% |
| SG&A, % of revenue | | | | 13.4% | 14.1% | 0.7% |
| CAPEX, % of revenue | 0.6% | 1.8% | 0.7% | 7.8% | 1.3% | -6.5% |
| ROIC | 30.5% | 32.3% | 48.3% | 51.0% | 52.9% | 1.9% |
| ROE | 26.5% | 27.2% | 40.7% | 38.6% | 43.1% | 4.4% |
| Net Debt/EBITDA | -0.2x | -0.0x | -0.2x | -0.2x | -0.5x | -0.3x |
Vitreous Glass Inc ($VCI) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 2 | 2 | 12.4% | -6.1% | 0.1% | -23.9% |
| EBITDA | 1 | 1 | 1 | 1 | 20.4% | | 1.9% | -31.7% |
| Net Income | 1 | 1 | 0 | 0 | 21.5% | -9.0% | 9.5% | 7.2% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 1 | 2 | -83.7% | -41.1% | 24.2% | 158.4% |
| Short Term Debt | 1 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 53.6% | 55.5% | 52.4% | 54.0% | 3.0% | 0.7% | 0.7% | 2.0% |
| EBITDA Margin | 40.2% | 41.2% | 38.5% | 39.0% | 2.7% | 41.2% | 0.7% | -4.4% |
| Net Income Margin | 26.1% | 27.2% | 24.1% | 26.9% | 1.9% | -0.9% | 2.1% | 7.8% |
Revenue and profitability
Vitreous Glass Inc's Revenue decreased on 5.0%. Revenue decline showed acceleration in FY16Q4 - it was 23.9% YoY. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.80 pp from 39.0% to 39.8% in FY2016.
Gross Margin increased slightly on 1.5 pp from 52.4% to 53.9% in FY2016. SG&A as a % of Revenue increased slightly on 0.74 pp from 13.4% to 14.1% in FY2016.
Net Income marign increased on 2.7 pp from 23.4% to 26.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Vitreous Glass Inc's CAPEX/Revenue was 1.3% in FY2016. Vitreous Glass Inc's CAPEX/Revenue decreased slightly on 0.50 pp from 1.8% in FY2013 to 1.3% in FY2016. For the last three years the average CAPEX/Revenue was 3.3%.
Return on investment
The company operates at high and attractive ROIC (52.94%) and ROE (43.06%). ROIC increased slightly on 1.9 pp from 51.0% to 52.9% in FY2016. ROE increased on 4.4 pp from 38.6% to 43.1% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 158%.
Appendix 1: Peers in Industrial
Below you can find Vitreous Glass Inc 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, %
| 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 |
|---|
