Buhler Industries Inc revenue surged on 11.6% in 2016 and EBITDA Margin showed almost no change
29.12.2016 • About Buhler Industries Inc (
$BUI) • By InTwits
Buhler Industries Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Buhler Industries Inc doesn't have a profitable business model yet: FY2016 ROIC is -6.8%
- The company operates at negative EBITDA Margin: -3.5%
- EBITDA Margin is quite volatile: -3.5% in FY2016, -3.1% in FY2015, 5.9% in FY2014, 11.5% in FY2013, 8.0% in FY2012
- Buhler Industries Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 45.3%.
- CAPEX is quite volatile: 2.8 in FY2016, 2.7 in FY2015, 4.6 in FY2014, 5.9 in FY2013, 2.4 in FY2012
- The company has unprofitable business model: ROIC is at -6.8%
- It operates with high leverage: Net Debt/EBITDA is 10.8x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Buhler Industries Inc ($BUI) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 361.2 | 340.3 | 325.5 | 245.7 | 274.1 | 11.6% |
| Gross Profit | 55.8 | 57.3 | 47.7 | 22.3 | 21.2 | -4.7% |
| SG&A | 23.3 | 22.5 | 25.2 | 26.3 | 25.9 | -1.5% |
| EBITDA | 28.9 | 39.2 | 19.2 | -7.7 | -9.5 | |
| Net Income | 16.4 | 19.9 | 12.5 | -5.3 | -2.7 | |
Balance Sheet
|
|---|
| Cash | 19.3 | 24.2 | 0.0 | 0.0 | 0.0 | |
| Short Term Debt | 4.2 | 4.6 | 56.4 | 55.5 | 20.5 | -63.1% |
| Long Term Debt | 7.5 | 5.0 | 2.2 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 2.4 | 5.9 | 4.6 | 2.7 | 2.8 | 2.0% |
Ratios
|
|---|
| Revenue growth | 27.8% | -5.8% | -4.4% | -24.5% | 11.6% | |
| EBITDA growth | 50.4% | 35.6% | -50.9% | -139.8% | 24.2% | |
| Gross Margin | 15.4% | 16.8% | 14.7% | 9.1% | 7.7% | -1.3% |
| EBITDA Margin | 8.0% | 11.5% | 5.9% | -3.1% | -3.5% | -0.4% |
| Net Income Margin | 4.5% | 5.8% | 3.8% | -2.2% | -1.0% | 1.2% |
| SG&A, % of revenue | 6.4% | 6.6% | 7.8% | 10.7% | 9.4% | -1.2% |
| CAPEX, % of revenue | 0.7% | 1.7% | 1.4% | 1.1% | 1.0% | -0.1% |
| ROIC | 13.9% | 19.3% | 6.4% | -5.3% | -6.8% | -1.5% |
| ROE | 10.7% | 11.6% | 6.7% | -2.8% | -1.4% | 1.4% |
| Net Debt/EBITDA | -0.3x | -0.4x | 3.0x | | | 0.0x |
Buhler Industries Inc ($BUI) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 36 | 81 | 87 | 70 | -39.6% | 25.3% | 10.1% | 66.7% |
| Net Income | -9 | 2 | 3 | 1 | -675.0% | 296.4% | 1,059.8% | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | | | |
| Short Term Debt | 78 | 84 | 67 | 20 | 0.2% | -4.8% | 7.1% | -63.1% |
| Long Term Debt | 0 | 0 | 0 | 0 | -100.0% | -100.0% | | |
Ratios
|
|---|
| Gross Margin | -11.4% | 6.7% | 12.3% | 13.2% | -23.3% | -6.2% | 0.8% | 18.7% |
| Net Income Margin | -24.0% | 1.9% | 3.5% | 2.0% | -26.5% | 1.3% | 3.2% | 19.9% |
Revenue and profitability
Buhler Industries Inc's Revenue jumped on 11.6%. Revenue growth showed acceleration in FY16Q4 - it increased 66.7% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.4 pp from -7.9% to -6.5% in FY2016.
Gross Margin decreased slightly on 1.3 pp from 9.1% to 7.7% in FY2016. SG&A as a % of Revenue decreased slightly on 1.2 pp from 10.7% to 9.4% in FY2016.
Net Income marign increased slightly on 1.2 pp from -2.2% to -0.98% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Buhler Industries Inc had CAPEX/Revenue of 1.0%. CAPEX/Revenue decreased slightly on 0.70 pp from 1.7% in FY2013 to 1.0% in FY2016. It's average level of CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at negative ROIC (-6.84%) and ROE (-1.43%). ROIC decreased slightly on 1.5 pp from -5.3% to -6.8% in FY2016. ROE increased slightly on 1.4 pp from -2.8% to -1.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 10.8x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt dropped on 63.1% while cash didn't change in FY2016.
Appendix 1: Peers in Industrial
Below we provide Buhler Industries Inc 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 |
|---|
