Patient Home Monitoring Corp revenue growth decelerated from 238% in FY2015 to 94.2% in FY2016
24.01.2017 • About Patient Home Monitoring Corp (
$PHM) • By InTwits
Patient Home Monitoring Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Patient Home Monitoring Corp doesn't have a profitable business model yet: FY2016 ROIC is -56.5%
- The company operates at negative EBITDA Margin: -44.0%
- Patient Home Monitoring Corp spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -28.4%0
- Patient Home Monitoring Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.3%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 3.9 in FY2016, 7.3 in FY2015, 2.1 in FY2014, 0 in FY2013, 0.73 in FY2012
- The company has unprofitable business model: ROIC is at -56.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Patient Home Monitoring Corp ($PHM) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3.9 | 4.0 | 21.2 | 71.7 | 139.2 | 94.2% |
| Gross Profit | 2.6 | 2.6 | 13.6 | 47.7 | 97.5 | 104.2% |
| SG&A | | | 11.0 | 36.1 | 98.5 | 173.1% |
| EBITDA | -0.2 | 0.7 | 2.4 | -9.7 | -61.2 | |
| Net Income | -0.5 | -2.5 | -1.6 | -24.2 | -75.4 | |
Balance Sheet
|
|---|
| Cash | 0.2 | 3.4 | 14.1 | 52.0 | 6.8 | -86.9% |
| Short Term Debt | 0.0 | 0.2 | 1.4 | 2.7 | 7.1 | 159.1% |
| Long Term Debt | 0.5 | 5.0 | 4.9 | 6.1 | 7.4 | 20.7% |
Cash flow
|
|---|
| Capex | 0.7 | 0.0 | 2.1 | 7.3 | 3.9 | -47.3% |
Ratios
|
|---|
| Revenue growth | 170.2% | 1.9% | 433.0% | 238.4% | 94.2% | |
| EBITDA growth | -85.0% | -403.7% | 245.4% | -510.2% | 532.3% | |
| Gross Margin | 67.3% | 65.5% | 64.2% | 66.6% | 70.0% | 3.4% |
| EBITDA Margin | -5.8% | 17.2% | 11.1% | -13.5% | -44.0% | -30.5% |
| Net Income Margin | -13.8% | -64.0% | -7.4% | -33.7% | -54.2% | -20.5% |
| SG&A, % of revenue | | | 52.0% | 50.3% | 70.7% | 20.4% |
| CAPEX, % of revenue | 18.6% | 0.0% | 9.9% | 10.2% | 2.8% | -7.5% |
| ROIC | -39.8% | 7.5% | -0.8% | -20.7% | -56.5% | -35.8% |
| ROE | -51.2% | -222.9% | -20.5% | -25.4% | -50.9% | -25.6% |
| Net Debt/EBITDA | | 2.7x | -3.3x | | | 0.0x |
Patient Home Monitoring Corp ($PHM) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 40 | 34 | 32 | 33 | 295.1% | 158.9% | 66.8% | 13.3% |
| EBITDA | 4 | -7 | -1 | -57 | 108.5% | -390.1% | | |
| Net Income | -1 | -13 | -7 | -54 | | | | |
Balance Sheet
|
|---|
| Cash | 24 | 16 | 8 | 7 | 5.0% | -43.6% | -90.9% | -86.9% |
| Short Term Debt | 4 | 4 | 8 | 7 | 307.4% | 292.3% | 237.6% | 159.1% |
| Long Term Debt | 11 | 11 | 7 | 7 | 110.6% | 31.9% | 9.8% | 20.7% |
Ratios
|
|---|
| Gross Margin | 65.5% | 68.6% | 72.2% | 74.7% | -5.0% | 3.0% | 7.7% | 7.6% |
| EBITDA Margin | 9.8% | -20.6% | -3.2% | -172.8% | -8.8% | -39.0% | 6.8% | -131.5% |
| Net Income Margin | -1.8% | -38.7% | -23.2% | -164.0% | 26.0% | -14.4% | 59.4% | -156.4% |
Revenue and profitability
The company's Revenue surged on 94.2%. Revenue growth showed slow down in FY16Q4 - it was 13.3% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 16.3 pp from 6.3% to 22.6% in FY2016.
Gross Margin increased on 3.4 pp from 66.6% to 70.0% in FY2016. SG&A as a % of Revenue surged on 20.4 pp from 50.3% to 70.7% in FY2016.
Net Income marign dropped on 20.5 pp from -33.7% to -54.2% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Patient Home Monitoring Corp had CAPEX/Revenue of 2.8%. The company's CAPEX/Revenue increased2.8 pp from 0% in FY2013 to 2.8% in FY2016. For the last three years the average CAPEX/Revenue was 7.6%.
Return on investment
The company operates at negative ROIC (-56.53%) and ROE (-50.91%). ROIC dropped on 35.8 pp from -20.7% to -56.5% in FY2016. ROE dropped on 25.6 pp from -25.4% to -50.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.6x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2016. Debt jumped on 63.2% while cash dropped on 86.9%.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Patient Home Monitoring Corp benchmarking against other companies in Consumer, Non-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 |
|---|
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | 107.0% |
| Heritage Global Inc ($HGP) | | -37.0% | 76.2% | 11.2% | 80.8% |
| EnerCare Inc ($ECI) | | 8.6% | 21.1% | 55.7% | 76.6% |
| CRH Medical Corp ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| |
|---|
| Median (41 companies) | | 8.6% | 13.8% | 15.2% | 12.8% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | 88.3% |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | 85.1% |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| Concordia Healthcare Corp ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (35 companies) | 32.5% | 37.1% | 35.7% | 35.7% | 31.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | 23.8% |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | -92.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | 31.4% |
| EnerCare Inc ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (44 companies) | 9.2% | 12.4% | 13.4% | 11.8% | 10.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | 15.5% |
| Black Diamond Group Ltd ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (43 companies) | 3.1% | 2.7% | 2.3% | 2.4% | 2.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Colliers International Group Inc ($CIG) | 10.5% | 11.2% | 15.2% | 10.9% | 26.1% |
| Nuvo Research Inc ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (44 companies) | 8.8% | 8.4% | 8.4% | 6.9% | 8.0% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| Sienna Senior Living Inc ($SIA) | 9.5x | 11.8x | 9.2x | 9.1x | 9.1x |
| Valeant Pharmaceuticals International Inc ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | 12.7x |
| |
|---|
| Median (38 companies) | 2.8x | 2.3x | 3.4x | 2.5x | 2.8x |
|---|
