BluMetric Environmental Inc EBITDA dropped on 26.7% in 2016 and Revenue decreased on 5.9%
30.01.2017 • About BluMetric Environmental Inc (
$BLM) • By InTwits
BluMetric Environmental Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company has highly profitable business model: ROIC is at 19.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.5x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
BluMetric Environmental Inc ($BLM) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 7.468 | 31.549 | 27.309 | 33.479 | 31.494 | -5.9% |
| Gross Profit | 1.901 | | 4.733 | 7.379 | 6.348 | -14.0% |
| SG&A | | | 6.713 | 5.748 | 5.145 | -10.5% |
| EBITDA | -0.635 | | -0.724 | 2.585 | 1.896 | -26.7% |
| Net Income | -0.940 | -2.316 | -6.939 | 1.016 | 0.588 | -42.1% |
Balance Sheet
|
|---|
| Cash | 0.219 | | 0.000 | 0.000 | 0.314 | |
| Short Term Debt | 1.444 | | 3.137 | 4.914 | 0.704 | -85.7% |
| Long Term Debt | 0.014 | | 3.061 | 0.639 | 4.342 | 579.5% |
Cash flow
|
|---|
| Capex | 0.019 | | 0.832 | 0.109 | 0.014 | -86.8% |
Ratios
|
|---|
| Revenue growth | 141.8% | 322.4% | -13.4% | 22.6% | -5.9% | |
| EBITDA growth | -39.1% | | | -457.0% | -26.7% | |
| Gross Margin | 25.5% | | 17.3% | 22.0% | 20.2% | -1.9% |
| EBITDA Margin | -8.5% | 0.0% | -2.7% | 7.7% | 6.0% | -1.7% |
| Net Income Margin | -12.6% | -7.3% | -25.4% | 3.0% | 1.9% | -1.2% |
| SG&A, % of revenue | | | 24.6% | 17.2% | 16.3% | -0.8% |
| CAPEX, % of revenue | 0.3% | | 3.0% | 0.3% | 0.0% | -0.3% |
| ROIC | | | | 24.9% | 19.1% | -5.7% |
| ROE | | | | | 34.7% | 34.7% |
| Net Debt/EBITDA | | | | 2.1x | 2.5x | 0.3x |
BluMetric Environmental Inc ($BLM) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 8 | 8 | 7 | 2.0% | 1.8% | -3.4% | -21.5% |
| EBITDA | 0 | 1 | 1 | 0 | -27.8% | 2.1% | 2.6% | -81.0% |
| Net Income | 0 | 0 | 0 | -0 | -86.1% | 17.3% | 15.1% | -126.0% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | | -75.6% | |
| Short Term Debt | 5 | 4 | 4 | 1 | 58.7% | 49.0% | 38.3% | -85.7% |
| Long Term Debt | 1 | 1 | 2 | 4 | -81.6% | -81.3% | -48.2% | 579.5% |
Ratios
|
|---|
| Gross Margin | 18.6% | 24.2% | 22.3% | 15.0% | -3.6% | 3.8% | -0.9% | -7.3% |
| EBITDA Margin | 4.9% | 8.5% | 8.3% | 1.8% | -2.0% | 0.0% | 0.5% | -5.8% |
| Net Income Margin | 0.2% | 3.6% | 4.4% | -1.2% | -1.3% | 0.5% | 0.7% | -4.8% |
Revenue and profitability
BluMetric Environmental Inc's Revenue decreased on 5.9%. Revenue decline showed acceleration in FY16Q4 - it was 21.5% YoY. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.7 pp from 7.7% to 6.0% in FY2016.
Gross Margin decreased slightly on 1.9 pp from 22.0% to 20.2% in FY2016. SG&A as a % of Revenue decreased slightly on 0.83 pp from 17.2% to 16.3% in FY2016.
Net Income marign decreased slightly on 1.2 pp from 3.0% to 1.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.046%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at high and attractive ROE (34.74%) while ROIC is a bit lower (19.12%). ROIC decreased on 5.7 pp from 24.9% to 19.1% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.5x and Debt / EBITDA is 2.7x. Net Debt / EBITDA surged on 0.3x from 2.1x to 2.5x in FY2016. Debt decreased on 9.1% while cash jumped.
Appendix 1: Peers in Industrial
Below you can find BluMetric Environmental 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 |
|---|
