Firan Technology Group Corp reports 176% CAPEX growth and 20.9% Revenue growth
08.02.2017 • About Firan Technology Group Corp (
$FTG) • By InTwits
Firan Technology Group Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Firan Technology Group Corp is a growth stock: FY2016 revenue growth was 20.9%, 5 year revenue CAGR was 10.1% at FY2016 ROIC 10.4%
- EBITDA Margin is expanding: 8.2% in FY2016 vs. 6.8% in FY2015 vs. 6.2% in FY2012
- Firan Technology Group Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's in pair with industry average of 24.1%.
- CAPEX is quite volatile: 5.9 in FY2016, 2.1 in FY2015, 1.7 in FY2014, 1.7 in FY2013, 2.9 in FY2012
- The company has business model with average profitability: ROIC is at 10.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Firan Technology Group Corp ($FTG) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 55.646 | 55.998 | 60.699 | 72.045 | 87.114 | 20.9% |
| Gross Profit | 14.233 | 13.084 | 15.186 | 18.034 | 19.353 | 7.3% |
| SG&A | | 8.747 | 9.430 | 10.018 | 11.259 | 12.4% |
| EBITDA | 3.441 | 1.571 | 4.043 | 4.913 | 7.171 | 46.0% |
| Net Income | 0.928 | -0.998 | 2.193 | 9.537 | 5.915 | -38.0% |
Balance Sheet
|
|---|
| Cash | 1.446 | 0.996 | 0.641 | 3.160 | 3.152 | -0.3% |
| Short Term Debt | 1.038 | 1.879 | 0.251 | 1.058 | 8.493 | 702.7% |
| Long Term Debt | 0.361 | 5.149 | 5.451 | 4.234 | 6.079 | 43.6% |
Cash flow
|
|---|
| Capex | 2.889 | 1.711 | 1.678 | 2.137 | 5.902 | 176.2% |
Ratios
|
|---|
| Revenue growth | 3.6% | 0.6% | 8.4% | 18.7% | 20.9% | |
| EBITDA growth | 4.6% | -54.3% | 157.4% | 21.5% | 46.0% | |
| Gross Margin | 25.6% | 23.4% | 25.0% | 25.0% | 22.2% | -2.8% |
| EBITDA Margin | 6.2% | 2.8% | 6.7% | 6.8% | 8.2% | 1.4% |
| Net Income Margin | 1.7% | -1.8% | 3.6% | 13.2% | 6.8% | -6.4% |
| SG&A, % of revenue | | 15.6% | 15.5% | 13.9% | 12.9% | -1.0% |
| CAPEX, % of revenue | 5.2% | 3.1% | 2.8% | 3.0% | 6.8% | 3.8% |
| ROIC | 12.2% | -1.7% | 12.3% | 11.7% | 10.4% | -1.3% |
| ROE | 8.2% | -8.9% | 18.6% | 53.4% | 20.3% | -33.1% |
| Net Debt/EBITDA | -0.0x | 3.8x | 1.3x | 0.4x | 1.6x | 1.2x |
Firan Technology Group Corp ($FTG) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 17 | 20 | 23 | 27 | 3.8% | 5.3% | 27.2% | 45.3% |
| EBITDA | 1 | 2 | 2 | 2 | 650.7% | -5.4% | 55.8% | 39.7% |
| Net Income | 0 | 1 | 3 | 1 | 6.6% | 27.7% | 113.0% | -90.2% |
Balance Sheet
|
|---|
| Cash | 2 | 2 | 3 | 3 | 330.1% | 772.4% | 34.6% | -0.3% |
| Short Term Debt | 1 | 5 | 7 | 8 | 604.6% | 413.3% | 1,346.4% | 702.7% |
| Long Term Debt | 4 | 4 | 6 | 6 | -20.9% | -17.8% | 38.6% | 43.6% |
Ratios
|
|---|
| Gross Margin | 22.2% | 24.6% | 21.6% | 21.0% | 3.3% | -1.5% | -6.4% | -5.4% |
| EBITDA Margin | 6.5% | 8.7% | 9.8% | 7.6% | 5.6% | -1.0% | 1.8% | -0.3% |
| Net Income Margin | 2.7% | 6.8% | 15.0% | 2.3% | 0.1% | 1.2% | 6.1% | -32.0% |
Revenue and profitability
Firan Technology Group Corp's Revenue surged on 20.9%. Revenue growth showed acceleration in FY16Q4 - it increased 45.3% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.4 pp from 6.8% to 8.2% in FY2016.
Gross Margin decreased on 2.8 pp from 25.0% to 22.2% in FY2016. SG&A as a % of Revenue decreased slightly on 0.98 pp from 13.9% to 12.9% in FY2016.
Net Income marign decreased on 6.4 pp from 13.2% to 6.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Firan Technology Group Corp had CAPEX/Revenue of 6.8%. CAPEX/Revenue increased on 3.7 pp from 3.1% in FY2013 to 6.8% in FY2016. Average CAPEX/Revenue for the last three years was 4.2%.Firan Technology Group Corp invested a big chunk of EBITDA (82.3%) to CAPEX to secure its growth.
Return on investment
The company operates at good ROE (20.31%) while ROIC is low (10.41%). ROIC decreased slightly on 1.3 pp from 11.7% to 10.4% in FY2016. ROE dropped on 33.1 pp from 53.4% to 20.3% in FY2016.
Leverage (Debt)
Debt level is 1.6x Net Debt / EBITDA and 2.0x Debt / EBITDA. Net Debt / EBITDA surged on 1.2x from 0.4x to 1.6x in FY2016. Debt surged on 175% while cash showed almost no change in FY2016.
Appendix 1: Peers in Industrial
Below you can find Firan Technology Group Corp 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 (51 companies) | | 5.3% | 10.4% | 7.7% | 2.6% |
|---|
| Firan Technology Group Corp ($FTG) | | 0.6% | 8.4% | 18.7% | 20.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($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 (49 companies) | 23.4% | 24.0% | 20.9% | 21.5% | 22.8% |
|---|
| Firan Technology Group Corp ($FTG) | 25.6% | 23.4% | 25.0% | 25.0% | 22.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($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 (53 companies) | 10.5% | 8.4% | 8.6% | 9.5% | 11.1% |
|---|
| Firan Technology Group Corp ($FTG) | 6.2% | 2.8% | 6.7% | 6.8% | 8.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($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 (54 companies) | 3.2% | 3.7% | 4.4% | 3.9% | 3.9% |
|---|
| Firan Technology Group Corp ($FTG) | 5.2% | 3.1% | 2.8% | 3.0% | 6.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($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 (55 companies) | 12.2% | 9.7% | 11.0% | 8.3% | 8.5% |
|---|
| Firan Technology Group Corp ($FTG) | 12.2% | -1.7% | 12.3% | 11.7% | 10.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($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 (49 companies) | 1.5x | 1.5x | 1.2x | 1.0x | 2.1x |
|---|
| Firan Technology Group Corp ($FTG) | -0.0x | 3.8x | 1.3x | 0.4x | 1.6x |
