easyhome Ltd Net Income surged on 30.9% in 2016 and Revenue jumped on 14.2%
15.02.2017 • About easyhome Ltd (
$EH) • By InTwits
easyhome Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- easyhome Ltd is a growth stock: 2016 revenue growth was 14.2%, 5 year revenue CAGR was 13.0% at 2016 ROIC 14.9%
- easyhome Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 21.8%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 12.1 in FY2016, 14.8 in FY2015, 22.6 in FY2014, 69.0 in FY2013, 81.1 in FY2012
- The company has highly profitable business model: ROIC is at 14.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
easyhome Ltd ($EH) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 199.7 | 218.8 | 259.2 | 304.3 | 347.5 | 14.2% |
| SG&A | | | | 10.7 | 13.5 | 25.9% |
| EBITDA | 70.1 | 78.7 | 90.0 | 104.1 | 116.6 | 11.9% |
| Net Income | 11.1 | 14.2 | 19.7 | 23.7 | 31.0 | 30.9% |
Balance Sheet
|
|---|
| Cash | 4.6 | 2.3 | 1.2 | 11.4 | 24.9 | 118.9% |
| Short Term Debt | 21.3 | 23.5 | 1.8 | 0.0 | 0.0 | |
| Long Term Debt | 18.3 | 37.9 | 119.8 | 210.3 | 263.3 | 25.2% |
Cash flow
|
|---|
| Capex | 64.2 | 56.1 | 56.0 | 51.3 | 44.2 | -13.9% |
Ratios
|
|---|
| Revenue growth | 6.0% | 9.6% | 18.4% | 17.4% | 14.2% | |
| EBITDA growth | 5.0% | 12.2% | 14.4% | 15.7% | 11.9% | |
| EBITDA Margin | 35.1% | 36.0% | 34.7% | 34.2% | 33.5% | -0.7% |
| Net Income Margin | 5.5% | 6.5% | 7.6% | 7.8% | 8.9% | 1.1% |
| SG&A, % of revenue | | | | 3.5% | 3.9% | 0.4% |
| CAPEX, % of revenue | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% | -4.1% |
| ROIC | | 14.6% | 14.4% | 14.7% | 14.9% | 0.2% |
| ROE | 10.9% | 11.8% | 13.6% | 14.4% | 16.7% | 2.3% |
| Net Debt/EBITDA | 0.5x | 0.8x | 1.3x | 1.9x | 2.0x | 0.1x |
easyhome Ltd ($EH) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 82 | 86 | 88 | 91 | 16.7% | 18.1% | 12.6% | 10.2% |
| EBITDA | 29 | 32 | 26 | 30 | 22.0% | 30.8% | -5.6% | 4.6% |
| Net Income | 7 | 11 | 5 | 8 | 47.3% | 109.7% | -21.2% | 10.8% |
Balance Sheet
|
|---|
| Cash | 18 | 20 | 30 | 25 | 5,387.4% | 327.4% | 33.7% | 118.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | -100.0% | | | |
| Long Term Debt | 223 | 236 | 249 | 263 | 65.2% | 52.0% | 25.9% | 25.2% |
Ratios
|
|---|
| EBITDA Margin | 34.7% | 36.9% | 29.4% | 33.4% | 1.5% | 3.6% | -5.7% | -1.8% |
| Net Income Margin | 8.8% | 12.2% | 5.6% | 9.1% | 1.8% | 5.3% | -2.4% | 0.0% |
Revenue and profitability
The company's Revenue surged on 14.2%. Revenue growth showed slow down in 16Q4 - it was 10.2% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.69 pp from 34.2% to 33.5% in 2016.
SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign increased slightly on 1.1 pp from 7.8% to 8.9% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 easyhome Ltd had CAPEX/Revenue of 12.7%. Easyhome Ltd's CAPEX/Revenue dropped on 12.9 pp from 25.6% in 2013 to 12.7% in 2016. Average CAPEX/Revenue for the last three years was 17.1%.
Return on investment
The company operates at good ROIC (14.95%) and ROE (16.69%). ROIC showed almost no change in 2016. ROE increased on 2.3 pp from 14.4% to 16.7% in 2016.
Leverage (Debt)
Debt level is 2.0x Net Debt / EBITDA and 2.3x Debt / EBITDA. Net Debt / EBITDA jumped on 0.1x from 1.9x to 2.0x in 2016. Debt jumped on 25.2% while cash surged on 119%.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find easyhome Ltd benchmarking vs. other companies in Consumer, Non-cyclical 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 |
|---|
| 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 (40 companies) | | 8.5% | 13.7% | 14.9% | 12.6% |
|---|
| easyhome Ltd ($EH) | | 9.6% | 18.4% | 17.4% | 14.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($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 ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (43 companies) | 9.1% | 12.0% | 12.7% | 11.0% | 10.0% |
|---|
| easyhome Ltd ($EH) | 35.1% | 36.0% | 34.7% | 34.2% | 33.5% |
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 ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| TearLab Corp ($TLB) | 14.4% | 19.8% | 12.3% | 13.5% | |
| |
|---|
| Median (42 companies) | 3.1% | 2.7% | 2.3% | 2.3% | 2.0% |
|---|
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
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 ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (43 companies) | 8.8% | 7.5% | 8.4% | 6.3% | 8.0% |
|---|
| easyhome Ltd ($EH) | | 14.6% | 14.4% | 14.7% | 14.9% |
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 ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | 12.7x |
| |
|---|
| Median (37 companies) | 2.9x | 2.3x | 3.5x | 2.8x | 2.9x |
|---|
| easyhome Ltd ($EH) | 0.5x | 0.8x | 1.3x | 1.9x | 2.0x |
