CI Financial Corp EBITDA decreased on 9.6% in 2016 and Revenue decreased on 2.5%
16.02.2017 • About CI Financial Corp (
$CIX) • By InTwits
CI Financial Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CI Financial Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has highly profitable business model: ROIC is at 24.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CI Financial Corp ($CIX) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,458 | 1,617 | 1,876 | 1,998 | 1,948 | -2.5% |
| EBITDA | 704 | 770 | 900 | 928 | 839 | -9.6% |
| Net Income | 352 | 426 | 525 | 553 | 503 | -9.1% |
Balance Sheet
|
|---|
| Cash | 24 | 119 | 51 | 57 | 118 | 108.3% |
| Short Term Debt | 24 | 200 | 2 | 2 | 0 | -100.0% |
| Long Term Debt | 570 | 299 | 305 | 557 | 759 | 36.1% |
Cash flow
|
|---|
| Capex | 6 | 5 | 3 | 3 | 7 | 149.1% |
Ratios
|
|---|
| Revenue growth | -2.6% | 10.9% | 16.0% | 6.5% | -2.5% | |
| EBITDA growth | -3.1% | 9.4% | 17.0% | 3.1% | -9.6% | |
| EBITDA Margin | 48.3% | 47.6% | 48.0% | 46.5% | 43.1% | -3.4% |
| Net Income Margin | 24.2% | 26.4% | 28.0% | 27.7% | 25.8% | -1.9% |
| CAPEX, % of revenue | 0.4% | 0.3% | 0.2% | 0.1% | 0.4% | 0.2% |
| ROIC | | | | | 24.1% | 24.1% |
| ROE | 21.4% | 24.4% | 28.2% | 29.2% | 27.6% | -1.5% |
| Net Debt/EBITDA | 0.8x | 0.5x | 0.3x | 0.5x | 0.8x | 0.2x |
CI Financial Corp ($CIX) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 471 | 476 | 495 | 506 | -6.1% | -5.6% | -0.7% | 2.6% |
| EBITDA | 199 | 214 | 225 | 201 | -16.5% | -9.0% | -5.0% | -7.7% |
| Net Income | 117 | 129 | 137 | 121 | -19.3% | -7.4% | -4.2% | -4.9% |
Balance Sheet
|
|---|
| Cash | 52 | 41 | 78 | 118 | 33.6% | -32.3% | 38.2% | 108.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | -100.0% | -100.0% | -100.0% | -100.0% |
| Long Term Debt | 613 | 624 | 676 | 759 | 97.4% | 67.2% | 64.8% | 36.1% |
Ratios
|
|---|
| EBITDA Margin | 42.4% | 45.0% | 45.5% | 39.6% | -5.3% | -1.7% | -2.0% | -4.4% |
| Net Income Margin | 24.8% | 27.0% | 27.6% | 23.9% | -4.1% | -0.5% | -1.0% | -1.9% |
Revenue and profitability
The company's Revenue decreased on 2.5%. Annual revenue decline showed slowdown in 16Q4 - revenue increased on 2.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 3.4 pp from 46.5% to 43.1% in 2016.
Net Income marign decreased slightly on 1.9 pp from 27.7% to 25.8% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 CI Financial Corp had CAPEX/Revenue of 0.38%. CI Financial Corp showed almost no change in CAPEX/Revenue from 2013 to 2016. For the last three years the average CAPEX/Revenue was 0.23%.
Return on investment
The company operates at high and attractive ROIC (24.13%) and ROE (27.64%). ROE decreased slightly on 1.5 pp from 29.2% to 27.6% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.8x and Debt / EBITDA is 0.9x. Net Debt / EBITDA surged on 0.2x from 0.5x to 0.8x in 2016. Debt jumped on 35.6% while cash surged on 108%.
Management team
Peter W Anderson is a CI Financial Corp's CEO. Peter W Anderson is a founder and has spent 2 years at the company.
Appendix 1: Peers in Financial
Below we provide CI Financial Corp benchmarking against other companies in Financial 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 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (53 companies) | | 7.0% | 9.0% | 3.0% | 5.8% |
|---|
| CI Financial Corp ($CIX) | | 10.9% | 16.0% | 6.5% | -2.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (9 companies) | 28.1% | 30.7% | 28.3% | 43.4% | 30.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (36 companies) | 39.5% | 32.1% | 38.2% | 30.0% | 44.5% |
|---|
| CI Financial Corp ($CIX) | 48.3% | 47.6% | 48.0% | 46.5% | 43.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (55 companies) | 0.6% | 0.6% | 0.7% | 0.7% | 0.9% |
|---|
| CI Financial Corp ($CIX) | 0.4% | 0.3% | 0.2% | 0.1% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| Slate Retail REIT ($SRT.UN) | | 6.0% | 9.8% | 8.4% | 9.4% |
| |
|---|
| Median (55 companies) | 4.6% | 3.8% | 3.9% | 3.0% | 3.0% |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (27 companies) | 5.5x | 4.8x | 4.7x | 6.5x | 9.7x |
|---|
| CI Financial Corp ($CIX) | 0.8x | 0.5x | 0.3x | 0.5x | 0.8x |
