Winpak Ltd reports 34.6% CAPEX growth and 3.2% Revenue growth
16.02.2017 • About Winpak Ltd (
$WPK) • By InTwits
Winpak Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Winpak Ltd has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.8%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 265 in 2016, 124 in 2015, 84.1 in 2014, 80.3 in 2013, 63.3 in 2012
- The company has highly profitable business model: ROIC is at 21.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Winpak Ltd ($WPK) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 670.1 | 714.9 | 786.8 | 797.2 | 822.5 | 3.2% |
| Gross Profit | 199.0 | 208.1 | 224.4 | 257.8 | 269.3 | 4.5% |
| SG&A | 83.0 | 86.6 | 89.9 | 92.1 | 91.2 | -0.9% |
| EBITDA | 130.6 | 132.8 | 147.3 | 180.8 | 193.5 | 7.1% |
| Net Income | 71.3 | 71.4 | 78.4 | 99.2 | 104.3 | 5.1% |
Balance Sheet
|
|---|
| Cash | 133.3 | 161.1 | 143.8 | 165.0 | 211.2 | 28.0% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 68.4 | 51.2 | 48.1 | 53.7 | 72.2 | 34.6% |
Ratios
|
|---|
| Revenue growth | 2.8% | 6.7% | 10.1% | 1.3% | 3.2% | |
| EBITDA growth | 5.5% | 1.6% | 10.9% | 22.7% | 7.1% | |
| Gross Margin | 29.7% | 29.1% | 28.5% | 32.3% | 32.7% | 0.4% |
| EBITDA Margin | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% | 0.9% |
| Net Income Margin | 10.6% | 10.0% | 10.0% | 12.5% | 12.7% | 0.2% |
| SG&A, % of revenue | 12.4% | 12.1% | 11.4% | 11.5% | 11.1% | -0.5% |
| CAPEX, % of revenue | 10.2% | 7.2% | 6.1% | 6.7% | 8.8% | 2.0% |
| ROIC | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% | -0.8% |
| ROE | 15.2% | 13.3% | 13.5% | 16.7% | 15.9% | -0.8% |
| Net Debt/EBITDA | -1.0x | -1.2x | -1.0x | -0.9x | -1.1x | -0.2x |
Winpak Ltd ($WPK) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 198 | 204 | 205 | 216 | -0.6% | 3.0% | 5.7% | 4.8% |
| EBITDA | 48 | 48 | 45 | 52 | 15.6% | -0.7% | 8.4% | 6.4% |
| Net Income | 27 | 25 | 24 | 29 | 18.3% | -6.3% | 7.8% | 3.4% |
Balance Sheet
|
|---|
| Cash | 170 | 176 | 198 | 211 | 4.3% | -7.0% | -6.0% | 28.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 34.2% | 33.3% | 31.3% | 32.2% | 2.6% | 0.4% | 0.0% | -1.3% |
| EBITDA Margin | 24.4% | 23.6% | 22.0% | 24.1% | 3.4% | -0.9% | 0.6% | 0.4% |
| Net Income Margin | 13.4% | 12.3% | 11.7% | 13.3% | 2.1% | -1.2% | 0.2% | -0.2% |
Revenue and profitability
Winpak Ltd's Revenue increased on 3.2%. Revenue growth showed acceleration in FY16Q4 - it increased 4.8% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.85 pp from 22.7% to 23.5% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 8.8%. CAPEX/Revenue increased slightly on 1.6 pp from 7.2% in FY2013 to 8.8% in FY2016. For the last three years the average CAPEX/Revenue was 7.2%.
Return on investment
The company operates at high and attractive ROIC (21.79%) while ROE is a bit lower (15.93%). ROIC decreased slightly on 0.79 pp from 22.6% to 21.8% in FY2016. ROE decreased slightly on 0.77 pp from 16.7% to 15.9% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 28.0%.
Management team
Winpak Ltd's CEO Bruce J Berry is a founder and has spent 14 years at the company.
Appendix 1: Peers in Industrial
Below we provide Winpak Ltd benchmarking against other companies in Industrial 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 |
|---|
| 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 ($AVO) | | 72.6% | 41.9% | 17.7% | 22.2% |
| |
|---|
| Median (51 companies) | | 4.9% | 10.3% | 8.5% | 2.6% |
|---|
| Winpak Ltd ($WPK) | | 6.7% | 10.1% | 1.3% | 3.2% |
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 ($IWG) | 53.3% | 54.0% | 49.0% | 47.8% | 54.9% |
| |
|---|
| Median (49 companies) | 23.4% | 23.4% | 20.9% | 21.5% | 22.1% |
|---|
| Winpak Ltd ($WPK) | 29.7% | 29.1% | 28.5% | 32.3% | 32.7% |
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% |
| CCL Industries Inc ($CCL.B) | 19.6% | 15.6% | 18.4% | 19.9% | 18.3% |
| |
|---|
| Median (53 companies) | 10.2% | 8.3% | 8.0% | 7.8% | 11.0% |
|---|
| Winpak Ltd ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
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 ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (54 companies) | 3.2% | 3.6% | 4.3% | 3.7% | 3.9% |
|---|
| Winpak Ltd ($WPK) | 10.2% | 7.2% | 6.1% | 6.7% | 8.8% |
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% |
| 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% |
| Norbord Inc ($NBD) | 15.2% | 24.0% | 2.4% | 2.2% | 19.5% |
| |
|---|
| Median (55 companies) | 12.2% | 9.6% | 11.0% | 8.3% | 8.5% |
|---|
| Winpak Ltd ($WPK) | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% |
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 ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| |
|---|
| Median (49 companies) | 1.5x | 1.6x | 1.3x | 1.0x | 2.1x |
|---|
| Winpak Ltd ($WPK) | -1.0x | -1.2x | -1.0x | -0.9x | -1.1x |
