Maple Leaf Foods Inc Net Income jumped on 337% in 2016 and Revenue increased slightly on 1.2%
22.02.2017 • About Maple Leaf Foods Inc (
$MFI) • By InTwits
Maple Leaf Foods Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 11.3% in 2016 vs. 6.6% in 2015 vs. 6.5% in 2012
- EBITDA Margin is quite volatile: 11.3% in 2016, 6.6% in 2015, 1.0% in 2014, 0.7% in 2013, 6.5% in 2012
- Maple Leaf Foods Inc has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.0%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 113 in 2016, 148 in 2015, 259 in 2014, 361 in 2013, 306 in 2012
- The company has highly profitable business model: ROIC is at 12.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Maple Leaf Foods Inc ($MFI) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,552 | 2,955 | 3,157 | 3,293 | 3,332 | 1.2% |
| Gross Profit | 674 | 181 | 218 | 381 | 591 | 55.0% |
| SG&A | 508 | 303 | 298 | 288 | 325 | 12.8% |
| EBITDA | 298 | 19 | 32 | 217 | 378 | 74.4% |
| Net Income | 89 | 496 | 710 | 42 | 182 | 337.0% |
Balance Sheet
|
|---|
| Cash | 90 | 507 | 496 | 292 | 404 | 38.1% |
| Short Term Debt | 55 | 214 | 0 | 1 | 1 | -2.3% |
| Long Term Debt | 1,207 | 744 | 10 | 10 | 9 | -7.4% |
Cash flow
|
|---|
| Capex | 306 | 361 | 259 | 148 | 113 | -23.4% |
Ratios
|
|---|
| Revenue growth | -7.0% | -35.1% | 6.9% | 4.3% | 1.2% | |
| EBITDA growth | -23.4% | -93.6% | 65.4% | 581.6% | 74.4% | |
| Gross Margin | 14.8% | 6.1% | 6.9% | 11.6% | 17.7% | 6.2% |
| EBITDA Margin | 6.5% | 0.7% | 1.0% | 6.6% | 11.3% | 4.8% |
| Net Income Margin | 2.0% | 16.8% | 22.5% | 1.3% | 5.5% | 4.2% |
| SG&A, % of revenue | 11.2% | 10.3% | 9.4% | 8.7% | 9.7% | 1.0% |
| CAPEX, % of revenue | 6.7% | 12.2% | 8.2% | 4.5% | 3.4% | -1.1% |
| ROIC | 8.5% | -5.2% | -3.3% | 4.4% | 12.9% | 8.4% |
| ROE | 10.2% | 40.2% | 37.1% | 1.9% | 8.8% | 6.9% |
| Net Debt/EBITDA | 3.9x | 23.5x | -15.3x | -1.3x | -1.0x | 0.3x |
Maple Leaf Foods Inc ($MFI) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 797 | 855 | 852 | 828 | 2.1% | 4.1% | 4.1% | -5.1% |
| EBITDA | 90 | 76 | 69 | 143 | 95.6% | 172.5% | 13.6% | 74.8% |
| Net Income | 42 | 31 | 32 | 76 | | | 70.4% | 129.0% |
Balance Sheet
|
|---|
| Cash | 291 | 313 | 444 | 404 | -31.9% | -23.7% | 45.0% | 38.1% |
| Short Term Debt | 1 | 1 | 1 | 1 | 15.0% | 0.0% | 4.3% | -2.3% |
| Long Term Debt | 10 | 10 | 9 | 9 | -1.9% | -2.2% | -6.7% | -7.4% |
Ratios
|
|---|
| Gross Margin | 17.3% | 14.8% | 14.2% | 24.7% | 5.9% | 5.6% | 2.1% | 11.3% |
| EBITDA Margin | 11.3% | 8.8% | 8.1% | 17.3% | 5.4% | 5.5% | 0.7% | 7.9% |
| Net Income Margin | 5.3% | 3.7% | 3.7% | 9.2% | 5.7% | 4.6% | 1.5% | 5.4% |
Revenue and profitability
Maple Leaf Foods Inc's Revenue increased slightly on 1.2%. Revenue growth showed slow down in 16Q4 - it was -5.1% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.8 pp from 6.6% to 11.3% in 2016.
Gross Margin increased on 6.2 pp from 11.6% to 17.7% in 2016. SG&A as a % of Revenue increased slightly on 1.0 pp from 8.7% to 9.7% in 2016.
Net Income marign increased on 4.2 pp from 1.3% to 5.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.4% in 2016. CAPEX/Revenue decreased on 8.8 pp from 12.2% in 2013 to 3.4% in 2016. Average CAPEX/Revenue for the last three years was 5.4%.
Return on investment
The company operates at good ROIC (12.87%) while ROE is low (8.80%). ROIC increased on 8.4 pp from 4.4% to 12.9% in 2016. ROE increased on 6.9 pp from 1.9% to 8.8% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.0x and Debt / EBITDA is 0.0x. Net Debt / EBITDA surged on 0.3x from -1.3x to -1.0x in 2016. Debt decreased on 7.0% while cash jumped on 38.1%.
Management team
The company's CEO is Michael H Mccain. Michael H Mccain is a founder and has 19 years tenure at the company. Deborah Keenan Simpson "Debble" is a Maple Leaf Foods Inc's CFO. Deborah Keenan Simpson "Debble" has spent 4 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Maple Leaf Foods Inc 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) | | 9.1% | 13.9% | 15.6% | 12.8% |
|---|
| Maple Leaf Foods Inc ($MFI) | | -35.1% | 6.9% | 4.3% | 1.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($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 (34 companies) | 35.4% | 39.2% | 35.8% | 36.1% | 33.2% |
|---|
| Maple Leaf Foods Inc ($MFI) | 14.8% | 6.1% | 6.9% | 11.6% | 17.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($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) | 9.9% | 12.8% | 14.1% | 12.7% | 10.0% |
|---|
| Maple Leaf Foods Inc ($MFI) | 6.5% | 0.7% | 1.0% | 6.6% | 11.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($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% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (42 companies) | 3.1% | 2.7% | 2.3% | 2.3% | 2.0% |
|---|
| Maple Leaf Foods Inc ($MFI) | 6.7% | 12.2% | 8.2% | 4.5% | 3.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($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% | 9.2% | 8.5% | 7.5% | 8.0% |
|---|
| Maple Leaf Foods Inc ($MFI) | 8.5% | -5.2% | -3.3% | 4.4% | 12.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($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) | 2.8x | 2.2x | 3.5x | 2.8x | 2.9x |
|---|
| Maple Leaf Foods Inc ($MFI) | 3.9x | 23.5x | -15.3x | -1.3x | -1.0x |
