Altus Group Ltd/Canada revenue surged on 13.7% in 2016 while EBITDA Margin decreased on 2.4 pp from 15.8% to 13.3%
23.02.2017 • About Altus Group Ltd/Canada (
$AIF) • By InTwits
Altus Group Ltd/Canada reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Altus Group Ltd/Canada has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 4.2 in 2016, 12.3 in 2015, 7.7 in 2014, 3.9 in 2013, 4.7 in 2012
- The company has potentially unprofitable business model: ROIC is at 5.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Altus Group Ltd/Canada ($AIF) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 286.4 | 297.2 | 340.2 | 389.4 | 442.9 | 13.7% |
| EBITDA | 21.1 | 59.8 | 60.3 | 61.4 | 59.1 | -3.8% |
| Net Income | -12.7 | 18.6 | 13.2 | 9.2 | 14.3 | 54.3% |
Balance Sheet
|
|---|
| Cash | 4.7 | 16.7 | 17.5 | 19.6 | 43.7 | 122.8% |
| Short Term Debt | 6.8 | 1.7 | 128.1 | 2.1 | 7.0 | 228.8% |
| Long Term Debt | 205.4 | 155.4 | 43.2 | 134.3 | 116.9 | -12.9% |
Cash flow
|
|---|
| Capex | 4.7 | 3.9 | 7.7 | 12.3 | 4.2 | -65.7% |
Ratios
|
|---|
| Revenue growth | 7.3% | 3.8% | 14.5% | 14.5% | 13.7% | |
| EBITDA growth | 23.5% | 183.9% | 0.8% | 1.9% | -3.8% | |
| EBITDA Margin | 7.4% | 20.1% | 17.7% | 15.8% | 13.3% | -2.4% |
| Net Income Margin | -4.4% | 6.3% | 3.9% | 2.4% | 3.2% | 0.8% |
| CAPEX, % of revenue | 1.6% | 1.3% | 2.3% | 3.2% | 1.0% | -2.2% |
| ROIC | -0.4% | 11.8% | 8.8% | 4.5% | 5.4% | 0.8% |
| ROE | -9.2% | 11.4% | 5.5% | 3.0% | 4.1% | 1.2% |
| Net Debt/EBITDA | 9.9x | 2.3x | 2.6x | 1.9x | 1.4x | -0.5x |
Altus Group Ltd/Canada ($AIF) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 107 | 110 | 111 | 115 | 8.4% | 5.0% | 8.5% | 11.7% |
| EBITDA | 7 | 25 | 7 | 20 | -43.4% | 52.6% | -45.6% | 1.7% |
| Net Income | -2 | 13 | -5 | 9 | -408.9% | 369.9% | | 36.0% |
Balance Sheet
|
|---|
| Cash | 23 | 27 | 36 | 44 | 4.1% | 12.7% | 103.4% | 122.8% |
| Short Term Debt | 2 | 9 | 8 | 7 | -98.8% | 723.9% | 806.0% | 228.8% |
| Long Term Debt | 132 | 120 | 118 | 117 | 201.2% | -30.0% | -14.1% | -12.9% |
Ratios
|
|---|
| EBITDA Margin | 6.9% | 22.9% | 6.2% | 17.0% | -6.3% | 7.2% | -6.2% | -1.7% |
| Net Income Margin | -2.1% | 11.5% | -4.6% | 7.7% | -2.8% | 8.9% | -3.9% | 1.4% |
Revenue and profitability
Altus Group Ltd/Canada's Revenue jumped on 13.7%. Revenue growth showed slow down in 16Q4 - it was 11.7% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 19.8 pp from 6.1% to -13.6% in 2016.
Net Income marign increased slightly on 0.85 pp from 2.4% to 3.2% in 2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 0.96% in 2016. CAPEX/Revenue showed almost no change from 2013 to 2016. Average CAPEX/Revenue for the last three years was 2.1%.
Return on investment
The company operates at low ROIC (5.37%) and ROE (4.13%). ROIC increased slightly on 0.84 pp from 4.5% to 5.4% in 2016. ROE increased slightly on 1.2 pp from 3.0% to 4.1% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 2.1x. Net Debt / EBITDA dropped on 0.5x from 1.9x to 1.4x in 2016. Debt decreased on 9.2% while cash surged on 123%.
Management team
Altus Group Ltd/Canada's CEO is Robert G Courteau. Robert G Courteau is a founder and has 6 years tenure at the company. Angelo Bartolini is a The company's CFO. Angelo Bartolini has spent 7 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Altus Group Ltd/Canada 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% | 13.7% | 15.6% | 12.6% |
|---|
| Altus Group Ltd/Canada ($AIF) | | 3.8% | 14.5% | 14.5% | 13.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($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 ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (43 companies) | 9.9% | 12.0% | 12.7% | 11.0% | 10.0% |
|---|
| Altus Group Ltd/Canada ($AIF) | 7.4% | 20.1% | 17.7% | 15.8% | 13.3% |
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 ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (42 companies) | 3.1% | 2.8% | 2.4% | 2.3% | 2.2% |
|---|
| Altus Group Ltd/Canada ($AIF) | 1.6% | 1.3% | 2.3% | 3.2% | 1.0% |
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 ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (43 companies) | 8.8% | 7.5% | 8.4% | 7.5% | 8.4% |
|---|
| Altus Group Ltd/Canada ($AIF) | -0.4% | 11.8% | 8.8% | 4.5% | 5.4% |
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 ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | 12.7x |
| |
|---|
| Median (37 companies) | 2.8x | 2.2x | 3.5x | 2.8x | 2.9x |
|---|
| Altus Group Ltd/Canada ($AIF) | 9.9x | 2.3x | 2.6x | 1.9x | 1.4x |
