Olympia Financial Group Inc reports 33.0% EBITDA decline and 0.86% Revenue decline
24.02.2017 • About Olympia Financial Group Inc (
$OLY) • By InTwits
Olympia Financial Group Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Olympia Financial Group Inc doesn't have a profitable business model yet: 2016 ROIC is -4.9%
- EBITDA Margin is quite volatile: 2.1% in 2016, 3.1% in 2015, 4.6% in 2014, 10.4% in 2013, 9.7% in 2012
- Olympia Financial Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.0%. At the same time it's in pair with industry average of 6.6%.
- CAPEX is quite volatile: 0.98 in 2016, 0.57 in 2015, 0.53 in 2014, 1.8 in 2013, 0.85 in 2012
- The company has unprofitable business model: ROIC is at -4.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Olympia Financial Group Inc ($OLY) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 26.876 | 30.613 | 31.325 | 34.996 | 34.696 | -0.9% |
| Gross Profit | 21.741 | 25.296 | 26.066 | 29.578 | 28.959 | -2.1% |
| SG&A | | | | 28.500 | 28.236 | -0.9% |
| EBITDA | 2.611 | 3.171 | 1.429 | 1.078 | 0.723 | -33.0% |
| Net Income | 5.812 | 36.577 | 3.988 | 4.417 | 5.591 | 26.6% |
Balance Sheet
|
|---|
| Cash | 6.033 | 20.455 | 11.044 | 8.830 | 5.350 | -39.4% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 4.000 | 3.935 | -1.6% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.849 | 1.812 | 0.528 | 0.568 | 0.984 | 73.1% |
Ratios
|
|---|
| Revenue growth | -21.2% | 13.9% | 2.3% | 11.7% | -0.9% | |
| EBITDA growth | -30.5% | 21.4% | -54.9% | -24.6% | -33.0% | |
| Gross Margin | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% | -1.1% |
| EBITDA Margin | 9.7% | 10.4% | 4.6% | 3.1% | 2.1% | -1.0% |
| Net Income Margin | 21.6% | 119.5% | 12.7% | 12.6% | 16.1% | 3.5% |
| SG&A, % of revenue | | | | 81.4% | 81.4% | -0.1% |
| CAPEX, % of revenue | 3.2% | 5.9% | 1.7% | 1.6% | 2.8% | 1.2% |
| ROIC | 15.4% | 14.5% | 2.5% | -0.0% | -4.9% | -4.9% |
| ROE | 46.2% | 253.0% | 25.4% | 38.2% | 57.9% | 19.7% |
| Net Debt/EBITDA | -2.3x | -6.5x | -7.7x | -4.5x | -2.0x | 2.5x |
Olympia Financial Group Inc ($OLY) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 9 | 9 | 9 | 8 | 7.8% | -5.2% | -5.7% | 0.5% |
| EBITDA | 1 | -0 | 0 | 0 | 27.0% | -173.2% | -70.6% | |
| Net Income | 1 | 1 | 1 | 2 | 10.6% | 25.9% | 21.7% | 51.9% |
Balance Sheet
|
|---|
| Cash | 15 | 10 | 8 | 5 | -9.0% | -10.0% | 11.3% | -39.4% |
| Short Term Debt | 4 | 4 | 4 | 4 | | | | -1.6% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 85.1% | 84.3% | 82.3% | 82.0% | -1.2% | 0.9% | 1.0% | -5.3% |
| EBITDA Margin | 5.6% | -1.7% | 2.0% | 2.3% | 0.9% | -3.9% | -4.4% | 3.5% |
| Net Income Margin | 14.7% | 15.1% | 16.6% | 18.1% | 0.4% | 3.7% | 3.7% | 6.1% |
Revenue and profitability
The company's Revenue decreased slightly on 0.86%. Annual revenue decline showed slowdown in 16Q4 - revenue increased slightly on 0.53%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.83 pp from 1.0% to 1.9% in FY2016.
Gross Margin decreased slightly on 1.1 pp from 84.5% to 83.5% in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign increased on 3.5 pp from 12.6% to 16.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.8%. Olympia Financial Group Inc showed decline in CAPEX/Revenue of 3.1 pp from 5.9% in 2013 to 2.8% in 2016. Average CAPEX/Revenue for the last three years was 2.0%.Battling declining revenue Olympia Financial Group Inc made large investments to CAPEX (136% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at negative ROIC (-4.94%) and low but positive ROE (57.91%). ROIC decreased on 4.9 pp from -0.037% to -4.9% in 2016. ROE surged on 19.7 pp from 38.2% to 57.9% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.0x and Debt / EBITDA is 5.4x. Net Debt / EBITDA surged on 2.5x from -4.5x to -2.0x in 2016. Debt decreased slightly on 1.6% while cash dropped on 39.4%.
Appendix 1: Peers in Financial
Below we provide Olympia Financial Group Inc 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% | 9.1% | 3.0% | 5.8% |
|---|
| Olympia Financial Group Inc ($OLY) | | 13.9% | 2.3% | 11.7% | -0.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Morguard Corp ($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 ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| Onex Corp ($OCX) | 20.1% | 26.2% | 27.9% | 31.0% | 30.3% |
| |
|---|
| Median (8 companies) | 26.9% | 28.4% | 27.9% | 37.2% | 29.7% |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($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) | 43.9% | 35.0% | 41.4% | 36.2% | 45.4% |
|---|
| Olympia Financial Group Inc ($OLY) | 9.7% | 10.4% | 4.6% | 3.1% | 2.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($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) | 0.5% | 0.5% | 0.6% | 0.7% | 0.6% |
|---|
| Olympia Financial Group Inc ($OLY) | 3.2% | 5.9% | 1.7% | 1.6% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| 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% |
| |
|---|
| Median (55 companies) | 4.4% | 3.3% | 4.3% | 3.5% | 3.2% |
|---|
| Olympia Financial Group Inc ($OLY) | 15.4% | 14.5% | 2.5% | -0.0% | -4.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($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 |
|---|
| Olympia Financial Group Inc ($OLY) | -2.3x | -6.5x | -7.7x | -4.5x | -2.0x |
