Goodfellow Inc reports 150% EBITDA decline and 4.8 pp EBITDA Margin decline from 3.2% to -1.6%
27.02.2017 • About Goodfellow Inc (
$GDL) • By InTwits
Goodfellow Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Goodfellow Inc doesn't have a profitable business model yet: FY2016 ROIC is -6.5%
- EBITDA Margin is quite volatile: -1.6% in FY2016, 3.2% in FY2015, 3.0% in FY2014, 2.5% in FY2013, 2.1% in FY2012
- Goodfellow Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has unprofitable business model: ROIC is at -6.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Goodfellow Inc ($GDL) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 500.7 | 483.5 | 500.2 | 539.0 | 565.2 | 4.9% |
| Gross Profit | 87.2 | 89.9 | 93.4 | 101.2 | 81.3 | -19.7% |
| SG&A | | 80.7 | 81.6 | 86.7 | 93.9 | 8.3% |
| EBITDA | 10.7 | 12.0 | 14.8 | 17.5 | -8.8 | -150.4% |
| Net Income | 4.4 | 5.3 | 7.0 | 8.6 | -12.1 | -240.4% |
Balance Sheet
|
|---|
| Cash | 0.7 | 0.2 | 0.9 | 1.0 | 0.7 | -27.2% |
| Short Term Debt | 37.2 | 34.2 | 43.3 | 46.9 | 94.2 | 101.0% |
| Long Term Debt | 0.0 | 0.1 | 0.7 | 0.0 | 0.1 | |
Cash flow
|
|---|
| Capex | 1.3 | 2.6 | 4.9 | 2.1 | 3.0 | 41.4% |
Ratios
|
|---|
| Revenue growth | 7.3% | -3.4% | 3.5% | 7.7% | 4.9% | |
| EBITDA growth | 19.5% | 12.0% | 23.6% | 17.8% | -150.4% | |
| Gross Margin | 17.4% | 18.6% | 18.7% | 18.8% | 14.4% | -4.4% |
| EBITDA Margin | 2.1% | 2.5% | 3.0% | 3.2% | -1.6% | -4.8% |
| Net Income Margin | 0.9% | 1.1% | 1.4% | 1.6% | -2.1% | -3.7% |
| SG&A, % of revenue | | 16.7% | 16.3% | 16.1% | 16.6% | 0.5% |
| CAPEX, % of revenue | 0.3% | 0.5% | 1.0% | 0.4% | 0.5% | 0.1% |
| ROIC | 5.2% | 5.9% | 7.3% | 8.3% | -6.5% | -14.8% |
| ROE | 3.8% | 4.5% | 5.9% | 7.0% | -10.1% | -17.1% |
| Net Debt/EBITDA | 3.4x | 2.8x | 2.9x | 2.6x | | -2.6x |
Goodfellow Inc ($GDL) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 109 | 167 | 159 | 131 | 10.8% | 8.2% | 4.9% | -3.3% |
| EBITDA | 0 | 6 | -1 | -14 | -77.0% | 5.1% | -120.8% | -451.5% |
| Net Income | -1 | 3 | -2 | -12 | | 3.9% | -166.8% | -704.1% |
Balance Sheet
|
|---|
| Cash | 2 | 1 | 1 | 1 | 153.6% | 182.6% | 3.7% | -27.2% |
| Short Term Debt | 90 | 102 | 108 | 94 | 21.2% | 54.3% | 81.8% | 101.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | -68.2% | 408.1% | 532.0% | |
Ratios
|
|---|
| Gross Margin | 19.0% | 17.7% | 13.6% | 7.3% | -1.4% | -0.3% | -5.5% | -10.9% |
| EBITDA Margin | 0.2% | 3.8% | -0.9% | -10.7% | -0.6% | -0.1% | -5.3% | -13.6% |
| Net Income Margin | -0.8% | 2.0% | -1.6% | -9.2% | -0.5% | -0.1% | -4.0% | -10.7% |
Revenue and profitability
Goodfellow Inc's Revenue increased on 4.9%. Revenue growth showed slow down in FY16Q4 - it was -3.3% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 59.9 pp from -28.4% to 31.5% in 2016.
Gross Margin decreased on 4.4 pp from 18.8% to 14.4% in FY2016. SG&A as a % of Revenue increased slightly on 0.53 pp from 16.1% to 16.6% in FY2016.
Net Income marign decreased on 3.7 pp from 1.6% to -2.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Goodfellow Inc's CAPEX/Revenue was 0.53% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.63%.
Return on investment
The company operates at negative ROIC (-6.50%) and ROE (-10.14%). ROIC dropped on 14.8 pp from 8.3% to -6.5% in FY2016. ROE dropped on 17.1 pp from 7.0% to -10.1% in FY2016.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 2.6x from 2.6x to in FY2016. Debt jumped on 101% while cash dropped on 27.2%.
Appendix 1: Peers in Industrial
Below you can find Goodfellow Inc benchmarking vs. other companies in Industrial 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 |
|---|
| 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) | | 5.3% | 10.4% | 8.5% | 2.6% |
|---|
| Goodfellow Inc ($GDL) | | -3.4% | 3.5% | 7.7% | 4.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($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) | 23.9% | 24.0% | 21.9% | 21.9% | 22.9% |
|---|
| Goodfellow Inc ($GDL) | 17.4% | 18.6% | 18.7% | 18.8% | 14.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($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 ($IWG) | 12.7% | 25.5% | 20.0% | 24.0% | 26.9% |
| Winpak Ltd ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
| |
|---|
| Median (53 companies) | 10.5% | 8.4% | 8.6% | 9.5% | 11.1% |
|---|
| Goodfellow Inc ($GDL) | 2.1% | 2.5% | 3.0% | 3.2% | -1.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($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% | 3.7% | 4.4% | 3.9% | 4.8% |
|---|
| Goodfellow Inc ($GDL) | 0.3% | 0.5% | 1.0% | 0.4% | 0.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($IBG) | 4.8% | -9.0% | 11.6% | 21.9% | 26.2% |
| IWG Technologies Inc ($IWG) | 17.0% | 36.3% | 23.4% | 27.2% | 25.7% |
| Winpak Ltd ($WPK) | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% |
| 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% |
| |
|---|
| Median (55 companies) | 12.2% | 9.7% | 11.5% | 8.9% | 9.7% |
|---|
| Goodfellow Inc ($GDL) | 5.2% | 5.9% | 7.3% | 8.3% | -6.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($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 | 1.5x | 1.2x | 1.0x | 1.9x |
|---|
| Goodfellow Inc ($GDL) | 3.4x | 2.8x | 2.9x | 2.6x | |
