International Road Dynamics Inc EBITDA jumped on 51.5% in 2016 and Revenue surged on 12.8%
27.02.2017 • About International Road Dynamics Inc (
$IRD) • By InTwits
International Road Dynamics Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- International Road Dynamics Inc is a growth stock: FY2016 revenue growth was 12.8%, 5 year revenue CAGR was 10.8% at FY2016 ROIC 16.5%
- EBITDA Margin is quite volatile: 7.7% in FY2016, 5.8% in FY2015, 3.7% in FY2014, 4.7% in FY2013, 2.0% in FY2012
- International Road Dynamics Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 5.0%.
- CAPEX is quite volatile: 1.1 in FY2016, 1.1 in FY2015, 0.96 in FY2014, 0.83 in FY2013, 0.23 in FY2012
- The company has highly profitable business model: ROIC is at 16.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
International Road Dynamics Inc ($IRD) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 41.577 | 43.646 | 45.102 | 57.990 | 65.384 | 12.8% |
| Gross Profit | 12.259 | 13.654 | 14.003 | 17.617 | 21.695 | 23.1% |
| EBITDA | 0.837 | 2.055 | 1.681 | 3.342 | 5.062 | 51.5% |
| Net Income | -0.647 | 0.912 | 1.372 | 2.532 | 2.756 | 8.9% |
Balance Sheet
|
|---|
| Cash | 1.157 | 1.390 | 1.399 | 1.834 | 2.722 | 48.4% |
| Short Term Debt | 6.576 | 5.664 | 6.842 | 4.088 | 3.725 | -8.9% |
| Long Term Debt | 0.000 | 0.000 | 0.771 | 0.643 | 0.514 | -20.0% |
Cash flow
|
|---|
| Capex | 0.228 | 0.829 | 0.963 | 1.059 | 1.129 | 6.6% |
Ratios
|
|---|
| Revenue growth | 6.3% | 5.0% | 3.3% | 28.6% | 12.8% | |
| EBITDA growth | -179.0% | 145.4% | -18.2% | 98.8% | 51.5% | |
| Gross Margin | 29.5% | 31.3% | 31.0% | 30.4% | 33.2% | 2.8% |
| EBITDA Margin | 2.0% | 4.7% | 3.7% | 5.8% | 7.7% | 2.0% |
| Net Income Margin | -1.6% | 2.1% | 3.0% | 4.4% | 4.2% | -0.2% |
| CAPEX, % of revenue | 0.5% | 1.9% | 2.1% | 1.8% | 1.7% | -0.1% |
| ROIC | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% | 5.8% |
| ROE | -3.8% | 5.3% | 7.5% | 12.1% | 11.4% | -0.7% |
| Net Debt/EBITDA | 6.5x | 2.1x | 3.7x | 0.9x | 0.3x | -0.6x |
International Road Dynamics Inc ($IRD) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 15 | 15 | 18 | 17 | 39.3% | 17.9% | 0.9% | 4.3% |
| EBITDA | 1 | 1 | 2 | 1 | 1,310.3% | 16.4% | 86.8% | -29.3% |
| Net Income | 0 | 0 | 1 | 1 | | 9.1% | -3.3% | -33.1% |
Balance Sheet
|
|---|
| Cash | 2 | 2 | 3 | 3 | 111.9% | 28.7% | 205.1% | 48.4% |
| Short Term Debt | 5 | 6 | 4 | 4 | -22.2% | -5.1% | -52.8% | -8.9% |
| Long Term Debt | 1 | 1 | 1 | 1 | -17.4% | -18.2% | -19.0% | -20.0% |
Ratios
|
|---|
| Gross Margin | 30.5% | 31.0% | 35.4% | 35.1% | -0.0% | -2.8% | 7.9% | 4.4% |
| EBITDA Margin | 6.3% | 7.0% | 11.9% | 5.3% | 5.7% | -0.1% | 5.5% | -2.5% |
| Net Income Margin | 3.1% | 2.4% | 7.7% | 3.1% | 3.5% | -0.2% | -0.3% | -1.7% |
Revenue and profitability
International Road Dynamics Inc's Revenue jumped on 12.8%. Revenue growth showed slow down in FY16Q4 - it was 4.3% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.8 pp from 5.9% to 7.7% in FY2016.
Gross Margin increased on 2.8 pp from 30.4% to 33.2% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 International Road Dynamics Inc had CAPEX/Revenue of 1.7%. CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 1.9%.
Return on investment
The company operates at good ROIC (16.46%) while ROE is low (11.42%). ROIC increased on 5.8 pp from 10.6% to 16.5% in FY2016. ROE decreased slightly on 0.67 pp from 12.1% to 11.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.3x and Debt / EBITDA is 0.8x. Net Debt / EBITDA dropped on 0.6x from 0.9x to 0.3x in FY2016. Debt dropped on 10.4% while cash jumped on 48.4%.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide International Road Dynamics Inc benchmarking against other companies in Consumer, Non-cyclical 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 |
|---|
| 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% | 14.9% | 12.6% |
|---|
| International Road Dynamics Inc ($IRD) | | 5.0% | 3.3% | 28.6% | 12.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($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% | 28.9% |
|---|
| International Road Dynamics Inc ($IRD) | 29.5% | 31.3% | 31.0% | 30.4% | 33.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($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% | 10.7% |
|---|
| International Road Dynamics Inc ($IRD) | 2.0% | 4.7% | 3.7% | 5.8% | 7.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($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% | 2.4% | 2.2% |
|---|
| International Road Dynamics Inc ($IRD) | 0.5% | 1.9% | 2.1% | 1.8% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($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% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| easyhome Ltd ($EH) | | 14.6% | 14.4% | 14.7% | 14.9% |
| |
|---|
| Median (43 companies) | 8.8% | 9.2% | 8.5% | 6.3% | 8.0% |
|---|
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($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 | 2.3x | 3.3x | 2.8x | 2.9x |
|---|
| International Road Dynamics Inc ($IRD) | 6.5x | 2.1x | 3.7x | 0.9x | 0.3x |
