Nuvo Research Inc Net Income surged on 159% in 2016 while EBITDA Margin decreased on 5.8 pp from 34.8% to 28.9%
01.03.2017 • About Nuvo Research Inc (
$NRI) • By InTwits
Nuvo Research Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nuvo Research Inc is a growth stock: 2016 revenue growth was 31.9%, 5 year revenue CAGR was 10.1% at 2016 ROIC 20.8%
- Nuvo Research Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 was 0.0%. On average EBITDA Margin was -2.7% for the sames years0
- Nuvo Research Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: 0.37 in 2016, 0.33 in 2015, 0.22 in 2014, 0.23 in 2013, 0.15 in 2012
- The company has highly profitable business model: ROIC is at 20.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Nuvo Research Inc ($NRI) key annual financial indicators
| mln. | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 24.650 | 18.409 | 13.057 | 20.495 | 27.039 | 31.9% |
| Gross Profit | 17.375 | 13.640 | 7.520 | 10.720 | 15.682 | 46.3% |
| SG&A | | 10.116 | | 2.645 | 6.677 | 152.4% |
| EBITDA | -2.815 | -2.165 | -12.794 | 7.127 | 7.821 | 9.7% |
| Net Income | -13.563 | -10.378 | 38.590 | -7.120 | 4.229 | |
Balance Sheet
|
|---|
| Cash | 12.149 | 12.621 | 48.275 | 48.680 | 9.589 | -80.3% |
| Short Term Debt | 1.902 | 0.003 | 0.140 | 0.192 | 0.002 | -99.0% |
| Long Term Debt | 1.358 | 3.327 | 0.000 | 0.043 | 0.007 | -83.7% |
Cash flow
|
|---|
| Capex | 0.149 | 0.229 | 0.224 | 0.332 | 0.368 | 10.8% |
Ratios
|
|---|
| Revenue growth | 47.3% | -25.3% | -29.1% | 57.0% | 31.9% | |
| EBITDA growth | -67.9% | -23.1% | 490.9% | -155.7% | 9.7% | |
| Gross Margin | 70.5% | 74.1% | 57.6% | 52.3% | 58.0% | 5.7% |
| EBITDA Margin | -11.4% | -11.8% | -98.0% | 34.8% | 28.9% | -5.8% |
| Net Income Margin | -55.0% | -56.4% | 295.6% | -34.7% | 15.6% | 50.4% |
| SG&A, % of revenue | | 55.0% | | 12.9% | 24.7% | 11.8% |
| CAPEX, % of revenue | 0.6% | 1.2% | 1.7% | 1.6% | 1.4% | -0.3% |
| ROIC | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% | 8.0% |
| ROE | -48.1% | -61.7% | 113.7% | -13.5% | 11.7% | 25.2% |
| Net Debt/EBITDA | | | | -6.8x | -1.2x | 5.6x |
Nuvo Research Inc ($NRI) key quoterly financial indicators
| mln. | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 8 | 6 | 6 | 81.0% | 173.9% | 0.2% | -27.6% |
| EBITDA | 2 | 3 | 1 | 2 | 47.6% | | -28.8% | -62.4% |
| Net Income | -1 | 2 | 1 | 2 | | | | 487.5% |
Balance Sheet
|
|---|
| Cash | 11 | 13 | 9 | 10 | -76.4% | -69.0% | -77.0% | -80.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | -98.7% | | | -99.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | -83.7% |
Ratios
|
|---|
| Gross Margin | 60.0% | 61.0% | 54.1% | 54.6% | 16.0% | 21.5% | -0.4% | -5.7% |
| EBITDA Margin | 31.5% | 31.2% | 21.5% | 29.3% | -7.1% | 49.8% | -8.7% | -27.1% |
| Net Income Margin | -16.0% | 30.7% | 22.7% | 31.2% | -9.7% | 231.9% | 44.3% | 27.4% |
Revenue and profitability
Nuvo Research Inc's Revenue jumped on 31.9%. Revenue growth showed slow down in 16Q4 - it was -27.6% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.6 pp from 23.8% to 26.4% in FY2016.
Gross Margin increased on 5.7 pp from 52.3% to 58.0% in 2016. SG&A as a % of Revenue surged on 11.8 pp from 12.9% to 24.7% in 2016.
Net Income marign surged on 50.4 pp from -34.7% to 15.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Nuvo Research Inc had CAPEX/Revenue of 1.4%. The company showed almost no change in CAPEX/Revenue from 2013 to 2016. For the last three years the average CAPEX/Revenue was 1.6%.
Return on investment
The company operates at good ROIC (20.84%) while ROE is low (11.65%). ROIC increased on 8.0 pp from 12.9% to 20.8% in 2016. ROE surged on 25.2 pp from -13.5% to 11.7% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.2x and Debt / EBITDA is 0.0x. Net Debt / EBITDA surged on 5.6x from -6.8x to -1.2x in 2016. Debt dropped on 96.2% while cash dropped on 80.3%.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Nuvo Research 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 ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Savaria Corp ($SIS) | | 13.5% | 9.5% | 14.9% | 25.7% |
| |
|---|
| Median (40 companies) | | 9.1% | 13.9% | 14.9% | 12.6% |
|---|
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($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) | 29.5% | 35.0% | 35.6% | 33.4% | 28.9% |
|---|
| Nuvo Research Inc ($NRI) | 70.5% | 74.1% | 57.6% | 52.3% | 58.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($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% | 11.0% | 10.0% |
|---|
| Nuvo Research Inc ($NRI) | -11.4% | -11.8% | -98.0% | 34.8% | 28.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($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% |
|---|
| Nuvo Research Inc ($NRI) | 0.6% | 1.2% | 1.7% | 1.6% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Colliers International Group Inc ($CIG) | 10.5% | 11.2% | 15.2% | 10.9% | 26.1% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| easyhome Ltd ($EH) | | 14.6% | 14.4% | 14.7% | 14.9% |
| |
|---|
| Median (43 companies) | 8.8% | 9.2% | 8.5% | 6.3% | 8.0% |
|---|
| Nuvo Research Inc ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($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 | 3.4x | 2.8x | 2.9x |
|---|
| Nuvo Research Inc ($NRI) | | | | -6.8x | -1.2x |
