SunOpta Inc Net Debt / EBITDA surged on 123.9x from 16.9x to 140.8x in 2016 while Debt dropped on 10.4%
01.03.2017 • About SunOpta Inc (
$SOY) • By InTwits
SunOpta Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- SunOpta Inc doesn't have a profitable business model yet: 2016 ROIC is -3.2%
- EBITDA Margin is quite volatile: 0.2% in 2016, 2.5% in 2015, 5.2% in 2014, 4.5% in 2013, 5.9% in 2012
- SunOpta Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 337 in 2016, 507 in 2015, 836 in 2014, 933 in 2013, 1,051 in 2012
- The company has unprofitable business model: ROIC is at -3.2%
- It operates with high leverage: Net Debt/EBITDA is 140.8x while industry average is 9.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
SunOpta Inc ($SOY) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,091 | 1,182 | 1,103 | 1,145 | 1,347 | 17.6% |
| Gross Profit | 134 | 131 | 122 | 110 | 126 | 14.1% |
| SG&A | 83 | 89 | 80 | 86 | 99 | 15.1% |
| EBITDA | 64 | 53 | 58 | 29 | 3 | -89.3% |
| Net Income | 24 | -9 | 13 | -22 | -51 | |
Balance Sheet
|
|---|
| Cash | 7 | 9 | 8 | 2 | 1 | -45.0% |
| Short Term Debt | 138 | 148 | 79 | 162 | 204 | 26.0% |
| Long Term Debt | 51 | 43 | 4 | 321 | 229 | -28.7% |
Cash flow
|
|---|
| Capex | 24 | 34 | 18 | 31 | 23 | -27.7% |
Ratios
|
|---|
| Revenue growth | 7.0% | 8.3% | -6.7% | 3.8% | 17.6% | |
| EBITDA growth | 14.9% | -17.4% | 9.0% | -50.5% | -89.3% | |
| Gross Margin | 12.3% | 11.1% | 11.1% | 9.6% | 9.4% | -0.3% |
| EBITDA Margin | 5.9% | 4.5% | 5.2% | 2.5% | 0.2% | -2.3% |
| Net Income Margin | 2.2% | -0.7% | 1.2% | -2.0% | -3.8% | -1.8% |
| SG&A, % of revenue | 7.6% | 7.5% | 7.3% | 7.5% | 7.3% | -0.2% |
| CAPEX, % of revenue | 2.2% | 2.9% | 1.6% | 2.7% | 1.7% | -1.0% |
| ROIC | 8.4% | 5.5% | 8.4% | 1.0% | -3.2% | -4.3% |
| ROE | 7.7% | -2.6% | 3.9% | -5.9% | -13.0% | -7.1% |
| Net Debt/EBITDA | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x | 123.9x |
SunOpta Inc ($SOY) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 352 | 348 | 349 | 298 | 28.6% | 25.4% | 25.8% | -6.0% |
| EBITDA | 10 | 9 | 13 | -25 | -18.8% | -39.8% | 139.8% | |
| Net Income | -10 | -4 | -3 | -33 | -295.5% | -301.3% | -1,168.5% | |
Balance Sheet
|
|---|
| Cash | 5 | 4 | 2 | 1 | 56.8% | -2.1% | -98.3% | -45.0% |
| Short Term Debt | 205 | 242 | 229 | 204 | 78.5% | 56.4% | 57.1% | 26.0% |
| Long Term Debt | 314 | 316 | 317 | 229 | 943.5% | 9,547.1% | 11,118.5% | -28.7% |
Ratios
|
|---|
| Gross Margin | 9.1% | 10.3% | 11.8% | 5.7% | -1.6% | -0.3% | 2.3% | -2.2% |
| EBITDA Margin | 2.7% | 2.5% | 3.6% | -8.4% | -1.6% | -2.7% | 1.7% | -6.5% |
| Net Income Margin | -2.9% | -1.2% | -1.0% | -11.3% | -4.8% | -1.9% | -1.1% | -1.7% |
Revenue and profitability
SunOpta Inc's Revenue surged on 17.6%. Revenue growth showed slow down in 16Q4 - it was -6.0% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 140 pp from -67.4% to 72.5% in 2016.
Gross Margin showed almost no change in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased slightly on 1.8 pp from -2.0% to -3.8% in 2016.
Capital expenditures (CAPEX) and working capital investments
SunOpta Inc's CAPEX/Revenue was 1.7% in 2016. SunOpta Inc's CAPEX/Revenue decreased slightly on 1.2 pp from 2.9% in 2013 to 1.7% in 2016. It's average CAPEX/Revenue for the last three years was 2.0%.SunOpta Inc has spent a lot to CAPEX (736% of EBITDA) to secure its growth.
Return on investment
The company operates at negative ROIC (-3.24%) and ROE (-13.00%). ROIC decreased on 4.3 pp from 1.0% to -3.2% in 2016. ROE decreased on 7.1 pp from -5.9% to -13.0% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 140.8x and Debt / EBITDA is 141.2x. Net Debt / EBITDA surged on 123.9x from 16.9x to 140.8x in 2016. Debt dropped on 10.4% while cash dropped on 45.0%.
Management team
The company's CEO David J Colo "Dave" is a founder and has spent 1 year at the company. Robert Mckeracher "Rob" is a The company's CFO. Robert Mckeracher "Rob" has spent 7 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide SunOpta 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 ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| |
|---|
| Median (40 companies) | | 9.1% | 13.9% | 15.6% | 12.6% |
|---|
| SunOpta Inc ($SOY) | | 8.3% | -6.7% | 3.8% | 17.6% |
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 ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (34 companies) | 35.4% | 39.2% | 35.8% | 36.1% | 33.2% |
|---|
| SunOpta Inc ($SOY) | 12.3% | 11.1% | 11.1% | 9.6% | 9.4% |
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 ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (43 companies) | 9.9% | 12.8% | 14.1% | 12.7% | 10.7% |
|---|
| SunOpta Inc ($SOY) | 5.9% | 4.5% | 5.2% | 2.5% | 0.2% |
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 ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (42 companies) | 3.1% | 2.7% | 2.4% | 2.3% | 2.2% |
|---|
| SunOpta Inc ($SOY) | 2.2% | 2.9% | 1.6% | 2.7% | 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 ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (43 companies) | 8.8% | 9.2% | 8.5% | 7.5% | 8.4% |
|---|
| SunOpta Inc ($SOY) | 8.4% | 5.5% | 8.4% | 1.0% | -3.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| Centric Health Corp ($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 |
| GDI Integrated Facility Services Inc ($GDI) | | | 3.5x | 5.2x | 3.5x |
| |
|---|
| Median (37 companies) | 2.8x | 2.2x | 3.5x | 2.3x | 2.7x |
|---|
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
