CCL Industries Inc is a powerful growth stock
02.03.2017 • About CCL Industries Inc (
$CCL.B) • By InTwits
CCL Industries Inc is a fast-growing stock in Industrial industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
CCL Industries Inc showed growth in the last financial year. CCL Industries Inc's revenue surged on 30.8% in FY2016. The growth also happened in EBITDA of 20.3% for the same period.
If we look for the longer period the company showed fast revenue growth of 28.1% from 2013 to 2016 annually. EBITDA surged on 35.1% from 2013 to 2016 annually.
CCL Industries Inc ($CCL.B) financials for the last 5 years
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 |
|---|
| Revenue | 1,309 | 1,889 | 2,586 | 3,039 | 3,975 |
|---|
| Revenue growth, % | | 44.4% | 36.8% | 17.5% | 30.8% |
|---|
| Gross margin, % | 23.9% | 25.2% | 26.8% | 28.3% | 29.4% |
|---|
| SG&A, % | 12.3% | 13.6% | 13.9% | 13.7% | 15.4% |
|---|
| EBITDA | 257 | 295 | 476 | 606 | 729 |
|---|
| EBITDA growth, % | | 15.1% | 61.2% | 27.2% | 20.3% |
|---|
| EBITDA margin, % | 19.6% | 15.6% | 18.4% | 19.9% | 18.3% |
|---|
| Net Income | 97 | 104 | 217 | 295 | 347 |
|---|
| Net Income margin, % | 7.45% | 5.48% | 8.38% | 9.71% | 8.72% |
|---|
| |
| CAPEX | 94 | 116 | 154 | 172 | 235 |
|---|
| CAPEX/Revenue, % | 7.15% | 6.14% | 5.94% | 5.67% | 5.90% |
|---|
| Debt | 329 | 712 | 659 | 1,006 | 1,601 |
|---|
| Cash | 189 | 209 | 222 | 406 | 585 |
|---|
| Net Debt/EBITDA | 0.5x | 1.7x | 0.9x | 1.0x | 1.4x |
|---|
| |
| ROIC, % | 12.2% | 11.4% | 17.7% | 19.0% | 17.0% |
|---|
| ROE, % | 11.4% | 10.9% | 19.4% | 20.8% | 20.4% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 19.9% in FY2015 to 18.3% in FY2016. In the longer period the company's EBITDA margin surged on 2.70 pp from 15.6% in 2013 to 18.3% in 2016.
We call CCL Industries Inc an attractive growth stock as together with the growth it delivers high ROIC at 17.0%. Three years ago it was lower at 11.4%. It's average ROIC for the last three years was 17.9%.
The company's Net Income margin dropped on 1 pp from 9.70% to 8.70% in 2016. If we look for the longer period Net Income margin surged on 3.20 pp from 5.50% in 2013 to 8.70% in 2016.
CCL Industries Inc operates at ROE of 20.4%. It's average level of ROE for the last three years was 20.2%.
Capital expenditures (CAPEX)
To this fast growth the company had to invest in CAPEX.CCL Industries Inc's CAPEX/Revenue was 5.90% in FY2016. The company showed small CAPEX/Revenue decline of 0.241 pp from 6.14% in 2013 to 5.90% in 2016. Average CAPEX/Revenue for the last three years was 5.84%.
Leverage (Debt)
Having such a fast growth profile CCL Industries Inc keeps medium debt level at 1.4x Net Debt/EBITDA. If we look for the longer period leverage dropped on 0.31x from 1.70x in 2013 to 1.39x in 2016.
Peers in Industrial
Below we provide CCL Industries Inc benchmarking against other companies in Industrial 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Diversified Royalty Corp ($DIV) | | | | 503.3% | |
| Electrovaya Inc ($EFL) | | -71.2% | 160.5% | 123.8% | 17.9% |
| WSP Global Inc ($WSP) | 92.9% | 60.3% | 44.0% | 108.9% | |
| CEMATRIX Corp ($CVX) | 9.2% | -5.6% | 7.9% | 76.5% | |
| Lumenpulse Inc ($LMP) | | 33.9% | 47.0% | 61.8% | 44.1% |
| |
|---|
| Median (93 companies) | 10.1% | 4.9% | 9.1% | 10.3% | 4.8% |
|---|
| CCL Industries Inc ($CCL.B) | | 44.4% | 36.8% | 17.5% | 30.8% |
Top companies by Gross margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
| WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | |
| FLYHT Aerospace Solutions Ltd ($FLY) | 57.2% | 59.2% | 62.9% | 69.3% | |
| Alarmforce Industries Inc ($AF) | 75.0% | 76.5% | 72.2% | 69.2% | 67.4% |
| Epicore BioNetworks Inc ($EBN) | 60.8% | 63.2% | 64.1% | 58.1% | 58.1% |
| |
|---|
| Median (87 companies) | 23.0% | 23.3% | 22.6% | 23.6% | 24.8% |
|---|
| CCL Industries Inc ($CCL.B) | 23.9% | 25.2% | 26.8% | 28.3% | 29.4% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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% |
| Vitreous Glass Inc ($VCI) | 31.4% | 32.2% | 37.8% | 39.0% | 39.8% |
| Photon Control Inc ($PHO) | 17.6% | 24.8% | 29.3% | 38.3% | |
| Evertz Technologies Ltd ($ET) | 29.6% | 29.1% | 23.0% | 27.0% | 27.4% |
| |
|---|
| Median (88 companies) | 9.2% | 8.3% | 7.2% | 7.7% | 11.0% |
|---|
| CCL Industries Inc ($CCL.B) | 19.6% | 15.6% | 18.4% | 19.9% | 18.3% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (92 companies) | 3.0% | 3.5% | 3.1% | 3.2% | 3.8% |
|---|
| CCL Industries Inc ($CCL.B) | 7.1% | 6.1% | 5.9% | 5.7% | 5.9% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Biorem Inc ($BRM) | -15.1% | 32.3% | -29.7% | 54.4% | |
| Vitreous Glass Inc ($VCI) | 30.5% | 32.3% | 48.3% | 51.0% | 52.9% |
| Photon Control Inc ($PHO) | 21.0% | 44.4% | 38.0% | 40.6% | |
| Pacific Safety Products Inc ($PSP) | -1.5% | -11.5% | 3.7% | 38.2% | 12.3% |
| CEMATRIX Corp ($CVX) | 6.4% | -2.4% | -6.7% | 30.4% | |
| |
|---|
| Median (93 companies) | 9.3% | 8.5% | 8.5% | 8.3% | 8.6% |
|---|
| CCL Industries Inc ($CCL.B) | 12.2% | 11.4% | 17.7% | 19.0% | 17.0% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| |
|---|
| Median (75 companies) | 1.5x | 1.4x | 1.3x | 1.0x | 1.5x |
|---|
| CCL Industries Inc ($CCL.B) | 0.5x | 1.7x | 0.9x | 1.0x | 1.4x |
