CEMATRIX Corp Net Income dropped on 168% in 2016 and EBITDA Margin dropped on 23.3 pp from 16.8% to -6.5%
02.03.2017 • About CEMATRIX Corp (
$CVX) • By InTwits
CEMATRIX Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- CEMATRIX Corp doesn't have a profitable business model yet: 2016 ROIC is -15.5%
- The company operates at negative EBITDA Margin: -6.5%
- EBITDA Margin is quite volatile: -6.5% in 2016, 16.8% in 2015, -0.4% in 2014, 2.5% in 2013, 7.0% in 2012
- CEMATRIX Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.8%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 0.34 in 2016, 0.69 in 2015, 0.89 in 2014, 0.59 in 2013, 0.29 in 2012
- The company has unprofitable business model: ROIC is at -15.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CEMATRIX Corp ($CVX) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8.549 | 8.072 | 8.712 | 15.380 | 9.599 | -37.6% |
| Gross Profit | 2.258 | 1.689 | 1.889 | 4.927 | 1.316 | -73.3% |
| SG&A | 0.875 | 0.791 | 0.988 | 2.492 | 2.284 | -8.4% |
| EBITDA | 0.597 | 0.205 | -0.038 | 2.583 | -0.621 | -124.0% |
| Net Income | 0.856 | -0.220 | -0.571 | 1.590 | -1.081 | -168.0% |
Balance Sheet
|
|---|
| Cash | 0.052 | 0.017 | 0.050 | 1.451 | 0.084 | -94.2% |
| Short Term Debt | 1.100 | 0.829 | 1.646 | 1.093 | 0.395 | -63.9% |
| Long Term Debt | 0.492 | 0.816 | 2.016 | 1.877 | 2.124 | 13.1% |
Cash flow
|
|---|
| Capex | 0.286 | 0.594 | 0.886 | 0.692 | 0.342 | -50.5% |
Ratios
|
|---|
| Revenue growth | 9.2% | -5.6% | 7.9% | 76.5% | -37.6% | |
| EBITDA growth | -37.1% | -65.7% | -118.5% | -6,930.0% | -124.0% | |
| Gross Margin | 26.4% | 20.9% | 21.7% | 32.0% | 13.7% | -18.3% |
| EBITDA Margin | 7.0% | 2.5% | -0.4% | 16.8% | -6.5% | -23.3% |
| Net Income Margin | 10.0% | -2.7% | -6.6% | 10.3% | -11.3% | -21.6% |
| SG&A, % of revenue | 10.2% | 9.8% | 11.3% | 16.2% | 23.8% | 7.6% |
| CAPEX, % of revenue | 3.3% | 7.4% | 10.2% | 4.5% | 3.6% | -0.9% |
| ROIC | 6.4% | -2.4% | -6.7% | 30.4% | -15.5% | -45.9% |
| ROE | 24.6% | -5.8% | -15.4% | 34.7% | -21.5% | -56.2% |
| Net Debt/EBITDA | 2.6x | 8.0x | | 0.6x | | -0.6x |
CEMATRIX Corp ($CVX) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 3 | 3 | 1 | 12.5% | 27.3% | -38.8% | |
| EBITDA | 0 | -0 | -0 | -0 | 66.2% | -158.7% | -128.6% | |
| Net Income | -0 | -0 | -0 | -1 | -162.6% | | -151.7% | |
Balance Sheet
|
|---|
| Cash | 1 | 0 | 0 | 0 | 3,663.5% | -24.1% | -34.1% | |
| Short Term Debt | 1 | 0 | 1 | 0 | -19.6% | -68.9% | -28.5% | |
| Long Term Debt | 2 | 2 | 2 | 2 | -6.7% | -7.8% | -5.1% | |
Ratios
|
|---|
| Gross Margin | 23.0% | 17.9% | 5.9% | -4.7% | 0.4% | -8.7% | -36.1% | |
| EBITDA Margin | 7.1% | -1.2% | -13.7% | -40.3% | 2.3% | -3.8% | -42.9% | |
| Net Income Margin | -0.1% | -5.0% | -15.5% | -47.2% | -0.3% | -2.2% | -33.9% | |
Revenue and profitability
CEMATRIX Corp's Revenue dropped on 37.6%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 23.3 pp from 16.8% to -6.5% in 2016.
Gross Margin dropped on 18.3 pp from 32.0% to 13.7% in 2016. SG&A as a % of Revenue increased on 7.6 pp from 16.2% to 23.8% in 2016.
Net Income marign dropped on 21.6 pp from 10.3% to -11.3% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 3.6%. CEMATRIX Corp showed decline in CAPEX/Revenue of 3.8 pp from 7.4% in 2013 to 3.6% in 2016. It's average level of CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at negative ROIC (-15.49%) and ROE (-21.51%). ROIC dropped on 45.9 pp from 30.4% to -15.5% in 2016. ROE dropped on 56.2 pp from 34.7% to -21.5% in 2016.
Leverage (Debt)
Debt level is -1.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 0.6x to in 2016. Debt dropped on 15.2% while cash dropped on 94.2%.
Appendix 1: Peers in Industrial
Below we provide CEMATRIX Corp 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, %
| 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% | 7.7% | 3.2% |
|---|
| CEMATRIX Corp ($CVX) | | -5.6% | 7.9% | 76.5% | -37.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($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) | 23.4% | 24.0% | 21.1% | 21.5% | 22.9% |
|---|
| CEMATRIX Corp ($CVX) | 26.4% | 20.9% | 21.7% | 32.0% | 13.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($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% | 7.8% | 11.1% |
|---|
| CEMATRIX Corp ($CVX) | 7.0% | 2.5% | -0.4% | 16.8% | -6.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($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% | 3.6% | 4.3% | 3.7% | 4.8% |
|---|
| CEMATRIX Corp ($CVX) | 3.3% | 7.4% | 10.2% | 4.5% | 3.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($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% | 8.3% | 9.7% |
|---|
| CEMATRIX Corp ($CVX) | 6.4% | -2.4% | -6.7% | 30.4% | -15.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($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 | 1.3x | 1.0x | 1.9x |
|---|
| CEMATRIX Corp ($CVX) | 2.6x | 8.0x | | 0.6x | |
