Alaris Royalty Corp EBITDA surged on 94.7% in 2016 and Revenue surged on 20.3%
07.03.2017 • About Alaris Royalty Corp (
$AD) • By InTwits
Alaris Royalty Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Alaris Royalty Corp is a fast growth stock: 2016 revenue growth was 20.3%, 5 year revenue CAGR was 16.8% at 2016 ROIC 12.3%
- Alaris Royalty Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has highly profitable business model: ROIC is at 12.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Alaris Royalty Corp ($AD) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 32.106 | 65.107 | 68.171 | 81.895 | 98.486 | 20.3% |
| SG&A | 0.971 | 1.371 | 1.947 | 2.849 | 3.297 | 15.7% |
| EBITDA | 26.106 | 40.241 | 55.739 | 49.187 | 95.776 | 94.7% |
| Net Income | 18.036 | 29.824 | 49.049 | 57.862 | 66.553 | 15.0% |
Balance Sheet
|
|---|
| Cash | 3.638 | 8.998 | 13.484 | 20.991 | 29.491 | 40.5% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 50.000 | 44.500 | 35.500 | 77.447 | 99.383 | 28.3% |
Cash flow
|
|---|
| Capex | 0.010 | 0.015 | 0.069 | 0.795 | 0.043 | -94.6% |
Ratios
|
|---|
| Revenue growth | -29.3% | 102.8% | 4.7% | 20.1% | 20.3% | |
| EBITDA growth | -40.7% | 54.1% | 38.5% | -11.8% | 94.7% | |
| EBITDA Margin | 81.3% | 61.8% | 81.8% | 60.1% | 97.2% | 37.2% |
| Net Income Margin | 56.2% | 45.8% | 72.0% | 70.7% | 67.6% | -3.1% |
| SG&A, % of revenue | 3.0% | 2.1% | 2.9% | 3.5% | 3.3% | -0.1% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.1% | 1.0% | 0.0% | -0.9% |
| ROIC | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% | 5.0% |
| ROE | 7.0% | 8.4% | 10.2% | 9.6% | 10.0% | 0.4% |
| Net Debt/EBITDA | 1.8x | 0.9x | 0.4x | 1.1x | 0.7x | -0.4x |
Alaris Royalty Corp ($AD) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 24 | 25 | 23 | 27 | 29.1% | 40.6% | 0.2% | 17.5% |
| EBITDA | 39 | 12 | 22 | 23 | 111.2% | -14.7% | | 14.3% |
| Net Income | 21 | 7 | 17 | 22 | -4.4% | -21.3% | 163.3% | 4.9% |
Balance Sheet
|
|---|
| Cash | 56 | 11 | 68 | 29 | 134.7% | -46.3% | 364.8% | 40.5% |
| Short Term Debt | 0 | 0 | 0 | 0 | | -100.0% | -100.0% | |
| Long Term Debt | 115 | 125 | 140 | 99 | | 66.4% | 349.1% | 28.3% |
Ratios
|
|---|
| EBITDA Margin | 162.5% | 47.3% | 95.5% | 85.5% | 63.1% | -30.7% | 109.3% | -2.4% |
| Net Income Margin | 85.9% | 28.7% | 74.5% | 80.6% | -30.1% | -22.6% | 46.1% | -9.7% |
Revenue and profitability
The company's Revenue jumped on 20.3%. Revenue growth showed slow down in 16Q4 - it was 17.5% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 111 pp from -69.8% to 41.6% in 2016.
SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased on 3.1 pp from 70.7% to 67.6% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Alaris Royalty Corp had CAPEX/Revenue of 0.044%. The company's CAPEX/Revenue showed almost no change from 2013 to 2016. It's average level of CAPEX/Revenue for the last three years was 0.37%.
Return on investment
The company operates at good ROIC (12.29%) while ROE is low (9.99%). ROIC increased on 5.0 pp from 7.3% to 12.3% in 2016. ROE showed almost no change in 2016.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 1.1x to 0.7x in 2016. Debt jumped on 28.3% while cash surged on 40.5%.
Management team
Alaris Royalty Corp's CEO is Stephen Walter King "Steve". Stephen Walter King "Steve" is a founder and has 10 years tenure at the company. The company's CFO Darren Driscoll has spent 13 years at the company.
Appendix 1: Peers in Financial
Below we provide Alaris Royalty Corp benchmarking against other companies in Financial 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 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (53 companies) | | 7.0% | 9.1% | 3.0% | 5.1% |
|---|
| Alaris Royalty Corp ($AD) | | 102.8% | 4.7% | 20.1% | 20.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (9 companies) | 28.1% | 30.7% | 28.3% | 43.4% | 30.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (36 companies) | 39.5% | 32.1% | 38.2% | 30.0% | 42.2% |
|---|
| Alaris Royalty Corp ($AD) | 81.3% | 61.8% | 81.8% | 60.1% | 97.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (55 companies) | 0.6% | 0.6% | 0.7% | 0.7% | 0.9% |
|---|
| Alaris Royalty Corp ($AD) | 0.0% | 0.0% | 0.1% | 1.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| Slate Retail REIT ($SRT.UN) | | 6.0% | 9.8% | 8.4% | 9.4% |
| |
|---|
| Median (55 companies) | 4.4% | 3.3% | 3.9% | 2.8% | 3.0% |
|---|
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (27 companies) | 5.5x | 4.8x | 4.7x | 6.5x | 9.7x |
|---|
| Alaris Royalty Corp ($AD) | 1.8x | 0.9x | 0.4x | 1.1x | 0.7x |
