CanWel Building Materials Group Ltd reports 306% Net Income growth
07.03.2017 • About CanWel Building Materials Group Ltd (
$CWX) • By InTwits
CanWel Building Materials Group Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 9.7x while industry average is 2.8x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
CanWel Building Materials Group Ltd ($CWX) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 710.6 | 725.8 | 759.5 | 824.7 | 978.3 | 18.6% |
| Gross Profit | 76.6 | 80.2 | 89.9 | 101.1 | | -100.0% |
| SG&A | | 58.0 | 60.9 | 68.9 | | -100.0% |
| EBITDA | 18.8 | 22.2 | 28.9 | 32.1 | | -100.0% |
| Net Income | 7.6 | 9.1 | 12.3 | 12.3 | 49.9 | 305.9% |
Balance Sheet
|
|---|
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | | |
| Short Term Debt | 11.3 | 7.9 | 8.2 | 8.5 | | -100.0% |
| Long Term Debt | 43.6 | 119.5 | 131.2 | 153.8 | | -100.0% |
Cash flow
|
|---|
| Capex | 7.6 | 1.3 | 3.4 | 4.9 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 2.5% | 2.1% | 4.6% | 8.6% | 18.6% | |
| EBITDA growth | 50.0% | 17.8% | 30.4% | 11.1% | | |
| Gross Margin | 10.8% | 11.1% | 11.8% | 12.3% | | -12.3% |
| EBITDA Margin | 2.6% | 3.1% | 3.8% | 3.9% | 0.0% | -3.9% |
| Net Income Margin | 1.1% | 1.3% | 1.6% | 1.5% | 5.1% | 3.6% |
| SG&A, % of revenue | | 8.0% | 8.0% | 8.4% | | -8.4% |
| CAPEX, % of revenue | 1.1% | 0.2% | 0.4% | 0.6% | | -0.6% |
| ROIC | 9.8% | 9.5% | 10.1% | 8.5% | | -8.5% |
| ROE | 6.5% | 8.5% | 11.9% | 9.1% | | -9.1% |
| Net Debt/EBITDA | 2.9x | 5.7x | 4.8x | 5.1x | | -5.1x |
CanWel Building Materials Group Ltd ($CWX) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 198 | 290 | 276 | 214 | 24.0% | 29.2% | 11.7% | 10.8% |
| EBITDA | 6 | 20 | 17 | 8 | 242.7% | 67.4% | 26.6% | 21.2% |
| Net Income | 1 | 41 | 7 | 0 | | 577.0% | 11.1% | -41.9% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | | -100.0% | |
| Short Term Debt | 13 | 49 | 9 | 6 | 37.6% | 436.3% | 10.6% | -25.9% |
| Long Term Debt | 223 | 207 | 139 | 171 | 12.3% | 10.1% | -3.2% | 11.2% |
Ratios
|
|---|
| Gross Margin | 12.5% | 13.7% | 13.2% | 11.6% | 2.3% | 1.7% | 0.5% | -1.6% |
| EBITDA Margin | 2.8% | 6.7% | 6.3% | 3.6% | 1.8% | 1.5% | 0.7% | 0.3% |
| Net Income Margin | 0.5% | 14.2% | 2.7% | 0.2% | 1.2% | 11.5% | -0.0% | -0.2% |
Revenue and profitability
CanWel Building Materials Group Ltd's Revenue surged on 18.6%. Revenue growth showed slow down in FY16Q4 - it was 10.8% YoY.
Net Income marign increased on 3.6 pp from 1.5% to 5.1% in FY2016.
Appendix 1: Peers in Consumer, Cyclical
Below we provide CanWel Building Materials Group Ltd benchmarking against other companies in Consumer, Cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
| Spin Master Corp ($TOY) | | 21.5% | 41.0% | 22.9% | 31.3% |
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| Linamar Corp ($LNR) | | 11.6% | 16.0% | 23.8% | 16.3% |
| |
|---|
| Median (35 companies) | | 5.2% | 7.2% | 6.1% | 4.6% |
|---|
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| Canlan Ice Sports Corp ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (36 companies) | 38.1% | 34.2% | 33.5% | 32.6% | 34.6% |
|---|
| CanWel Building Materials Group Ltd ($CWX) | 10.8% | 11.1% | 11.8% | 12.3% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (38 companies) | 8.6% | 10.2% | 12.4% | 11.0% | 15.1% |
|---|
| CanWel Building Materials Group Ltd ($CWX) | 2.6% | 3.1% | 3.8% | 3.9% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | 9.3% |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | 22.4% |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Innova Gaming Group Inc ($IGG) | 20.6% | 26.7% | 15.9% | 15.6% | 15.1% |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (41 companies) | 3.2% | 3.2% | 3.4% | 3.5% | 4.9% |
|---|
| CanWel Building Materials Group Ltd ($CWX) | 1.1% | 0.2% | 0.4% | 0.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($TOY) | | 19.2% | 56.9% | 48.2% | 44.5% |
| Magna International Inc ($MG) | 16.3% | 18.6% | 25.2% | 21.9% | 21.2% |
| Linamar Corp ($LNR) | 12.9% | 17.0% | 21.7% | 23.7% | 19.8% |
| Sleep Country Canada Holdings Inc ($ZZZ) | | | 9.7% | 12.7% | 19.0% |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (41 companies) | 11.0% | 12.6% | 10.9% | 10.9% | 11.2% |
|---|
| CanWel Building Materials Group Ltd ($CWX) | 9.8% | 9.5% | 10.1% | 8.5% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (34 companies) | 1.7x | 2.5x | 2.3x | 2.4x | 2.1x |
|---|
| CanWel Building Materials Group Ltd ($CWX) | 2.9x | 5.7x | 4.8x | 5.1x | |
