DH Corp Net Income dropped on 181% in 2016 and EBITDA Margin dropped on 10.5 pp from 28.2% to 17.7%
07.03.2017 • About DH Corp (
$DH) • By InTwits
DH Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- DH Corp doesn't have a profitable business model yet: 2016 ROIC is -0.3%
- DH Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.5%. At the same time it's a lot of higher than industry average of 7.8%.
- CAPEX is quite volatile: 35.2 in 2016, 28.1 in 2015, 12.6 in 2014, 11.6 in 2013, 7.7 in 2012
- The company has unprofitable business model: ROIC is at -0.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
DH Corp ($DH) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 695 | 837 | 1,139 | 1,507 | 1,680 | 11.5% |
| EBITDA | 182 | 199 | 335 | 425 | 298 | -29.9% |
| Net Income | 69 | 44 | 106 | 84 | -68 | -180.5% |
Balance Sheet
|
|---|
| Cash | 6 | 32 | 35 | 66 | 58 | -12.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | 80 | |
| Long Term Debt | 341 | 1,134 | 985 | 2,059 | 1,864 | -9.5% |
Cash flow
|
|---|
| Capex | 8 | 12 | 13 | 28 | 35 | 25.2% |
Ratios
|
|---|
| Revenue growth | -4.0% | 20.4% | 36.1% | 32.3% | 11.5% | |
| EBITDA growth | 2.4% | 9.8% | 68.1% | 26.7% | -29.9% | |
| EBITDA Margin | 26.1% | 23.8% | 29.4% | 28.2% | 17.7% | -10.5% |
| Net Income Margin | 9.9% | 5.2% | 9.3% | 5.6% | -4.0% | -9.6% |
| CAPEX, % of revenue | 1.1% | 1.4% | 1.1% | 1.9% | 2.1% | 0.2% |
| ROIC | 9.9% | 5.3% | 6.6% | 4.4% | -0.3% | -4.7% |
| ROE | 9.8% | 4.7% | 8.4% | 4.4% | -3.0% | -7.4% |
| Net Debt/EBITDA | 1.8x | 5.5x | 2.8x | 4.7x | 6.3x | 1.6x |
DH Corp ($DH) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 412 | 424 | 418 | 426 | 39.7% | 13.9% | 0.6% | 0.4% |
| EBITDA | 92 | 95 | 106 | 4 | -1.8% | 10.2% | -16.5% | -96.8% |
| Net Income | 5 | 5 | 17 | -94 | -85.9% | -10.0% | -46.0% | -808.1% |
Balance Sheet
|
|---|
| Cash | 55 | 45 | 48 | 58 | 1,200.5% | -28.7% | -9.4% | -12.4% |
| Short Term Debt | 0 | 80 | 80 | 80 | | | | |
| Long Term Debt | 1,950 | 1,856 | 1,860 | 1,864 | 84.6% | -5.2% | -8.5% | -9.5% |
Ratios
|
|---|
| EBITDA Margin | 22.4% | 22.4% | 25.5% | 0.9% | -9.5% | -0.8% | -5.2% | -26.7% |
| Net Income Margin | 1.2% | 1.3% | 4.0% | -22.2% | -10.4% | -0.3% | -3.4% | -25.3% |
Revenue and profitability
DH Corp's Revenue surged on 11.5%. Revenue growth showed slow down in 16Q4 - it was 0.4% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 10.5 pp from 28.2% to 17.7% in 2016.
Net Income marign decreased on 9.6 pp from 5.6% to -4.0% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 2.1%. CAPEX/Revenue increased slightly on 0.70 pp from 1.4% in 2013 to 2.1% in 2016. It's average CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at negative ROIC (-0.30%) and ROE (-3.01%). ROIC decreased on 4.7 pp from 4.4% to -0.30% in 2016. ROE decreased on 7.4 pp from 4.4% to -3.0% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 6.3x and Debt / EBITDA is 6.5x. Net Debt / EBITDA surged on 1.6x from 4.7x to 6.3x in 2016. Debt decreased on 5.6% while cash dropped on 12.4%.
Management team
DH Corp's CEO Gerrard B Schmid is a founder and has spent 4 years at the company.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find DH Corp benchmarking vs. other companies in Consumer, Non-cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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) | | 8.5% | 13.7% | 14.9% | 12.8% |
|---|
| DH Corp ($DH) | | 20.4% | 36.1% | 32.3% | 11.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($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 (35 companies) | 32.5% | 37.1% | 35.7% | 35.7% | 31.1% |
|---|
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 ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (43 companies) | 9.1% | 12.0% | 12.7% | 11.0% | 10.0% |
|---|
| DH Corp ($DH) | 26.1% | 23.8% | 29.4% | 28.2% | 17.7% |
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 ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (42 companies) | 3.1% | 2.8% | 2.4% | 2.4% | 2.1% |
|---|
| DH Corp ($DH) | 1.1% | 1.4% | 1.1% | 1.9% | 2.1% |
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 ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (43 companies) | 8.6% | 9.2% | 8.5% | 7.5% | 8.4% |
|---|
| DH Corp ($DH) | 9.9% | 5.3% | 6.6% | 4.4% | -0.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| 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 ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | 12.7x |
| |
|---|
| Median (37 companies) | 2.9x | 2.2x | 3.5x | 2.3x | 2.7x |
|---|
| DH Corp ($DH) | 1.8x | 5.5x | 2.8x | 4.7x | 6.3x |
