ENTREC Corp revenue dropped on 31.1% in 2016
07.03.2017 • About ENTREC Corp (
$ENT) • By InTwits
ENTREC Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: in FY2016 vs. 11.7% in FY2015 vs. 23.3% in FY2012
- It operates with high leverage: Net Debt/EBITDA is 10.9x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
ENTREC Corp ($ENT) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 132.5 | 212.9 | 232.2 | 165.5 | 114.1 | -31.1% |
| Gross Profit | 45.1 | 72.5 | 67.4 | 40.2 | | -100.0% |
| SG&A | | | | 19.5 | | -100.0% |
| EBITDA | 30.8 | 50.6 | 43.5 | 19.4 | | -100.0% |
| Net Income | 12.1 | 15.8 | -76.4 | -14.6 | -23.9 | |
Balance Sheet
|
|---|
| Cash | 2.5 | 0.7 | 0.5 | 0.1 | | -100.0% |
| Short Term Debt | 15.5 | 22.4 | 2.4 | 5.3 | | -100.0% |
| Long Term Debt | 92.6 | 109.6 | 176.0 | 157.3 | | -100.0% |
Cash flow
|
|---|
| Capex | 46.4 | 56.8 | 68.5 | 29.8 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 573.9% | 60.7% | 9.1% | -28.7% | -31.1% | |
| EBITDA growth | | 64.3% | -14.0% | -55.6% | | |
| Gross Margin | 34.0% | 34.1% | 29.0% | 24.3% | | -24.3% |
| EBITDA Margin | 23.3% | 23.8% | 18.7% | 11.7% | 0.0% | -11.7% |
| Net Income Margin | 9.1% | 7.4% | -32.9% | -8.8% | -20.9% | -12.1% |
| SG&A, % of revenue | | | | 11.8% | | -11.8% |
| CAPEX, % of revenue | 35.0% | 26.7% | 29.5% | 18.0% | | -18.0% |
| ROIC | | 9.7% | 4.7% | -3.1% | | 3.1% |
| ROE | | 10.7% | -55.8% | -16.7% | | 16.7% |
| Net Debt/EBITDA | 3.4x | 2.6x | 4.1x | 8.4x | | -8.4x |
ENTREC Corp ($ENT) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 31 | 25 | 28 | 30 | -40.1% | -34.5% | -31.1% | -14.4% |
| EBITDA | -0 | 1 | 3 | 0 | -103.4% | -76.4% | -58.3% | -99.9% |
| Net Income | -5 | -3 | -5 | -11 | | | | |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | -84.4% | -53.2% | 404.0% | -69.6% |
| Short Term Debt | 5 | 2 | 2 | 1 | 91.3% | -7.2% | -49.7% | -71.7% |
| Long Term Debt | 152 | 143 | 146 | 145 | -16.5% | -20.9% | -11.9% | -8.0% |
Ratios
|
|---|
| Gross Margin | 17.3% | 16.8% | 19.7% | 11.6% | -7.1% | -6.7% | -8.2% | -9.2% |
| EBITDA Margin | -0.8% | 3.3% | 9.2% | 0.0% | -13.9% | -5.8% | -6.0% | -8.4% |
| Net Income Margin | -15.7% | -12.8% | -17.9% | -35.9% | -12.2% | 3.0% | -12.3% | -23.1% |
Revenue and profitability
The company's Revenue dropped on 31.1%. Annual revenue decline showed slowdown in FY16Q4 - revenue dropped on 14.4%.
Net Income marign dropped on 12.1 pp from -8.8% to -20.9% in FY2016.
Appendix 1: Peers in Industrial
Below we provide ENTREC Corp benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progressive Waste Solutions Ltd ($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) | | 4.9% | 10.4% | 8.5% | 3.2% |
|---|
| ENTREC Corp ($ENT) | | 60.7% | 9.1% | -28.7% | -31.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($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% | 23.4% | 20.9% | 21.5% | 22.2% |
|---|
| ENTREC Corp ($ENT) | 34.0% | 34.1% | 29.0% | 24.3% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($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) | 10.2% | 8.3% | 8.0% | 7.8% | 11.1% |
|---|
| ENTREC Corp ($ENT) | 23.3% | 23.8% | 18.7% | 11.7% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($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% | 4.3% |
|---|
| ENTREC Corp ($ENT) | 35.0% | 26.7% | 29.5% | 18.0% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($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% | 9.6% | 11.5% | 8.9% | 9.0% |
|---|
| ENTREC Corp ($ENT) | | 9.7% | 4.7% | -3.1% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($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 | 1.2x | 1.0x | 1.9x |
|---|
| ENTREC Corp ($ENT) | 3.4x | 2.6x | 4.1x | 8.4x | |
