Pizza Pizza Royalty Corp Net Income increased on 5.9% in 2016 and Revenue increased slightly on 1.5%
08.03.2017 • About Pizza Pizza Royalty Corp (
$PZA) • By InTwits
Pizza Pizza Royalty Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with average profitability: ROIC is at 10.2%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pizza Pizza Royalty Corp ($PZA) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 31.275 | 31.942 | 33.013 | 34.808 | 35.333 | 1.5% |
| SG&A | | | | 0.624 | 0.678 | 8.7% |
| Net Income | 8.118 | 23.751 | 25.018 | 25.238 | 26.731 | 5.9% |
Balance Sheet
|
|---|
| Cash | 4.167 | 1.267 | 1.355 | 2.236 | 2.134 | -4.6% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 46.870 | 46.902 | 46.934 | 46.937 | 46.977 | 0.1% |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | 3.0% | 2.1% | 3.4% | 5.4% | 1.5% | |
| Net Income Margin | 26.0% | 74.4% | 75.8% | 72.5% | 75.7% | 3.1% |
| SG&A, % of revenue | | | | 1.8% | 1.9% | 0.1% |
| ROIC | 10.5% | 9.7% | 9.9% | 10.2% | 10.2% | -0.0% |
| ROE | 3.5% | 8.8% | 9.2% | 9.2% | 9.7% | 0.5% |
Pizza Pizza Royalty Corp ($PZA) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 9 | 9 | 9 | 9 | 2.4% | 0.8% | 2.2% | 0.6% |
| Net Income | 7 | 6 | 7 | 7 | 2.8% | 21.0% | 4.3% | -1.3% |
Balance Sheet
|
|---|
| Cash | 2 | 2 | 2 | 2 | 61.0% | -0.6% | -11.2% | -4.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 47 | 47 | 47 | 47 | 0.0% | 0.1% | 0.1% | 0.1% |
Ratios
|
|---|
| Net Income Margin | 76.6% | 75.1% | 77.3% | 73.7% | 0.3% | 12.5% | 1.6% | -1.4% |
Revenue and profitability
The company's Revenue increased slightly on 1.5%. Revenue growth showed slow down in 16Q4 - it was 0.6% YoY.
SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign increased on 3.1 pp from 72.5% to 75.7% in 2016.
Return on investment
The company operates at low ROIC (10.21%) and ROE (9.74%). ROIC showed almost no change in 2016. ROE increased slightly on 0.52 pp from 9.2% to 9.7% in 2016.
Leverage (Debt)
Debt showed almost no change in 2016 while cash decreased on 4.6%.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Pizza Pizza Royalty Corp benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($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 ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| |
|---|
| Median (35 companies) | | 5.2% | 7.2% | 7.5% | 5.5% |
|---|
| Pizza Pizza Royalty Corp ($PZA) | | 2.1% | 3.4% | 5.4% | 1.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($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 (37 companies) | 36.1% | 31.6% | 32.5% | 31.5% | 34.6% |
|---|
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 ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (39 companies) | 8.1% | 9.8% | 12.3% | 10.1% | 15.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($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% | 5.0% |
|---|
| Pizza Pizza Royalty Corp ($PZA) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($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) | 10.7% | 12.6% | 10.9% | 10.9% | 11.4% |
|---|
| Pizza Pizza Royalty Corp ($PZA) | 10.5% | 9.7% | 9.9% | 10.2% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($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 (35 companies) | 1.9x | 2.8x | 2.4x | 2.5x | 2.1x |
|---|
