Hammond Power Solutions Inc reports 7.2 pp EBITDA Margin decline from 7.2% to in 2016
09.03.2017 • About Hammond Power Solutions Inc (
$HPS.A) • By InTwits
Hammond Power Solutions Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 3.3x while industry average is 2.2x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Hammond Power Solutions Inc ($HPS.A) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 257.4 | 242.9 | 247.8 | 274.6 | 274.8 | 0.1% |
| Gross Profit | 64.8 | 60.6 | 57.5 | 65.9 | | -100.0% |
| SG&A | 25.9 | 27.2 | 28.2 | 53.2 | | -100.0% |
| EBITDA | 23.3 | 17.1 | 13.0 | 19.7 | | -100.0% |
| Net Income | 12.6 | 6.1 | 2.5 | 6.2 | 1.8 | -70.9% |
Balance Sheet
|
|---|
| Cash | 13.7 | 11.2 | 6.5 | 20.0 | | -100.0% |
| Short Term Debt | 13.5 | 28.0 | 17.5 | 33.2 | | -100.0% |
| Long Term Debt | 1.2 | 4.3 | 3.8 | 0.0 | | |
Cash flow
|
|---|
| Capex | 4.0 | 3.7 | 12.9 | 2.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 16.3% | -5.6% | 2.0% | 10.9% | 0.1% | |
| EBITDA growth | 30.0% | -26.6% | -24.0% | 51.3% | | |
| Gross Margin | 25.2% | 24.9% | 23.2% | 24.0% | | -24.0% |
| EBITDA Margin | 9.1% | 7.1% | 5.3% | 7.2% | 0.0% | -7.2% |
| Net Income Margin | 4.9% | 2.5% | 1.0% | 2.2% | 0.7% | -1.6% |
| SG&A, % of revenue | 10.1% | 11.2% | 11.4% | 19.4% | | -19.4% |
| CAPEX, % of revenue | 1.6% | 1.5% | 5.2% | 0.7% | | -0.7% |
| ROIC | 16.5% | 8.2% | 4.5% | 5.4% | | -5.4% |
| ROE | 13.2% | 5.9% | 2.3% | 5.1% | | -5.1% |
| Net Debt/EBITDA | 0.0x | 1.2x | 1.1x | 0.7x | | -0.7x |
Hammond Power Solutions Inc ($HPS.A) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 69 | 69 | 63 | 74 | 8.8% | 5.7% | -3.9% | -8.3% |
| Net Income | 1 | 1 | 0 | 0 | 10.4% | -42.7% | -89.7% | -91.0% |
Balance Sheet
|
|---|
Ratios
|
|---|
| Net Income Margin | 1.2% | 0.8% | 0.2% | 0.4% | 0.0% | -0.7% | -1.5% | -3.6% |
Revenue and profitability
Hammond Power Solutions Inc's Revenue showed almost no change in FY2016. Revenue growth showed slow down in FY16Q4 - it was -8.3% YoY.
Net Income marign decreased slightly on 1.6 pp from 2.2% to 0.65% in FY2016.
Appendix 1: Peers in Industrial
Below you can find Hammond Power Solutions Inc benchmarking vs. other companies in Industrial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progressive Waste Solutions Ltd ($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) | | 5.3% | 10.4% | 7.7% | 3.2% |
|---|
| Hammond Power Solutions Inc ($HPS.A) | | -5.6% | 2.0% | 10.9% | 0.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($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% |
|---|
| Hammond Power Solutions Inc ($HPS.A) | 25.2% | 24.9% | 23.2% | 24.0% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($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) | 10.5% | 8.4% | 8.6% | 9.5% | 11.1% |
|---|
| Hammond Power Solutions Inc ($HPS.A) | 9.1% | 7.1% | 5.3% | 7.2% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($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% | 3.7% | 4.3% | 3.9% | 4.3% |
|---|
| Hammond Power Solutions Inc ($HPS.A) | 1.6% | 1.5% | 5.2% | 0.7% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($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% | 9.7% | 11.5% | 8.9% | 9.0% |
|---|
| Hammond Power Solutions Inc ($HPS.A) | 16.5% | 8.2% | 4.5% | 5.4% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($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 | 1.6x | 1.3x | 1.0x | 1.9x |
|---|
| Hammond Power Solutions Inc ($HPS.A) | 0.0x | 1.2x | 1.1x | 0.7x | |
