Intertape Polymer Group Inc reports 45.7% CAPEX growth and 3.4% Revenue growth
09.03.2017 • About Intertape Polymer Group Inc (
$ITP) • By InTwits
Intertape Polymer Group Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Intertape Polymer Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 7.1%.
- CAPEX is quite volatile: 265 in 2016, 124 in 2015, 84.1 in 2014, 80.3 in 2013, 63.3 in 2012
- The company has highly profitable business model: ROIC is at 21.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Intertape Polymer Group Inc ($ITP) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 784.4 | 781.5 | 812.7 | 781.9 | 808.8 | 3.4% |
| Gross Profit | 138.7 | 158.5 | 163.6 | 168.0 | 191.5 | 14.0% |
| SG&A | 79.1 | 82.7 | 86.0 | 84.1 | 102.6 | 22.0% |
| EBITDA | 65.5 | 66.0 | 91.0 | 101.7 | 106.7 | 4.9% |
| Net Income | 20.4 | 67.4 | 35.8 | 56.7 | 51.1 | -9.8% |
Balance Sheet
|
|---|
| Cash | 5.9 | 2.5 | 8.3 | 17.6 | 21.0 | 19.0% |
| Short Term Debt | 9.7 | 8.7 | 5.7 | 5.7 | 7.6 | 33.4% |
| Long Term Debt | 141.6 | 121.1 | 117.6 | 147.1 | 172.2 | 17.1% |
Cash flow
|
|---|
| Capex | 21.6 | 46.8 | 40.6 | 34.3 | 50.0 | 45.7% |
Ratios
|
|---|
| Revenue growth | -0.3% | -0.4% | 4.0% | -3.8% | 3.4% | |
| EBITDA growth | 10.5% | 0.6% | 38.1% | 11.7% | 4.9% | |
| Gross Margin | 17.7% | 20.3% | 20.1% | 21.5% | 23.7% | 2.2% |
| EBITDA Margin | 8.4% | 8.4% | 11.2% | 13.0% | 13.2% | 0.2% |
| Net Income Margin | 2.6% | 8.6% | 4.4% | 7.2% | 6.3% | -0.9% |
| SG&A, % of revenue | 10.1% | 10.6% | 10.6% | 10.8% | 12.7% | 1.9% |
| CAPEX, % of revenue | 2.7% | 6.0% | 5.0% | 4.4% | 6.2% | 1.8% |
| ROIC | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% | -2.0% |
| ROE | 14.0% | 35.1% | 15.6% | 25.5% | 22.6% | -3.0% |
| Net Debt/EBITDA | 2.2x | 1.9x | 1.3x | 1.3x | 1.5x | 0.2x |
Intertape Polymer Group Inc ($ITP) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 191 | 202 | 207 | 210 | 1.0% | 2.5% | 3.0% | 7.3% |
| EBITDA | 21 | 28 | 17 | 41 | -9.7% | 13.2% | -42.5% | 64.2% |
| Net Income | 10 | 14 | 6 | 22 | -19.1% | 16.3% | -60.1% | 24.0% |
Balance Sheet
|
|---|
| Cash | 14 | 13 | 6 | 21 | -41.2% | -14.7% | -59.9% | 19.0% |
| Short Term Debt | 6 | 6 | 6 | 8 | 0.4% | 3.8% | 7.2% | 33.4% |
| Long Term Debt | 165 | 162 | 200 | 172 | 7.2% | 2.5% | 31.6% | 17.1% |
Ratios
|
|---|
| Gross Margin | 21.5% | 25.7% | 21.7% | 25.6% | 2.0% | 4.1% | 0.4% | 2.2% |
| EBITDA Margin | 10.8% | 13.9% | 8.0% | 19.7% | -1.3% | 1.3% | -6.3% | 6.8% |
| Net Income Margin | 5.0% | 6.8% | 3.0% | 10.3% | -1.2% | 0.8% | -4.8% | 1.4% |
Revenue and profitability
The company's Revenue increased on 3.4%. Revenue growth showed acceleration in 16Q4 - it increased 7.3% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 38.7 pp from -41.2% to -2.5% in FY2016.
Gross Margin increased on 2.2 pp from 21.5% to 23.7% in 2016. SG&A as a % of Revenue increased slightly on 1.9 pp from 10.8% to 12.7% in 2016.
Net Income marign decreased slightly on 0.93 pp from 7.2% to 6.3% in 2016.
Capital expenditures (CAPEX) and working capital investments
Intertape Polymer Group Inc's CAPEX/Revenue was 6.2% in 2016. CAPEX/Revenue showed almost no change from 2013 to 2016. Average CAPEX/Revenue for the last three years was 5.2%.
Return on investment
The company operates at high and attractive ROIC (21.03%) and ROE (22.56%). ROIC decreased slightly on 2.0 pp from 23.0% to 21.0% in 2016. ROE decreased on 3.0 pp from 25.5% to 22.6% in 2016.
Leverage (Debt)
Debt level is 1.5x Net Debt / EBITDA and 1.7x Debt / EBITDA. Net Debt / EBITDA jumped on 0.2x from 1.3x to 1.5x in 2016. Debt jumped on 17.7% while cash jumped on 19.0%.
Management team
Intertape Polymer Group Inc's CEO Gregory A C Yull is a founder and has spent 8 years at the company. Jeffrey Crystal is a The company's CFO. Jeffrey Crystal has spent 4 years at the company.
Appendix 1: Peers in Industrial
Below you can find Intertape Polymer Group 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 ($AVO) | | 72.6% | 41.9% | 17.7% | 22.2% |
| |
|---|
| Median (51 companies) | | 5.3% | 10.4% | 8.5% | 2.6% |
|---|
| Intertape Polymer Group Inc ($ITP) | | -0.4% | 4.0% | -3.8% | 3.4% |
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 ($IWG) | 53.3% | 54.0% | 49.0% | 47.8% | 54.9% |
| |
|---|
| Median (49 companies) | 23.9% | 24.0% | 21.9% | 21.9% | 22.1% |
|---|
| Intertape Polymer Group Inc ($ITP) | 17.7% | 20.3% | 20.1% | 21.5% | 23.7% |
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 ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
| |
|---|
| Median (53 companies) | 10.5% | 8.3% | 8.0% | 7.8% | 11.0% |
|---|
| Intertape Polymer Group Inc ($ITP) | 8.4% | 8.4% | 11.2% | 13.0% | 13.2% |
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 ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (54 companies) | 3.2% | 3.6% | 4.3% | 3.7% | 3.9% |
|---|
| Intertape Polymer Group Inc ($ITP) | 2.7% | 6.0% | 5.0% | 4.4% | 6.2% |
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% |
| Norbord Inc ($NBD) | 15.2% | 24.0% | 2.4% | 2.2% | 19.5% |
| |
|---|
| Median (55 companies) | 12.2% | 9.6% | 11.0% | 8.3% | 8.5% |
|---|
| Intertape Polymer Group Inc ($ITP) | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% |
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 ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| |
|---|
| Median (49 companies) | 1.5x | 1.5x | 1.2x | 1.0x | 2.1x |
|---|
| Intertape Polymer Group Inc ($ITP) | 2.2x | 1.9x | 1.3x | 1.3x | 1.5x |
