STT Enviro Corp reports 22.2% revenue decline in FY2016
10.03.2017 • About STT Enviro Corp (
$STT) • By InTwits
STT Enviro Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with medium-size leverage: Net Debt/EBITDA is 2.5x while industry average is 2.2x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
STT Enviro Corp ($STT) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 29.188 | 28.422 | 22.348 | 33.760 | 26.266 | -22.2% |
| Gross Profit | 7.151 | 7.495 | 6.884 | 6.345 | | -100.0% |
| SG&A | | 4.951 | 4.918 | 5.698 | | -100.0% |
| EBITDA | 2.058 | 2.356 | 1.869 | 0.523 | | -100.0% |
| Net Income | 0.953 | 1.022 | 1.183 | 0.298 | -0.985 | -430.4% |
Balance Sheet
|
|---|
| Cash | 2.103 | 4.375 | 2.282 | 5.962 | | -100.0% |
| Short Term Debt | 0.265 | 2.330 | 1.207 | 0.020 | | -100.0% |
| Long Term Debt | 5.155 | 1.860 | 1.554 | 0.018 | | -100.0% |
Cash flow
|
|---|
| Capex | 0.126 | 0.645 | 0.151 | 0.421 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 10.3% | -2.6% | -21.4% | 51.1% | -22.2% | |
| EBITDA growth | 6.3% | 14.5% | -20.7% | -72.0% | | |
| Gross Margin | 24.5% | 26.4% | 30.8% | 18.8% | | -18.8% |
| EBITDA Margin | 7.1% | 8.3% | 8.4% | 1.6% | 0.0% | -1.6% |
| Net Income Margin | 3.3% | 3.6% | 5.3% | 0.9% | -3.7% | -4.6% |
| SG&A, % of revenue | | 17.4% | 22.0% | 16.9% | | -16.9% |
| CAPEX, % of revenue | 0.4% | 2.3% | 0.7% | 1.2% | | -1.2% |
| ROIC | 55.1% | 44.3% | 30.4% | 4.5% | | -4.5% |
| ROE | | | | 9.0% | | -9.0% |
| Net Debt/EBITDA | 1.6x | -0.1x | 0.3x | -11.3x | | 11.3x |
STT Enviro Corp ($STT) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 7 | 6 | 5 | 8 | -17.5% | -47.1% | -36.2% | 36.2% |
| EBITDA | -0 | -1 | -0 | -0 | -110.8% | -157.2% | -368.5% | |
| Net Income | -0 | -0 | -0 | -0 | -144.0% | -162.8% | -413.9% | |
Balance Sheet
|
|---|
| Cash | 1 | 2 | 2 | 2 | -67.2% | -52.4% | -73.7% | -66.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | -38.7% | -38.7% | 1,587.7% | 942.8% |
| Long Term Debt | 0 | 0 | 0 | 0 | -98.7% | -73.6% | 106.0% | 111.0% |
Ratios
|
|---|
| Gross Margin | 17.4% | 10.8% | 15.0% | 14.8% | -6.3% | -10.8% | -0.1% | 12.6% |
| EBITDA Margin | -0.6% | -10.4% | -7.6% | -0.2% | -4.8% | -20.0% | -9.4% | 16.3% |
| Net Income Margin | -1.7% | -6.4% | -6.1% | -2.1% | -4.9% | -11.8% | -7.4% | 9.4% |
Revenue and profitability
STT Enviro Corp's Revenue dropped on 22.2%. Annual revenue decline showed slowdown in FY16Q4 - revenue jumped on 36.2%.
Net Income marign decreased on 4.6 pp from 0.88% to -3.7% in FY2016.
Appendix 1: Peers in Industrial
Below we provide STT Enviro Corp benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progressive Waste Solutions Ltd ($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) | | 5.3% | 10.4% | 7.7% | 3.2% |
|---|
| STT Enviro Corp ($STT) | | -2.6% | -21.4% | 51.1% | -22.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($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% | 21.9% | 22.2% |
|---|
| STT Enviro Corp ($STT) | 24.5% | 26.4% | 30.8% | 18.8% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($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% | 8.3% | 9.5% | 11.1% |
|---|
| STT Enviro Corp ($STT) | 7.1% | 8.3% | 8.4% | 1.6% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($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% | 4.4% | 3.9% | 4.3% |
|---|
| STT Enviro Corp ($STT) | 0.4% | 2.3% | 0.7% | 1.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($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 ($TIH) | 28.8% | 25.8% | 24.3% | 23.5% | 21.7% |
| Intertape Polymer Group Inc ($ITP) | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% |
| |
|---|
| Median (55 companies) | 12.2% | 9.6% | 11.0% | 8.9% | 9.0% |
|---|
| STT Enviro Corp ($STT) | 55.1% | 44.3% | 30.4% | 4.5% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($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 |
|---|
| STT Enviro Corp ($STT) | 1.6x | -0.1x | 0.3x | -11.3x | |
