Solium Capital Inc Net Income dropped on 62.8% in 2016
14.03.2017 • About Solium Capital Inc (
$SUM) • By InTwits
Solium Capital Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: EBITDA Margin is declining: in FY2016 vs. 18.9% in FY2015 vs. 23.6% in FY2012.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Solium Capital Inc ($SUM) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 50.341 | 68.079 | 79.146 | 92.571 | 77.219 | -16.6% |
| EBITDA | 11.857 | 16.834 | 19.218 | 17.459 | | -100.0% |
| Net Income | 10.467 | 8.703 | 9.631 | 10.686 | 3.974 | -62.8% |
Balance Sheet
|
|---|
| Cash | 14.719 | 24.486 | 51.048 | 73.043 | | -100.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | | |
| Long Term Debt | 1.987 | 0.000 | 0.000 | 0.000 | | |
Cash flow
|
|---|
| Capex | 0.418 | 1.231 | 1.395 | 1.067 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 9.4% | 35.2% | 16.3% | 17.0% | -16.6% | |
| EBITDA growth | 8.9% | 42.0% | 14.2% | -9.2% | | |
| EBITDA Margin | 23.6% | 24.7% | 24.3% | 18.9% | 0.0% | -18.9% |
| Net Income Margin | 20.8% | 12.8% | 12.2% | 11.5% | 5.1% | -6.4% |
| CAPEX, % of revenue | 0.8% | 1.8% | 1.8% | 1.2% | | -1.2% |
| ROIC | 19.4% | 19.0% | 16.6% | 11.7% | | -11.7% |
| ROE | 27.1% | 13.8% | 10.6% | 9.5% | | -9.5% |
| Net Debt/EBITDA | -1.1x | -1.5x | -2.7x | -4.2x | | 4.2x |
Solium Capital Inc ($SUM) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 25 | 26 | 26 | 25 | 3.2% | 11.5% | 15.9% | 11.8% |
| EBITDA | 4 | 3 | 4 | 3 | -31.5% | -36.0% | 6.5% | 10.8% |
| Net Income | 2 | 0 | 2 | 1 | -57.4% | -99.7% | 9.0% | -47.3% |
Balance Sheet
|
|---|
| Cash | 71 | 75 | 80 | 86 | 38.1% | 20.8% | 21.2% | 17.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| EBITDA Margin | 17.4% | 11.0% | 15.9% | 12.1% | -8.8% | -8.2% | -1.4% | -0.1% |
| Net Income Margin | 7.3% | 0.0% | 9.6% | 3.8% | -10.3% | -9.8% | -0.6% | -4.2% |
Revenue and profitability
Solium Capital Inc's Revenue dropped on 16.6%. Annual revenue decline showed slowdown in FY16Q4 - revenue jumped on 11.8%.
Net Income marign decreased on 6.4 pp from 11.5% to 5.1% in FY2016.
Appendix 1: Peers in Communications
Below you can find Solium Capital Inc benchmarking vs. other companies in Communications industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AcuityAds Holding Inc ($AT) | | | | 51.6% | 91.4% |
| Shopify Inc ($SH) | | 111.9% | 109.0% | 95.4% | 89.7% |
| Gaming Nation Inc ($FAN) | | | | | 46.6% |
| Tucows Inc ($TC) | | 13.3% | 13.6% | 17.1% | 9.8% |
| Points International Ltd ($PTS) | | 45.1% | 26.0% | 16.2% | 8.6% |
| |
|---|
| Median (25 companies) | 13.1% | 2.6% | 1.1% | 3.2% | 2.4% |
|---|
| Solium Capital Inc ($SUM) | | 35.2% | 16.3% | 17.0% | -16.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wanted Technologies Corp ($WAN) | 90.5% | 93.2% | 94.3% | 95.6% | |
| NeuLion Inc ($NLN) | 53.6% | 63.8% | 70.2% | 81.1% | 81.6% |
| TeraGo Inc ($TGO) | 62.9% | 61.8% | 59.8% | 77.2% | 77.2% |
| ICTV Brands Inc ($ITV) | 67.4% | 71.9% | 69.6% | 68.1% | |
| Platinum Communications Corp ($PCS) | 67.4% | 67.1% | 60.2% | 60.5% | |
| |
|---|
| Median (23 companies) | 44.2% | 42.8% | 45.3% | 46.4% | 41.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BCE Inc ($BCE) | 38.8% | 37.7% | 38.4% | 37.7% | 39.8% |
| Rogers Communications Inc ($RCI.A) | 37.3% | 38.4% | 37.9% | 36.9% | 32.5% |
| Quebecor Inc ($QBR.B) | 27.5% | 36.3% | 35.5% | 34.2% | 35.5% |
| TELUS Corp ($T) | 35.3% | 35.2% | 35.1% | 34.1% | 33.0% |
| ZoomerMedia Ltd ($ZUM) | 32.6% | 33.8% | 29.3% | 29.1% | 27.1% |
| |
|---|
| Median (29 companies) | 14.4% | 7.7% | 8.8% | 9.4% | 7.7% |
|---|
| Solium Capital Inc ($SUM) | 23.6% | 24.7% | 24.3% | 18.9% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| TELUS Corp ($T) | 17.9% | 17.8% | 19.8% | 20.2% | 21.5% |
| Rogers Communications Inc ($RCI.A) | 17.2% | 17.6% | 18.4% | 18.2% | 17.2% |
| Quebecor Inc ($QBR.B) | 16.7% | 15.4% | 17.9% | 17.5% | 17.6% |
| BCE Inc ($BCE) | 17.6% | 17.5% | 17.7% | 16.9% | 17.4% |
| TeraGo Inc ($TGO) | 20.9% | 21.5% | 23.1% | 14.8% | 13.0% |
| |
|---|
| Median (28 companies) | 2.8% | 3.2% | 2.4% | 3.1% | 3.0% |
|---|
| Solium Capital Inc ($SUM) | 0.8% | 1.8% | 1.8% | 1.2% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tucows Inc ($TC) | 17.7% | 22.5% | 35.4% | 51.4% | 58.4% |
| BCE Inc ($BCE) | 14.1% | 12.6% | 12.6% | 12.3% | 12.6% |
| Quebecor Inc ($QBR.B) | 7.9% | 9.6% | 8.4% | 8.4% | 10.1% |
| MDC Partners Inc ($MDZ.A) | -3.1% | -6.3% | 14.2% | 13.7% | 10.1% |
| TELUS Corp ($T) | 12.4% | 13.0% | 13.0% | 11.5% | 9.6% |
| |
|---|
| Median (28 companies) | 8.0% | 7.7% | 7.1% | 2.0% | 0.1% |
|---|
| Solium Capital Inc ($SUM) | 19.4% | 19.0% | 16.6% | 11.7% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Intertain Group Ltd/The ($IT) | | | | 9.4x | |
| MDC Partners Inc ($MDZ.A) | 12.4x | 112.6x | 4.6x | 5.5x | 9.6x |
| Quebecor Inc ($QBR.B) | 3.7x | 3.9x | 4.2x | 4.8x | 4.3x |
| Rogers Communications Inc ($RCI.A) | 2.3x | 2.4x | 3.2x | 3.6x | 3.8x |
| Newfoundland Capital Corp Ltd ($NCC.B) | 1.4x | 1.3x | 3.3x | 3.2x | |
| |
|---|
| Median (20 companies) | 1.4x | 1.3x | 1.5x | 1.8x | 1.7x |
|---|
| Solium Capital Inc ($SUM) | -1.1x | -1.5x | -2.7x | -4.2x | |
