HNZ Group Inc reports 12.5% revenue growth in FY2016
16.03.2017 • About HNZ Group Inc (
$HNZ.B) • By InTwits
HNZ Group Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is declining: in FY2016 vs. 2.8% in FY2015 vs. 30.1% in FY2012
- It operates with high leverage: Net Debt/EBITDA is 4.3x while industry average is 2.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
HNZ Group Inc ($HNZ.B) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 256.0 | 255.1 | 207.5 | 188.7 | 212.3 | 12.5% |
| Gross Profit | 63.2 | 62.7 | 19.1 | 22.1 | | -100.0% |
| EBITDA | 77.1 | 77.8 | 35.7 | 5.3 | | -100.0% |
| Net Income | 43.1 | 19.9 | 12.3 | -13.8 | 3.4 | |
Balance Sheet
|
|---|
| Cash | 4.0 | 4.2 | 14.1 | 13.5 | | -100.0% |
| Short Term Debt | 1.8 | 0.0 | 0.0 | 2.4 | | -100.0% |
| Long Term Debt | 38.0 | 23.0 | 0.0 | 0.0 | | |
Cash flow
|
|---|
| Capex | 41.2 | 36.1 | 7.6 | 9.0 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -3.1% | -0.3% | -18.7% | -9.1% | 12.5% | |
| EBITDA growth | -9.4% | 0.9% | -54.1% | -85.1% | | |
| Gross Margin | 24.7% | 24.6% | 9.2% | 11.7% | | -11.7% |
| EBITDA Margin | 30.1% | 30.5% | 17.2% | 2.8% | 0.0% | -2.8% |
| Net Income Margin | 16.8% | 7.8% | 5.9% | -7.3% | 1.6% | 8.9% |
| CAPEX, % of revenue | 16.1% | 14.2% | 3.7% | 4.8% | | -4.8% |
| ROIC | 20.3% | 19.7% | 6.3% | -4.8% | | 4.8% |
| ROE | 19.2% | 8.1% | 4.8% | -5.6% | | 5.6% |
| Net Debt/EBITDA | 0.5x | 0.2x | -0.4x | -2.1x | | 2.1x |
HNZ Group Inc ($HNZ.B) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 46 | 59 | 56 | 51 | 26.5% | 34.1% | -5.3% | 4.4% |
| EBITDA | 5 | 11 | 9 | 3 | | 124.2% | | -48.0% |
| Net Income | 2 | 3 | 2 | -3 | | | | |
Balance Sheet
|
|---|
| Cash | 12 | 15 | 16 | 15 | 43.1% | 13.4% | 38.2% | 11.6% |
| Short Term Debt | 6 | 6 | 0 | 0 | 65.2% | -43.3% | -100.0% | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 10.6% | 19.0% | 16.4% | 3.9% | 11.4% | 8.2% | -4.5% | -6.7% |
| EBITDA Margin | 11.5% | 19.1% | 16.5% | 5.0% | 12.1% | 7.7% | 23.8% | -5.1% |
| Net Income Margin | 3.5% | 5.3% | 3.0% | -5.9% | 11.8% | 5.5% | 16.4% | -0.5% |
Revenue and profitability
HNZ Group Inc's Revenue surged on 12.5%. Revenue growth showed slow down in FY16Q4 - it was 4.4% YoY.
Net Income marign increased on 8.9 pp from -7.3% to 1.6% in FY2016.
Appendix 1: Peers in Industrial
Below we provide HNZ Group Inc benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progressive Waste Solutions Ltd ($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% | 8.5% | 2.6% |
|---|
| HNZ Group Inc ($HNZ.B) | | -0.3% | -18.7% | -9.1% | 12.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($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% | 21.9% | 21.9% | 22.2% |
|---|
| HNZ Group Inc ($HNZ.B) | 24.7% | 24.6% | 9.2% | 11.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($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) | 10.2% | 8.3% | 8.0% | 9.5% | 11.1% |
|---|
| HNZ Group Inc ($HNZ.B) | 30.1% | 30.5% | 17.2% | 2.8% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($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% | 4.4% | 3.7% | 4.3% |
|---|
| HNZ Group Inc ($HNZ.B) | 16.1% | 14.2% | 3.7% | 4.8% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($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% | 11.5% | 8.9% | 9.0% |
|---|
| HNZ Group Inc ($HNZ.B) | 20.3% | 19.7% | 6.3% | -4.8% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($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 |
|---|
| HNZ Group Inc ($HNZ.B) | 0.5x | 0.2x | -0.4x | -2.1x | |
