Badger Daylighting Ltd CAPEX dropped on 39.7% in 2016 and Revenue showed almost no change
20.03.2017 • About Badger Daylighting Ltd (
$BAD) • By InTwits
Badger Daylighting Ltd reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Badger Daylighting Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.6%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 23.5 in 2016, 39.0 in 2015, 99.1 in 2014, 70.5 in 2013, 54.1 in 2012
- The company has highly profitable business model: ROIC is at 13.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Badger Daylighting Ltd ($BAD) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 239.2 | 324.6 | 422.2 | 404.6 | 404.2 | -0.1% |
| Gross Profit | 75.6 | 109.9 | 131.7 | 121.5 | 119.9 | -1.3% |
| SG&A | 14.1 | 25.7 | 11.6 | 13.8 | 15.1 | 10.1% |
| EBITDA | 61.5 | 84.2 | 117.7 | 99.5 | 97.9 | -1.7% |
| Net Income | 28.0 | 40.4 | 53.1 | 38.5 | 28.9 | -24.9% |
Balance Sheet
|
|---|
| Cash | 2.5 | 8.6 | 19.2 | 25.0 | 62.9 | 151.6% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 29.8 | 82.3 | 124.4 | 103.9 | 100.7 | -3.0% |
Cash flow
|
|---|
| Capex | 54.1 | 70.5 | 99.1 | 39.0 | 23.5 | -39.7% |
Ratios
|
|---|
| Revenue growth | 23.2% | 35.7% | 30.1% | -4.2% | -0.1% | |
| EBITDA growth | 16.5% | 36.9% | 39.9% | -15.4% | -1.7% | |
| Gross Margin | 31.6% | 33.9% | 31.2% | 30.0% | 29.7% | -0.4% |
| EBITDA Margin | 25.7% | 25.9% | 27.9% | 24.6% | 24.2% | -0.4% |
| Net Income Margin | 11.7% | 12.4% | 12.6% | 9.5% | 7.2% | -2.4% |
| SG&A, % of revenue | 5.9% | 7.9% | 2.7% | 3.4% | 3.7% | 0.3% |
| CAPEX, % of revenue | 22.6% | 21.7% | 23.5% | 9.6% | 5.8% | -3.8% |
| ROIC | 23.3% | 24.0% | 23.8% | 13.9% | 13.2% | -0.6% |
| ROE | 24.5% | 26.0% | 26.9% | 15.6% | 10.6% | -5.1% |
| Net Debt/EBITDA | 0.4x | 0.9x | 0.9x | 0.8x | 0.4x | -0.4x |
Badger Daylighting Ltd ($BAD) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 88 | 92 | 113 | 111 | -13.3% | 1.7% | 1.6% | 9.7% |
| EBITDA | 20 | 22 | 30 | 26 | -27.3% | 15.6% | -15.7% | 48.0% |
| Net Income | 4 | 6 | 12 | 7 | -67.9% | | -30.1% | -64.1% |
Balance Sheet
|
|---|
| Cash | 31 | 40 | 46 | 63 | 141.1% | 665.8% | 590.3% | 151.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 97 | 98 | 98 | 101 | -25.2% | -3.9% | -2.0% | -3.0% |
Ratios
|
|---|
| Gross Margin | 26.7% | 29.5% | 32.4% | 29.4% | -3.9% | 2.7% | -1.0% | 0.7% |
| EBITDA Margin | 22.6% | 23.6% | 26.6% | 23.6% | -4.3% | 2.8% | -5.4% | 6.1% |
| Net Income Margin | 4.2% | 6.5% | 10.6% | 6.6% | -7.1% | 18.1% | -4.8% | -13.6% |
Revenue and profitability
The company's Revenue showed almost no change in 2016. Annual revenue decline showed slowdown in 16Q4 - revenue increased on 9.7%. EBITDA Margin showed almost no change in 2016.
Gross Margin showed almost no change in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign decreased on 2.4 pp from 9.5% to 7.2% in 2016.
Capital expenditures (CAPEX) and working capital investments
Badger Daylighting Ltd's CAPEX/Revenue was 5.8% in 2016. Badger Daylighting Ltd's CAPEX/Revenue dropped on 15.9 pp from 21.7% in 2013 to 5.8% in 2016. It's average CAPEX/Revenue for the last three years was 13.0%.
Return on investment
The company operates at good ROIC (13.24%) while ROE is low (10.58%). ROIC decreased slightly on 0.62 pp from 13.9% to 13.2% in 2016. ROE decreased on 5.1 pp from 15.6% to 10.6% in 2016.
Leverage (Debt)
Debt level is 0.4x Net Debt / EBITDA and 1.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.4x from 0.8x to 0.4x in 2016. Debt decreased on 3.0% while cash surged on 152%.
Management team
The company's CEO is Paul James Vanderberg. Paul James Vanderberg is a founder and has 2 years tenure at the company. Badger Daylighting Ltd's CFO is Gerald D Schiefelbein "Jerry". Gerald D Schiefelbein "Jerry" has 4 years tenure at the company.
Appendix 1: Peers in Industrial
Below you can find Badger Daylighting Ltd 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) | | 4.9% | 9.9% | 8.5% | 3.2% |
|---|
| Badger Daylighting Ltd ($BAD) | | 35.7% | 30.1% | -4.2% | -0.1% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($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% | 22.1% |
|---|
| Badger Daylighting Ltd ($BAD) | 31.6% | 33.9% | 31.2% | 30.0% | 29.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | 54.3% |
| Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | 51.6% |
| IWG Technologies Inc ($IWG) | 12.7% | 25.5% | 20.0% | 24.0% | 26.9% |
| Winpak Ltd ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
| CCL Industries Inc ($CCL.B) | 19.6% | 15.6% | 18.4% | 19.9% | 18.3% |
| |
|---|
| Median (53 companies) | 10.2% | 8.3% | 8.0% | 7.8% | 11.0% |
|---|
| Badger Daylighting Ltd ($BAD) | 25.7% | 25.9% | 27.9% | 24.6% | 24.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($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% |
|---|
| Badger Daylighting Ltd ($BAD) | 22.6% | 21.7% | 23.5% | 9.6% | 5.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($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% | 11.0% | 8.3% | 8.5% |
|---|
| Badger Daylighting Ltd ($BAD) | 23.3% | 24.0% | 23.8% | 13.9% | 13.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($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 | 2.1x |
|---|
| Badger Daylighting Ltd ($BAD) | 0.4x | 0.9x | 0.9x | 0.8x | 0.4x |
