C-com Satellite Systems Inc Net Income dropped on 36.1% in 2016
21.03.2017 • About C-com Satellite Systems Inc (
$CMI) • By InTwits
C-com Satellite Systems Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- C-com Satellite Systems Inc is a company in decline: FY2016 revenue growth was -10.7%, 5 years revenue CAGR was -13.5%
- It operates with high leverage: Net Debt/EBITDA is 3.5x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
C-com Satellite Systems Inc ($CMI) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13.385 | 15.574 | 13.206 | 10.375 | 9.268 | -10.7% |
| Gross Profit | 7.048 | 8.132 | 7.818 | 5.570 | | -100.0% |
| SG&A | | 2.891 | 3.048 | 3.067 | | -100.0% |
| EBITDA | 3.628 | | | 1.560 | | -100.0% |
| Net Income | 2.665 | 3.473 | 2.805 | 1.597 | 1.020 | -36.1% |
Balance Sheet
|
|---|
| Cash | 10.689 | 9.969 | 10.829 | 12.330 | | -100.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | | |
Cash flow
|
|---|
| Capex | 0.014 | 0.023 | 0.062 | 0.041 | | -100.0% |
Ratios
|
|---|
| Revenue growth | -30.1% | 16.3% | -15.2% | -21.4% | -10.7% | |
| EBITDA growth | -32.7% | | | | | |
| Gross Margin | 52.7% | 52.2% | 59.2% | 53.7% | | -53.7% |
| EBITDA Margin | 27.1% | 0.0% | 0.0% | 15.0% | 0.0% | -15.0% |
| Net Income Margin | 19.9% | 22.3% | 21.2% | 15.4% | 11.0% | -4.4% |
| SG&A, % of revenue | | 18.6% | 23.1% | 29.6% | | -29.6% |
| CAPEX, % of revenue | 0.1% | 0.1% | 0.5% | 0.4% | | -0.4% |
| ROIC | 24.2% | 25.7% | 17.7% | 7.5% | | -7.5% |
| ROE | 18.5% | 20.7% | 14.6% | 7.9% | | -7.9% |
| Net Debt/EBITDA | -2.9x | | | -7.9x | | 7.9x |
C-com Satellite Systems Inc ($CMI) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 2 | 2 | 2 | 3 | 10.5% | -41.8% | -25.2% | 29.1% |
| EBITDA | 1 | 0 | 0 | 1 | 65.0% | -62.1% | -58.9% | 101.2% |
| Net Income | 0 | 0 | 0 | 1 | -18.0% | -95.0% | -93.9% | 58.9% |
Balance Sheet
|
|---|
| Cash | 13 | 7 | 5 | 6 | 15.3% | -36.1% | -51.2% | -51.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 53.1% | 57.2% | 51.6% | 60.3% | 1.1% | 0.1% | 2.4% | 4.1% |
| EBITDA Margin | 22.0% | 8.7% | 10.7% | 18.8% | 7.3% | -4.7% | -8.8% | 6.7% |
| Net Income Margin | 12.7% | 0.9% | 1.4% | 22.7% | -4.4% | -9.2% | -16.0% | 4.3% |
Revenue and profitability
The company's Revenue dropped on 10.7%. Annual revenue decline showed slowdown in FY16Q4 - revenue jumped on 29.1%.
Net Income marign decreased on 4.4 pp from 15.4% to 11.0% in FY2016.
Appendix 1: Peers in Communications
Below you can find C-com Satellite Systems Inc benchmarking vs. other companies in Communications industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| AcuityAds Holding Inc ($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% | 3.1% | 4.3% | 2.4% |
|---|
| C-com Satellite Systems Inc ($CMI) | | 16.3% | -15.2% | -21.4% | -10.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wanted Technologies Corp ($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 (22 companies) | 43.5% | 41.2% | 43.6% | 43.5% | 41.1% |
|---|
| C-com Satellite Systems Inc ($CMI) | 52.7% | 52.2% | 59.2% | 53.7% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| BCE Inc ($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% | 10.7% | 9.9% | 9.4% | 7.7% |
|---|
| C-com Satellite Systems Inc ($CMI) | 27.1% | | | 15.0% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| TELUS Corp ($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% |
|---|
| C-com Satellite Systems Inc ($CMI) | 0.1% | 0.1% | 0.5% | 0.4% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tucows Inc ($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% |
|---|
| C-com Satellite Systems Inc ($CMI) | 24.2% | 25.7% | 17.7% | 7.5% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Intertain Group Ltd/The ($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 |
|---|
| C-com Satellite Systems Inc ($CMI) | -2.9x | | | -7.9x | |
