Genesis Land Development Corp reports 46.4% Net Income decline and 2.6% Revenue decline
21.03.2017 • About Genesis Land Development Corp (
$GDC) • By InTwits
Genesis Land Development Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Genesis Land Development Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.5%.
- The company has potentially unprofitable business model: ROIC is at 3.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Genesis Land Development Corp ($GDC) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 129.5 | 96.1 | 134.2 | 119.1 | 116.0 | -2.6% |
| Net Income | 8.9 | 5.7 | 17.4 | 11.0 | 5.9 | -46.4% |
Balance Sheet
|
|---|
| Cash | 10.0 | 17.7 | 33.0 | 11.4 | 14.3 | 25.6% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 97.2 | 50.4 | 23.9 | 63.8 | 43.3 | -32.2% |
Cash flow
|
|---|
| Capex | 0.4 | 0.3 | 0.9 | 1.2 | 0.1 | -94.9% |
Ratios
|
|---|
| Revenue growth | 35.2% | -25.8% | 39.7% | -11.3% | -2.6% | |
| Net Income Margin | 6.8% | 5.9% | 13.0% | 9.2% | 5.1% | -4.2% |
| CAPEX, % of revenue | 0.3% | 0.3% | 0.6% | 1.0% | 0.1% | -0.9% |
| ROIC | 8.6% | 3.2% | 6.2% | 1.3% | 3.9% | 2.5% |
| ROE | 4.8% | 3.0% | 8.6% | 5.2% | 2.8% | -2.4% |
Genesis Land Development Corp ($GDC) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 32 | 26 | 29 | 28 | 105.6% | -17.8% | -16.3% | -23.0% |
| Net Income | 2 | 3 | 2 | -1 | 3,416.7% | 112.2% | -48.7% | -122.7% |
Balance Sheet
|
|---|
| Cash | 10 | 15 | 16 | 14 | 15.6% | 286.4% | 144.7% | 25.6% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 48 | 41 | 39 | 43 | -6.0% | -17.8% | -18.1% | -32.2% |
Ratios
|
|---|
| Net Income Margin | 6.5% | 10.8% | 7.5% | -4.3% | 6.1% | 6.6% | -4.7% | -19.0% |
Revenue and profitability
Genesis Land Development Corp's Revenue decreased on 2.6%. Revenue decline showed acceleration in 16Q4 - it was 23.0% YoY.
Net Income marign decreased on 4.2 pp from 9.2% to 5.1% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 0.053%. The company showed almost no change in CAPEX/Revenue from 2013 to 2016. Average CAPEX/Revenue for the last three years was 0.56%.
Return on investment
The company operates at low ROIC (3.86%) and ROE (2.83%). ROIC increased on 2.5 pp from 1.3% to 3.9% in 2016. ROE decreased on 2.4 pp from 5.2% to 2.8% in 2016.
Leverage (Debt)
Debt dropped on 32.2% while cash surged on 25.6%.
Appendix 1: Peers in Financial
Below you can find Genesis Land Development Corp benchmarking vs. other companies in Financial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (53 companies) | | 7.5% | 9.0% | 3.6% | 5.8% |
|---|
| Genesis Land Development Corp ($GDC) | | -25.8% | 39.7% | -11.3% | -2.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (9 companies) | 28.1% | 30.7% | 28.3% | 43.4% | 30.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (37 companies) | 43.7% | 33.5% | 39.8% | 32.5% | 43.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (55 companies) | 0.6% | 0.6% | 0.7% | 0.7% | 0.9% |
|---|
| Genesis Land Development Corp ($GDC) | 0.3% | 0.3% | 0.6% | 1.0% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| |
|---|
| Median (55 companies) | 4.4% | 4.3% | 3.9% | 3.5% | 3.0% |
|---|
| Genesis Land Development Corp ($GDC) | 8.6% | 3.2% | 6.2% | 1.3% | 3.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (28 companies) | 5.3x | 4.6x | 4.7x | 6.0x | 7.8x |
|---|
