AGT Food & Ingredients Inc reports 17.5% EBITDA growth and 15.8% Revenue growth
22.03.2017 • About AGT Food & Ingredients Inc (
$AGT) • By InTwits
AGT Food & Ingredients Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 5.6% in 2016 vs. 5.5% in 2015 vs. 4.0% in 2012
- AGT Food & Ingredients Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 82.2 in 2016, 52.3 in 2015, 19.3 in 2014, 39.9 in 2013, 34.1 in 2012
- The company has business model with low profitability: ROIC is at 9.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AGT Food & Ingredients Inc ($AGT) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 855 | 1,139 | 1,357 | 1,704 | 1,973 | 15.8% |
| Gross Profit | 68 | 96 | 130 | 153 | 174 | 13.7% |
| SG&A | 46 | 55 | 68 | 79 | 91 | 15.1% |
| EBITDA | 34 | 56 | 80 | 94 | 110 | 17.5% |
| Net Income | 7 | -10 | 20 | 16 | 21 | 31.2% |
Balance Sheet
|
|---|
| Cash | 33 | 23 | 29 | 22 | 29 | 30.1% |
| Short Term Debt | 224 | 117 | 97 | 151 | 157 | 3.6% |
| Long Term Debt | 77 | 225 | 245 | 344 | 411 | 19.3% |
Cash flow
|
|---|
| Capex | 34 | 40 | 19 | 52 | 82 | 57.3% |
Ratios
|
|---|
| Revenue growth | 12.5% | 33.1% | 19.1% | 25.6% | 15.8% | |
| EBITDA growth | -23.1% | 64.6% | 42.5% | 16.5% | 17.5% | |
| Gross Margin | 7.9% | 8.4% | 9.6% | 9.0% | 8.8% | -0.2% |
| EBITDA Margin | 4.0% | 5.0% | 5.9% | 5.5% | 5.6% | 0.1% |
| Net Income Margin | 0.8% | -0.9% | 1.5% | 0.9% | 1.1% | 0.1% |
| SG&A, % of revenue | 5.4% | 4.8% | 5.0% | 4.6% | 4.6% | -0.0% |
| CAPEX, % of revenue | 4.0% | 3.5% | 1.4% | 3.1% | 4.2% | 1.1% |
| ROIC | 3.6% | 7.1% | 10.0% | 9.6% | 9.5% | -0.1% |
| ROE | 2.5% | -3.9% | 7.1% | 4.7% | 6.4% | 1.7% |
| Net Debt/EBITDA | 7.8x | 5.6x | 3.9x | 5.1x | 4.9x | -0.2x |
AGT Food & Ingredients Inc ($AGT) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 441 | 439 | 442 | 651 | 14.6% | 16.0% | 21.9% | 12.5% |
| EBITDA | 29 | 24 | 27 | 30 | 35.8% | 17.9% | 19.7% | 2.0% |
| Net Income | 27 | -2 | 7 | -11 | 4,846.2% | -162.8% | | -158.2% |
Balance Sheet
|
|---|
| Cash | 28 | 24 | 22 | 29 | -25.3% | -47.8% | -48.7% | 30.1% |
| Short Term Debt | 190 | 138 | 146 | 157 | 53.0% | 39.9% | 35.9% | 3.6% |
| Long Term Debt | 344 | 367 | 366 | 411 | 40.9% | 32.9% | 32.6% | 19.3% |
Ratios
|
|---|
| Gross Margin | 10.4% | 8.8% | 9.3% | 7.4% | 1.5% | -0.6% | -0.8% | -0.6% |
| EBITDA Margin | 6.6% | 5.4% | 6.1% | 4.6% | 1.0% | 0.1% | -0.1% | -0.5% |
| Net Income Margin | 6.1% | -0.5% | 1.7% | -1.7% | 6.0% | -1.4% | 3.7% | -5.0% |
Revenue and profitability
The company's Revenue jumped on 15.8%. Revenue growth showed slow down in 16Q4 - it was 12.5% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.7 pp from 31.8% to 33.5% in FY2016.
Gross Margin showed almost no change in 2016. SG&A as a % of Revenue showed almost no change in 2016.
Net Income marign showed almost no change in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 4.2%. The company showed small growth in CAPEX/Revenue of 0.66 pp from 3.5% in 2013 to 4.2% in 2016. It's average CAPEX/Revenue for the last three years was 2.9%.AGT Food & Ingredients Inc invested a big chunk of EBITDA (74.7%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (9.50%) and ROE (6.38%). ROIC showed almost no change in 2016. ROE increased slightly on 1.7 pp from 4.7% to 6.4% in 2016.
Leverage (Debt)
Debt level is 4.9x Net Debt / EBITDA and 5.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 5.1x to 4.9x in 2016. Debt jumped on 14.5% while cash surged on 30.1%.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find AGT Food & Ingredients Inc benchmarking vs. other companies in Consumer, Non-cyclical 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 |
|---|
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | 107.0% |
| Heritage Global Inc ($HGP) | | -37.0% | 76.2% | 11.2% | 80.8% |
| EnerCare Inc ($ECI) | | 8.6% | 21.1% | 55.7% | 76.6% |
| CRH Medical Corp ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| |
|---|
| Median (40 companies) | | 8.5% | 13.7% | 14.9% | 12.6% |
|---|
| AGT Food & Ingredients Inc ($AGT) | | 33.1% | 19.1% | 25.6% | 15.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | 88.3% |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | 85.1% |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| Concordia Healthcare Corp ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (34 companies) | 35.4% | 39.2% | 35.8% | 36.1% | 33.2% |
|---|
| AGT Food & Ingredients Inc ($AGT) | 7.9% | 8.4% | 9.6% | 9.0% | 8.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | 23.8% |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | -92.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | 31.4% |
| EnerCare Inc ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (43 companies) | 9.9% | 12.8% | 14.1% | 12.7% | 10.7% |
|---|
| AGT Food & Ingredients Inc ($AGT) | 4.0% | 5.0% | 5.9% | 5.5% | 5.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | 15.5% |
| Black Diamond Group Ltd ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (42 companies) | 3.1% | 2.7% | 2.4% | 2.3% | 2.0% |
|---|
| AGT Food & Ingredients Inc ($AGT) | 4.0% | 3.5% | 1.4% | 3.1% | 4.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Colliers International Group Inc ($CIG) | 10.5% | 11.2% | 15.2% | 10.9% | 26.1% |
| Nuvo Research Inc ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (43 companies) | 8.8% | 9.2% | 8.4% | 6.3% | 8.0% |
|---|
| AGT Food & Ingredients Inc ($AGT) | 3.6% | 7.1% | 10.0% | 9.6% | 9.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| Sienna Senior Living Inc ($SIA) | 9.5x | 11.8x | 9.2x | 9.1x | 9.1x |
| Valeant Pharmaceuticals International Inc ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | 12.7x |
| |
|---|
| Median (37 companies) | 2.8x | 2.2x | 3.3x | 2.3x | 2.7x |
|---|
| AGT Food & Ingredients Inc ($AGT) | 7.8x | 5.6x | 3.9x | 5.1x | 4.9x |
