New Flyer Industries Inc reports 132% Net Income growth and 3.5 pp EBITDA Margin growth from 8.5% to 12.0%
22.03.2017 • About New Flyer Industries Inc (
$NFI) • By InTwits
New Flyer Industries Inc reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- New Flyer Industries Inc is a fast growth stock: 2016 revenue growth was 47.8%, 5 year revenue CAGR was 19.7% at 2016 ROIC 16.2%
- New Flyer Industries Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has highly profitable business model: ROIC is at 16.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
New Flyer Industries Inc ($NFI) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 865 | 1,199 | 1,451 | 1,539 | 2,274 | 47.8% |
| Gross Profit | 74 | 121 | 138 | 197 | 399 | 102.2% |
| EBITDA | 55 | 79 | 88 | 130 | 273 | 109.4% |
| Net Income | 9 | 27 | 27 | 54 | 125 | 131.7% |
Balance Sheet
|
|---|
| Cash | 11 | 12 | 17 | 25 | 13 | -47.6% |
| Short Term Debt | 42 | 36 | 42 | 183 | 89 | -51.5% |
| Long Term Debt | 180 | 200 | 204 | 544 | 485 | -10.7% |
Cash flow
|
|---|
| Capex | 11 | 15 | 11 | 9 | 25 | 185.7% |
Ratios
|
|---|
| Revenue growth | -6.6% | 38.6% | 21.0% | 6.1% | 47.8% | |
| EBITDA growth | -43.7% | 44.0% | 11.1% | 47.9% | 109.4% | |
| Gross Margin | 8.5% | 10.1% | 9.5% | 12.8% | 17.6% | 4.7% |
| EBITDA Margin | 6.4% | 6.6% | 6.1% | 8.5% | 12.0% | 3.5% |
| Net Income Margin | 1.1% | 2.2% | 1.8% | 3.5% | 5.5% | 2.0% |
| CAPEX, % of revenue | 1.2% | 1.3% | 0.7% | 0.6% | 1.1% | 0.5% |
| ROIC | 4.8% | 7.3% | 7.0% | 8.9% | 16.2% | 7.3% |
| ROE | 2.6% | 6.7% | 5.9% | 11.5% | 22.4% | 10.9% |
| Net Debt/EBITDA | 3.8x | 2.8x | 2.6x | 5.4x | 2.1x | -3.3x |
New Flyer Industries Inc ($NFI) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 553 | 587 | 511 | 623 | 45.5% | 56.5% | 40.3% | 48.6% |
| EBITDA | 59 | 76 | 61 | 76 | 110.2% | 122.1% | 71.7% | 137.0% |
| Net Income | 23 | 35 | 26 | 42 | 108.1% | 180.9% | 57.0% | 194.5% |
Balance Sheet
|
|---|
| Cash | 40 | 2 | 0 | 13 | 426.8% | -80.8% | -100.0% | -47.6% |
| Short Term Debt | 177 | 121 | 97 | 89 | 1,113.5% | 143.3% | 113.2% | -51.5% |
| Long Term Debt | 506 | 481 | 482 | 485 | 148.2% | 133.1% | 130.8% | -10.7% |
Ratios
|
|---|
| Gross Margin | 17.4% | 18.3% | 17.3% | 17.2% | 7.0% | 5.4% | 3.7% | 2.9% |
| EBITDA Margin | 10.7% | 13.0% | 12.0% | 12.2% | 3.3% | 3.8% | 2.2% | 4.5% |
| Net Income Margin | 4.1% | 5.9% | 5.1% | 6.7% | 1.2% | 2.6% | 0.5% | 3.3% |
Revenue and profitability
New Flyer Industries Inc's Revenue surged on 47.8%. Revenue growth showed acceleration in 16Q4 - it increased 48.6% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.5 pp from 8.5% to 12.0% in 2016.
Gross Margin increased on 4.7 pp from 12.8% to 17.6% in 2016.
Net Income marign increased slightly on 2.0 pp from 3.5% to 5.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 1.1%. CAPEX/Revenue showed almost no change from 2013 to 2016. For the last three years the average CAPEX/Revenue was 0.79%.
Return on investment
The company operates at high and attractive ROE (22.42%) while ROIC is a bit lower (16.19%). ROIC increased on 7.3 pp from 8.9% to 16.2% in 2016. ROE surged on 10.9 pp from 11.5% to 22.4% in 2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.1x and Debt / EBITDA is 2.1x. Net Debt / EBITDA dropped on 3.3x from 5.4x to 2.1x in 2016. Debt dropped on 21.0% while cash dropped on 47.6%.
Management team
The company's CEO is Paul Soubry. Paul Soubry is a founder and has 9 years tenure at the company. The company's CFO Glenn Asham has spent 10 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find New Flyer Industries Inc benchmarking vs. other companies in Consumer, 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 |
|---|
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
| Spin Master Corp ($TOY) | | 21.5% | 41.0% | 22.9% | 31.3% |
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| Linamar Corp ($LNR) | | 11.6% | 16.0% | 23.8% | 16.3% |
| |
|---|
| Median (35 companies) | | 4.7% | 6.6% | 7.5% | 4.6% |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| Canlan Ice Sports Corp ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (36 companies) | 38.1% | 34.2% | 33.5% | 32.6% | 36.2% |
|---|
| New Flyer Industries Inc ($NFI) | 8.5% | 10.1% | 9.5% | 12.8% | 17.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (38 companies) | 8.6% | 10.2% | 12.4% | 11.0% | 15.4% |
|---|
| New Flyer Industries Inc ($NFI) | 6.4% | 6.6% | 6.1% | 8.5% | 12.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | 9.3% |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | 22.4% |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Innova Gaming Group Inc ($IGG) | 20.6% | 26.7% | 15.9% | 15.6% | 15.1% |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (41 companies) | 3.2% | 3.2% | 3.4% | 3.5% | 5.0% |
|---|
| New Flyer Industries Inc ($NFI) | 1.2% | 1.3% | 0.7% | 0.6% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($TOY) | | 19.2% | 56.9% | 48.2% | 44.5% |
| Magna International Inc ($MG) | 16.3% | 18.6% | 25.2% | 21.9% | 21.2% |
| Linamar Corp ($LNR) | 12.9% | 17.0% | 21.7% | 23.7% | 19.8% |
| Sleep Country Canada Holdings Inc ($ZZZ) | | | 9.7% | 12.7% | 19.0% |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (41 companies) | 11.0% | 12.6% | 10.9% | 10.9% | 11.0% |
|---|
| New Flyer Industries Inc ($NFI) | 4.8% | 7.3% | 7.0% | 8.9% | 16.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (34 companies) | 1.7x | 2.5x | 2.3x | 2.4x | 2.0x |
|---|
| New Flyer Industries Inc ($NFI) | 3.8x | 2.8x | 2.6x | 5.4x | 2.1x |
