AgJunction Inc revenue increased on 8.2% in 2016 and EBITDA Margin decreased slightly on 0.80 pp from -10.8% to -11.6%
23.03.2017 • About AgJunction Inc (
$AJX) • By InTwits
AgJunction Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AgJunction Inc doesn't have a profitable business model yet: FY2016 ROIC is -15.2%
- The company operates at negative EBITDA Margin: -11.6%
- AgJunction Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -0.7% for the sames years0
- AgJunction Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.0%.
- The company has unprofitable business model: ROIC is at -15.2%
- It operates with high leverage: Net Debt/EBITDA is 2.8x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
AgJunction Inc ($AJX) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 55.432 | 58.220 | 44.810 | 39.048 | 42.264 | 8.2% |
| Gross Profit | 24.486 | 25.507 | 20.308 | 14.828 | 16.528 | 11.5% |
| SG&A | 15.983 | 14.004 | 13.922 | 13.836 | 15.693 | 13.4% |
| EBITDA | 1.991 | 4.504 | 0.895 | -4.236 | -4.922 | |
| Net Income | -34.598 | 5.176 | -16.657 | -9.139 | -18.219 | |
Balance Sheet
|
|---|
| Cash | 2.646 | 2.044 | 11.224 | 13.048 | 12.863 | -1.4% |
| Short Term Debt | 2.243 | 0.020 | 0.014 | 0.001 | 0.000 | -100.0% |
| Long Term Debt | 0.000 | 0.018 | 0.001 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.646 | 0.515 | 0.278 | 0.413 | 0.522 | 26.4% |
Ratios
|
|---|
| Revenue growth | 5.1% | 5.0% | -23.0% | -12.9% | 8.2% | |
| EBITDA growth | -61.0% | 126.2% | -80.1% | -573.3% | 16.2% | |
| Gross Margin | 44.2% | 43.8% | 45.3% | 38.0% | 39.1% | 1.1% |
| EBITDA Margin | 3.6% | 7.7% | 2.0% | -10.8% | -11.6% | -0.8% |
| Net Income Margin | -62.4% | 8.9% | -37.2% | -23.4% | -43.1% | -19.7% |
| SG&A, % of revenue | 28.8% | 24.1% | 31.1% | 35.4% | 37.1% | 1.7% |
| CAPEX, % of revenue | 1.2% | 0.9% | 0.6% | 1.1% | 1.2% | 0.2% |
| ROIC | -1.9% | 5.3% | -1.5% | -12.4% | -15.2% | -2.8% |
| ROE | -55.4% | 10.1% | -36.1% | -19.9% | -40.2% | -20.3% |
| Net Debt/EBITDA | -0.2x | -0.4x | -12.5x | | | 0.0x |
AgJunction Inc ($AJX) key quoterly financial indicators
| mln. $ | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 15 | 12 | 7 | 8 | 28.1% | 53.7% | -12.0% | -29.4% |
| EBITDA | 1 | -1 | -3 | -2 | -24.7% | | | |
| Net Income | 0 | -1 | -14 | -3 | -53.6% | -219.6% | | |
Balance Sheet
|
|---|
| Cash | 15 | 15 | 15 | 13 | 35.6% | 19.8% | 29.1% | -1.4% |
| Short Term Debt | 0 | 0 | 0 | 0 | -100.0% | -100.0% | -100.0% | -100.0% |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | |
Ratios
|
|---|
| Gross Margin | 43.1% | 40.2% | 32.9% | 35.1% | -2.6% | -1.7% | -10.7% | 11.3% |
| EBITDA Margin | 4.9% | -6.5% | -38.8% | -28.3% | -3.5% | -1.1% | -32.3% | 9.0% |
| Net Income Margin | 1.6% | -10.1% | -215.7% | -35.2% | -2.8% | -23.2% | -205.2% | 49.6% |
Revenue and profitability
The company's Revenue increased on 8.2%. Revenue growth showed slow down in FY16Q4 - it was -29.4% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.80 pp from -10.8% to -11.6% in FY2016.
Gross Margin increased slightly on 1.1 pp from 38.0% to 39.1% in FY2016. SG&A as a % of Revenue increased slightly on 1.7 pp from 35.4% to 37.1% in FY2016.
Net Income marign dropped on 19.7 pp from -23.4% to -43.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
AgJunction Inc's CAPEX/Revenue was 1.2% in FY2016. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 0.97%.
Return on investment
The company operates at negative ROIC (-15.21%) and ROE (-40.24%). ROIC decreased on 2.8 pp from -12.4% to -15.2% in FY2016. ROE dropped on 20.3 pp from -19.9% to -40.2% in FY2016.
Leverage (Debt)
The company paid down all the debt in FY2016. Cash decreased slightly on 1.4%.
Appendix 1: Peers in Communications
Below we provide AgJunction Inc benchmarking against other companies in Communications industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
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 ($PTS) | | 45.1% | 26.0% | 16.2% | 8.6% |
| |
|---|
| Median (25 companies) | 13.1% | 2.6% | 3.1% | 4.3% | 2.1% |
|---|
| AgJunction Inc ($AJX) | | 5.0% | -23.0% | -12.9% | 8.2% |
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 ($PCS) | 67.4% | 67.1% | 60.2% | 60.5% | |
| |
|---|
| Median (22 companies) | 45.8% | 41.2% | 47.4% | 48.2% | 44.6% |
|---|
| AgJunction Inc ($AJX) | 44.2% | 43.8% | 45.3% | 38.0% | 39.1% |
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 ($ZUM) | 32.6% | 33.8% | 29.3% | 29.1% | 27.1% |
| |
|---|
| Median (29 companies) | 19.1% | 13.7% | 11.0% | 10.4% | 8.2% |
|---|
| AgJunction Inc ($AJX) | 3.6% | 7.7% | 2.0% | -10.8% | -11.6% |
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 ($TGO) | 20.9% | 21.5% | 23.1% | 14.8% | 13.0% |
| |
|---|
| Median (28 companies) | 2.8% | 3.2% | 2.4% | 3.1% | 3.6% |
|---|
| AgJunction Inc ($AJX) | 1.2% | 0.9% | 0.6% | 1.1% | 1.2% |
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 ($T) | 12.4% | 13.0% | 13.0% | 11.5% | 9.6% |
| |
|---|
| Median (28 companies) | 9.9% | 8.2% | 7.5% | 3.1% | 2.2% |
|---|
| AgJunction Inc ($AJX) | -1.9% | 5.3% | -1.5% | -12.4% | -15.2% |
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 (21 companies) | 1.4x | 1.3x | 1.5x | 1.6x | 1.7x |
|---|
