Power Corp of Canada revenue surged on 32.6% in 2016
24.03.2017 • About Power Corp of Canada (
$POW) • By InTwits
Power Corp of Canada reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has potentially unprofitable business model: ROIC is at 2.2%.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Power Corp of Canada ($POW) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 33,443 | 29,642 | 42,629 | 38,265 | 50,750 | 32.6% |
| Net Income | 866 | 1,029 | 1,327 | 1,838 | 1,134 | -38.3% |
Balance Sheet
|
|---|
| Cash | 3,540 | 4,767 | 4,431 | 5,085 | 5,182 | 1.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 6,474 | 7,930 | 7,558 | 8,035 | 8,418 | 4.8% |
Cash flow
|
|---|
| Capex | 0 | 0 | 0 | 0 | 0 | |
Ratios
|
|---|
| Revenue growth | 1.6% | -11.4% | 43.8% | -10.2% | 32.6% | |
| Net Income Margin | 2.6% | 3.5% | 3.1% | 4.8% | 2.2% | -2.6% |
| ROIC | 2.4% | 2.4% | 2.5% | 2.6% | 2.2% | -0.4% |
| ROE | 9.2% | 10.5% | 12.1% | 14.8% | 8.3% | -6.5% |
Power Corp of Canada ($POW) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 13,280 | 13,879 | 14,503 | 9,088 | -2.6% | 156.3% | 47.4% | -3.1% |
| Net Income | 61 | 285 | 316 | 472 | -83.4% | -54.6% | -39.3% | 46.6% |
Balance Sheet
|
|---|
| Cash | 4,761 | 4,860 | 5,045 | 5,182 | -9.5% | 2.8% | -12.7% | 1.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | |
| Long Term Debt | 7,956 | 7,882 | 7,792 | 8,418 | 4.2% | 0.9% | -1.3% | 4.8% |
Ratios
|
|---|
| Net Income Margin | 0.5% | 2.1% | 2.2% | 5.2% | -2.2% | -9.5% | -3.1% | 1.8% |
Revenue and profitability
Power Corp of Canada's Revenue surged on 32.6%. Revenue growth showed slow down in 16Q4 - it was -3.1% YoY.
Net Income marign decreased on 2.6 pp from 4.8% to 2.2% in 2016.
Return on investment
The company operates at low ROIC (2.20%) and ROE (8.34%). ROIC showed almost no change in 2016. ROE decreased on 6.5 pp from 14.8% to 8.3% in 2016.
Leverage (Debt)
Debt increased on 4.8% while cash increased slightly on 1.9%.
Management team
Power Corp of Canada's CEO Paul Desmarais Jr has spent 22 years at the company. Power Corp of Canada's CFO is Gregory D Tretiak. Gregory D Tretiak has 6 years tenure at the company.
Appendix 1: Peers in Financial
Below we provide Power Corp of Canada benchmarking against other companies in Financial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Grenville Strategic Royalty Corp ($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% | 5.1% |
|---|
| Power Corp of Canada ($POW) | | -11.4% | 43.8% | -10.2% | 32.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($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% |
|---|
| Power Corp of Canada ($POW) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($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) | 4.8% | 4.3% | 4.3% | 3.5% | 3.2% |
|---|
| Power Corp of Canada ($POW) | 2.4% | 2.4% | 2.5% | 2.6% | 2.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($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 |
|---|
