Synex International Inc reports 257 pp EBITDA Margin growth from -226% to 31.2% in 2020 in 2020 and 15.5% Revenue growth
28.09.2020 • About Synex International Inc (
$SXI) • By InTwits
Synex International Inc reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- Synex International Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -9.2%
- Synex International Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.4%. At the same time it's a lot of higher than industry average of 7.2%.
- CAPEX is quite volatile: 0 CADm in FY2020, 0 CADm in FY2019, 1 CADm in FY2018, 0 CADm in FY2017, 0 CADm in FY2016
- The company has potentially unprofitable business model: ROIC is 0.8%
- It operates with high leverage: Net Debt/EBITDA is 12.0x while industry average is 9.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Synex International Inc's Revenue jumped on 15.5%. Revenue growth showed acceleration in FY20Q4 - it increased 60.4% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 80.7 pp from -265% to -184% in FY2020. During FY2016-FY2020 EBITDA Margin bottomed in FY2019 at -226%.
SG&A as a % of Revenue dropped on 33.7 pp from 97.3% to 63.6% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue topped in FY2019 at 97.3%.
Net Income margin jumped on 280 pp from -286% to -5.7% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 0.97%. Synex International Inc showed decline in CAPEX/Revenue of 7.4 pp from 8.4% in FY2017 to 0.97% in FY2020. Average CAPEX/Revenue for the last three years was 10.4%.
Return on investment
The company operates at low but positive ROIC (0.8%) and negative ROE (-3.3%). ROIC surged on 29.8 pp from -29.0% to 0.78% in FY2020. ROE surged on 73.7 pp from -76.9% to -3.3% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 12.0x and Debt / EBITDA is 12.8x. Net Debt / EBITDA jumped12.0x from to 12.0x in FY2020. Debt decreased on 3.6% while cash surged on 72.2%.
Synex International Inc has short term refinancing risk: cash is only 7.9% of short term debt.
Financial and operational results
FY ended 30.06.2020
Synex International Inc ($SXI) key annual financial indicators| mln. CAD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 3.881 | 4.251 | 3.315 | 2.879 | 3.326 | 15.5% |
| SG&A | 2.074 | 2.309 | 2.614 | 2.800 | 2.114 | -24.5% |
| EBITDA | 1.645 | 1.716 | 0.471 | -6.495 | 1.037 | |
| Net Income | 0.029 | 0.095 | -1.094 | -8.224 | -0.191 | |
Balance Sheet
|
|---|
| Cash | 0.737 | 0.946 | 1.131 | 0.499 | 0.860 | 72.2% |
| Short Term Debt | 8.495 | 1.033 | 7.615 | 13.296 | 10.939 | -17.7% |
| Long Term Debt | 8.388 | 15.220 | 6.925 | 0.498 | 2.354 | 372.8% |
Cash flow
|
|---|
| Capex | 0.481 | 0.356 | 0.666 | 0.293 | 0.032 | -89.1% |
Ratios
|
|---|
| Revenue growth | -4.5% | 9.5% | -22.0% | -13.1% | 15.5% | |
| EBITDA growth | 24.7% | 4.3% | -72.5% | -1,478.9% | -116.0% | |
|
|---|
| EBITDA Margin | 42.4% | 40.4% | 14.2% | -225.6% | 31.2% | 256.8% |
| SG&A, % of revenue | 53.4% | 54.3% | 78.9% | 97.3% | 63.6% | -33.7% |
| Net Income Margin | 0.8% | 2.2% | -33.0% | -285.7% | -5.7% | 279.9% |
| CAPEX, % of revenue | 12.4% | 8.4% | 20.1% | 10.2% | 1.0% | -9.2% |
|
|---|
| ROIC | 2.1% | 2.4% | -1.7% | -29.0% | 0.8% | 29.8% |
| ROE | 0.2% | 0.7% | -7.4% | -76.9% | -3.3% | 73.7% |
| Net Debt/EBITDA | 9.8x | 8.9x | 28.5x | | 12.0x |
Synex International Inc ($SXI) key quoterly financial indicators
| mln. CAD | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 1 | 1 | 1 | | 3.4% | -16.4% | 34.3% | 60.4% |
| EBITDA | -0 | 1 | 1 | 0 | | - | 59.6% | - | - |
| Net Income | -1 | 0 | 0 | -0 | | - | 7,558.6% | - | - |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 1 | | -32.1% | 32.0% | -31.3% | 72.2% |
| Short Term Debt | 7 | 13 | 13 | 11 | | -6.6% | 74.7% | 1,232.0% | -17.7% |
| Long Term Debt | 7 | 0 | 0 | 2 | | 2.4% | -93.0% | -96.6% | 372.8% |
Ratios
|
|---|
| EBITDA Margin | -74.1% | 71.4% | 62.2% | 4.0% | | -20.8% | 34.0% | 84.4% | 1,137.6% |
| Net Income Margin | -152.8% | 30.7% | 20.7% | -4.6% | | -12.7% | 30.4% | 85.4% | 1,238.3% |
Peers in Consumer, Non-cyclical
Below we provide Synex International Inc benchmarking against other companies in Consumer, Non-cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Canyon Creek Food Co Ltd ($CYF) | - | 50.5% | 34.0% | 3.9% | 38.5% |
| Aurora Cannabis Inc ($ACB) | - | 1,155.3% | 205.5% | 344.8% | 13.6% |
| Quizam Media Corp ($QQ) | - | -0.6% | 15.4% | 41.0% | -8.0% |
| |
|---|
| Median (3 companies) | 12.8% | 25.0% | 34.0% | 41.0% | 13.6% |
|---|
| Synex International Inc ($SXI) | - | 9.5% | -22.0% | -13.1% | 15.5% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Quizam Media Corp ($QQ) | 39.9% | 56.7% | 82.4% | 60.4% | 93.0% |
| Canyon Creek Food Co Ltd ($CYF) | 1.8% | 12.9% | 14.3% | 5.6% | 3.1% |
| Aurora Cannabis Inc ($ACB) | 153.0% | 88.9% | 78.8% | 58.0% | -12.0% |
| |
|---|
| Median (3 companies) | 33.2% | 56.7% | 78.8% | 58.0% | 3.1% |
|---|
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Canyon Creek Food Co Ltd ($CYF) | -38.5% | -8.4% | -5.9% | -13.1% | -13.7% |
| Aurora Cannabis Inc ($ACB) | -277.7% | -55.9% | -151.3% | -93.7% | -134.8% |
| Quizam Media Corp ($QQ) | -262.5% | -342.7% | -174.6% | -264.9% | -184.2% |
| |
|---|
| Median (3 companies) | 8.5% | -199.3% | -151.3% | -93.7% | -134.8% |
|---|
| Synex International Inc ($SXI) | 42.4% | 40.4% | 14.2% | -225.6% | 31.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Aurora Cannabis Inc ($ACB) | 131.0% | 142.3% | 248.1% | 168.7% | 127.3% |
| Canyon Creek Food Co Ltd ($CYF) | 5.0% | 0.6% | 4.9% | 2.0% | 4.8% |
| Quizam Media Corp ($QQ) | 2.1% | 1.9% | 14.6% | 1.5% | 3.5% |
| ESTec Systems Corp ($ESE) | - | - | - | - | 0.0% |
| |
|---|
| Median (4 companies) | 2.3% | 72.1% | 14.6% | 2.0% | 4.2% |
|---|
| Synex International Inc ($SXI) | 12.4% | 8.4% | 20.1% | 10.2% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Aurora Cannabis Inc ($ACB) | -36.6% | -7.3% | -9.1% | -9.2% | -12.6% |
| InMed Pharmaceuticals Inc ($IN) | -179.8% | -99.1% | -49.1% | -60.2% | -92.2% |
| Vodis Pharmaceuticals Inc ($VP) | - | -235.2% | -133.7% | -266.2% | - |
| ESTec Systems Corp ($ESE) | - | - | - | - | - |
| Resverlogix Corp ($RVX) | - | - | - | - | - |
| |
|---|
| Median (7 companies) | 8.0% | -99.1% | -49.1% | -60.2% | -52.4% |
|---|
| Synex International Inc ($SXI) | 2.1% | 2.4% | -1.7% | -29.0% | 0.8% |
