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Canyon Creek Food Co Ltd reports 38.5% revenue growth in FY2020 and 0.53 pp EBITDA Margin decline from -13.1% to -13.7%

29.09.2020 • About Canyon Creek Food Co Ltd ($CYF) • By InTwits

Canyon Creek Food Co Ltd reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
  • Canyon Creek Food Co Ltd is a fast growth stock: FY2020 revenue growth was 38.5%, 5 year revenue CAGR was 33.7% at FY2020 ROIC
  • The company operates at negative EBITDA Margin: -13.7%
  • Canyon Creek Food Co Ltd 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 -13.7%
  • Canyon Creek Food Co Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.4%. At the same time it's a lot of higher than industry average of 7.2%.
  • CAPEX is quite volatile: 1 CADm in FY2020, 0 CADm in FY2019, 0 CADm in FY2018, 0 CADm in FY2017, 0 CADm in FY2016
  • 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


The company's Revenue jumped on 38.5%. Revenue growth showed slowdown in FY20Q4 - it was 21.1% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin decreased slightly on 0.53 pp from -13.1% to -13.7% in FY2020. During the last 5 years EBITDA Margin topped in FY2018 at -5.9% and was declining since that time.

Gross Margin decreased on 2.6 pp from 5.6% to 3.1% in FY2020. During FY2016-FY2020 Gross Margin topped in FY2018 at 14.3% and was declining since that time. SG&A as a % of Revenue decreased slightly on 0.55 pp from 7.1% to 6.5% in FY2020. SG&A as a % of Revenue pursued a declining trend in FY2016-FY2020.

Net Income margin increased slightly on 0.73 pp from -37.9% to -37.2% in FY2020.

Investments (CAPEX, working capital and M&A)


The company's CAPEX/Revenue was 4.8% in FY2020. The company showed CAPEX/Revenue growth of 4.3 pp from 0.58% in FY2017 to 4.8% in FY2020. It's average CAPEX/Revenue for the last three years was 3.9%.

Leverage (Debt)


Debt level is 12.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2020. Debt surged on 29.3% while cash didn't change in FY2020.

Canyon Creek Food Co Ltd has short term refinancing risk: cash is only 0.0% of short term debt.

Financial and operational results


FY ended 31.05.2020

Canyon Creek Food Co Ltd ($CYF) key annual financial indicators

mln. CAD201620172018201920202020/2019
P&L
Revenue3.5695.3737.2007.47910.35738.5%
Gross Profit0.0640.6921.0330.4190.316-24.6%
SG&A0.6790.4910.6340.5270.67327.7%
EBITDA-1.374-0.450-0.422-0.982-1.415
Net Income-2.877-1.917-2.062-2.835-3.851
Balance Sheet
Cash0.0000.0000.0000.0000.000
Short Term Debt11.48912.2250.9750.9922.382140.1%
Long Term Debt0.0290.01111.89713.68316.58921.2%
Cash flow
Capex0.1780.0310.3500.1480.501238.4%
Ratios
Revenue growth47.5%50.5%34.0%3.9%38.5%
EBITDA growth1.3%-67.3%-6.2%132.9%44.1%

Gross Margin1.8%12.9%14.3%5.6%3.1%-2.6%
EBITDA Margin-38.5%-8.4%-5.9%-13.1%-13.7%-0.5%
SG&A, % of revenue19.0%9.1%8.8%7.1%6.5%-0.6%
Net Income Margin-80.6%-35.7%-28.6%-37.9%-37.2%0.7%
CAPEX, % of revenue5.0%0.6%4.9%2.0%4.8%2.9%


Canyon Creek Food Co Ltd ($CYF) key quoterly financial indicators

mln. CADFY20Q1FY20Q2FY20Q3FY20Q4 YoY change
P&L
Revenue1541 115.9%41.8%27.9%21.1%
EBITDA-1-00-1 --100.1%1,335.6%-
Net Income-1-1-0-2 ----
Balance Sheet
Cash0000 ----
Short Term Debt2232 15.1%17.1%78.9%140.1%
Long Term Debt15161617 21.9%33.2%31.3%21.2%
Ratios
Gross Margin-32.1%8.4%13.4%-37.8% 0.3%-11.9%2.0%31.2%
EBITDA Margin -56.4% -0.0% 4.2% -131.0% 30.6%-9.2%3.8%6.8%
Net Income Margin -116.9% -13.7% -11.8% -204.9% 72.0%-9.2%3.5%4.5%

Peers in Consumer, Non-cyclical


Below we provide Canyon Creek Food Co Ltd 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
Synex International Inc ($SXI)-9.5%-22.0%-13.1%15.5%
Aurora Cannabis Inc ($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%4.5%15.4%41.0%13.6%
Canyon Creek Food Co Ltd ($CYF)-50.5%34.0%3.9%38.5%


Top companies by Gross margin, %

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Quizam Media Corp ($QQ)39.9%56.7%82.4%60.4%93.0%
Aurora Cannabis Inc ($ACB)153.0%88.9%78.8%58.0%-12.0%
 
Median (2 companies)33.2%72.8%80.6%59.2%40.5%
Canyon Creek Food Co Ltd ($CYF)1.8%12.9%14.3%5.6%3.1%


Top companies by EBITDA margin, %

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Synex International Inc ($SXI)42.4%40.4%14.2%-225.6%31.2%
Aurora Cannabis Inc ($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)9.9%-199.3%-151.3%-225.6%-134.8%
Canyon Creek Food Co Ltd ($CYF)-38.5%-8.4%-5.9%-13.1%-13.7%


Top companies by CAPEX/Revenue, %

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Aurora Cannabis Inc ($ACB)131.0%142.3%248.1%168.7%127.3%
Quizam Media Corp ($QQ)2.1%1.9%14.6%1.5%3.5%
Synex International Inc ($SXI)12.4%8.4%20.1%10.2%1.0%
ESTec Systems Corp ($ESE)----0.0%
 
Median (4 companies)2.3%75.4%20.1%10.2%2.2%
Canyon Creek Food Co Ltd ($CYF)5.0%0.6%4.9%2.0%4.8%


Top companies by ROIC, %

Top 5 FY2016 FY2017 FY2018 FY2019 FY2020
Synex International Inc ($SXI)2.1%2.4%-1.7%-29.0%0.8%
Aurora Cannabis Inc ($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)-----
 
Median (7 companies)7.9%-53.2%-29.1%-44.6%-12.6%
Canyon Creek Food Co Ltd ($CYF)-----


Top companies by Net Debt / EBITDA

Top  FY2016 FY2017 FY2018 FY2019 FY2020
Synex International Inc ($SXI)9.8x8.9x28.5x-12.0x
 
Median (1 company)2.9x8.9x28.5x-12.0x