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. Here are the key drivers of the company's long term financial model:
- 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 motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -13.7% for the sames years
- 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
Canyon Creek Food Co Ltd's Revenue surged on 38.5%. Revenue growth showed slowdown in FY20Q4 - it was 21.1% 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 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 the last 5 years 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 followed 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's CAPEX/Revenue increased on 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)
Company's Net Debt / EBITDA is 12.0x and Debt / EBITDA is . Net Debt / EBITDA didn't change in FY2020. Debt jumped 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. CAD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 3.569 | 5.373 | 7.200 | 7.479 | 10.357 | 38.5% |
| Gross Profit | 0.064 | 0.692 | 1.033 | 0.419 | 0.316 | -24.6% |
| SG&A | 0.679 | 0.491 | 0.634 | 0.527 | 0.673 | 27.7% |
| 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
|
|---|
| Cash | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Short Term Debt | 11.489 | 12.225 | 0.975 | 0.992 | 2.382 | 140.1% |
| Long Term Debt | 0.029 | 0.011 | 11.897 | 13.683 | 16.589 | 21.2% |
Cash flow
|
|---|
| Capex | 0.178 | 0.031 | 0.350 | 0.148 | 0.501 | 238.4% |
Ratios
|
|---|
| Revenue growth | 47.5% | 50.5% | 34.0% | 3.9% | 38.5% | |
| EBITDA growth | 1.3% | -67.3% | -6.2% | 132.9% | 44.1% | |
|
|---|
| Gross Margin | 1.8% | 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 revenue | 19.0% | 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 revenue | 5.0% | 0.6% | 4.9% | 2.0% | 4.8% | 2.9% |
|
|---|
Canyon Creek Food Co Ltd ($CYF) key quoterly financial indicators
| mln. CAD | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 5 | 4 | 1 | | 115.9% | 41.8% | 27.9% | 21.1% |
| EBITDA | -1 | -0 | 0 | -1 | | - | -100.1% | 1,335.6% | - |
| Net Income | -1 | -1 | -0 | -2 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | - | - | - | - |
| Short Term Debt | 2 | 2 | 3 | 2 | | 15.1% | 17.1% | 78.9% | 140.1% |
| Long Term Debt | 15 | 16 | 16 | 17 | | 21.9% | 33.2% | 31.3% | 21.2% |
Ratios
|
|---|
| Gross Margin | -32.1% | 8.4% | 13.4% | -37.8% | | 0.3% | -11.9% | 2.0% | 31.2% |
| EBITDA Margin | -56.4% | -0.0% | 4.2% | -131.0% | | 30.6% | -9.2% | 3.8% | 6.8% |
| Net Income Margin | -116.9% | -13.7% | -11.8% | -204.9% | | 72.0% | -9.2% | 3.5% | 4.5% |
Peers in Consumer, Non-cyclical
Below we provide Canyon Creek Food Co Ltd benchmarking against other companies in Consumer, Non-cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Synex International Inc ($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) | 9.8x | 8.9x | 28.5x | - | 12.0x |
| |
|---|
| Median (1 company) | 2.9x | 8.9x | 28.5x | - | 12.0x |
|---|
