Canaccord Genuity Group Inc reports 126% Net Income decline while 3.0% Revenue growth
02 Jun 2015 • About Canaccord Genuity Group Inc (
$CF.) • By InTwits
Canaccord Genuity Group Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Canaccord Genuity Group Inc doesn't have a profitable business model yet: FY2015 ROIC is 0.4%
- Canaccord Genuity Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 9.9%.
- CAPEX is quite volatile: 5.2 in FY2015, 15.5 in FY2014, 7.0 in FY2013, 10.6 in FY2012, 8.1 in FY2011
- The company has potentially unprofitable business model: ROIC is at 0.4%
- It operates with high leverage: Net Debt/EBITDA is 10.2x while industry average is -1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Canaccord Genuity Group Inc ($CF.) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 803.6 | 604.9 | 797.1 | 855.2 | 880.8 | 3.0% |
| SG&A | 67.9 | 69.5 | 89.5 | 83.8 | 94.7 | 12.9% |
| EBITDA | | | | | 36.2 | |
| Net Income | 99.7 | -20.3 | -16.8 | 51.4 | -13.2 | -125.6% |
Balance Sheet
|
|---|
| Cash | 954.1 | 814.2 | 491.0 | 364.3 | 322.3 | -11.5% |
| Short Term Debt | 751.2 | 1,154.8 | 770.2 | 928.9 | 689.9 | -25.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 8.1 | 10.6 | 7.0 | 15.5 | 5.2 | -66.2% |
Ratios
|
|---|
| Revenue growth | 39.1% | -24.7% | 31.8% | 7.3% | 3.0% | |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | 0.0% | 4.1% | 4.1% |
| Net Income Margin | 12.4% | -3.4% | -2.1% | 6.0% | -1.5% | -7.5% |
| SG&A, % of revenue | 8.4% | 11.5% | 11.2% | 9.8% | 10.8% | 0.9% |
| CAPEX, % of revenue | 1.0% | 1.8% | 0.9% | 1.8% | 0.6% | -1.2% |
| ROIC | 12.6% | -0.3% | -0.4% | 4.0% | 0.4% | -3.7% |
| ROE | 17.2% | -3.1% | -3.3% | 4.4% | -2.7% | -7.1% |
| Net Debt/EBITDA | | | | | 10.2x | 10.2x |
Revenue and profitability
Canaccord Genuity Group Inc's Revenue increased on 3.0% in FY2015.
SG&A as a % of Revenue increased slightly on 0.95 pp from 9.8% to 10.8% in FY2015.
Net Income marign decreased on 7.5 pp from 6.0% to -1.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 0.59%. Canaccord Genuity Group Inc showed small CAPEX/Revenue decline of 1.2 pp from 1.8% in FY2012 to 0.59% in FY2015. It's average level of CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at low but positive ROIC (0.39%) and negative ROE (-2.69%). ROIC decreased on 3.7 pp from 4.0% to 0.39% in FY2015. ROE decreased on 7.1 pp from 4.4% to -2.7% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 10.2x and Debt / EBITDA is 19.1x. Net Debt / EBITDA jumped10.2x from to 10.2x in FY2015. Debt dropped on 25.7% in FY2015 while cash dropped on 11.5% in FY2015.
Appendix 1: Peers in Financial Services
Below we provide Canaccord Genuity Group Inc benchmarking against other companies in Financial Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First Property Group ($FPO) | 10.0% | 31.4% | 13.9% | 69.7% | |
| Fairpoint Group ($FRP) | -12.0% | 32.7% | -17.5% | 35.1% | |
| Commercial Bank Of Qatar(The) ($CBQS) | 5.9% | 5.7% | 19.3% | 26.1% | |
| Hargreaves Lansdown ($HL.) | 30.8% | 14.8% | 22.5% | 22.6% | |
| Manx Financial Group ($MFX) | 28.6% | 5.6% | 33.3% | 22.0% | |
| |
|---|
| Median (29 companies) | 4.3% | 5.6% | 11.3% | 3.1% | -11.9% |
|---|
| Canaccord Genuity Group Inc ($CF.) | | -24.7% | 31.8% | 7.3% | 3.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Record ($REC) | 99.6% | 98.8% | 98.8% | 99.6% | |
| Panmure Gordon & Co ($PMR) | 93.9% | 95.2% | 95.0% | 95.3% | |
| Schroders ($SDRC) | 75.8% | 76.9% | 76.2% | 77.7% | |
| London Capital Group Hldgs ($LCG) | 64.7% | 64.2% | 70.5% | 73.6% | |
| Walker Crips Group ($WCW) | 74.5% | 71.8% | 58.0% | 68.2% | |
| |
|---|
| Median (15 companies) | 56.8% | 56.8% | 53.3% | 53.0% | 47.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Livermore Investments Group Ltd ($LIV) | 92.1% | 84.9% | 64.8% | 78.8% | |
| Real Estate Credit Investments Pcc ($RECP) | | 58.6% | 89.3% | 77.0% | 80.3% |
| Efg Hermes Hldgs ($EFGD) | 67.0% | 66.0% | 61.4% | 63.1% | |
| Hargreaves Lansdown ($HL.) | 61.0% | 64.1% | 66.4% | 58.7% | |
| Manx Financial Group ($MFX) | 24.2% | 39.8% | 49.2% | 56.5% | |
| |
|---|
| Median (26 companies) | 17.2% | 14.9% | 17.0% | 16.8% | 47.2% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Daishin Securities Co ($DSS) | 2.8% | 6.0% | 24.7% | 15.0% | |
| Efg Hermes Hldgs ($EFGD) | 4.9% | 5.6% | 4.4% | 6.0% | |
| Fulcrum Utility Services Ld ($FCRM) | | 5.4% | 5.0% | 3.7% | 0.1% |
| London Capital Group Hldgs ($LCG) | 5.7% | 1.8% | 0.2% | 3.4% | |
| Guinness Peat Group ($GPG) | 3.7% | 2.6% | 0.6% | 2.9% | |
| |
|---|
| Median (28 companies) | 1.1% | 1.1% | 1.3% | 1.3% | 1.6% |
|---|
| Canaccord Genuity Group Inc ($CF.) | 1.0% | 1.8% | 0.9% | 1.8% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Hargreaves Lansdown ($HL.) | 133.9% | 108.7% | 111.7% | 101.0% | |
| Manx Financial Group ($MFX) | -1.2% | 8.0% | 19.7% | 29.7% | |
| Record ($REC) | 44.4% | 23.8% | 19.6% | 20.2% | |
| S & U ($46IE) | | 17.6% | 19.1% | 19.7% | 13.9% |
| Fairpoint Group ($FRP) | -2.1% | 18.6% | 9.0% | 19.4% | |
| |
|---|
| Median (29 companies) | 5.4% | 5.5% | 6.1% | 9.1% | 13.9% |
|---|
| Canaccord Genuity Group Inc ($CF.) | 12.6% | -0.3% | -0.4% | 4.0% | 0.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Private & Commercial Finance Group ($PCF) | 16.0x | 12.8x | 14.3x | 13.9x | |
| Daishin Securities Co ($DSS) | 0.8x | 1.5x | 2.4x | 10.7x | |
| First Property Group ($FPO) | 5.6x | 3.6x | 3.0x | 5.6x | |
| Livermore Investments Group Ltd ($LIV) | 4.9x | 3.8x | 4.6x | 3.4x | |
| S & U ($46IE) | | 1.4x | 1.3x | 1.7x | 3.1x |
| |
|---|
| Median (26 companies) | -1.3x | -1.0x | -1.0x | -1.9x | -0.5x |
|---|
