Canaccord Genuity Group Inc EBITDA dropped on 1,007% in 2016 and EBITDA Margin dropped on 45.8 pp from 4.1% to -41.7%
01 Jun 2016 • About Canaccord Genuity Group Inc (
$CF.) • By InTwits
Canaccord Genuity Group Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Canaccord Genuity Group Inc doesn't have a profitable business model yet: FY2016 ROIC is -23.1%
- Canaccord Genuity Group Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -7.4%0
- Canaccord Genuity Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 1.8%.
- CAPEX is quite volatile: 10.6 in FY2016, 5.2 in FY2015, 15.5 in FY2014, 7.0 in FY2013, 10.6 in FY2012
- The company has unprofitable business model: ROIC is at -23.1%
- It operates with high leverage: Net Debt/EBITDA is 4.5x while industry average is -4.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Canaccord Genuity Group Inc ($CF.) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 604.9 | 797.1 | 855.2 | 880.8 | 787.8 | -10.6% |
| SG&A | 69.5 | 89.5 | 83.8 | 94.7 | 87.0 | -8.1% |
| EBITDA | | | | 36.2 | -328.4 | -1,007.3% |
| Net Income | -20.3 | -16.8 | 51.4 | -13.2 | -358.5 | 2,619.0% |
Balance Sheet
|
|---|
| Cash | 814.2 | 491.0 | 364.3 | 322.3 | 428.3 | 32.9% |
| Short Term Debt | 1,154.8 | 770.2 | 928.9 | 689.9 | 457.3 | -33.7% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 10.6 | 7.0 | 15.5 | 5.2 | 10.6 | 101.9% |
Ratios
|
|---|
| Revenue growth | -24.7% | 31.8% | 7.3% | 3.0% | -10.6% | |
| EBITDA growth | | | | | -1,007.3% | |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | 4.1% | -41.7% | -45.8% |
| Net Income Margin | -3.4% | -2.1% | 6.0% | -1.5% | -45.5% | -44.0% |
| SG&A, % of revenue | 11.5% | 11.2% | 9.8% | 10.8% | 11.0% | 0.3% |
| CAPEX, % of revenue | 1.8% | 0.9% | 1.8% | 0.6% | 1.3% | 0.7% |
| ROIC | -0.3% | -0.4% | 4.0% | 0.4% | -23.1% | -23.5% |
| ROE | -3.1% | -3.3% | 4.4% | -2.7% | -50.9% | -48.2% |
| Net Debt/EBITDA | | | | 10.2x | | -10.2x |
Revenue and profitability
The company's Revenue dropped on 10.6% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 45.8 pp from 4.1% to -41.7% in FY2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign dropped on 44.0 pp from -1.5% to -45.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Canaccord Genuity Group Inc's CAPEX/Revenue was 1.3% in FY2016. The company showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 1.2%.
Return on investment
The company operates at negative ROIC (-23.09%) and ROE (-50.88%). ROIC dropped on 23.5 pp from 0.39% to -23.1% in FY2016. ROE dropped on 48.2 pp from -2.7% to -50.9% in FY2016.
Leverage (Debt)
Debt level is 4.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 10.2x from 10.2x to in FY2016. Debt dropped on 33.7% in FY2016 while cash surged on 32.9% in FY2016.
Management team
Daniel Daviau "Dan" is a Canaccord Genuity Group Inc's CEO. Daniel Daviau "Dan" is a founder and has spent 3 years at the company.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Volvere ($VLE) | -47.1% | 149.8% | -23.2% | 124.9% | |
| Real Estate Credit Investments Pcc ($RECP) | | 335.8% | -59.6% | 47.3% | -29.8% |
| Fairpoint Group ($FRP) | 32.7% | -17.5% | 35.1% | 41.2% | |
| Afh Financial Group ($AFHP) | | 49.9% | 39.3% | 39.5% | |
| Manx Financial Group ($MFX) | 5.6% | 33.3% | 22.0% | 28.2% | |
| |
|---|
| Median (30 companies) | 5.6% | 12.6% | 4.7% | 2.7% | -2.3% |
|---|
| Canaccord Genuity Group Inc ($CF.) | | 31.8% | 7.3% | 3.0% | -10.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Record ($REC) | 98.8% | 98.8% | 99.6% | 99.3% | |
| Panmure Gordon & Co ($PMR) | 95.2% | 95.0% | 95.3% | 95.2% | |
| First Property Group ($FPO) | 86.0% | 69.5% | 67.9% | 83.0% | |
| Schroders ($SDRC) | 76.9% | 76.2% | 77.7% | 78.3% | |
| London Capital Group Hldgs ($LCG) | 64.2% | 70.5% | 73.6% | 67.9% | |
| |
|---|
| Median (16 companies) | 54.3% | 52.7% | 52.2% | 52.5% | 63.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Livermore Investments Group Ltd ($LIV) | 84.9% | 64.8% | 78.8% | 83.5% | |
| Real Estate Credit Investments Pcc ($RECP) | 58.6% | 89.3% | 77.0% | 80.3% | 79.3% |
| Manx Financial Group ($MFX) | 39.8% | 49.2% | 56.5% | 58.8% | |
| Hargreaves Lansdown ($HL.) | 64.1% | 66.4% | 58.7% | 51.2% | |
| Daishin Securities Co ($DSS) | 53.8% | 51.5% | 38.8% | 49.2% | |
| |
|---|
| Median (28 companies) | 13.3% | 16.3% | 14.5% | 16.9% | 63.6% |
|---|
| Canaccord Genuity Group Inc ($CF.) | | | | 4.1% | -41.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| London Capital Group Hldgs ($LCG) | 1.8% | 0.2% | 3.4% | 7.7% | |
| Daishin Securities Co ($DSS) | 6.0% | 24.7% | 15.0% | 6.5% | |
| Commercial Bank Of Qatar(The) ($CBQS) | 6.0% | 3.8% | 2.8% | 3.9% | |
| Nmbz Hldgs ($NMB) | 6.1% | 3.0% | 2.1% | 3.8% | |
| Afh Financial Group ($AFHP) | 1.6% | 1.5% | 0.7% | 3.8% | |
| |
|---|
| Median (29 companies) | 1.3% | 1.4% | 1.3% | 1.2% | 1.9% |
|---|
| Canaccord Genuity Group Inc ($CF.) | 1.8% | 0.9% | 1.8% | 0.6% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hargreaves Lansdown ($HL.) | 108.7% | 111.7% | 101.0% | 87.5% | |
| Manx Financial Group ($MFX) | 8.0% | 19.7% | 29.7% | 40.2% | |
| Record ($REC) | 23.8% | 19.6% | 20.2% | 20.2% | |
| Impax Asset Management Group ($IPX) | -13.7% | 17.2% | 18.7% | 16.1% | |
| Lighthouse Group ($LGT) | 7.2% | -3.9% | 8.6% | 14.6% | |
| |
|---|
| Median (30 companies) | 5.5% | 6.3% | 9.2% | 7.7% | 14.5% |
|---|
| Canaccord Genuity Group Inc ($CF.) | -0.3% | -0.4% | 4.0% | 0.4% | -23.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Private & Commercial Finance Group ($PCF) | 12.8x | 14.3x | 13.9x | 12.9x | |
| First Property Group ($FPO) | 3.6x | 3.0x | 5.6x | 12.3x | |
| Daishin Securities Co ($DSS) | 1.5x | 2.4x | 10.7x | 8.0x | |
| S & U ($46IE) | 1.4x | 1.3x | 1.7x | 3.1x | 0.5x |
| Livermore Investments Group Ltd ($LIV) | 3.8x | 4.6x | 3.4x | 2.5x | |
| |
|---|
| Median (25 companies) | -1.1x | -1.4x | -2.1x | -1.1x | 0.1x |
|---|
| Canaccord Genuity Group Inc ($CF.) | | | | 10.2x | |
