Urbana Corp. :URNAF-US: Earnings Analysis: 2016 By the Numbers : April 14, 2017

Urbana Corp. reports financial results for the year ended December 31, 2016.

Highlights

  • Gross margins narrowed from 71.26% to 65.82% compared to the same period last year, operating (EBITDA) margins now 511.87% from 81.09%.
  • Change in operating cash flow of -61.56% compared to same period last year is about the same as change in earnings, likely no significant movement in accruals or reserves.
  • Earnings growth from operating margin improvements as well as one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2016 2015 2014 2013 2012
Relevant Numbers (Annual)
Revenues 8.99 10.45 10.37 -19.3 -10.55
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings 41.04 8.07 18.89 57.17 7.3
Earnings Growth (YOY) 408.85 -57.31 -66.95 682.56 153.17
Net Margin 456.31 77.15 182.19 N/A N/A
EPS 0.77 0.15 0.32 0.87 0.1
Return on Equity 26.44 5.46 11.59 37.63 5.34
Return on Assets 24.51 5.22 10.82 35.11 4.99

Access our Ratings and Scores for Urbana Corp.

Earnings Growth Analysis

The company’s gross margins showed no year-on-year improvement. In spite of this, the company’s earnings rose, influenced primarily by the improvement in operating margins (EBITDA margins) from 81.09% to 511.87%. For comparison, gross margins were 71.26% and EBITDA margins were 81.09% in the last period.

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

URNAF-US‘s year-on-year change in operating cash flow of -61.56% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from 81.09% to 511.87% and (2) one-time items. The company’s pretax margins are now 511.87% compared to 81.09% for the same period last year.

EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Urbana Corp.

Company Profile

Urbana Corp. operates as an investment company with interest in financial services sector. It invests in long term asset growth through a combination of public and private investments. The company was founded on August 25, 1947 and is headquartered in Toronto, Canada.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of URNAF-US.