Trending stocks
$HSBA  
$QPP  
$TSCO  
$SKY  
$BRBY  

Accesso Technology Grp Net Income jumped on 31.6% in 2017 and Revenue surged on 30.2%

21 Mar 2018 • About Accesso Technology Grp ($ACSO) • By InTwits

Accesso Technology Grp reported 2017 financial results today. Overall looking at the company's long term financial model we can say that: The company has potentially unprofitable business model: ROIC is at 6.4%.

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Accesso Technology Grp ($ACSO) key annual financial indicators

mln. $201320142015201620172017/2016
P&L
Revenue59.075.193.2102.5133.430.2%
Gross Profit32.046.055.373.432.8%
SG&A26.538.344.864.243.3%
EBITDA10.814.618.123.428.9%
Net Income4.63.85.47.59.931.6%
Balance Sheet
Cash5.75.35.928.7388.7%
Short Term Debt0.00.10.10.0-83.3%
Long Term Debt20.114.89.316.173.4%
Cash flow
Capex0.81.81.90.9-52.0%
Ratios
Revenue growth28.2%27.3%24.1%10.0%30.2%
EBITDA growth35.7%24.2%28.9%
Gross Margin42.6%49.3%54.0%55.0%1.1%
EBITDA Margin0.0%14.3%15.7%17.7%17.5%-0.2%
Net Income Margin7.7%5.0%5.8%7.3%7.4%0.1%
SG&A, % of revenue35.3%41.1%43.7%48.1%4.4%
CAPEX, % of revenue1.1%1.9%1.9%0.7%-1.2%
ROIC9.3%11.9%6.4%-5.4%
ROE8.9%10.6%7.8%-2.8%
Net Debt/EBITDA1.3x0.7x0.2x-0.5x-0.7x

Revenue and profitability


Accesso Technology Grp's Revenue surged on 30.2% in 2017. EBITDA Margin showed almost no change in 2017.

Gross Margin increased slightly on 1.1 pp from 54.0% to 55.0% in 2017. SG&A as a % of Revenue increased on 4.4 pp from 43.7% to 48.1% in 2017.

Net Income marign showed almost no change in 2017.

Capital expenditures (CAPEX) and working capital investments


In 2017 the company had CAPEX/Revenue of 0.70%. The company showed almost no change in CAPEX/Revenue from 2014 to 2017. Average CAPEX/Revenue for the last three years was 1.5%.

Return on investment


The company operates at low ROIC (6.41%) and ROE (7.82%). ROIC decreased on 5.4 pp from 11.9% to 6.4% in 2017. ROE decreased on 2.8 pp from 10.6% to 7.8% in 2017.

Leverage (Debt)


Company's Net Debt / EBITDA is -0.5x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 0.7x from 0.2x to -0.5x in 2017. Debt surged on 72.5% in 2017 while cash jumped on 389% in 2017.

Valuation


The company's trades at EV/EBITDA 26.6x and P/E 36.5x.

Appendix 1: Peers in Software & Computer Services


Below we provide Accesso Technology Grp benchmarking against other companies in Software & Computer 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 FY2013 FY2014 FY2015 FY2016 FY2017
Pennant International Group ($PEN)29.1%-4.7%-44.4%74.0%
Sopheon ($SPE)5.3%-16.6%23.0%69.7%
Coms ($COMS)46.8%763.3%110.4%36.1%
Microgen ($MCGN)-7.7%-0.0%7.2%34.5%
IMImobile ($IMO)12.7%12.6%26.1%23.5%
 
Median (34 companies)5.5%4.4%3.1%10.9%18.7%
Accesso Technology Grp ($ACSO)27.3%24.1%10.0%30.2%


Top companies by Gross margin, %

Top 5 FY2013 FY2014 FY2015 FY2016 FY2017
Lombard Risk Management ($LRM)98.8%99.2%98.6%99.3%
Netcall ($NET)89.7%91.0%90.9%91.2%91.7%
Wandisco ($WAND)80.3%80.7%93.2%88.1%
Dotdigital Group ($DOTD)92.7%90.5%89.3%87.4%86.1%
Idox ($IDOX)90.8%89.4%89.3%86.8%83.0%
 
Median (24 companies)62.0%58.4%60.2%60.0%84.8%
Accesso Technology Grp ($ACSO)42.6%49.3%54.0%55.0%


Top companies by EBITDA margin, %

Top 5 FY2013 FY2014 FY2015 FY2016 FY2017
Mail.Ru Group Ltd ($61HE)47.4%50.5%34.6%35.2%
Dotdigital Group ($DOTD)39.4%29.2%32.0%30.4%31.7%
Idox ($IDOX)26.1%26.0%28.6%27.3%16.6%
Proactis Holdings ($PHD)18.3%22.8%26.4%23.7%3.7%
Oxford Metrics ($OMG)6.0%14.7%28.4%23.1%19.9%
 
Median (27 companies)13.0%11.1%12.3%11.0%18.5%
Accesso Technology Grp ($ACSO)14.3%15.7%17.7%17.5%


Top companies by CAPEX/Revenue, %

Top 5 FY2013 FY2014 FY2015 FY2016 FY2017
Mail.Ru Group Ltd ($61HE)5.8%3.0%3.6%5.2%
Csf Group ($CSFG)4.0%2.4%7.1%4.9%
International Bus Mach Corp ($IBM)3.7%4.0%4.4%4.5%
IMImobile ($IMO)3.3%3.9%2.0%3.3%2.8%
Unisys Corp ($USY)2.5%4.1%5.0%3.0%
 
Median (27 companies)1.5%1.9%1.0%1.2%1.3%
Accesso Technology Grp ($ACSO)1.1%1.9%1.9%0.7%


Top companies by ROIC, %

Top 5 FY2013 FY2014 FY2015 FY2016 FY2017
Rm ($RM.)48.6%130.8%289.2%263.8%
Triad Group ($TRD)-3.8%24.5%61.5%74.4%
Dotdigital Group ($DOTD)38.0%28.5%31.4%28.9%29.3%
International Bus Mach Corp ($IBM)31.0%28.1%25.7%18.7%
Oxford Metrics ($OMG)-0.1%0.8%14.6%16.3%12.7%
 
Median (34 companies)11.6%9.8%5.3%8.4%10.6%
Accesso Technology Grp ($ACSO)9.3%11.9%6.4%


Top companies by Net Debt / EBITDA

Top 5 FY2013 FY2014 FY2015 FY2016 FY2017
Zoo Digital Group ($ZOO)3.2x38.3x
Progility ($PGY)1.8x12.8x6.8x
International Bus Mach Corp ($IBM)1.2x1.4x1.7x2.2x
Idox ($IDOX)1.3x1.0x1.3x1.2x2.2x
Datatec ($DTC)-0.3x0.3x0.4x1.1x
 
Median (24 companies)-0.5x-0.4x-0.6x-0.9x-1.6x
Accesso Technology Grp ($ACSO)1.3x0.7x0.2x-0.5x