Computer Modelling Group Ltd Net Income jumped on 18.2% in 2015 and Revenue surged on 13.9%
21.05.2015 • About Computer Modelling Group Ltd (
$CMG) • By InTwits
Computer Modelling Group Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Computer Modelling Group Ltd is a growth stock: FY2015 revenue growth was 13.9%, 5 year revenue CAGR was 13.4% at FY2015 ROIC 63.5%
- Computer Modelling Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's in pair with industry average of 1.8%.
- CAPEX is quite volatile: 107 in 2015, 264 in 2014, 143 in 2013, 234 in 2012, 156 in 2011
- The company has highly profitable business model: ROIC is at 63.5%
- It operates with high leverage: Net Debt/EBITDA is -1.7x while industry average is -2.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Computer Modelling Group Ltd ($CMG) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 51.827 | 61.034 | 68.620 | 74.503 | 84.861 | 13.9% |
| SG&A | 16.812 | 18.801 | 21.813 | 23.098 | 26.351 | 14.1% |
| EBITDA | 26.714 | 32.831 | 35.829 | 38.373 | 43.099 | 12.3% |
| Net Income | 17.166 | 23.391 | 24.822 | 27.630 | 32.648 | 18.2% |
Balance Sheet
|
|---|
| Cash | 41.753 | 55.374 | 59.419 | 72.410 | 75.342 | 4.0% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.190 | 1.501 | 2.014 | 0.839 | 1.749 | 108.5% |
Ratios
|
|---|
| Revenue growth | 14.4% | 17.8% | 12.4% | 8.6% | 13.9% | |
| EBITDA growth | 17.3% | 22.9% | 9.1% | 7.1% | 12.3% | |
| EBITDA Margin | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% | -0.7% |
| Net Income Margin | 33.1% | 38.3% | 36.2% | 37.1% | 38.5% | 1.4% |
| SG&A, % of revenue | 32.4% | 30.8% | 31.8% | 31.0% | 31.1% | 0.0% |
| CAPEX, % of revenue | 2.3% | 2.5% | 2.9% | 1.1% | 2.1% | 0.9% |
| ROIC | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% | 0.5% |
| ROE | 51.9% | 57.2% | 50.9% | 48.2% | 51.6% | 3.3% |
| Net Debt/EBITDA | -1.6x | -1.7x | -1.7x | -1.9x | -1.7x | 0.1x |
Revenue and profitability
The company's Revenue surged on 13.9% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.7 pp from -4.3% to 0.47% in FY2015.
SG&A as a % of Revenue showed almost no change in FY2015.
Net Income marign increased slightly on 1.4 pp from 37.1% to 38.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Computer Modelling Group Ltd had CAPEX/Revenue of 2.1%. Computer Modelling Group Ltd showed almost no change in CAPEX/Revenue from FY2012 to FY2015. It's average CAPEX/Revenue for the last three years was 2.0%.
Return on investment
The company operates at high and attractive ROIC (63.47%) and ROE (51.57%). ROIC increased slightly on 0.52 pp from 62.9% to 63.5% in FY2015. ROE increased on 3.3 pp from 48.2% to 51.6% in FY2015.
Leverage (Debt)
The company has no debt. Cash increased on 4.0% in FY2015.
Management team
Computer Modelling Group Ltd's CEO Kenneth M Dedeluk is a founder and has spent 18 years at the company. Computer Modelling Group Ltd's CFO is Sandra Balic. Sandra Balic has 5 years tenure at the company.
Appendix 1: Peers in Technology
Below we provide Computer Modelling Group Ltd benchmarking against other companies in Technology 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 |
|---|
| Mitel Networks Corp ($MNW) | -9.0% | 3.8% | -5.7% | 91.4% | |
| Redknee Solutions Inc ($RKN) | 25.9% | -4.5% | 151.6% | 81.4% | |
| Intrinsyc Technologies Corp ($ITC) | -19.0% | -26.8% | -21.7% | 70.8% | |
| Espial Group Inc ($ESP) | 10.2% | -9.5% | -5.5% | 59.4% | |
| iLOOKABOUT Corp ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (33 companies) | 11.0% | 3.7% | 11.4% | 15.2% | -16.3% |
|---|
| Computer Modelling Group Ltd ($CMG) | | 17.8% | 12.4% | 8.6% | 13.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ProntoForms Corp ($PFM) | 90.1% | 96.1% | 98.1% | 98.0% | |
| Constellation Software Inc/Canada ($CSU) | 85.5% | 86.2% | 85.5% | 86.1% | |
| Symbility Solutions Inc ($SY) | 82.1% | 80.6% | 79.9% | 81.0% | |
| Espial Group Inc ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | |
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | |
| |
|---|
| Median (32 companies) | 49.9% | 53.8% | 50.9% | 51.7% | 48.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | |
| Open Text Corp ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | |
| Enghouse Systems Ltd ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | |
| Descartes Systems Group Inc/The ($DSG) | 21.8% | 26.0% | 27.0% | 23.8% | 27.9% |
| |
|---|
| Median (33 companies) | 8.5% | 8.3% | 5.5% | 7.0% | 17.1% |
|---|
| Computer Modelling Group Ltd ($CMG) | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Halogen Software Inc ($HGN) | | 4.9% | 9.0% | 8.4% | |
| Intermap Technologies Corp ($IMP) | 0.4% | 1.0% | 3.2% | 7.4% | |
| Kinaxis Inc ($KXS) | 2.2% | 2.9% | 2.3% | 5.0% | |
| BlackBerry Ltd ($BB) | 5.2% | 4.9% | 3.8% | 4.2% | 2.6% |
| ProntoForms Corp ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | |
| |
|---|
| Median (33 companies) | 1.3% | 1.5% | 1.4% | 1.3% | 1.6% |
|---|
| Computer Modelling Group Ltd ($CMG) | 2.3% | 2.5% | 2.9% | 1.1% | 2.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | |
| SMART Technologies Inc ($SMA) | 43.2% | 21.4% | -18.9% | 28.1% | 43.8% |
| Constellation Software Inc/Canada ($CSU) | 45.8% | 45.9% | 22.4% | 24.7% | |
| Sandvine Corp ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | |
| CGI Group Inc ($GIB.A) | 14.7% | 5.7% | 10.9% | 17.1% | |
| |
|---|
| Median (33 companies) | 4.7% | 2.9% | -4.8% | 0.5% | 6.7% |
|---|
| Computer Modelling Group Ltd ($CMG) | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Data Group Ltd ($DGI) | 3.2x | 3.5x | 3.7x | 4.0x | |
| Critical Control Energy Services Corp ($CCZ) | 1.9x | | 1.4x | 2.7x | |
| Mitel Networks Corp ($MNW) | 4.9x | 3.7x | 3.8x | 2.6x | |
| Open Text Corp ($OTC) | 0.0x | 0.1x | 0.2x | 1.8x | |
| CGI Group Inc ($GIB.A) | 1.3x | 6.0x | 2.4x | 1.3x | |
| |
|---|
| Median (21 companies) | -0.3x | -0.2x | -0.2x | -1.3x | 1.3x |
|---|
| Computer Modelling Group Ltd ($CMG) | -1.6x | -1.7x | -1.7x | -1.9x | -1.7x |
