Cortex Business Solutions Inc reports 17.9% revenue growth in FY2015
22.10.2015 • About Cortex Business Solutions Inc (
$CBX) • By InTwits
Cortex Business Solutions Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cortex Business Solutions Inc doesn't have a profitable business model yet: FY2015 ROIC is -94.2%
- EBITDA Margin is relatively stable: in FY2015 vs. -51.9% in FY2014 vs. -326.9% in FY2011
- Cortex Business Solutions Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2011-FY2015 is 0.0%. Average EBITDA Margin for the same period was -87.8%0
- Cortex Business Solutions Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's a lot of higher than industry average of 2.0%.
- CAPEX is quite volatile: 0.17 in FY2015, 0.054 in FY2014, 0.17 in FY2013, 0.13 in FY2012, 0.41 in FY2011
- The company has unprofitable business model: ROIC is at -94.2%
- It operates with high leverage: Net Debt/EBITDA is 0.5x while industry average is -2.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cortex Business Solutions Inc ($CBX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.063 | 4.937 | 6.164 | 8.977 | 10.587 | 17.9% |
| Gross Profit | | | 2.284 | 3.220 | 4.215 | 30.9% |
| SG&A | | | 7.694 | 7.621 | 8.289 | 8.8% |
| EBITDA | -10.011 | -8.741 | -6.216 | -4.656 | | -100.0% |
| Net Income | -10.180 | -9.304 | -6.877 | -5.887 | -7.926 | 34.6% |
Balance Sheet
|
|---|
| Cash | 9.695 | 6.751 | 5.179 | 9.548 | 3.987 | -58.2% |
| 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 | 0.406 | 0.125 | 0.170 | 0.054 | 0.173 | 219.7% |
Ratios
|
|---|
| Revenue growth | -29.2% | 61.2% | 24.8% | 45.6% | 17.9% | |
| EBITDA growth | 70.3% | -12.7% | -28.9% | -25.1% | | |
| Gross Margin | | | 37.0% | 35.9% | 39.8% | 3.9% |
| EBITDA Margin | -326.9% | -177.0% | -100.8% | -51.9% | 0.0% | 51.9% |
| Net Income Margin | -332.4% | -188.4% | -111.6% | -65.6% | -74.9% | -9.3% |
| SG&A, % of revenue | | | 124.8% | 84.9% | 78.3% | -6.6% |
| CAPEX, % of revenue | 13.3% | 2.5% | 2.8% | 0.6% | 1.6% | 1.0% |
| ROIC | -109.3% | -101.6% | -87.7% | -63.5% | -94.2% | -30.8% |
| ROE | -108.7% | -101.2% | -87.7% | -63.5% | -95.5% | -32.0% |
Revenue and profitability
Cortex Business Solutions Inc's Revenue jumped on 17.9% in FY2015.
Gross Margin increased on 3.9 pp from 35.9% to 39.8% in FY2015. SG&A as a % of Revenue decreased on 6.6 pp from 84.9% to 78.3% in FY2015.
Net Income marign decreased on 9.3 pp from -65.6% to -74.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Cortex Business Solutions Inc had CAPEX/Revenue of 1.6%. Cortex Business Solutions Inc's CAPEX/Revenue decreased slightly on 0.90 pp from 2.5% in FY2012 to 1.6% in FY2015. Average CAPEX/Revenue for the last three years was 1.7%.
Return on investment
The company operates at negative ROIC (-94.23%) and ROE (-95.46%). ROIC dropped on 30.8 pp from -63.5% to -94.2% in FY2015. ROE dropped on 32.0 pp from -63.5% to -95.5% in FY2015.
Leverage (Debt)
The company has no debt. Cash dropped on 58.2% in FY2015.
Appendix 1: Peers in Technology
Below we provide Cortex Business Solutions Inc 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 ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (33 companies) | 10.2% | 3.7% | 11.4% | 13.7% | 11.5% |
|---|
| Cortex Business Solutions Inc ($CBX) | | 61.2% | 24.8% | 45.6% | 17.9% |
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 ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
| |
|---|
| Median (31 companies) | 49.9% | 53.8% | 53.2% | 52.2% | 48.1% |
|---|
| Cortex Business Solutions Inc ($CBX) | | | 37.0% | 35.9% | 39.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | |
| Computer Modelling Group Ltd ($CMG) | 51.5% | 53.8% | 52.2% | 51.5% | 50.8% |
| Open Text Corp ($OTC) | 27.1% | 26.5% | 29.1% | 30.0% | 31.8% |
| Sandvine Corp ($SVC) | 5.1% | 0.9% | 24.0% | 28.2% | |
| Enghouse Systems Ltd ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | |
| |
|---|
| Median (33 companies) | 8.9% | 8.6% | 6.2% | 7.2% | 19.6% |
|---|
| Cortex Business Solutions Inc ($CBX) | -326.9% | -177.0% | -100.8% | -51.9% | |
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 ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | |
| |
|---|
| Median (33 companies) | 1.3% | 1.5% | 1.4% | 1.3% | 2.2% |
|---|
| Cortex Business Solutions Inc ($CBX) | 13.3% | 2.5% | 2.8% | 0.6% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | |
| Computer Modelling Group Ltd ($CMG) | 75.5% | 74.2% | 68.6% | 62.9% | 63.5% |
| 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 ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | |
| |
|---|
| Median (33 companies) | 5.5% | 4.4% | -4.3% | 3.3% | 8.3% |
|---|
| Cortex Business Solutions Inc ($CBX) | -109.3% | -101.6% | -87.7% | -63.5% | -94.2% |
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 | 1.5x |
| CGI Group Inc ($GIB.A) | 1.3x | 6.0x | 2.4x | 1.3x | |
| |
|---|
| Median (22 companies) | -0.3x | -0.4x | -0.4x | -1.3x | -0.0x |
|---|
