Sylogist Ltd reports 56.1% revenue growth in FY2015 and 4.5 pp EBITDA Margin decline from 20.4% to 15.9%
12.01.2016 • About Sylogist Ltd (
$SYZ) • By InTwits
Sylogist Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 15.9% in FY2015, 20.4% in FY2014, 41.8% in FY2013, 34.4% in FY2012, 30.2% in FY2011
- Sylogist Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.7%.
- The company has potentially unprofitable business model: ROIC is at 2.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sylogist Ltd ($SYZ) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 9.838 | 9.267 | 11.645 | 17.523 | 27.350 | 56.1% |
| Gross Profit | 6.990 | 6.582 | 9.026 | 11.744 | 17.714 | 50.8% |
| SG&A | | | 3.816 | 6.119 | 8.260 | 35.0% |
| EBITDA | 2.971 | 3.190 | 4.869 | 3.572 | 4.355 | 21.9% |
| Net Income | 1.894 | 2.031 | 4.285 | 3.059 | 2.548 | -16.7% |
Balance Sheet
|
|---|
| Cash | 7.615 | 11.670 | 9.703 | 42.084 | 41.095 | -2.3% |
| Short Term Debt | 0.042 | 0.042 | 0.018 | 0.046 | 0.044 | -4.1% |
| Long Term Debt | 0.075 | 0.018 | 0.000 | 0.138 | 0.099 | -28.1% |
Cash flow
|
|---|
| Capex | 0.081 | 0.037 | 0.057 | 0.104 | 0.296 | 184.8% |
Ratios
|
|---|
| Revenue growth | 1.5% | -5.8% | 25.7% | 50.5% | 56.1% | |
| EBITDA growth | -9.3% | 7.4% | 52.6% | -26.6% | 21.9% | |
| Gross Margin | 71.1% | 71.0% | 77.5% | 67.0% | 64.8% | -2.3% |
| EBITDA Margin | 30.2% | 34.4% | 41.8% | 20.4% | 15.9% | -4.5% |
| Net Income Margin | 19.3% | 21.9% | 36.8% | 17.5% | 9.3% | -8.1% |
| SG&A, % of revenue | | | 32.8% | 34.9% | 30.2% | -4.7% |
| CAPEX, % of revenue | 0.8% | 0.4% | 0.5% | 0.6% | 1.1% | 0.5% |
| ROIC | 14.4% | 18.1% | 29.7% | 5.9% | 2.4% | -3.4% |
| ROE | 10.6% | 13.0% | 27.6% | 7.6% | 4.3% | -3.3% |
| Net Debt/EBITDA | -2.5x | -3.6x | -2.0x | -11.7x | -9.4x | 2.3x |
Revenue and profitability
Sylogist Ltd's Revenue jumped on 56.1% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 22.0 pp from 8.3% to -13.7% in 2015.
Gross Margin decreased on 2.3 pp from 67.0% to 64.8% in FY2015. SG&A as a % of Revenue decreased on 4.7 pp from 34.9% to 30.2% in FY2015.
Net Income marign decreased on 8.1 pp from 17.5% to 9.3% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 1.1%. The company showed small growth in CAPEX/Revenue of 0.68 pp from 0.40% in FY2012 to 1.1% in FY2015. For the last three years the average CAPEX/Revenue was 0.72%.
Return on investment
The company operates at low ROIC (2.44%) and ROE (4.34%). ROIC decreased on 3.4 pp from 5.9% to 2.4% in FY2015. ROE decreased on 3.3 pp from 7.6% to 4.3% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -9.4x and Debt / EBITDA is 0.0x. Net Debt / EBITDA jumped on 2.3x from -11.7x to -9.4x in FY2015. Debt dropped on 22.1% in FY2015 while cash decreased on 2.3% in FY2015.
Appendix 1: Peers in Technology
Below you can find Sylogist Ltd benchmarking vs. other companies in Technology industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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) | | -4.5% | 151.6% | 81.4% | -13.6% |
| 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 ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (33 companies) | 10.2% | 6.6% | 11.4% | 13.7% | 5.0% |
|---|
| Sylogist Ltd ($SYZ) | | -5.8% | 25.7% | 50.5% | 56.1% |
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 ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
| |
|---|
| Median (31 companies) | 49.7% | 52.4% | 48.8% | 51.1% | 48.1% |
|---|
| Sylogist Ltd ($SYZ) | 71.1% | 71.0% | 77.5% | 67.0% | 64.8% |
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% | 35.1% |
| Enghouse Systems Ltd ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | 21.9% |
| |
|---|
| Median (33 companies) | 8.5% | 8.3% | 5.5% | 7.0% | 18.0% |
|---|
| Sylogist Ltd ($SYZ) | 30.2% | 34.4% | 41.8% | 20.4% | 15.9% |
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 ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | |
| |
|---|
| Median (33 companies) | 1.3% | 1.6% | 1.5% | 1.3% | 1.6% |
|---|
| Sylogist Ltd ($SYZ) | 0.8% | 0.4% | 0.5% | 0.6% | 1.1% |
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 ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | 21.7% |
| |
|---|
| Median (33 companies) | 4.7% | 2.9% | -4.8% | 0.5% | 9.8% |
|---|
| Sylogist Ltd ($SYZ) | 14.4% | 18.1% | 29.7% | 5.9% | 2.4% |
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 ($GIB.A) | 1.3x | 6.0x | 2.4x | 1.3x | 1.0x |
| |
|---|
| Median (21 companies) | -0.3x | -0.2x | -0.2x | -1.3x | -0.1x |
|---|
| Sylogist Ltd ($SYZ) | -2.5x | -3.6x | -2.0x | -11.7x | -9.4x |
