Data Group Ltd EBITDA dropped on 125% in 2015 and Revenue decreased on 2.7%
11.03.2016 • About Data Group Ltd (
$DGI) • By InTwits
Data Group Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Data Group Ltd doesn't have a profitable business model yet: 2015 ROIC is -13.8%
- EBITDA Margin is declining: -1.9% in 2015 vs. 7.2% in 2014 vs. 9.2% in 2011
- EBITDA Margin is quite volatile: -1.9% in 2015, 7.2% in 2014, 8.1% in 2013, 8.5% in 2012, 9.2% in 2011
- Data Group Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has unprofitable business model: ROIC is at -13.8%
- It operates with high leverage: Net Debt/EBITDA is 0.6x while industry average is -2.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Data Group Ltd ($DGI) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 332.0 | 336.3 | 317.0 | 313.2 | 304.6 | -2.7% |
| Gross Profit | 83.4 | 87.2 | 80.1 | 74.6 | 71.1 | -4.7% |
| SG&A | | | 59.8 | 57.1 | 54.7 | -4.1% |
| EBITDA | 30.4 | 28.7 | 25.6 | 22.5 | -5.7 | -125.3% |
| Net Income | 5.4 | -37.1 | -45.8 | 4.5 | -19.2 | -528.0% |
Balance Sheet
|
|---|
| Cash | 4.0 | 0.0 | 0.5 | 0.8 | 0.9 | 7.3% |
| Short Term Debt | 0.0 | 1.2 | 4.0 | 3.5 | 43.1 | 1,131.3% |
| Long Term Debt | 102.4 | 99.9 | 92.0 | 86.6 | 10.9 | -87.4% |
Cash flow
|
|---|
| Capex | 2.2 | 2.0 | 2.3 | 3.2 | 4.3 | 34.1% |
Ratios
|
|---|
| Revenue growth | -0.1% | 1.3% | -5.8% | -1.2% | -2.7% | |
| EBITDA growth | -3.2% | -5.6% | -10.8% | -12.1% | -125.3% | |
| Gross Margin | 25.1% | 25.9% | 25.3% | 23.8% | 23.3% | -0.5% |
| EBITDA Margin | 9.2% | 8.5% | 8.1% | 7.2% | -1.9% | -9.0% |
| Net Income Margin | 1.6% | -11.0% | -14.5% | 1.4% | -6.3% | -7.7% |
| SG&A, % of revenue | | | 18.9% | 18.2% | 18.0% | -0.3% |
| CAPEX, % of revenue | 0.7% | 0.6% | 0.7% | 1.0% | 1.4% | 0.4% |
| ROIC | 6.2% | 7.0% | 8.6% | 14.2% | -13.8% | -28.1% |
| ROE | 4.3% | -41.4% | -114.5% | 24.6% | -102.4% | -127.0% |
| Net Debt/EBITDA | 3.2x | 3.5x | 3.7x | 4.0x | | -4.0x |
Revenue and profitability
The company's Revenue decreased on 2.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 34.3 pp from -78.0% to -43.7% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased on 7.7 pp from 1.4% to -6.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Data Group Ltd's CAPEX/Revenue was 1.4% in 2015. Data Group Ltd showed small growth in CAPEX/Revenue of 0.81 pp from 0.60% in 2012 to 1.4% in 2015. It's average CAPEX/Revenue for the last three years was 1.1%.
Return on investment
The company operates at negative ROIC (-13.83%) and ROE (-102.44%). ROIC dropped on 28.1 pp from 14.2% to -13.8% in 2015. ROE dropped on 127 pp from 24.6% to -102% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.6x and Debt / EBITDA is . Net Debt / EBITDA dropped on 4.0x from 4.0x to in 2015. Debt dropped on 40.1% in 2015 while cash increased on 7.3% in 2015.
Appendix 1: Peers in Technology
Below you can find Data Group 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 ($MNW) | | 3.8% | -5.7% | 91.4% | 4.9% |
| Redknee Solutions Inc ($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) | | -9.5% | -5.5% | 59.4% | 24.2% |
| iLOOKABOUT Corp ($ILA) | -7.6% | 19.6% | 8.9% | 58.8% | |
| |
|---|
| Median (34 companies) | 9.0% | 3.7% | 11.9% | 14.4% | 13.4% |
|---|
| Data Group Ltd ($DGI) | | 1.3% | -5.8% | -1.2% | -2.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ProntoForms Corp ($PFM) | 90.1% | 96.1% | 98.1% | 98.0% | 79.4% |
| Constellation Software Inc/Canada ($CSU) | 85.5% | 86.2% | 85.5% | 86.1% | 86.2% |
| Symbility Solutions Inc ($SY) | 82.1% | 80.6% | 79.9% | 81.0% | |
| Espial Group Inc ($ESP) | 77.9% | 77.5% | 81.7% | 78.5% | 74.3% |
| Absolute Software Corp ($ABT) | 71.6% | 73.6% | 76.3% | 78.4% | 81.1% |
| |
|---|
| Median (31 companies) | 49.9% | 59.2% | 53.2% | 52.2% | 61.7% |
|---|
| Data Group Ltd ($DGI) | 25.1% | 25.9% | 25.3% | 23.8% | 23.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Wi-LAN Inc ($WIN) | 26.5% | 40.9% | 12.2% | 56.2% | 53.2% |
| Computer Modelling Group Ltd ($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 ($ESL) | 24.8% | 25.4% | 23.6% | 24.7% | 21.9% |
| |
|---|
| Median (34 companies) | 8.3% | 8.0% | 5.3% | 5.8% | 15.9% |
|---|
| Data Group Ltd ($DGI) | 9.2% | 8.5% | 8.1% | 7.2% | -1.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Halogen Software Inc ($HGN) | | 4.9% | 9.0% | 8.4% | 2.9% |
| Intermap Technologies Corp ($IMP) | 0.4% | 1.0% | 3.2% | 7.4% | |
| Kinaxis Inc ($KXS) | 2.2% | 2.9% | 2.3% | 5.0% | 4.7% |
| BlackBerry Ltd ($BB) | 5.2% | 4.9% | 3.8% | 4.2% | 2.6% |
| ProntoForms Corp ($PFM) | 1.3% | 1.1% | 0.8% | 3.6% | 1.9% |
| |
|---|
| Median (34 companies) | 1.3% | 1.6% | 1.5% | 1.2% | 1.5% |
|---|
| Data Group Ltd ($DGI) | 0.7% | 0.6% | 0.7% | 1.0% | 1.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Kinaxis Inc ($KXS) | | | 61.8% | 63.6% | 44.0% |
| Computer Modelling Group Ltd ($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% | 38.5% |
| Sandvine Corp ($SVC) | -1.7% | -4.9% | 16.9% | 20.2% | 21.7% |
| |
|---|
| Median (34 companies) | 5.1% | 2.9% | -5.1% | 0.2% | 7.4% |
|---|
| Data Group Ltd ($DGI) | 6.2% | 7.0% | 8.6% | 14.2% | -13.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mad Catz Interactive Inc ($MCZ) | 0.7x | 32.2x | 1.2x | | 9.4x |
| Mitel Networks Corp ($MNW) | 4.9x | 3.7x | 3.8x | 2.6x | 6.2x |
| BlackBerry Ltd ($BB) | -0.3x | -0.5x | -2.3x | | 1.7x |
| Open Text Corp ($OTC) | 0.0x | 0.1x | 0.2x | 1.8x | 1.5x |
| SMART Technologies Inc ($SMA) | 1.4x | 2.1x | | 1.2x | 1.3x |
| |
|---|
| Median (19 companies) | -0.3x | -0.4x | -0.6x | -1.3x | -0.2x |
|---|
