Sylogist Ltd reports 173% EBITDA growth and 31.1% Revenue growth
10.01.2017 • About Sylogist Ltd (
$SYZ) • By InTwits
Sylogist Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sylogist Ltd is a fast growth stock: FY2016 revenue growth was 31.1%, 5 year revenue CAGR was 29.5% at FY2016 ROIC 17.9%
- EBITDA Margin is quite volatile: 33.1% in FY2016, 15.9% in FY2015, 20.4% in FY2014, 41.8% in FY2013, 34.4% in FY2012
- Sylogist Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.6%.
- The company has highly profitable business model: ROIC is at 17.9%
- It operates with high leverage: Net Debt/EBITDA is -2.4x while industry average is -4.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sylogist Ltd ($SYZ) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9.267 | 11.645 | 17.523 | 27.350 | 35.848 | 31.1% |
| Gross Profit | 6.582 | 9.026 | 11.744 | 17.714 | 23.849 | 34.6% |
| SG&A | | 3.816 | 6.119 | 8.260 | 6.774 | -18.0% |
| EBITDA | 3.190 | 4.869 | 3.572 | 4.355 | 11.878 | 172.7% |
| Net Income | 2.031 | 4.285 | 3.059 | 2.548 | 6.636 | 160.4% |
Balance Sheet
|
|---|
| Cash | 11.670 | 9.703 | 42.084 | 41.095 | 28.369 | -31.0% |
| Short Term Debt | 0.042 | 0.018 | 0.046 | 0.044 | 0.039 | -11.4% |
| Long Term Debt | 0.018 | 0.000 | 0.138 | 0.099 | 0.060 | -39.4% |
Cash flow
|
|---|
| Capex | 0.037 | 0.057 | 0.104 | 0.296 | 0.228 | -23.0% |
Ratios
|
|---|
| Revenue growth | -5.8% | 25.7% | 50.5% | 56.1% | 31.1% | |
| EBITDA growth | 7.4% | 52.6% | -26.6% | 21.9% | 172.7% | |
| Gross Margin | 71.0% | 77.5% | 67.0% | 64.8% | 66.5% | 1.8% |
| EBITDA Margin | 34.4% | 41.8% | 20.4% | 15.9% | 33.1% | 17.2% |
| Net Income Margin | 21.9% | 36.8% | 17.5% | 9.3% | 18.5% | 9.2% |
| SG&A, % of revenue | | 32.8% | 34.9% | 30.2% | 18.9% | -11.3% |
| CAPEX, % of revenue | 0.4% | 0.5% | 0.6% | 1.1% | 0.6% | -0.4% |
| ROIC | 18.1% | 29.7% | 5.9% | 2.4% | 17.9% | 15.5% |
| ROE | 13.0% | 27.6% | 7.6% | 4.3% | 12.9% | 8.6% |
| Net Debt/EBITDA | -3.6x | -2.0x | -11.7x | -9.4x | -2.4x | 7.0x |
Sylogist Ltd ($SYZ) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 8 | 10 | 10 | 8 | 36.6% | 39.6% | 45.2% | 6.4% |
| EBITDA | 3 | 3 | 3 | 3 | 317.9% | 85.3% | 142.3% | 391.0% |
| Net Income | 1 | 2 | 2 | 2 | | 80.6% | 41.6% | 182.7% |
Balance Sheet
|
|---|
| Cash | 33 | 34 | 31 | 28 | -17.3% | -24.0% | -29.2% | -31.0% |
| Short Term Debt | 0 | 0 | 0 | 0 | -6.9% | -12.6% | -11.1% | -11.4% |
| Long Term Debt | 0 | 0 | 0 | 0 | -30.5% | -32.6% | -35.2% | -39.4% |
Ratios
|
|---|
| Gross Margin | 67.9% | 64.7% | 67.6% | 66.0% | 3.9% | -0.9% | 2.0% | 2.2% |
| EBITDA Margin | 30.1% | 35.3% | 34.2% | 32.4% | 20.2% | 8.7% | 13.7% | 25.4% |
| Net Income Margin | 17.6% | 16.5% | 17.2% | 23.4% | 20.6% | 3.7% | -0.4% | 14.6% |
Revenue and profitability
Sylogist Ltd's Revenue jumped on 31.1%. Revenue growth showed slow down in FY16Q4 - it was 6.4% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 17.2 pp from 15.9% to 33.1% in FY2016.
Gross Margin increased slightly on 1.8 pp from 64.8% to 66.5% in FY2016. SG&A as a % of Revenue dropped on 11.3 pp from 30.2% to 18.9% in FY2016.
Net Income marign increased on 9.2 pp from 9.3% to 18.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Sylogist Ltd's CAPEX/Revenue was 0.64% in FY2016. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. Average CAPEX/Revenue for the last three years was 0.77%.
Return on investment
The company operates at good ROIC (17.90%) and ROE (12.94%). ROIC surged on 15.5 pp from 2.4% to 17.9% in FY2016. ROE increased on 8.6 pp from 4.3% to 12.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.4x and Debt / EBITDA is 0.0x. Net Debt / EBITDA jumped on 7.0x from -9.4x to -2.4x in FY2016. Debt dropped on 30.8% while cash dropped on 31.0%.
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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Intrinsyc Technologies Corp ($ITC) | | -21.7% | 70.8% | 24.5% | 39.2% |
| ProntoForms Corp ($PFM) | | 75.4% | 43.9% | 46.4% | 28.2% |
| Kinaxis Inc ($KXS) | | 30.3% | 15.2% | 30.3% | 27.0% |
| NexJ Systems Inc ($NXJ) | | 4.3% | -12.6% | 19.7% | 17.3% |
| Constellation Software Inc/Canada ($CSU) | | 35.9% | 37.9% | 10.1% | 15.6% |
| |
|---|
| Median (12 companies) | | 0.3% | 13.3% | 11.5% | 12.7% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Constellation Software Inc/Canada ($CSU) | 86.2% | 85.5% | 86.1% | 86.2% | 87.1% |
| ProntoForms Corp ($PFM) | 96.1% | 98.1% | 98.0% | 79.4% | |
| Espial Group Inc ($ESP) | 77.5% | 81.7% | 78.5% | 74.3% | 74.7% |
| Halogen Software Inc ($HGN) | 72.0% | 74.8% | 71.8% | 73.8% | 76.2% |
| Kinaxis Inc ($KXS) | 71.8% | 70.4% | 70.4% | 71.8% | 69.1% |
| |
|---|
| Median (12 companies) | 71.8% | 55.6% | 61.9% | 61.9% | 71.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wi-LAN Inc ($WIN) | 40.9% | 12.2% | 56.2% | 53.2% | 57.8% |
| Kinaxis Inc ($KXS) | 18.7% | 23.0% | 19.2% | 28.0% | 17.6% |
| Constellation Software Inc/Canada ($CSU) | 20.9% | 20.1% | 21.8% | 25.2% | 26.0% |
| Intrinsyc Technologies Corp ($ITC) | -10.5% | -38.8% | 2.2% | 10.8% | |
| Mitel Networks Corp ($MNW) | 10.2% | 10.0% | 7.0% | 7.7% | |
| |
|---|
| Median (14 companies) | 0.9% | 3.9% | 4.4% | 0.1% | 7.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kinaxis Inc ($KXS) | 2.9% | 2.3% | 5.0% | 4.7% | 5.0% |
| Halogen Software Inc ($HGN) | 4.9% | 9.0% | 8.4% | 2.9% | 2.6% |
| Espial Group Inc ($ESP) | 1.6% | 0.2% | 1.9% | 2.1% | 1.5% |
| ProntoForms Corp ($PFM) | 1.1% | 0.8% | 3.6% | 1.9% | |
| Critical Control Energy Services Corp ($CCZ) | | 0.5% | 1.0% | 1.6% | |
| |
|---|
| Median (14 companies) | 1.1% | 1.1% | 1.2% | 1.2% | 1.0% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Constellation Software Inc/Canada ($CSU) | 45.9% | 22.4% | 24.7% | 38.5% | 40.5% |
| Kinaxis Inc ($KXS) | | 61.8% | 63.6% | 44.0% | 22.6% |
| Halogen Software Inc ($HGN) | | -28.4% | -45.9% | -40.5% | 12.6% |
| Wi-LAN Inc ($WIN) | 2.6% | -7.6% | 8.9% | 7.4% | 8.4% |
| NexJ Systems Inc ($NXJ) | | -44.6% | -19.8% | -13.9% | 4.5% |
| |
|---|
| Median (14 companies) | -7.5% | -17.5% | 0.5% | -1.2% | 8.4% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mitel Networks Corp ($MNW) | 3.7x | 3.8x | 2.6x | 6.2x | |
| Pivot Technology Solutions Inc ($PTG) | | -0.4x | 1.1x | 4.8x | |
| Constellation Software Inc/Canada ($CSU) | 0.0x | 1.6x | 0.6x | 0.4x | -0.0x |
| Wi-LAN Inc ($WIN) | -4.9x | -12.1x | -2.3x | -1.7x | -2.0x |
| Kinaxis Inc ($KXS) | 1.9x | 4.7x | -4.2x | -3.9x | -6.3x |
| |
|---|
| Median (7 companies) | 0.9x | 1.5x | -0.8x | -1.7x | -6.3x |
|---|
