iSIGN Media Solutions Inc revenue growth decelerated from 38.5% in FY2019 to 10.1% in FY2020
09.09.2020 • About iSIGN Media Solutions Inc (
$ISD) • By InTwits
iSIGN Media Solutions Inc reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -3,394.1%
- iSIGN Media Solutions Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -2,579.7% for the sames years
- iSIGN Media Solutions Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's a lot of higher than industry average of 7.2%.
- CAPEX is quite volatile: 0 CADm in FY2020, 0 CADm in FY2019, 0 CADm in FY2018, 0 CADm in FY2017, 0 CADm in FY2016
- It operates with high leverage: Net Debt/EBITDA is 12.0x while industry average is 0.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 10.1%. Revenue growth showed acceleration in FY20Q4 - it increased 149.7% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 1,187 pp from -4,581% to -3,394% in FY2020. During the last 5 years EBITDA Margin bottomed in FY2018 at -5,723% and was growing since that time.
Gross Margin showed almost no change in FY2020. SG&A as a % of Revenue dropped on 951 pp from 3,754% to 2,803% in FY2020.
Net Income margin jumped on 1,161 pp from -5,368% to -4,207% in FY2020. During the last 5 years Net Income margin bottomed in FY2018 at -6,643% and was growing since that time.
Leverage (Debt)
Debt level is 12.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2020. Debt increased on 5.7% while cash dropped on 84.6%.
iSIGN Media Solutions Inc has short term refinancing risk: cash is only 0.5% of short term debt.
Financial and operational results
FY ended 30.04.2020
iSIGN Media Solutions Inc ($ISD) key annual financial indicators| mln. CAD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 0.120 | 0.205 | 0.019 | 0.026 | 0.028 | 10.1% |
| Gross Profit | 0.015 | 0.053 | -0.016 | 0.005 | 0.006 | 11.2% |
| SG&A | 1.189 | 1.381 | 0.732 | 0.967 | 0.795 | -17.8% |
| EBITDA | -1.300 | -5.735 | -1.064 | -1.180 | -0.963 | |
| Net Income | -2.186 | -6.707 | -1.236 | -1.383 | -1.193 | |
Balance Sheet
|
|---|
| Cash | 0.005 | 0.005 | 0.008 | 0.093 | 0.014 | -84.6% |
| Short Term Debt | 0.437 | 0.628 | 1.469 | 2.549 | 2.693 | 5.7% |
| Long Term Debt | 0.000 | 0.289 | 0.318 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.000 | 0.002 | 0.000 | -100.0% |
Ratios
|
|---|
| Revenue growth | -60.6% | 70.9% | -90.9% | 38.5% | 10.1% | |
| EBITDA growth | -14.8% | 341.0% | -81.4% | 10.9% | -18.4% | |
|
|---|
| Gross Margin | 12.7% | 25.7% | -84.0% | 19.9% | 20.1% | 0.2% |
| EBITDA Margin | -1,086.3% | -2,802.8% | -5,722.9% | -4,580.9% | -3,394.1% | 1,186.8% |
| SG&A, % of revenue | 993.0% | 674.9% | 3,933.3% | 3,753.6% | 2,802.8% | -950.8% |
| Net Income Margin | -1,825.8% | -3,277.4% | -6,642.8% | -5,368.3% | -4,207.4% | 1,160.9% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 6.0% | 0.0% | |
|
|---|
| ROIC | -78.9% | -1,170.0% | | | | |
| ROE | -90.1% | | | | | |
Peers in Communications
Below you can find iSIGN Media Solutions Inc benchmarking vs. other companies in Communications 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Armada Data Corp ($ARD) | - | 5.9% | 23.4% | -2.3% | 13.7% |
| Vecima Networks Inc ($VCM) | - | -34.1% | 9.3% | 8.9% | 13.4% |
| Uniserve Communications Corp ($USS) | - | 12.5% | 24.1% | 39.0% | 0.9% |
| EXFO Inc ($EXF) | - | 4.6% | 10.8% | 6.4% | -7.4% |
| Tucows Inc ($TC) | - | 73.5% | 5.0% | -2.6% | -7.7% |
| |
|---|
| Median (6 companies) | 2.3% | 5.9% | 10.8% | 7.7% | -3.3% |
|---|
| iSIGN Media Solutions Inc ($ISD) | - | 70.9% | -90.9% | 38.5% | 10.1% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| EXFO Inc ($EXF) | 62.6% | 61.2% | 61.0% | 58.6% | 56.9% |
| Vecima Networks Inc ($VCM) | 57.0% | 51.8% | 53.6% | 52.8% | 54.2% |
| Uniserve Communications Corp ($USS) | 50.2% | 48.9% | 44.4% | 36.9% | 34.2% |
| Tucows Inc ($TC) | 33.2% | 25.7% | 28.0% | 29.9% | 27.5% |
| Plaintree Systems Inc ($NPT) | 11.5% | 11.6% | 27.6% | 28.4% | 22.2% |
| |
|---|
| Median (5 companies) | 44.6% | 42.4% | 45.2% | 36.9% | 34.2% |
|---|
| iSIGN Media Solutions Inc ($ISD) | 12.7% | 25.7% | -84.0% | 19.9% | 20.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Vecima Networks Inc ($VCM) | 30.3% | 21.6% | 15.6% | 5.9% | 17.0% |
| Tucows Inc ($TC) | 14.7% | 11.9% | 12.8% | 15.3% | 10.7% |
| Plaintree Systems Inc ($NPT) | -4.4% | -3.8% | 15.7% | 16.3% | 7.3% |
| Armada Data Corp ($ARD) | 19.2% | 14.7% | 14.2% | -0.1% | 6.3% |
| EXFO Inc ($EXF) | 8.9% | 6.5% | 4.2% | 6.6% | 5.0% |
| |
|---|
| Median (6 companies) | 7.7% | 6.5% | 12.8% | 6.3% | 6.8% |
|---|
| iSIGN Media Solutions Inc ($ISD) | -1,086.3% | -2,802.8% | -5,722.9% | -4,580.9% | -3,394.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Tucows Inc ($TC) | 4.2% | 3.9% | 8.1% | 13.1% | 14.3% |
| EXFO Inc ($EXF) | 1.9% | 2.9% | 3.9% | 2.6% | 2.9% |
| Uniserve Communications Corp ($USS) | 3.7% | 2.4% | 9.8% | 0.6% | 1.5% |
| Vecima Networks Inc ($VCM) | 4.8% | 2.2% | 2.3% | 22.3% | 1.2% |
| Armada Data Corp ($ARD) | 0.2% | 0.3% | 0.2% | 0.4% | 0.3% |
| |
|---|
| Median (6 companies) | 2.8% | 2.2% | 2.3% | 2.9% | 1.3% |
|---|
| iSIGN Media Solutions Inc ($ISD) | 0.0% | 0.0% | 0.0% | 6.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Armada Data Corp ($ARD) | 68.1% | 48.3% | 52.5% | -1.0% | 12.5% |
| Tucows Inc ($TC) | 58.3% | 25.6% | 18.0% | 15.5% | 3.0% |
| Plaintree Systems Inc ($NPT) | -44.7% | -174.1% | 269.1% | 72.4% | 2.7% |
| Vecima Networks Inc ($VCM) | 19.3% | 5.1% | 1.8% | -3.6% | 0.1% |
| EXFO Inc ($EXF) | 9.1% | 4.6% | -2.2% | 2.4% | -1.1% |
| |
|---|
| Median (6 companies) | 4.4% | 5.1% | 9.9% | 0.7% | 1.4% |
|---|
| iSIGN Media Solutions Inc ($ISD) | -78.9% | -1,170.0% | - | - | - |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Tucows Inc ($TC) | -0.2x | 1.5x | 1.2x | 2.0x | 3.7x |
| EXFO Inc ($EXF) | -2.1x | -2.4x | 0.6x | -0.3x | 1.1x |
| Plaintree Systems Inc ($NPT) | - | - | 0.9x | 0.3x | 0.9x |
| Vecima Networks Inc ($VCM) | -0.6x | -0.1x | -0.7x | -3.6x | -0.7x |
| Armada Data Corp ($ARD) | 0.1x | -0.8x | -0.9x | - | -0.7x |
| |
|---|
| Median (5 companies) | 0.9x | -0.1x | 0.6x | -0.0x | 0.9x |
|---|
