Armada Data Corp revenue returned to growth in FY2020: increased 13.7% vs. 2.3% decline a year earliner
28.09.2020 • About Armada Data Corp (
$ARD) • By InTwits
Armada Data Corp reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 6.3% in FY2020, -0.1% in FY2019, 14.2% in FY2018, 14.7% in FY2017, 19.2% in FY2016
- Armada Data Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has highly profitable business model: ROIC is 12.5%
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 13.7%. Revenue growth showed slowdown in FY20Q4 - it was -14.6% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 80.7 pp from -265% to -184% in FY2020. During FY2016-FY2020 EBITDA Margin bottomed in FY2019 at -0.050%.
SG&A as a % of Revenue increased on 3.6 pp from 18.8% to 22.4% in FY2020. SG&A as a % of Revenue followed a growing trend at 3.5 pp per annum in the last 5 years.
Net Income margin increased on 2.8 pp from -1.3% to 1.5% in FY2020. Net Income margin stuck to a declining trend at -3.1 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
Armada Data Corp's CAPEX/Revenue was 0.32% in FY2020. Armada Data Corp's CAPEX/Revenue showed almost no change from FY2017 to FY2020. It's average CAPEX/Revenue for the last three years was 0.31%.
Return on investment
The company operates at good ROIC (12.5%) while ROE is low (4.7%). ROIC surged on 13.6 pp from -1.0% to 12.5% in FY2020. ROE increased on 8.4 pp from -3.7% to 4.7% in FY2020. ROIC declined at -16.1 pp per annum in FY2016-FY2020. ROE declined at -29.4 pp per annum in FY2016-FY2020.
Leverage (Debt)
Debt level is -0.7x Net Debt / EBITDA and 1.0x Debt / EBITDA. Debt surged while cash dropped on 11.9%.
Armada Data Corp has no short term refinancing risk: cash is higher than short term debt (325.2%).
Valuation and dividends
Armada Data Corp's trades at EV/EBITDA 5.9x and P/E 27.1x.
Financial and operational results
FY ended 31.05.2020
Armada Data Corp ($ARD) key annual financial indicators| mln. CAD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 2.258 | 2.391 | 2.952 | 2.885 | 3.281 | 13.7% |
| SG&A | 0.149 | 0.377 | 0.538 | 0.541 | 0.734 | 35.6% |
| EBITDA | 0.434 | 0.351 | 0.420 | -0.001 | 0.205 | |
| Net Income | 0.278 | 0.199 | 0.274 | -0.037 | 0.050 | |
Balance Sheet
|
|---|
| Cash | 0.231 | 0.296 | 0.376 | 0.398 | 0.351 | -11.9% |
| Short Term Debt | 0.281 | 0.000 | 0.000 | 0.000 | 0.108 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.094 | |
Cash flow
|
|---|
| Capex | 0.004 | 0.007 | 0.007 | 0.011 | 0.010 | -8.8% |
Ratios
|
|---|
| Revenue growth | 3.8% | 5.9% | 23.4% | -2.3% | 13.7% | |
| EBITDA growth | -796.7% | -19.1% | 19.7% | -100.3% | -14,330.7% | |
|
|---|
| EBITDA Margin | 19.2% | 14.7% | 14.2% | -0.1% | 6.3% | 6.3% |
| SG&A, % of revenue | 6.6% | 15.8% | 18.2% | 18.8% | 22.4% | 3.6% |
| Net Income Margin | 12.3% | 8.3% | 9.3% | -1.3% | 1.5% | 2.8% |
| CAPEX, % of revenue | 0.2% | 0.3% | 0.2% | 0.4% | 0.3% | -0.1% |
|
|---|
| ROIC | 68.1% | 48.3% | 52.5% | -1.0% | 12.5% | 13.6% |
| ROE | 130.9% | 37.9% | 32.4% | -3.7% | 4.7% | 8.4% |
| Net Debt/EBITDA | 0.1x | -0.8x | -0.9x | | -0.7x |
Armada Data Corp ($ARD) key quoterly financial indicators
| mln. CAD | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 1 | 1 | 1 | | 3.6% | 38.3% | 28.4% | -14.6% |
| Net Income | 0 | 0 | 0 | -0 | | 6.7% | - | 3,419.1% | - |
Balance Sheet
|
|---|
| Cash | 0 | 1 | 0 | 0 | | -2.7% | 57.0% | 61.1% | -11.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
| Long Term Debt | 0 | 0 | 0 | 0 | | - | - | - | - |
Ratios
|
|---|
| Net Income Margin | 12.6% | 8.4% | 6.2% | -30.6% | | 0.4% | 12.7% | 5.9% | -16.5% |
Peers in Communications
Below we provide Armada Data Corp benchmarking against other companies in Communications industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Vecima Networks Inc ($VCM) | - | -34.1% | 9.3% | 8.9% | 13.4% |
| iSIGN Media Solutions Inc ($ISD) | - | 70.9% | -90.9% | 38.5% | 10.1% |
| Uniserve Communications Corp ($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% | 12.5% | 9.3% | 23.7% | -3.3% |
|---|
| Armada Data Corp ($ARD) | - | 5.9% | 23.4% | -2.3% | 13.7% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| EXFO Inc ($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 (6 companies) | 41.1% | 35.9% | 44.4% | 33.4% | 30.8% |
|---|
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 ($NPT) | -4.4% | -3.8% | 15.7% | 16.3% | 7.3% |
| EXFO Inc ($EXF) | 8.9% | 6.5% | 4.2% | 6.6% | 5.0% |
| Uniserve Communications Corp ($USS) | -8.7% | 2.9% | -28.9% | -14.9% | -6.3% |
| |
|---|
| Median (6 companies) | 6.8% | 2.9% | 4.2% | 6.3% | 6.1% |
|---|
| Armada Data Corp ($ARD) | 19.2% | 14.7% | 14.2% | -0.1% | 6.3% |
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% |
| Plaintree Systems Inc ($NPT) | 2.2% | 1.9% | 2.0% | 3.2% | 0.1% |
| |
|---|
| Median (6 companies) | 2.8% | 2.2% | 2.3% | 4.6% | 1.3% |
|---|
| Armada Data Corp ($ARD) | 0.2% | 0.3% | 0.2% | 0.4% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| 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% |
| Uniserve Communications Corp ($USS) | - | - | -652.3% | -243.8% | -155.8% |
| |
|---|
| Median (6 companies) | 0.1% | 4.6% | 1.8% | 2.4% | 0.1% |
|---|
| Armada Data Corp ($ARD) | 68.1% | 48.3% | 52.5% | -1.0% | 12.5% |
Top companies by Net Debt / EBITDA
| Top | 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 |
| |
|---|
| Median (4 companies) | 1.6x | 0.7x | 0.7x | -0.0x | 1.0x |
|---|
| Armada Data Corp ($ARD) | 0.1x | -0.8x | -0.9x | - | -0.7x |
