Certive Solutions Inc revenue jumped on 28.4% and EBITDA Margin jumped on 84.3 pp from -200% to -115%
28.09.2020 • About Certive Solutions Inc (
$CBP) • By InTwits
Certive Solutions Inc reported FY2020 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -115.2%
- Certive Solutions Inc motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 was 0.0% while average EBITDA Margin was -117.2% for the sames years
- Certive Solutions Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.2%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: 0 CADm in FY2020, 0 CADm in FY2019, 0 CADm in FY2018, 0 CADm in FY2017, 0 CADm in FY2016
- It operates with medium-size leverage: Net Debt/EBITDA is 0.9x while industry average is -4.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 28.4%. During the last 5 years Revenue growth bottomed in FY2017 at -69.5% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 84.3 pp from -200% to -115% in FY2020. During the last 5 years EBITDA Margin bottomed in FY2018 at -246% and was growing since that time.
Gross Margin surged on 14.7 pp from 1.1% to 15.8% in FY2020. SG&A as a % of Revenue increased slightly on 0.68 pp from 16.6% to 17.3% in FY2020. SG&A as a % of Revenue followed a growing trend at 1.4 pp per annum in FY2016-FY2020.
Net Income margin dropped on 46.2 pp from -96.0% to -142% in FY2020.
Leverage (Debt)
Debt level is 0.9x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2020. Debt increased slightly on 0.84% while cash dropped on 53.4%.
Certive Solutions Inc has short term refinancing risk: cash is only 0.7% of short term debt.
Financial and operational results
FY ended 31.05.2020
Certive Solutions Inc ($CBP) key annual financial indicators| mln. CAD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 7.449 | 2.272 | 1.456 | 1.468 | 1.885 | 28.4% |
| Gross Profit | 2.194 | 0.388 | 0.320 | 0.017 | 0.298 | 1,687.3% |
| SG&A | 0.879 | 0.320 | 0.248 | 0.244 | 0.326 | 33.7% |
| EBITDA | -4.055 | -4.294 | -3.583 | -2.930 | -2.172 | |
| Net Income | -7.583 | -4.952 | -6.567 | -1.410 | -2.680 | |
Balance Sheet
|
|---|
| Cash | 0.279 | 0.187 | 0.026 | 0.087 | 0.040 | -53.4% |
| Short Term Debt | 6.058 | 2.332 | 3.641 | 6.320 | 6.205 | -1.8% |
| Long Term Debt | 0.000 | 0.000 | 0.324 | 0.338 | 0.509 | 50.5% |
Cash flow
|
|---|
| Capex | 0.106 | 0.173 | 0.031 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | 66.2% | -69.5% | -35.9% | 0.8% | 28.4% | |
| EBITDA growth | 92.7% | 5.9% | -16.5% | -18.2% | -25.9% | |
|
|---|
| Gross Margin | 29.5% | 17.1% | 22.0% | 1.1% | 15.8% | 14.7% |
| EBITDA Margin | -54.4% | -189.0% | -246.1% | -199.6% | -115.2% | 84.3% |
| SG&A, % of revenue | 11.8% | 14.1% | 17.0% | 16.6% | 17.3% | 0.7% |
| Net Income Margin | -101.8% | -217.9% | -451.1% | -96.0% | -142.2% | -46.2% |
| CAPEX, % of revenue | 1.4% | 7.6% | 2.1% | 0.0% | 0.0% | |
|
|---|
| ROIC | -71.5% | -102.4% | | | | |
Certive Solutions Inc ($CBP) key quoterly financial indicators
| mln. CAD | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 0 | 0 | 1 | 0 | | 69.2% | -11.6% | 135.9% | - |
| EBITDA | -1 | -0 | -0 | -1 | | - | - | - | - |
| Net Income | -1 | -1 | -1 | -0 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | -77.3% | -1.3% | -0.1% | - |
| Short Term Debt | 7 | 8 | 6 | 6 | | 56.8% | 51.8% | 3.8% | - |
| Long Term Debt | 0 | 0 | 0 | 1 | | 30.3% | -72.1% | -81.0% | - |
Ratios
|
|---|
| Gross Margin | 17.1% | 25.6% | 19.0% | 0.3% | | 20.3% | 39.4% | 164.7% | - |
| EBITDA Margin | -123.5% | -92.9% | -89.2% | -163.7% | | 104.8% | 3.4% | 253.5% | - |
| Net Income Margin | -238.4% | -206.4% | -120.8% | -5.5% | | 73.6% | -92.0% | 281.3% | - |
Peers in Technology
Below you can find Certive Solutions Inc benchmarking vs. other companies in Technology industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kinaxis Inc ($KXS) | - | 15.0% | 13.1% | 27.1% | 17.0% |
| |
|---|
| Median (1 company) | 10.0% | 11.1% | 13.1% | 27.1% | 17.0% |
|---|
| Certive Solutions Inc ($CBP) | - | -69.5% | -35.9% | 0.8% | 28.4% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kinaxis Inc ($KXS) | 69.1% | 70.2% | 68.8% | 71.9% | 68.7% |
| |
|---|
| Median (1 company) | 69.1% | 62.4% | 68.8% | 71.9% | 68.7% |
|---|
| Certive Solutions Inc ($CBP) | 29.5% | 17.1% | 22.0% | 1.1% | 15.8% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kinaxis Inc ($KXS) | 17.6% | 22.7% | 20.0% | 23.2% | 16.2% |
| |
|---|
| Median (1 company) | 11.2% | 13.5% | 20.0% | 23.2% | 16.2% |
|---|
| Certive Solutions Inc ($CBP) | -54.4% | -189.0% | -246.1% | -199.6% | -115.2% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kinaxis Inc ($KXS) | 5.0% | 7.6% | 8.2% | 6.1% | 6.4% |
| |
|---|
| Median (1 company) | 1.3% | 4.7% | 8.2% | 6.1% | 6.4% |
|---|
| Certive Solutions Inc ($CBP) | 1.4% | 7.6% | 2.1% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kinaxis Inc ($KXS) | 22.6% | 24.2% | 12.3% | 14.2% | 7.5% |
| |
|---|
| Median (1 company) | 6.8% | 10.2% | 12.3% | 14.2% | 7.5% |
|---|
| Certive Solutions Inc ($CBP) | -71.5% | -102.4% | - | - | - |
Top companies by Net Debt / EBITDA
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Kinaxis Inc ($KXS) | -6.3x | -5.2x | -3.9x | -3.9x | -4.6x |
| |
|---|
| Median (1 company) | -4.1x | 4.0x | -3.9x | -3.9x | -4.6x |
|---|
