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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. Overall the company's long term financial model is characterised by the following facts:
  • 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 1.5%.
  • 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 -4.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability


Certive Solutions Inc's Revenue surged on 28.4%. During FY2016-FY2020 Revenue growth bottomed in FY2017 at -69.5% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 22.9 pp from -4.4% to -27.3% in FY2020. During FY2016-FY2020 EBITDA Margin bottomed in FY2018 at -246% and was growing since that time.

Gross Margin jumped 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 the last 5 years.

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. CAD201620172018201920202020/2019
P&L
Revenue7.4492.2721.4561.4681.88528.4%
Gross Profit2.1940.3880.3200.0170.2981,687.3%
SG&A0.8790.3200.2480.2440.32633.7%
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
Cash0.2790.1870.0260.0870.040-53.4%
Short Term Debt6.0582.3323.6416.3206.205-1.8%
Long Term Debt0.0000.0000.3240.3380.50950.5%
Cash flow
Capex0.1060.1730.0310.0000.000
Ratios
Revenue growth66.2%-69.5%-35.9%0.8%28.4%
EBITDA growth92.7%5.9%-16.5%-18.2%-25.9%

Gross Margin29.5%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 revenue11.8%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 revenue1.4%7.6%2.1%0.0%0.0%

ROIC-71.5%-102.4%

Certive Solutions Inc ($CBP) key quoterly financial indicators

mln. CADFY20Q1FY20Q2FY20Q3FY20Q4 YoY change
P&L
Revenue0010 69.2%-11.6%135.9%-
EBITDA-1-0-0-1 ----
Net Income-1-1-1-0 ----
Balance Sheet
Cash0000 -77.3%-1.3%-0.1%-
Short Term Debt7866 56.8%51.8%3.8%-
Long Term Debt0001 30.3%-72.1%-81.0%-
Ratios
Gross Margin17.1%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.