International Bus Mach Corp reports 15.3% EBITDA decline and 11.9% Revenue decline
19 Jan 2016 • About International Bus Mach Corp (
$IBM) • By InTwits
International Bus Mach Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- International Bus Mach Corp is a company in decline: 2015 revenue growth was -11.9%, 5 years revenue CAGR was -3.9%
- EBITDA Margin is relatively stable: 23.1% in 2015 vs. 24.0% in 2014 vs. 23.5% in 2011
- International Bus Mach Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: 9,857 in FY2015, 5,603 in FY2014, 2,893 in FY2013, 1,051 in FY2012, 1,905 in FY2011
- The company has highly profitable business model: ROIC is at 25.7%
- It operates with high leverage: Net Debt/EBITDA is 1.7x while industry average is 0.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
International Bus Mach Corp ($IBM) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 106,916 | 104,507 | 98,369 | 92,793 | 81,741 | -11.9% |
| Gross Profit | 50,138 | 50,298 | 48,686 | 46,407 | 40,684 | -12.3% |
| SG&A | 23,594 | 23,553 | 23,451 | 23,180 | 20,430 | -11.9% |
| EBITDA | 25,101 | 25,119 | 24,170 | 22,282 | 18,862 | -15.3% |
| Net Income | 15,855 | 16,604 | 16,483 | 12,022 | 13,190 | 9.7% |
Balance Sheet
|
|---|
| Cash | 11,922 | 10,412 | 10,716 | 8,476 | 7,686 | -9.3% |
| Short Term Debt | 8,463 | 9,181 | 6,862 | 5,731 | 6,461 | 12.7% |
| Long Term Debt | 22,857 | 24,088 | 32,856 | 34,991 | 33,428 | -4.5% |
Cash flow
|
|---|
| Capex | 4,108 | 4,082 | 3,623 | 3,740 | 3,579 | -4.3% |
Ratios
|
|---|
| Revenue growth | 7.1% | -2.3% | -5.9% | -5.7% | -11.9% | |
| EBITDA growth | 9.2% | 0.1% | -3.8% | -7.8% | -15.3% | |
| Gross Margin | 46.9% | 48.1% | 49.5% | 50.0% | 49.8% | -0.2% |
| EBITDA Margin | 23.5% | 24.0% | 24.6% | 24.0% | 23.1% | -0.9% |
| Net Income Margin | 14.8% | 15.9% | 16.8% | 13.0% | 16.1% | 3.2% |
| SG&A, % of revenue | 22.1% | 22.5% | 23.8% | 25.0% | 25.0% | 0.0% |
| CAPEX, % of revenue | 3.8% | 3.9% | 3.7% | 4.0% | 4.4% | 0.3% |
| ROIC | 36.2% | 36.1% | 31.0% | 28.1% | 25.7% | -2.4% |
| ROE | 73.4% | 85.2% | 79.1% | 69.4% | 101.0% | 31.6% |
| Net Debt/EBITDA | 0.8x | 0.9x | 1.2x | 1.4x | 1.7x | 0.3x |
Revenue and profitability
International Bus Mach Corp's Revenue dropped on 11.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.94 pp from 24.0% to 23.1% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 3.2 pp from 13.0% to 16.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
International Bus Mach Corp's CAPEX/Revenue was 4.4% in 2015. CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 4.0%.
Return on investment
The company operates at high and attractive ROIC (25.72%) and ROE (100.96%). ROIC decreased on 2.4 pp from 28.1% to 25.7% in 2015. ROE jumped on 31.6 pp from 69.4% to 101% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.7x and Debt / EBITDA is 2.1x. Net Debt / EBITDA jumped on 0.3x from 1.4x to 1.7x in 2015. Debt decreased on 2.0% in 2015 while cash decreased on 9.3% in 2015.
Valuation
The company's trades at EV/EBITDA 1.8x and P/E 0.1x while industy averages are 10.5x and 26.1x. International Bus Mach Corp's EV/(EBITDA-CAPEX) is 2.2x with the industry average at 4.7x.
Appendix 1: Peers in Software & Computer Services
Below we provide International Bus Mach Corp benchmarking against other companies in Software & Computer Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Coms ($COMS) | | -68.6% | 46.8% | 763.3% | 110.4% |
| Centralnic Group ($CNIC) | 36.3% | 15.9% | 4.0% | 98.9% | |
| Rapidcloud Intl ($RCI) | 34.2% | 16.4% | 20.9% | 57.1% | |
| Netdimensions(Hldgs)Ltd ($NETD) | 48.5% | 12.5% | 17.5% | 40.1% | |
| Wandisco ($WAND) | 30.0% | 55.5% | 32.8% | 40.0% | |
| |
|---|
| Median (40 companies) | 5.5% | 7.6% | 6.1% | 4.5% | 12.8% |
|---|
| International Bus Mach Corp ($IBM) | | -2.3% | -5.9% | -5.7% | -11.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lombard Risk Management ($LRM) | 99.3% | 99.0% | 98.8% | 99.2% | 98.6% |
| Phoenix It Group ($PNX) | 97.1% | 97.0% | 97.2% | 97.6% | 97.9% |
| Netcall ($NET) | 86.9% | 88.2% | 89.7% | 91.0% | 90.9% |
| Dotdigital Group ($DOTD) | 92.8% | 94.0% | 92.7% | 90.5% | 89.3% |
| Idox ($IDOX) | 86.6% | 90.4% | 90.8% | 89.4% | 89.3% |
| |
|---|
| Median (35 companies) | 61.0% | 62.7% | 63.0% | 61.1% | 63.3% |
|---|
| International Bus Mach Corp ($IBM) | 46.9% | 48.1% | 49.5% | 50.0% | 49.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eservglobal ($ESG) | 112.6% | -32.2% | -2.6% | 100.2% | -92.5% |
| Mail.Ru Group Ltd ($61HE) | 39.9% | 43.1% | 47.4% | 50.5% | |
| Lombard Risk Management ($LRM) | 6.2% | 23.9% | 30.8% | 29.3% | 20.5% |
| Dotdigital Group ($DOTD) | 29.1% | 31.4% | 39.4% | 29.2% | 32.0% |
| Rapidcloud Intl ($RCI) | 47.4% | 46.0% | 52.3% | 28.5% | |
| |
|---|
| Median (42 companies) | 14.1% | 13.8% | 13.0% | 12.0% | 12.6% |
|---|
| International Bus Mach Corp ($IBM) | 23.5% | 24.0% | 24.6% | 24.0% | 23.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rapidcloud Intl ($RCI) | 0.7% | 1.0% | 23.1% | 11.6% | |
| Anite ($AIE) | 3.0% | 4.0% | 3.9% | 5.8% | 3.6% |
| Statpro Group ($SOG) | 3.1% | 2.0% | 2.9% | 5.8% | |
| Wandisco ($WAND) | 0.2% | 2.3% | 4.0% | 4.2% | |
| Unisys Corp ($USY) | 2.1% | 2.1% | 2.5% | 4.1% | |
| |
|---|
| Median (42 companies) | 1.4% | 1.5% | 1.6% | 1.9% | 1.4% |
|---|
| International Bus Mach Corp ($IBM) | 3.8% | 3.9% | 3.7% | 4.0% | 4.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eservglobal ($ESG) | 50.0% | -24.8% | -13.0% | 67.9% | -44.5% |
| Lombard Risk Management ($LRM) | 37.7% | 51.4% | 39.2% | 30.2% | 12.2% |
| Progility ($PGY) | 12.7% | 10.3% | 0.0% | 29.2% | -0.1% |
| Kalibrate Technologies ($KLBT) | | 12.5% | 40.2% | 29.2% | 18.8% |
| Dotdigital Group ($DOTD) | 36.6% | 26.4% | 38.0% | 28.5% | 31.4% |
| |
|---|
| Median (42 companies) | 12.8% | 10.7% | 11.1% | 9.4% | 11.5% |
|---|
| International Bus Mach Corp ($IBM) | 36.2% | 36.1% | 31.0% | 28.1% | 25.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Parity Group ($PTY) | 6.9x | 4.7x | | 4.9x | |
| Escher Group Hldgs ($ESCH) | 2.1x | 0.3x | 0.4x | 2.4x | |
| Ubisense Group ($UBI) | -4.2x | -2.2x | -0.4x | 1.8x | |
| Progility ($PGY) | 1.0x | 2.0x | | 1.8x | 12.8x |
| Accesso Technology Grp ($ACSO) | -2.3x | -2.2x | | 1.3x | |
| |
|---|
| Median (34 companies) | -0.7x | -0.6x | -0.6x | -0.3x | -0.7x |
|---|
| International Bus Mach Corp ($IBM) | 0.8x | 0.9x | 1.2x | 1.4x | 1.7x |
