Unisys Corp EBITDA dropped on 61.4% in 2015 and Revenue dropped on 10.2%
28 Jan 2016 • About Unisys Corp (
$USY) • By InTwits
Unisys Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Unisys Corp is a company in decline: 2015 revenue growth was -10.2%, 5 years revenue CAGR was -5.6%
- EBITDA Margin is declining: 4.1% in 2015 vs. 9.6% in 2014 vs. 13.5% in 2011
- EBITDA Margin is quite volatile: 4.1% in 2015, 9.6% in 2014, 11.0% in 2013, 13.3% in 2012, 13.5% in 2011
- Unisys Corp has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 2.3%.
- CAPEX is quite volatile: 1,049 in FY2015, 1,646 in FY2014, 1,345 in FY2013, 874 in FY2012, 667 in FY2011
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Unisys Corp ($USY) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,854 | 3,706 | 3,457 | 3,356 | 3,015 | -10.2% |
| Gross Profit | 987 | 973 | 848 | 778 | 541 | -30.5% |
| SG&A | 586 | 573 | 559 | 554 | 520 | -6.2% |
| EBITDA | 519 | 494 | 379 | 324 | 125 | -61.4% |
| Net Income | 134 | 146 | 109 | 47 | -110 | -335.3% |
Balance Sheet
|
|---|
| Cash | 715 | 656 | 640 | 494 | 365 | -26.1% |
| Short Term Debt | 1 | 0 | 0 | 2 | 77 | 4,166.7% |
| Long Term Debt | 359 | 210 | 210 | 222 | 236 | 6.0% |
Cash flow
|
|---|
| Capex | 83 | 76 | 87 | 139 | 152 | 8.9% |
Ratios
|
|---|
| Revenue growth | -4.1% | -3.8% | -6.7% | -2.9% | -10.2% | |
| EBITDA growth | -17.1% | -4.9% | -23.2% | -14.7% | -61.4% | |
| Gross Margin | 25.6% | 26.3% | 24.5% | 23.2% | 17.9% | -5.2% |
| EBITDA Margin | 13.5% | 13.3% | 11.0% | 9.6% | 4.1% | -5.5% |
| Net Income Margin | 3.5% | 3.9% | 3.1% | 1.4% | -3.6% | -5.0% |
| SG&A, % of revenue | 15.2% | 15.5% | 16.2% | 16.5% | 17.2% | 0.7% |
| CAPEX, % of revenue | 2.1% | 2.1% | 2.5% | 4.1% | 5.0% | 0.9% |
| Net Debt/EBITDA | -0.7x | -0.9x | -1.1x | -0.8x | -0.4x | 0.4x |
Revenue and profitability
The company's Revenue dropped on 10.2% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 13.7 pp from 48.6% to 62.3% in 2015.
Gross Margin decreased on 5.2 pp from 23.2% to 17.9% in 2015. SG&A as a % of Revenue increased slightly on 0.72 pp from 16.5% to 17.2% in 2015.
Net Income marign decreased on 5.0 pp from 1.4% to -3.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Unisys Corp had CAPEX/Revenue of 5.0%. The company's CAPEX/Revenue increased on 3.0 pp from 2.1% in 2012 to 5.0% in 2015. For the last three years the average CAPEX/Revenue was 3.9%.The company has spent a lot to CAPEX (121% of EBITDA) which didn't stop revenue from falling.
Leverage (Debt)
Debt level is -0.4x Net Debt / EBITDA and 2.5x Debt / EBITDA. Net Debt / EBITDA jumped on 0.4x from -0.8x to -0.4x in 2015. Debt surged on 39.4% in 2015 while cash dropped on 26.1% in 2015.
Appendix 1: Peers in Software & Computer Services
Below we provide Unisys 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 ($WAND) | 30.0% | 55.5% | 32.8% | 40.0% | |
| |
|---|
| Median (40 companies) | 7.9% | 7.6% | 6.1% | 4.5% | 12.6% |
|---|
| Unisys Corp ($USY) | | -3.8% | -6.7% | -2.9% | -10.2% |
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 ($IDOX) | 86.6% | 90.4% | 90.8% | 89.4% | 89.3% |
| |
|---|
| Median (35 companies) | 61.0% | 62.7% | 63.0% | 61.1% | 62.4% |
|---|
| Unisys Corp ($USY) | 25.6% | 26.3% | 24.5% | 23.2% | 17.9% |
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) | 14.2% | 14.3% | 13.8% | 13.2% | 12.9% |
|---|
| Unisys Corp ($USY) | 13.5% | 13.3% | 11.0% | 9.6% | 4.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rapidcloud Intl ($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 ($WAND) | 0.2% | 2.3% | 4.0% | 4.2% | |
| International Bus Mach Corp ($IBM) | 3.8% | 3.9% | 3.7% | 4.0% | 4.4% |
| |
|---|
| Median (42 companies) | 1.4% | 1.5% | 1.6% | 1.9% | 1.5% |
|---|
| Unisys Corp ($USY) | 2.1% | 2.1% | 2.5% | 4.1% | 5.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eservglobal ($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) | 12.9% | 11.6% | 11.4% | 9.8% | 11.6% |
|---|
| Unisys Corp ($USY) | | | | | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Parity Group ($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 ($PGY) | 1.0x | 2.0x | | 1.8x | 12.8x |
| International Bus Mach Corp ($IBM) | 0.8x | 0.9x | 1.2x | 1.4x | 1.7x |
| |
|---|
| Median (34 companies) | -0.7x | -0.5x | -0.5x | -0.2x | -0.6x |
|---|
| Unisys Corp ($USY) | -0.7x | -0.9x | -1.1x | -0.8x | -0.4x |
