Csf Group revenue increased on 2.7% in 2016 and EBITDA Margin surged on 27.0 pp from -51.9% to -24.9%
22 Jul 2016 • About Csf Group (
$CSFG) • By InTwits
Csf Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Csf Group doesn't have a profitable business model yet: FY2016 ROIC is -50.0%
- The company operates at negative EBITDA Margin: -24.9%
- Csf Group motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 was 0.0%. On average EBITDA Margin was -11.4% for the sames years0
- Csf Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's a lot of higher than industry average of 2.0%.
- CAPEX is quite volatile: 4.1 in FY2016, 5.8 in FY2015, 2.4 in FY2014, 5.7 in FY2013, 3.1 in FY2012
- The company has unprofitable business model: ROIC is at -50.0%
- It operates with high leverage: Net Debt/EBITDA is 1.0x while industry average is 0.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Csf Group ($CSFG) key annual financial indicators
| mln. MYR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 208.0 | 143.1 | 103.5 | 81.8 | 84.0 | 2.7% |
| Gross Profit | 78.6 | 31.1 | -7.1 | -28.6 | -1.5 | -94.7% |
| SG&A | | | 20.6 | 17.0 | 19.4 | 14.3% |
| EBITDA | 58.2 | -24.5 | -40.9 | -42.5 | -20.9 | -50.7% |
| Net Income | 43.8 | -32.8 | -132.5 | -31.2 | -36.3 | 16.6% |
Balance Sheet
|
|---|
| Cash | 54.6 | 64.0 | 22.0 | 31.4 | 45.8 | 46.0% |
| Short Term Debt | 0.1 | 0.1 | 0.9 | 1.3 | 1.3 | 0.0% |
| Long Term Debt | 0.4 | 3.5 | 3.1 | 1.8 | 0.5 | -72.3% |
Cash flow
|
|---|
| Capex | 3.1 | 5.7 | 2.4 | 5.8 | 4.1 | -29.5% |
Ratios
|
|---|
| Revenue growth | 83.5% | -31.2% | -27.7% | -21.0% | 2.7% | |
| EBITDA growth | 125.0% | -142.1% | 66.7% | 3.8% | -50.7% | |
| Gross Margin | 37.8% | 21.8% | -6.8% | -35.0% | -1.8% | 33.2% |
| EBITDA Margin | 28.0% | -17.2% | -39.5% | -51.9% | -24.9% | 27.0% |
| Net Income Margin | 21.1% | -22.9% | -128.0% | -38.1% | -43.3% | -5.2% |
| SG&A, % of revenue | | | 19.9% | 20.7% | 23.1% | 2.3% |
| CAPEX, % of revenue | 1.5% | 4.0% | 2.4% | 7.1% | 4.9% | -2.2% |
| ROIC | 26.6% | -13.5% | -32.6% | -64.7% | -50.0% | 14.6% |
| ROE | 20.7% | -16.2% | -116.4% | -96.7% | | 96.7% |
| Net Debt/EBITDA | -0.9x | | | | | 0.0x |
Revenue and profitability
Csf Group's Revenue increased on 2.7% in FY2016. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 27.0 pp from -51.9% to -24.9% in FY2016.
Gross Margin jumped on 33.2 pp from -35.0% to -1.8% in FY2016. SG&A as a % of Revenue increased on 2.3 pp from 20.7% to 23.1% in FY2016.
Net Income marign decreased on 5.2 pp from -38.1% to -43.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Csf Group had CAPEX/Revenue of 4.9%. CAPEX/Revenue increased slightly on 0.88 pp from 4.0% in FY2013 to 4.9% in FY2016. Average CAPEX/Revenue for the last three years was 4.8%.
Leverage (Debt)
Debt level is 1.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt dropped on 42.0% in FY2016 while cash jumped on 46.0% in FY2016.
Appendix 1: Peers in Software & Computer Services
Below we provide Csf Group 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Coms ($COMS) | | 46.8% | 763.3% | 110.4% | 36.1% |
| Centralnic Group ($CNIC) | 15.9% | 4.0% | 98.9% | 71.3% | |
| Proactis Holdings ($PHD) | 20.4% | 7.0% | 26.2% | 69.6% | |
| Progility ($PGY) | 4.6% | | | 51.0% | |
| Galasys ($GLS) | 14.3% | 20.9% | 311.1% | 33.0% | |
| |
|---|
| Median (44 companies) | 7.8% | 6.8% | 5.2% | 4.7% | 15.5% |
|---|
| Csf Group ($CSFG) | | -31.2% | -27.7% | -21.0% | 2.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lombard Risk Management ($LRM) | 99.0% | 98.8% | 99.2% | 98.6% | 99.3% |
| Phoenix It Group ($PNX) | 97.0% | 97.2% | 97.6% | 97.9% | |
| Wandisco ($WAND) | 91.8% | 80.3% | 80.7% | 93.2% | |
| Netcall ($NET) | 88.2% | 89.7% | 91.0% | 90.9% | |
| Idox ($IDOX) | 90.4% | 90.8% | 89.4% | 89.3% | |
| |
|---|
| Median (37 companies) | 63.2% | 63.0% | 58.9% | 60.3% | 38.3% |
|---|
| Csf Group ($CSFG) | 37.8% | 21.8% | -6.8% | -35.0% | -1.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mail.Ru Group Ltd ($61HE) | 43.1% | 47.4% | 50.5% | 34.6% | |
| Dotdigital Group ($DOTD) | 31.4% | 39.4% | 29.2% | 32.0% | |
| Idox ($IDOX) | 30.9% | 26.1% | 26.0% | 28.6% | |
| Galasys ($GLS) | 44.0% | 83.6% | 32.6% | 28.5% | |
| Oxford Metrics ($OMG) | 15.7% | 6.0% | 14.7% | 28.4% | |
| |
|---|
| Median (44 companies) | 13.8% | 13.8% | 13.2% | 12.6% | 3.5% |
|---|
| Csf Group ($CSFG) | 28.0% | -17.2% | -39.5% | -51.9% | -24.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Rapidcloud Intl ($RCI) | 1.0% | 23.1% | 11.6% | 19.6% | |
| Coms ($COMS) | 0.5% | 0.9% | 3.4% | 7.5% | 0.1% |
| Nasstar ($NASA) | 17.9% | | 2.1% | 5.2% | |
| Unisys Corp ($USY) | 2.1% | 2.5% | 4.1% | 5.0% | |
| International Bus Mach Corp ($IBM) | 3.9% | 3.7% | 4.0% | 4.4% | |
| |
|---|
| Median (44 companies) | 1.5% | 1.5% | 1.9% | 1.1% | 0.4% |
|---|
| Csf Group ($CSFG) | 1.5% | 4.0% | 2.4% | 7.1% | 4.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Triad Group ($TRD) | 4.1% | -3.8% | 24.5% | 61.5% | 74.4% |
| Dotdigital Group ($DOTD) | 26.4% | 38.0% | 28.5% | 31.4% | |
| International Bus Mach Corp ($IBM) | 36.1% | 31.0% | 28.1% | 25.7% | |
| Galasys ($GLS) | 58.7% | 60.9% | 40.8% | 22.2% | |
| Instem ($INS) | 20.6% | 14.7% | 10.9% | 20.4% | |
| |
|---|
| Median (44 companies) | 12.5% | 11.6% | 9.8% | 6.2% | 1.6% |
|---|
| Csf Group ($CSFG) | 26.6% | -13.5% | -32.6% | -64.7% | -50.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progility ($PGY) | 2.0x | | 1.8x | 12.8x | |
| Parity Group ($PTY) | 4.7x | | 4.9x | 5.1x | |
| Nasstar ($NASA) | -5.3x | | 0.0x | 1.9x | |
| Phoenix It Group ($PNX) | 4.3x | | | 1.9x | |
| International Bus Mach Corp ($IBM) | 0.9x | 1.2x | 1.4x | 1.7x | |
| |
|---|
| Median (35 companies) | -0.4x | -0.4x | -0.3x | -0.5x | -1.4x |
|---|
